Table of Contents
| OMB APPROVAL | ||
| OMB Number: 3235-0570 | ||
| Expires: January 31, 2017 | ||
| Estimated average burden hours per response: 20.6 | ||
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1879
Janus Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Stephanie Grauerholz, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 303-333-3863
Date of fiscal year end: 9/30
Date of reporting period: 9/30/14
Table of Contents
Item 1 - Reports to Shareholders
Table of Contents
annual report
September 30, 2014
Janus Alternative Fund
highlights
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Alternative Fund
| 1 | ||||||||
| 11 | ||||||||
| 13 | ||||||||
| 15 | ||||||||
| 16 | ||||||||
| 17 | ||||||||
| 20 | ||||||||
| 34 | ||||||||
| 35 | ||||||||
| 46 | ||||||||
| 49 | ||||||||
| 50 | ||||||||
| EX-99.CERT | ||||||||
| EX-99.906CERT | ||||||||
Table of Contents
Janus Global Real Estate Fund (unaudited)
FUND SNAPSHOT We believe a flexible approach to global real estate investing that concentrates on businesses with prime assets in strategic locations, outsized growth potential and/or unrecognized embedded value will lead to substantial wealth creation over time. We use intensive fundamental research in an effort to uncover investments that have developed a targeted and/or vertically integrated real estate platform, practice disciplined capital allocation and show a clear ability to create value. |  Patrick Brophy portfolio manager |
PERFORMANCE
On a relative basis, Janus Global Real Estate Fund outperformed during the 12-month period ending September 30, 2014. The Fund’s Class I Shares finished the period up 12.28%, beating its benchmark, the FTSE EPRA/NAREIT Global Index, which gained 6.01%.
INVESTMENT ENVIRONMENT
Having devoted a big chunk of our last two annual letters to a discussion of our deep concerns surrounding debt – more specifically, sovereign debt in the developed world – and the potential unintended consequences of unprecedented easy-money policies, we will spare you this year. We don’t, however, want to give you the impression that we have lost our resolve on the issue, even though it’s admittedly getting much harder (and lonelier!) to wave the caution flag as markets dance away to the free-money orchestra, which seems to get a fresh dose of musicians every time the music slows even slightly. Maybe we’ve simply become too curmudgeonly, or it will actually “be different this time.” But having spent our career in a capital-intensive sector that relies heavily on debt, we’ve seen how quickly leverage can move from helpful to intoxicating to massively destructive. As we said last year, 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.
Putting the debt debate aside, let’s move on to what we care about most: real estate. We’ve discussed at length in past letters what we view as the multiple wealth creation/preservation attributes of the sector, so we thought we’d spend some time here highlighting how the real estate investment world is evolving. And on that front, we believe there is a dominant trend: like just about every other sector/industry we know of, real estate is becoming more efficient. Information is increasingly ubiquitous and much more widely disseminated; capital is more available and moves more freely; transparency is up, both as it relates to granular market trends – leasing, occupancy, cap rates, new supply, etc. – and best practices at the property management level; and in a sector that at the end of the day is still very much a “local” business, outsiders can now more easily crash the party, as the playing field is indeed rapidly becoming increasingly global. Yes, even in a stodgy, old industry like real estate, technology is having a massive impact.
Now, more efficient real estate markets are undoubtedly a societal plus – better allocation of capital, less volatility and a more capable “landlord to the global economy” – but from an investment standpoint, this clear progress is not necessarily a good thing. We’ve long described real estate markets as “blissfully inefficient,” and that inefficiency is a big part of what drew us to the industry (maybe we were just young and confused, but we at least understood that inefficiency breeds investment opportunity). The end result: our job is getting more difficult. Yet, the upside is that, even with all the recent progress, there remain significant inefficiencies, and it’s likely that to some degree many are structural. Each market has its own quirks, which can range from zoning/policy/building restrictions and basic supply/demand trends to ownership concentrations, demographics and environmental issues. Likewise, every sub-sector is unique; operating an office portfolio is very different from owning and managing apartments, just as there are vastly different requirements for property sectors as diverse as data centers, billboards, malls, cell towers and senior housing. Put simply, we still think that there are substantial opportunities to uncover an investment edge, which is what we set out to do every day.
PERFORMANCE DISCUSSION
Our relative outperformance during the year was driven by stock selection, which was particularly strong in the U.S. and Japan. Among geographies with a relatively large weighting in the index, stock selection was weakest in Hong Kong and Australia.
Our geographic allocation also contributed to relative performance, though to a lesser degree. Underweights to
Janus Alternative Fund | 1
Table of Contents
Janus Global Real Estate Fund (unaudited)
Japan and China, and an overweight to the U.S. were the largest contributors to relative results. Notable detractors were overweights to Brazil and the UK.
In terms of returns by sub-industry, the top contributors to the Fund’s performance were mortgage REITs and real estate services companies. Subtracting the most from relative performance were casino/gaming companies and diversified real estate companies. Our underweights to retail and residential REITs also hurt.
We’ve long emphasized that we have a somewhat atypical investment approach that hinges on our ability to capitalize on our research and the firm’s wide-ranging knowledge of multiple sectors to generate real estate ideas/opportunities that might be a bit off the beaten path, often not in the index. While usually a relatively small percentage of overall holdings (10-15%), these positions are often meaningful contributors to overall returns. We refer to these investments as special situations, and this year six of the Fund’s top ten contributors fit that billing. The six range from diversified real estate investors and hybrid REITs to homebuilders, hotel owners and the largest owner/operator of golf courses in the U.S. We believe all six are very much in the real estate business, and their positioning in the portfolio is predicated on the attractiveness of their valuation and risk/reward profile relative to opportunities in the index.
Top contributor NorthStar Realty was one of those special situations. NorthStar is a U.S.-based hybrid REIT involved in multiple businesses, ranging from real estate lending and debt structuring to private REIT management and the ownership of health care facilities, hotels and manufactured housing communities. We believe the company has proved an opportunistic and astute allocator of capital, and think that its recently completed spin-off of its asset management group will provide greater visibility into its potential for solid cash flow growth and further dividend increases.
Even though it’s now included in most of the major indexes, Chatham Lodging was another special situation when we first invested. The REIT was launched in 2010 to assemble a portfolio of upscale extended-stay and branded select-service hotels. We’ve been pleased with the company’s execution to date, and its focus on select service, a sector many of the larger hotel REITs shy away from, provides an attractive growth opportunity, in our opinion. The stock was buoyed earlier in the year by news of share purchases by activist investors, one of whom floated an offer to buy the company, and more recently by a large, strategic joint-venture that greatly expanded and, in our view, enhanced its portfolio.
While generally pleased with our performance during the period, we certainly had some hiccups and several holdings that put up disappointing results. Our biggest detractor was Mitsubishi Estate, one of the leading real estate companies in Japan, with a dominant leasing portfolio position in Marunouchi, the premier business location in Tokyo. In hindsight, we think a large part of its weak return was a too-much-too-fast reaction to an exceptional 2013, and we still like its long-term prospects. 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.
Hang Lung has been volatile over the last two years, and finished the 12-month period down a very disappointing 14%. We continue to believe that 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. And, while we haven’t wavered from our core thesis that a first-mover advantage in premium shopping mall development in second-tier cities in China should lead to significant value creation over the next decade, we acknowledge that initial yields on recent openings have been below pro forma, and the ramp in competitive supply has been more rapid and robust than we anticipated. The stock is currently under review.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
Despite a weak calendar third quarter – the final quarter of our fiscal year – that closed out with a dismal September, we actually remain fairly constructive on the real estate space as we charge into year-end 2014. This is in light of our considerable concerns about the strength and sustainability of the global recovery, more worries about geopolitical tensions, and increasing skepticism about the ability of policy makers, particularly in the U.S., to make difficult decisions. While certainly over-used, we think the “addict” analogy is appropriate; easy money is addictive, and weaning a still fragile global economy off of it will take courage and resolve, both of which seem in short supply in today’s public sector. Yes, there will be short-term pain, but we believe the alternative would prove
2 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
far worse. We simply don’t see the current policies of most of the world’s central banks as sustainable. This is precisely why we like being defensively positioned in an alternative asset class like real estate. We believe the sector has multiple attributes that could prove fortuitous in the coming months, and, if we had to identify a couple right now that we’d expect to garner increasing attention from investors, they would be the potential inflation hedge, scarcity value and yield generation associated with many of these hard assets.
Circling back to our opening discussion about the growing difficulty of sustaining an investment edge in increasingly efficient real estate markets, we will wrap up with a few high-level thoughts on three of the factors that we think are likely to boost potential returns in the coming year. First, there’s development. Delivering new, state-of-the-art product in heated acquisition markets – in many cases over-heated, at least in our view – where deals are being done at prices in excess of replacement cost is a solid means of enhancing net asset value. Secondly, there are the opportunistic and nimble management teams. These are the managers who typically have strong balance sheets and vertically-integrated platforms, giving them multiple levers with which to grow their businesses, take advantage of market dislocations and accretively recycle capital. And finally, there’s M&A (mergers and acquisitions). We’ve seen an uptick in the last year, and we believe it’s still early days – it’s a yield-starved world, and the wall of capital seeking good bricks and mortar (cash-flowing commercial real estate) seems to get bigger by the day. We hope our focus on discounted valuation will lead us to some attractive take-out candidates.
Thank you for your continued investment in Janus Global Real Estate Fund.
Janus Alternative Fund | 3
Table of Contents
Janus Global Real Estate Fund (unaudited)
Janus Global Real Estate Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| NorthStar Realty Finance Corp. | 1.07% | |||
| Chatham Lodging Trust | 1.02% | |||
| Kennedy-Wilson Holdings, Inc. | 0.92% | |||
| Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 0.73% | |||
| Digital Realty Trust, Inc. | 0.66% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Mitsubishi Estate Co., Ltd. | –0.47% | |||
| Hang Lung Properties, Ltd. | –0.40% | |||
| Iida Group Holdings Co., Ltd. | –0.30% | |||
| Wharf Holdings, Ltd. | –0.22% | |||
| PDG Realty SA Empreendimentos e Participacoes | –0.21% | |||
4 Top Performers – Sectors*
| Fund Weighting | FTSE EPRA/NAREIT Global | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Financials | 6.40% | 81.18% | 99.20% | |||||||||
| Consumer Discretionary | 1.04% | 8.00% | 0.65% | |||||||||
| Utilities | 0.26% | 2.11% | 0.00% | |||||||||
| Energy | 0.12% | 0.10% | 0.00% | |||||||||
4 Bottom Performers – Sectors*
| Fund Weighting | FTSE EPRA/NAREIT Global | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Other** | –0.34% | 6.84% | 0.08% | |||||||||
| Health Care | –0.06% | 1.06% | 0.05% | |||||||||
| Materials | 0.03% | 0.21% | 0.00% | |||||||||
| Industrials | 0.04% | 0.50% | 0.02% | |||||||||
| 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 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Chatham Lodging Trust Real Estate Investment Trusts (REITs) | 3.4% | |||
| Kennedy-Wilson Holdings, Inc. Real Estate Management & Development | 3.2% | |||
| Simon Property Group, Inc. Real Estate Investment Trusts (REITs) | 2.6% | |||
| Kennedy Wilson Europe Real Estate PLC Real Estate Management & Development | 2.4% | |||
| CapitaLand, Ltd. Real Estate Management & Development | 2.4% | |||
| 14.0% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 5.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Alternative Fund | 5
Table of Contents
Janus Global Real Estate Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Global Real Estate Fund – Class A Shares | |||||||||||
| NAV | 11.84% | 11.35% | 4.46% | 1.26% | 1.26% | ||||||
| MOP | 5.39% | 10.03% | 3.56% | ||||||||
| Janus Global Real Estate Fund – Class C Shares | |||||||||||
| NAV | 11.14% | 10.51% | 3.80% | 2.00% | 2.00% | ||||||
| CDSC | 10.14% | 10.51% | 3.80% | ||||||||
| Janus Global Real Estate Fund – Class D Shares(1) | 12.15% | 11.22% | 3.27% | 1.05% | 1.03% | ||||||
| Janus Global Real Estate Fund – Class I Shares | 12.28% | 11.68% | 4.75% | 0.96% | 0.96% | ||||||
| Janus Global Real Estate Fund – Class S Shares | 11.75% | 11.19% | 4.34% | 1.40% | 1.40% | ||||||
| Janus Global Real Estate Fund – Class T Shares | 12.02% | 11.54% | 3.80% | 1.13% | 1.13% | ||||||
| FTSE EPRA/NAREIT Global Index | 6.01% | 10.29% | 1.52% | ||||||||
| FTSE EPRA/NAREIT Developed Index | 6.71% | 11.26% | 2.05% | ||||||||
| Morningstar Quartile – Class I Shares | 1st | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Global Real Estate Funds | 1/221 | 13/174 | 6/151 | ||||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
See important disclosures on the next page.
6 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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.
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 of 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.
Janus Alternative Fund | 7
Table of Contents
Janus Global Real Estate 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,037.50 | $ | 6.69 | $ | 1,000.00 | $ | 1,018.50 | $ | 6.63 | 1.31% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,033.70 | $ | 10.60 | $ | 1,000.00 | $ | 1,014.64 | $ | 10.51 | 2.08% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,038.40 | $ | 5.88 | $ | 1,000.00 | $ | 1,019.30 | $ | 5.82 | 1.15% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,039.10 | $ | 5.16 | $ | 1,000.00 | $ | 1,020.01 | $ | 5.11 | 1.01% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,036.10 | $ | 7.45 | $ | 1,000.00 | $ | 1,017.75 | $ | 7.39 | 1.46% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,037.30 | $ | 6.13 | $ | 1,000.00 | $ | 1,019.05 | $ | 6.07 | 1.20% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 | SEPTEMBER 30, 2014
Table of Contents
Janus Global Real Estate Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 94.4% | ||||||||||
| Capital Markets – 1.1% | ||||||||||
| 94,679 | NorthStar Asset Management Group, Inc., New York | $ | 1,743,987 | |||||||
| 50,998 | Tricon Capital Group, Inc.# | 351,129 | ||||||||
| | ||||||||||
| 2,095,116 | ||||||||||
| Construction & Engineering – 0.1% | ||||||||||
| 48,959 | UGL, Ltd. | 260,332 | ||||||||
| Electric Utilities – 1.5% | ||||||||||
| 77,397 | Brookfield Infrastructure Partners LP | 2,941,086 | ||||||||
| Health Care Providers & Services – 0.9% | ||||||||||
| 84,104 | Capital Senior Living Corp.* | 1,785,528 | ||||||||
| Hotels, Restaurants & Leisure – 4.4% | ||||||||||
| 98,641 | ClubCorp Holdings, Inc. | 1,956,051 | ||||||||
| 119,288 | Crown Resorts, Ltd. | 1,434,843 | ||||||||
| 29,300 | Las Vegas Sands Corp. | 1,822,753 | ||||||||
| 13,011 | Vail Resorts, Inc. | 1,128,835 | ||||||||
| 32,622 | Whitbread PLC | 2,195,645 | ||||||||
| | ||||||||||
| 8,538,127 | ||||||||||
| Household Durables – 3.8% | ||||||||||
| 60,300 | First Juken Co., Ltd. | 767,733 | ||||||||
| 67,300 | Iida Group Holdings Co., Ltd. | 824,169 | ||||||||
| 133,318 | LGI Homes, Inc. | 2,447,718 | ||||||||
| 222,056 | New Home Co., Inc.* | 2,997,756 | ||||||||
| 435,800 | PDG Realty SA Empreendimentos e Participacoes | 195,865 | ||||||||
| | ||||||||||
| 7,233,241 | ||||||||||
| Independent Power and Renewable Electricity Producers – 1.0% | ||||||||||
| 54,354 | Abengoa Yield PLC* | 1,933,915 | ||||||||
| Industrial Conglomerates – 1.0% | ||||||||||
| 3,828,000 | Shun Tak Holdings, Ltd. | 1,878,852 | ||||||||
| Media – 1.4% | ||||||||||
| 54,100 | Fuji Media Holdings, Inc. | 805,235 | ||||||||
| 40,139 | Lamar Advertising Co. – Class A | 1,976,846 | ||||||||
| | ||||||||||
| 2,782,081 | ||||||||||
| Metals & Mining – 0.2% | ||||||||||
| 195,279 | Copper Mountain Mining Corp.* | 422,018 | ||||||||
| Oil, Gas & Consumable Fuels – 0.7% | ||||||||||
| 55,677 | Hoegh LNG Partners LP* | 1,275,560 | ||||||||
| Real Estate Investment Trusts (REITs) – 49.0% | ||||||||||
| 56,636 | Acadia Realty Trust | 1,562,021 | ||||||||
| 2,521,261 | AIMS AMP Capital Industrial REIT | 2,831,443 | ||||||||
| 35,864 | Alexandria Real Estate Equities, Inc. | 2,644,970 | ||||||||
| 79,395 | American Assets Trust, Inc. | 2,617,653 | ||||||||
| 41,695 | American Tower Corp. | 3,903,903 | ||||||||
| 1,873,800 | Ascott Residence Trust | 1,814,666 | ||||||||
| 688,815 | Astro Japan Property Group | 2,683,298 | ||||||||
| 12,510 | AvalonBay Communities, Inc. | 1,763,535 | ||||||||
| 20,819 | Boston Properties, Inc. | 2,410,007 | ||||||||
| 583,904 | Charter Hall Group | 2,091,656 | ||||||||
| 285,834 | Chatham Lodging Trust | 6,597,049 | ||||||||
| 78,490 | Colony Financial, Inc. | 1,756,606 | ||||||||
| 785,158 | Concentradora Fibra Danhos SA de CV | 2,116,486 | ||||||||
| 775,066 | Concentradora Fibra Hotelera Mexicana SA de CV | 1,358,033 | ||||||||
| 1,267,243 | Cromwell Property Group | 1,054,153 | ||||||||
| 44,407 | Digital Realty Trust, Inc.# | 2,770,109 | ||||||||
| 69,073 | DuPont Fabros Technology, Inc. | 1,867,734 | ||||||||
| 96,327 | Education Realty Trust, Inc. | 990,241 | ||||||||
| 46,401 | Equity Commonwealth* | 1,192,970 | ||||||||
| 29,944 | Equity Lifestyle Properties, Inc. | 1,268,428 | ||||||||
| 153,018 | Great Portland Estates PLC | 1,584,254 | ||||||||
| 1,225 | Hulic REIT, Inc. | 1,971,146 | ||||||||
| 36,465 | Kite Realty Group Trust | 883,912 | ||||||||
| 99,588 | Land Securities Group PLC | 1,671,123 | ||||||||
| 233,773 | Lexington Realty Trust# | 2,288,638 | ||||||||
| 24,814 | Macerich Co. | 1,583,878 | ||||||||
| 57,770 | Mack-Cali Realty Corp. | 1,103,985 | ||||||||
| 31,000 | Morguard Real Estate Investment Trust | 513,252 | ||||||||
| 1,516 | Mori Hills REIT Investment Corp. | 2,107,462 | ||||||||
| 1,879,416 | National Storage REIT | 2,201,347 | ||||||||
| 834 | Nippon Prologis REIT, Inc. | 1,936,952 | ||||||||
| 172,885 | NorthStar Realty Finance Corp. | 3,054,878 | ||||||||
| 74,974 | Pebblebrook Hotel Trust | 2,799,529 | ||||||||
| 49,808 | Post Properties, Inc. | 2,557,143 | ||||||||
| 296,100 | Prologis Property Mexico SA de CV | 622,663 | ||||||||
| 33,394 | Prologis, Inc. | 1,258,954 | ||||||||
| 240,137 | Pure Industrial Real Estate Trust# | 949,997 | ||||||||
| 92,525 | Ramco-Gershenson Properties Trust | 1,503,531 | ||||||||
| 274,550 | Scentre Group* | 786,082 | ||||||||
| 30,498 | Simon Property Group, Inc. | 5,014,481 | ||||||||
| 67,929 | STAG Industrial, Inc. | 1,406,810 | ||||||||
| 102,263 | Starwood Property Trust, Inc. | 2,245,695 | ||||||||
| 73,604 | Terreno Realty Corp. | 1,385,963 | ||||||||
| 7,131 | Unibail-Rodamco SE | 1,831,048 | ||||||||
| 53,307 | Ventas, Inc. | 3,302,369 | ||||||||
| 11,091 | Vornado Realty Trust | 1,108,656 | ||||||||
| 12,650 | Washington Prime Group, Inc. | 221,122 | ||||||||
| 220,292 | Westfield Corp. | 1,432,540 | ||||||||
| | ||||||||||
| 94,622,371 | ||||||||||
| Real Estate Management & Development – 29.3% | ||||||||||
| 723,921 | Atrium European Real Estate, Ltd. | 3,761,692 | ||||||||
| 44,041 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 1,980,083 | ||||||||
| 4,926 | Brookfield Property Partners LP# | 103,791 | ||||||||
| 1,844,500 | CapitaLand, Ltd. | �� | 4,622,518 | |||||||
| 43,393 | CBRE Group, Inc. – Class A* | 1,290,508 | ||||||||
| 1,308,268 | Colony American Homes Holdings III LP – Private Placement*,§ | 1,452,178 | ||||||||
| 826,906 | Corp. Inmobiliaria Vesta SAB de CV | 1,770,288 | ||||||||
| 273,488 | Countrywide PLC | 1,992,241 | ||||||||
| 58,420,000 | CSI Properties, Ltd. | 2,444,766 | ||||||||
| 130,500 | Cyrela Commercial Properties SA Empreendimentos e Participacoes | 817,391 | ||||||||
| 117,131 | First Capital Realty, Inc. | 1,831,545 | ||||||||
| 7,506 | GAGFAH SA* | 139,386 | ||||||||
| 860,630 | Global Logistic Properties, Ltd. | 1,826,710 | ||||||||
| 1,514,000 | Hang Lung Properties, Ltd. | 4,301,605 | ||||||||
| 62,041 | Hispania Activos Inmobiliarios SAU* | 821,838 | ||||||||
| 134,000 | Hysan Development Co., Ltd. | 619,931 | ||||||||
| 124,300 | Iguatemi Empresa de Shopping Centers SA | 1,260,013 | ||||||||
| 263,153 | Kennedy Wilson Europe Real Estate PLC | 4,655,315 | ||||||||
| 255,690 | Kennedy-Wilson Holdings, Inc.† | 6,126,332 | ||||||||
| 532,368 | Kingdom Construction Corp. | 474,825 | ||||||||
| 40,759 | LEG Immobilien AG | 2,823,159 | ||||||||
| 80,800 | LPS Brasil Consultoria de Imoveis SA | 360,175 | ||||||||
| 124,000 | Mitsubishi Estate Co., Ltd. | 2,793,894 | ||||||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
Janus Alternative Fund | 9
Table of Contents
Janus Global Real Estate Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Real Estate Management & Development – (continued) | ||||||||||
| 59,000 | Mitsui Fudosan Co., Ltd. | $ | 1,809,514 | |||||||
| 112,584 | Phoenix Mills, Ltd. | 617,874 | ||||||||
| 327,371 | Songbird Estates PLC* | 1,374,092 | ||||||||
| 71,385 | St Joe Co.*,# | 1,422,703 | ||||||||
| 429,080 | Wharf Holdings, Ltd. | 3,052,109 | ||||||||
| | ||||||||||
| 56,546,476 | ||||||||||
| Total Common Stock (cost $164,383,687) | 182,314,703 | |||||||||
| Warrant – 0% | ||||||||||
| Real Estate Management & Development – 0% | ||||||||||
| 6,750 | Sun Hung Kai Properties, Ltd. expires 4/22/16* (cost $0) | 11,284 | ||||||||
| Money Market – 6.5% | ||||||||||
| 12,511,341 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $12,511,341) | 12,511,341 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 3.0% | ||||||||||
| 5,845,918 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $5,845,918) | 5,845,918 | ||||||||
| Total Investments (total cost $182,740,946) – 103.9% | 200,683,246 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (3.9)% | (7,619,233) | |||||||||
| Net Assets – 100% | $ | 193,064,013 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 115,169,625 | 57 | .4% | ||||
| Japan | 13,016,105 | 6 | .5 | |||||
| Hong Kong | 12,308,547 | 6 | .1 | |||||
| Australia | 11,944,251 | 6 | .0 | |||||
| Singapore | 11,095,337 | 5 | .5 | |||||
| United Kingdom | 8,817,355 | 4 | .4 | |||||
| Canada | 6,151,815 | 3 | .1 | |||||
| Mexico | 5,867,470 | 2 | .9 | |||||
| Austria | �� | 3,761,692 | 1 | .9 | ||||
| Germany | 2,962,545 | 1 | .5 | |||||
| Spain | 2,755,753 | 1 | .4 | |||||
| Brazil | 2,633,444 | 1 | .3 | |||||
| France | 1,831,048 | 0 | .9 | |||||
| Bermuda | 1,275,560 | 0 | .6 | |||||
| India | 617,874 | 0 | .3 | |||||
| Taiwan | 474,825 | 0 | .2 | |||||
| Total | $ | 200,683,246 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 9.1%. |
Schedule of OTC Written Option – Put
| Counterparty/Reference Asset | Value | |||
| Goldman Sachs International: St Joe Co. expires December 2014 1,490 contracts exercise price $18.00 (premiums received $63,995) | $ | (86,708) | ||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
10 | SEPTEMBER 30, 2014
Table of Contents
Notes to Schedule of Investments and Other Information
| 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. | |
| LP | 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. |
| * | Non-income producing security. | |
| † | 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 September 30, 2014, is noted below. |
| Fund | Aggregate Value | ||||
| Janus Global Real Estate Fund | $ | 2,995,000 | |||
°° | Rate shown is the 7-day yield as of September 30, 2014. | |
| # | Loaned security; a portion of the security is on loan at September 30, 2014. |
| § | Schedule of Restricted and Illiquid Securities (as of September 30, 2014) |
| Acquisition | Acquisition | Value as a | ||||||||||||
| Date | Cost | Value | % of Net Assets | |||||||||||
Janus Global Real Estate Fund | ||||||||||||||
| Colony American Homes Holdings III LP – Private Placement | 1/30/13 | $ | 1,310,000 | $ | 1,452,178 | 0.8 | % | |||||||
The Fund has registration rights for certain restricted securities held as of September 30, 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 year ended September 30, 2014. Unless otherwise indicated, all information in the table is for the year ended September 30, 2014. |
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 9/30/14 | Gain/(Loss) | Income | at 9/30/14 | |||||||||||||||
Janus Global Real Estate Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 41,314,541 | (35,468,623) | 5,845,918 | $ | – | $ | 16,126(1) | $ | 5,845,918 | |||||||||||
| Janus Cash Liquidity Fund LLC | 9,412,029 | 79,924,114 | (76,824,802) | 12,511,341 | – | 6,922 | 12,511,341 | ||||||||||||||
| Total | $ | – | $ | 23,048 | $ | 18,357,259 | |||||||||||||||
| (1) | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Alternative Fund | 11
Table of Contents
Notes to Schedule of Investments and Other Information (continued)
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of September 30, 2014. See Notes to Consolidated Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Global Real Estate Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Construction & Engineering | $ | – | $ | 260,332 | $ | – | |||||
| Hotels, Restaurants & Leisure | 4,907,639 | 3,630,488 | – | ||||||||
| Household Durables | 5,641,339 | 1,591,902 | – | ||||||||
| Industrial Conglomerates | – | 1,878,852 | – | ||||||||
| Media | 1,976,846 | 805,235 | – | ||||||||
| Real Estate Investment Trusts (REITs) | 68,625,201 | 25,997,170 | – | ||||||||
| Real Estate Management & Development | 16,962,829 | 38,131,469 | 1,452,178 | ||||||||
| All Other | 10,453,223 | ||||||||||
Warrant | 11,284 | – | – | ||||||||
Money Market | – | 12,511,341 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 5,845,918 | – | ||||||||
Total Assets | $ | 108,578,361 | $ | 90,652,707 | $ | 1,452,178 | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
Options Written, at Value | $ | – | $ | 86,708 | $ | – | |||||
| (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 the Fund at that date. Options are reported at their market value at measurement date. |
12 | SEPTEMBER 30, 2014
Table of Contents
Statement of Assets and Liabilities
| Janus Global | ||||
| As of September 30, 2014 | Real Estate Fund | |||
| Assets: | ||||
| Investments at cost | $ | 182,740,946 | ||
Unaffiliated investments at value(1) | $ | 182,325,987 | ||
| Affiliated investments at value | 18,357,259 | |||
| Cash | 25,141 | |||
Cash denominated in foreign currency(2) | 148,526 | |||
| Non-interested Trustees’ deferred compensation | 4,000 | |||
| Receivables: | ||||
| Investments sold | 12,227 | |||
| Fund shares sold | 631,605 | |||
| Dividends | 416,820 | |||
| Dividends from affiliates | 1,046 | |||
| Foreign dividend tax reclaim | 6,187 | |||
| Other assets | 3,481 | |||
| Total Assets | 201,932,279 | |||
| Liabilities: | ||||
| Collateral for securities loaned (Note 3) | 5,845,918 | |||
Options written, at value(3) | 86,708 | |||
| Payables: | ||||
| Investments purchased | 1,823,683 | |||
| Fund shares repurchased | 745,843 | |||
| Dividends | 113,093 | |||
| Advisory fees | 138,731 | |||
| Fund administration fees | 1,618 | |||
| Internal servicing cost | 538 | |||
| Administrative services fees | 12,114 | |||
| Distribution fees and shareholder servicing fees | 11,007 | |||
| Administrative, networking and omnibus fees | 10,228 | |||
| Non-interested Trustees’ fees and expenses | 996 | |||
| Non-interested Trustees’ deferred compensation fees | 4,000 | |||
| Accrued expenses and other payables | 73,789 | |||
| Total Liabilities | 8,868,266 | |||
| Net Assets | $ | 193,064,013 | ||
See footnotes at the end of the Statement.
See Notes to Financial Statements.
Janus Alternative Fund | 13
Table of Contents
Statement of Assets and Liabilities (continued)
| Janus Global | ||||
| As of September 30, 2014 | Real Estate Fund | |||
| Net Assets Consist of: | ||||
| Capital (par value and paid-in surplus)* | $ | 173,156,000 | ||
| Undistributed net investment income/(loss)* | (833,001) | |||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 2,824,844 | |||
| Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 17,916,170 | |||
| Total Net Assets | $ | 193,064,013 | ||
| Net Assets - Class A Shares | $ | 20,441,027 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,864,957 | |||
Net Asset Value Per Share(4) | $ | 10.96 | ||
Maximum Offering Price Per Share(5) | $ | 11.63 | ||
| Net Assets - Class C Shares | $ | 7,517,733 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 691,222 | |||
Net Asset Value Per Share(4) | $ | 10.88 | ||
| Net Assets - Class D Shares | $ | 44,442,583 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,025,502 | |||
| Net Asset Value Per Share | $ | 11.04 | ||
| Net Assets - Class I Shares | $ | 82,914,828 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,517,855 | |||
| Net Asset Value Per Share | $ | 11.03 | ||
| Net Assets - Class S Shares | $ | 2,112,065 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 192,562 | |||
| Net Asset Value Per Share | $ | 10.97 | ||
| Net Assets - Class T Shares | $ | 35,635,777 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,230,059 | |||
| Net Asset Value Per Share | $ | 11.03 | ||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Unaffiliated investments at value includes $5,670,889 of securities loaned. See Note 3 in Notes to Financial Statements. | |
| (2) | Includes cost of $148,526. | |
| (3) | Premiums received $63,995. | |
| (4) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (5) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
14 | SEPTEMBER 30, 2014
Table of Contents
Statement of Operations
| Janus Global | ||||
| For the year ended September 30, 2014 | Real Estate Fund | |||
| Investment Income: | ||||
| Affiliated securities lending income, net | $ | 16,126 | ||
| Dividends | 4,408,031 | |||
| Dividends from affiliates | 6,922 | |||
| Other income | 26 | |||
| Foreign tax withheld | (118,474) | |||
| Total Investment Income | 4,312,631 | |||
| Expenses: | ||||
| Advisory fees | 1,085,553 | |||
| Internal servicing expense - Class A Shares | 1,660 | |||
| Internal servicing expense - Class C Shares | 1,201 | |||
| Internal servicing expense - Class I Shares | 2,554 | |||
| Shareholder reports expense | 54,977 | |||
| Transfer agent fees and expenses | 19,435 | |||
| Registration fees | 115,898 | |||
| Custodian fees | 20,060 | |||
| Professional fees | 64,721 | |||
| Non-interested Trustees’ fees and expenses | 3,778 | |||
| Fund administration fees | 13,485 | |||
| Administrative services fees - Class D Shares | 45,122 | |||
| Administrative services fees - Class S Shares | 4,252 | |||
| Administrative services fees - Class T Shares | 54,518 | |||
| Distribution fees and shareholder servicing fees - Class A Shares | 40,009 | |||
| Distribution fees and shareholder servicing fees - Class C Shares | 69,361 | |||
| Distribution fees and shareholder servicing fees - Class S Shares | 4,252 | |||
| Administrative, networking and omnibus fees - Class A Shares | 20,410 | |||
| Administrative, networking and omnibus fees - Class C Shares | 8,918 | |||
| Administrative, networking and omnibus fees - Class I Shares | 43,090 | |||
| Other expenses | 22,966 | |||
| Total Expenses | 1,696,220 | |||
| Less: Expense and Fee Offset | (65) | |||
| Less: Excess Expense Reimbursement | (12,564) | |||
| Net Expenses | 1,683,591 | |||
| Net Investment Income/(Loss) | 2,629,040 | |||
| Net Realized Gain/(Loss) on Investments: | ||||
| Investments and foreign currency transactions | 4,005,880 | |||
| Written options contracts | 120,586 | |||
| Total Net Realized Gain/(Loss) on Investments | 4,126,466 | |||
| Change in Unrealized Net Appreciation/Depreciation: | ||||
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | 6,547,283 | |||
| Written options contracts | (45,819) | |||
| Total Change in Unrealized Net Appreciation/Depreciation | 6,501,464 | |||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 13,256,970 | ||
See Notes to Financial Statements.
Janus Alternative Fund | 15
Table of Contents
Statements of Changes in Net Assets
| Janus Global | ||||||||
| Real Estate Fund | ||||||||
| For each year ended September 30 | 2014 | 2013(1) | ||||||
| Operations: | ||||||||
| Net investment income/(loss) | $ | 2,629,040 | $ | 2,184,651 | ||||
| Net realized gain/(loss) on investments | 4,126,466 | 5,242,192 | ||||||
| Change in unrealized net appreciation/depreciation | 6,501,464 | 2,129,758 | ||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 13,256,970 | 9,556,601 | ||||||
| Dividends and Distributions to Shareholders: | ||||||||
| Net Investment Income* | ||||||||
| Class A Shares | (287,497) | (336,679) | ||||||
| Class C Shares | (90,730) | (106,120) | ||||||
| Class D Shares | (750,608) | (1,399,324) | ||||||
| Class I Shares | (1,299,730) | (1,489,229) | ||||||
| Class S Shares | (28,227) | (29,569) | ||||||
| Class T Shares | (444,152) | (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 | (8,405,994) | (3,968,705) | ||||||
| Capital Share Transactions: | ||||||||
| Shares Sold | ||||||||
| Class A Shares | 12,288,800 | 8,987,007 | ||||||
| Class C Shares | 2,345,894 | 3,022,497 | ||||||
| Class D Shares | 18,267,670 | 30,232,220 | ||||||
| Class I Shares | 42,944,312 | 25,019,041 | ||||||
| Class S Shares | 1,103,827 | 895,454 | ||||||
| Class T Shares | 23,117,138 | 23,755,584 | ||||||
| Reinvested Dividends and Distributions | ||||||||
| Class A Shares | 860,978 | 322,791 | ||||||
| Class C Shares | 259,922 | 74,845 | ||||||
| Class D Shares | 2,195,064 | 1,383,563 | ||||||
| Class I Shares | 2,571,362 | 1,305,340 | ||||||
| Class S Shares | 86,672 | 29,569 | ||||||
| Class T Shares | 1,241,751 | 604,785 | ||||||
| Shares Repurchased | ||||||||
| Class A Shares | (6,523,885) | (6,749,282) | ||||||
| Class C Shares | (1,577,348) | (947,613) | ||||||
| Class D Shares | (15,804,153) | (26,803,651) | ||||||
| Class I Shares | (10,616,455) | (16,554,590) | ||||||
| Class S Shares | (471,886) | (301,815) | ||||||
| Class T Shares | (8,654,500) | (14,887,365) | ||||||
| Net Increase/(Decrease) from Capital Share Transactions | 63,635,163 | 29,388,380 | ||||||
| Net Increase/(Decrease) in Net Assets | 68,486,139 | 34,976,276 | ||||||
| Net Assets: | ||||||||
| Beginning of period | 124,577,874 | 89,601,598 | ||||||
| End of period | $ | 193,064,013 | $ | 124,577,874 | ||||
| Undistributed Net Investment Income/(Loss)* | $ | (833,001) | $ | (554,997) | ||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
See Notes to Financial Statements.
16 | SEPTEMBER 30, 2014
Table of Contents
Financial Highlights
Class A Shares
| Janus Global Real Estate Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $10.46 | $9.91 | $7.60 | $9.09 | $7.49 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.18(1) | 0.25 | 0.15 | 0.21 | 0.16 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.99 | 0.64 | 2.31 | (1.50) | 1.58 | |||||||||||||||||
| Total from Investment Operations | 1.17 | 0.89 | 2.46 | (1.29) | 1.74 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.20) | (0.34) | (0.15) | (0.20) | (0.14) | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.67) | (0.34) | (0.15) | (0.20) | (0.14) | |||||||||||||||||
| Net Asset Value, End of Period | $10.96 | $10.46 | $9.91 | $7.60 | $9.09 | |||||||||||||||||
| Total Return | 11.84% | 9.04% | 32.82% | (14.60)% | 23.57% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $20,441 | $13,178 | $10,195 | $6,625 | $6,197 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $16,004 | $11,812 | $7,615 | $8,323 | $3,136 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.32% | 1.26% | 1.54% | 1.48% | 2.04% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.32% | 1.26% | 1.52% | 1.47% | 1.57% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.65% | 1.61% | 1.62% | 2.28% | 1.82% | |||||||||||||||||
| Portfolio Turnover Rate | 24% | 32% | 29% | 68% | 14% | |||||||||||||||||
Class C Shares
| Janus Global Real Estate Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $10.40 | $9.85 | $7.56 | $9.06 | $7.52 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.09(1) | 0.18 | 0.08 | 0.17 | 0.10 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.01 | 0.61 | 2.30 | (1.52) | 1.58 | |||||||||||||||||
| Total from Investment Operations | 1.10 | 0.79 | 2.38 | (1.35) | 1.68 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.15) | (0.24) | (0.09) | (0.15) | (0.14) | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.62) | (0.24) | (0.09) | (0.15) | (0.14) | |||||||||||||||||
| Net Asset Value, End of Period | $10.88 | $10.40 | $9.85 | $7.56 | $9.06 | |||||||||||||||||
| Total Return | 11.14% | 8.11% | 31.81% | (15.18)% | 22.72% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $7,518 | $6,162 | $3,825 | $3,531 | $1,252 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,936 | $5,387 | $3,482 | $3,237 | $844 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 2.08% | 2.00% | 2.37% | 2.18% | 2.78% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 2.08% | 2.00% | 2.28% | 2.18% | 2.32% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 0.85% | 0.90% | 0.89% | 1.36% | 1.04% | |||||||||||||||||
| Portfolio Turnover Rate | 24% | 32% | 29% | 68% | 14% | |||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Alternative Fund | 17
Table of Contents
Financial Highlights (continued)
Class D Shares
| Janus Global Real Estate Fund | ||||||||||||||||||||||
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.20(2) | 0.25 | 0.16 | 0.22 | 0.05 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.01 | 0.65 | 2.34 | (1.51) | 1.45 | |||||||||||||||||
| Total from Investment Operations | 1.21 | 0.90 | 2.50 | (1.29) | 1.50 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.37) | (0.17) | (0.21) | – | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | 0.01 | 0.01 | |||||||||||||||||
| Total Distributions and Other | (0.69) | (0.37) | (0.17) | (0.20) | 0.01 | |||||||||||||||||
| Net Asset Value, End of Period | $11.04 | $10.52 | $9.99 | $7.66 | $9.15 | |||||||||||||||||
| Total Return** | 12.15% | 9.11% | 33.21% | (14.41)% | 19.76% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $44,443 | $38,341 | $31,503 | $15,105 | $11,388 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $37,602 | $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*** | 1.15% | 1.05% | 1.34% | 1.34% | 1.83% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.12% | 1.05% | 1.34% | 1.34% | 1.43% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.79% | 1.79% | 1.87% | 2.34% | 2.21% | |||||||||||||||||
| Portfolio Turnover Rate | 24% | 32% | 29% | 68% | 14% | |||||||||||||||||
Class I Shares
| Janus Global Real Estate Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $10.51 | $9.98 | $7.66 | $9.14 | $7.51 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.21(2) | 0.23 | 0.19 | 0.24 | 0.16 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.01 | 0.68 | 2.31 | (1.51) | 1.61 | |||||||||||||||||
| Total from Investment Operations | 1.22 | 0.91 | 2.50 | (1.27) | 1.77 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.23) | (0.38) | (0.18) | (0.21) | (0.14) | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | |||||||||||||||||
| Total Distributions and Other | (0.70) | (0.38) | (0.18) | (0.21) | (0.14) | |||||||||||||||||
| Net Asset Value, End of Period | $11.03 | $10.51 | $9.98 | $7.66 | $9.14 | |||||||||||||||||
| Total Return | 12.28% | 9.27% | 33.26% | (14.29)% | 23.97% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $82,915 | $45,983 | $34,134 | $24,921 | $23,199 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $61,878 | $39,107 | $30,270 | $31,267 | $17,714 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.01% | 0.96% | 1.17% | 1.20% | 1.74% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.01% | 0.96% | 1.17% | 1.20% | 1.32% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.95% | 1.96% | 2.05% | 2.47% | 2.02% | |||||||||||||||||
| Portfolio Turnover Rate | 24% | 32% | 29% | 68% | 14% | |||||||||||||||||
| * | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
18 | SEPTEMBER 30, 2014
Table of Contents
Class S Shares
| Janus Global Real Estate Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $10.47 | $9.93 | $7.62 | $9.08 | $7.50 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.16(1) | 0.23 | 0.14 | 0.21 | 0.12 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.01 | 0.64 | 2.32 | (1.52) | 1.60 | |||||||||||||||||
| Total from Investment Operations | 1.17 | 0.87 | 2.46 | (1.31) | 1.72 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.20) | (0.33) | (0.15) | (0.15) | (0.14) | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | – | – | |||||||||||||||||
| Total Distributions and Other | (0.67) | (0.33) | (0.15) | (0.15) | (0.14) | |||||||||||||||||
| Net Asset Value, End of Period | $10.97 | $10.47 | $9.93 | $7.62 | $9.08 | |||||||||||||||||
| Total Return | 11.75% | 8.89% | 32.69% | (14.67)% | 23.32% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,112 | $1,317 | $654 | $346 | $543 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,701 | $1,061 | $589 | $539 | $477 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.45% | 1.40% | 1.57% | 1.62% | 2.19% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.45% | 1.38% | 1.54% | 1.62% | 1.82% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.49% | 1.58% | 1.53% | 2.22% | 1.49% | |||||||||||||||||
| Portfolio Turnover Rate | 24% | 32% | 29% | 68% | 14% | |||||||||||||||||
Class T Shares
| Janus Global Real Estate Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $10.52 | $9.99 | $7.64 | $9.12 | $7.50 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.20(1) | 0.25 | 0.12 | 0.27 | 0.15 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.00 | 0.65 | 2.37 | (1.56) | 1.61 | |||||||||||||||||
| Total from Investment Operations | 1.20 | 0.90 | 2.49 | (1.29) | 1.76 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.37) | (0.14) | (0.21) | (0.14) | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | 0.02 | –(2) | |||||||||||||||||
| Total Distributions and Other | (0.69) | (0.37) | (0.14) | (0.19) | (0.14) | |||||||||||||||||
| Net Asset Value, End of Period | $11.03 | $10.52 | $9.99 | $7.64 | $9.12 | |||||||||||||||||
| Total Return | 12.02% | 9.15% | 33.08% | (14.33)% | 23.86% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $35,636 | $19,597 | $9,291 | $3,180 | $2,801 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $21,807 | $20,814 | $5,114 | $6,456 | $528 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.18% | 1.13% | 1.31% | 1.34% | 2.22% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.18% | 1.13% | 1.30% | 1.34% | 1.58% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.82% | 1.76% | 1.81% | 2.14% | 2.39% | |||||||||||||||||
| Portfolio Turnover Rate | 24% | 32% | 29% | 68% | 14% | |||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (2) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Alternative Fund | 19
Table of Contents
Notes to Financial Statements
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 year ended September 30, 2014. The Trust offers forty-six 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. Class D 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 no 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 or, as needed, by obtaining market quotations from independent broker-dealers. Certain 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
20 | SEPTEMBER 30, 2014
Table of Contents
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.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
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.
Janus Alternative Fund | 21
Table of Contents
Notes to Financial Statements (continued)
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 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 may be 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, swaps, investments in unregistered investment companies, 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.
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 September 30, 2014 to value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
The Fund did not hold a significant amount of Level 3 securities as of September 30, 2014.
The following table shows the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the year. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
| Transfers Out | ||||||
| of Level 1 | ||||||
| Fund | to Level 2 | |||||
| Janus Global Real Estate Fund | $ | 36,999,242 | ||||
Financial assets were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current fiscal year and no factor was applied at the end of the prior fiscal year.
22 | SEPTEMBER 30, 2014
Table of Contents
| 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 year ended September 30, 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 purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative (to earn income and seek to enhance returns) purposes. When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets in which it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| • | 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 net asset value (“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 |
Janus Alternative Fund | 23
Table of Contents
Notes to Financial Statements (continued)
| 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 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.
During the year, the Fund wrote put options on various equity securities for the purpose of increasing exposure to individual equity risk and/or generating income.
The following table provides average ending monthly market value amounts on written put options during the year ended September 30, 2014.
| Fund | Written Put Options | |||||
| Janus Global Real Estate Fund | $ | 26,768 | ||||
24 | SEPTEMBER 30, 2014
Table of Contents
Written option activity for the year ended September 30, 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 | 3,335 | 251,393 | ||||||||
| Options closed | – | – | ||||||||
| Options expired | (1,309) | (120,586) | ||||||||
| Options exercised | (668) | (92,865) | ||||||||
| Options outstanding at September 30, 2014 | 1,490 | $ | 63,995 | |||||||
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of September 30, 2014.
Fair Value of Derivative Instruments as of September 30, 2014
| Derivatives not accounted | Liability Derivatives | |||||||
| for as hedging instruments | Statement of Assets and Liabilities Location | Fair Value | ||||||
Janus Global Real Estate Fund | ||||||||
| Equity Contracts | Options written, at value | $ | 86,708 | |||||
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended September 30, 2014.
The effect of Derivative Instruments on the Statement of Operations for the year ended September 30, 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 | $ | (45,819 | ) | |
Please see the Fund’s Statement of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
| 3. | Other Investments and Strategies |
Additional Investment Risk
The financial crisis that began in 2008 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 took steps to support the financial markets. The withdrawal of this support, a failure of measures put into place to respond to the crisis, or investor perception that such efforts were not sufficient each could 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 continue to impact 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. As a result, 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 provided 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 remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the
Janus Alternative Fund | 25
Table of Contents
Notes to Financial Statements (continued)
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 increased 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 restructurings 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 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 with respect to financial assets and liabilities approximates its carrying value. See the “Offsetting Assets and Liabilities” section of this Note for further details.
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 market countries.” 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, sanctions or imposition of restrictions by various governmental entities on investment and trading, 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 presents 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
26 | SEPTEMBER 30, 2014
Table of Contents
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 the 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 instruments’ 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 instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities.
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). For corresponding information grouped by type of instrument, see either the “Fair Value of Derivative Instruments as of September 30, 2014” table located in Note 2 of these Notes to Financial Statements and/or the Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets
| Gross Amounts | ||||||||||||||||||
| Counterparty | of Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Deutsche Bank AG | $ | 5,670,889 | $ | – | $ | (5,670,889) | $ | – | ||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities
| Gross Amounts | ||||||||||||||||||
| Counterparty | of Recognized Liabilities | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Goldman Sachs International | $ | 86,708 | $ | – | $ | – | $ | 86,708 | ||||||||||
| (a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | |
| (b) | 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.
The Fund may require the counterparty to pledge securities as collateral daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized gain on OTC derivative contracts with a particular counterparty. The Fund may deposit cash as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contacts with a particular counterparty. The collateral amounts are subject to minimum exposure requirements and initial margin requirements. Collateral amounts are monitored and subsequently adjusted up or down as valuations fluctuate by at least the minimum exposure requirement. Collateral may reduce the risk of loss.
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
Janus Alternative Fund | 27
Table of Contents
Notes to Financial Statements (continued)
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 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 the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund 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 Fund 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. 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.
| 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).
| Fund | Base Fee (%) | |||||
| 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
28 | SEPTEMBER 30, 2014
Table of Contents
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 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. The performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses for the year ended September 30, 2014 is:
| Performance Adjusted | ||||||
| Investment Advisory | ||||||
| Fund | Fee Rate (%) | |||||
| Janus Global Real Estate Fund | 0.74 | |||||
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 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.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund may pay the Trust’s distributor, Janus Distributors LLC, a wholly-owned subsidiary of Janus Capital, a fee at an annual rate 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. Under the terms of the Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their
Janus Alternative Fund | 29
Table of Contents
Notes to Financial Statements (continued)
customers who are investors in the Fund. 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 Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund, or reimburse expenses in an amount equal to the amount, if any, that the Fund’s normal operating expenses 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 September 30, 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 year ended September 30, 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 $283,000 were paid by the Trust to a Trustee under the Deferred Plan during the year ended September 30, 2014.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund indirectly pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital provides to the Fund. Some expenses related to compensation payable to the Fund’s Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $522,703 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 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 year ended September 30, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | ||||||
| Fund (Class A Shares) | Sales Charge | |||||
| Janus Global Real Estate Fund | $ | 6,562 | ||||
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 year ended September 30, 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 year ended September 30, 2014,
30 | SEPTEMBER 30, 2014
Table of Contents
redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | |||||
| Janus Global Real Estate Fund | $ | 931 | ||||
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 year ended September 30, 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 September 30, 2014, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
| % of Class | % of Fund | |||||||||
| Fund | Owned | 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 | 32 | 14 | ||||||||
| Janus Global Real Estate Fund - Class R Shares | – | – | ||||||||
| Janus Global Real Estate Fund - Class S Shares | – | – | ||||||||
| Janus Global Real Estate Fund - Class T Shares | – | – | ||||||||
| 5. | Federal Income Tax |
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives and foreign currency contract adjustments. 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.
| Undistributed | Undistributed | Loss Deferrals | Other Book | ||||||||||||||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year | Post-October | to Tax | Net Tax | |||||||||||||||||||||||||
| Fund | Income | Gains | Capital Losses | Ordinary Loss | Capital Loss | Differences | Appreciation | ||||||||||||||||||||||||
| Janus Global Real Estate Fund | $ | 3,553,486 | $ | 2,064,136 | $ | – | $ | – | $ | – | $ | (28,670) | $ | 14,319,061 | |||||||||||||||||
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 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.
| Federal Tax | Unrealized | Unrealized | ||||||||||||
| Fund | Cost | Appreciation | (Depreciation) | |||||||||||
| Janus Global Real Estate Fund | $ | 186,364,185 | $ | 20,000,808 | $ | (5,681,747) | ||||||||
Janus Alternative Fund | 31
Table of Contents
Notes to Financial Statements (continued)
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. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
For the year ended September 30, 2014
| Distributions | ||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||
| Janus Global Real Estate Fund | $ | 3,245,371 | $ | 5,160,623 | $ | – | $ | – | ||||||||||||||
For the year ended September 30, 2013 | ||||||||||||||||||||||
| Distributions | ||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||
| Janus Global Real Estate Fund | $ | 3,968,705 | $ | – | $ | – | $ | – | ||||||||||||||
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Fund:
| Increase/(Decrease) | Increase/(Decrease) | |||||||||||||
| Increase/(Decrease) | to Undistributed Net | to Undistributed Net | ||||||||||||
| Fund | to Capital | Investment Income/Loss | Realized Gain/Loss | |||||||||||
| Janus Global Real Estate Fund | $ | – | $ | (6,100) | $ | 6,100 | ||||||||
| 6. | Capital Share Transactions |
| Janus Global Real | ||||||||||
| Estate Fund | ||||||||||
| For each year ended September 30 | 2014 | 2013(1) | ||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||
| Shares sold | 1,123,422 | 851,045 | ||||||||
| Reinvested dividends and distributions | 85,733 | 31,614 | ||||||||
| Shares repurchased | (604,440) | (650,673) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 604,715 | 231,986 | ||||||||
| Shares Outstanding, Beginning of Period | 1,260,242 | 1,028,256 | ||||||||
| Shares Outstanding, End of Period | 1,864,957 | 1,260,242 | ||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||
| Shares sold | 218,558 | 288,355 | ||||||||
| Reinvested dividends and distributions | 26,182 | 7,367 | ||||||||
| Shares repurchased | (145,791) | (91,833) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 98,949 | 203,889 | ||||||||
| Shares Outstanding, Beginning of Period | 592,273 | 388,384 | ||||||||
| Shares Outstanding, End of Period | 691,222 | 592,273 | ||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||
| Shares sold | 1,633,610 | 2,891,707 | ||||||||
| Reinvested dividends and distributions | 216,581 | 134,969 | ||||||||
| Shares repurchased | (1,467,524) | (2,538,601) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 382,667 | 488,075 | ||||||||
| Shares Outstanding, Beginning of Period | 3,642,835 | 3,154,760 | ||||||||
| Shares Outstanding, End of Period | 4,025,502 | 3,642,835 | ||||||||
32 | SEPTEMBER 30, 2014
Table of Contents
| Janus Global Real | ||||||||||
| Estate Fund | ||||||||||
| For each year ended September 30 | 2014 | 2013(1) | ||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||
| Shares sold | 3,880,982 | 2,383,035 | ||||||||
| Reinvested dividends and distributions | 253,453 | 127,436 | ||||||||
| Shares repurchased | (990,780) | (1,556,755) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 3,143,655 | 953,716 | ||||||||
| Shares Outstanding, Beginning of Period | 4,374,200 | 3,420,484 | ||||||||
| Shares Outstanding, End of Period | 7,517,855 | 4,374,200 | ||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||
| Shares sold | 102,299 | 85,757 | ||||||||
| Reinvested dividends and distributions | 8,609 | 2,891 | ||||||||
| Shares repurchased | (44,102) | (28,717) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 66,806 | 59,931 | ||||||||
| Shares Outstanding, Beginning of Period | 125,756 | 65,825 | ||||||||
| Shares Outstanding, End of Period | 192,562 | 125,756 | ||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||
| Shares sold | 2,044,929 | 2,281,090 | ||||||||
| Reinvested dividends and distributions | 122,329 | 58,968 | ||||||||
| Shares repurchased | (799,937) | (1,407,192) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 1,367,321 | 932,866 | ||||||||
| Shares Outstanding, Beginning of Period | 1,862,738 | 929,872 | ||||||||
| Shares Outstanding, End of Period | 3,230,059 | 1,862,738 | ||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
| 7. | Purchases and Sales of Investment Securities |
For the year ended September 30, 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 | $ | 88,033,914 | $ | 32,425,901 | $ | – | $ | – | ||||||
| 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 September 30, 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.
Janus Alternative Fund | 33
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders
of Janus Investment Fund:
of Janus Investment Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Janus Global Real Estate Fund (one of the funds constituting Janus Investment Fund, hereafter referred to as the “Fund”) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
November 14, 2014
34 | SEPTEMBER 30, 2014
Table of Contents
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,
Janus Alternative Fund | 35
Table of Contents
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. |
36 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Alternative Fund | 37
Table of Contents
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. |
38 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Alternative Fund | 39
Table of Contents
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
40 | SEPTEMBER 30, 2014
Table of Contents
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 |
Janus Alternative Fund | 41
Table of Contents
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. |
42 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Alternative Fund | 43
Table of Contents
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
44 | SEPTEMBER 30, 2014
Table of Contents
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.
Janus Alternative Fund | 45
Table of Contents
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 September 30, 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
46 | SEPTEMBER 30, 2014
Table of Contents
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
Janus Alternative Fund | 47
Table of Contents
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.
48 | SEPTEMBER 30, 2014
Table of Contents
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the year ended September 30, 2014:
Capital Gain Distributions
| Fund | ||||||||||
| Janus Global Real Estate Fund | $ | 5,160,623 | ||||||||
Qualified Dividend Income Percentage
| Fund | ||||||||||
| Janus Global Real Estate Fund | 29 | % | ||||||||
Janus Alternative Fund | 49
Table of Contents
Trustees and Officers (unaudited)
The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Fund’s Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 58 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
Independent Trustees | ||||||||||
| William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | Chairman Trustee | 1/08-Present 6/02-Present | Chief Executive Officer, Imprint Capital (impact investment firm) (since 2013), and Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 58 | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds), and Director of the F.B. Heron Foundation (a private grantmaking foundation). | |||||
50 | SEPTEMBER 30, 2014
Table of Contents
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Alan A. Brown 151 Detroit Street Denver, CO 80206 DOB: 1962 | Trustee | 1/13-Present | Managing Director, Institutional Markets, of Dividend Capital Group (private equity real estate investment management firm) (since 2012). Formerly, Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 58 | Director of MotiveQuest LLC (strategic social market research company) (since 2003), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of Nuveen Global Investors LLC (2007-2011); Director of Communities in Schools (2004-2010); and Director of Mutual Fund Education Alliance (until 2010). | |||||
| William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | Trustee | 1/11-Present | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgewater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 58 | Managing Trustee of National Retirement Partners Liquidating Trust (since 2013). Formerly, Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). | |||||
Janus Alternative Fund | 51
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | Trustee | 1/97-Present | Co-founder and Managing Director of Roaring Fork Capital SBIC, L.P. (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004), and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | 58 | Formerly, Director of Red Robin Gourmet Burgers, Inc. (RRGB) (2004- 2014). | |||||
| William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | Trustee | 6/84-Present | Retired. Formerly, Corporate Vice President and General Manager of MKS Instruments - HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products) (1976-2012). | 58 | None | |||||
52 | SEPTEMBER 30, 2014
Table of Contents
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 58 | Director of Chicago Community Trust (Regional Community Foundation), Chicago Council on Global Affairs, The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Lurie Children’s Hospital (Chicago, IL), Rehabilitation Institute of Chicago, Walmart, and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Convention & Tourism Bureau (until 2014). | |||||
Trustee Consultant | ||||||||||
| Raudline Etienne 151 Detroit Street Denver, CO 80206 DOB: 1965 | Consultant | 6/14-Present | Senior Vice President, Albright Stonebridge Group LLC (global strategy firm) (since 2011). Formerly, Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | N/A | None | |||||
Janus Alternative Fund | 53
Table of Contents
Trustees and Officers (unaudited) (continued)
OFFICERS
| Positions Held | Term of Office* and | Principal Occupations | ||||
| Name, Address, and Age | with the Trust | Length of Time Served | During the Past Five Years | |||
| Patrick Brophy 151 Detroit Street Denver, CO 80206 DOB: 1965 | Executive Vice President and Portfolio Manager Janus Global Real Estate Fund | 11/07-Present | Portfolio Manager for other Janus accounts. | |||
| Stephanie Grauerholz 151 Detroit Street Denver, CO 80206 DOB: 1970 | Chief Legal Counsel and Secretary Vice President | 1/06-Present 3/06-Present | Vice President and Assistant General Counsel of Janus Capital and Vice President and Assistant Secretary of Janus Distributors LLC. | |||
| Bruce L. Koepfgen 151 Detroit Street Denver, CO 80206 DOB: 1952 | President and Chief Executive Officer | 7/14-Present | President of Janus Capital Group Inc. and Janus Capital Management LLC (since August 2013); Executive Vice President and Director of Janus International Holding LLC (since August 2011); Executive Vice President of Janus Distributors LLC and Janus Services LLC (since July 2011); Executive Vice President and Working Director of INTECH Investment Management LLC (since July 2011); Executive Vice President and Director of Perkins Investment Management LLC (since July 2011); and Executive Vice President and Director of Janus Management Holdings Corporation (since May 2011). Formerly, Executive Vice President of Janus Capital Group Inc. and Janus Capital Management LLC (May 2011-July 2013); Chief Financial Officer of Janus Capital Group Inc., Janus Capital Management LLC, Janus Distributors LLC, Janus Management Holdings Corporation, and Janus Services LLC (July 2011-July 2013); and Co-Chief Executive Officer of Allianz Global Investors Management Partners and Chief Executive Officer of Oppenheimer Capital (2003-2009). | |||
| David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 6/02-Present | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC; and Director of The Janus Foundation. | |||
| Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | Chief Financial Officer Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present 2/05-Present | Vice President of Janus Capital and Janus Services LLC. | |||
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
54 | SEPTEMBER 30, 2014
Table of Contents
Notes
Janus Alternative Fund | 55
Table of Contents
Notes
56 | SEPTEMBER 30, 2014
Table of Contents
Notes
Janus Alternative Fund | 57
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-1114-74725 | 125-02-01400 11-14 |
Table of Contents
annual report
September 30, 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 | ||
| 78 | ||
| 88 | ||
| 92 | ||
| 96 | ||
| 104 | ||
| 131 | ||
| 157 | ||
| 158 | ||
| 169 | ||
| 172 | ||
| 173 |
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. We believe Asian economies and related equity markets are poised for secular growth. Given the world nature of these markets, equity prices may not at all times fully reflect business fundamentals. As such, fundamental research is the foundation of our Asia investment strategy. |  Hiroshi Yoh portfolio manager |
PERFORMANCE
Janus Asia Equity Fund’s Class I Shares returned 9.43% for the one-year period ended September 30, 2014. The Fund’s benchmark, the MSCI All Country Asia ex-Japan Index, returned 8.24%.
INVESTMENT ENVIRONMENT
Asian stocks lagged U.S. markets during the period, but performed relatively well compared to the rest of the world. Fourth quarter 2013 and early 2014 saw continued declines prompted by persistent concerns about the region’s slowing economic growth, particularly in China, mounting geopolitical risks in countries such as Russia and Thailand, and potential negative prospects around anticipated Federal Reserve tapering of its stimulative bond-buying program. The latter significantly weakened currencies of countries with account and fiscal deficits, as well as sparked large foreign investor outflows from the region. A positive market rebound began in February and continued through September, leading to strong gains driven by optimism for pro-business election wins in India and Indonesia, stronger emerging market investment inflows and stabilizing signs from China in areas such as manufacturing that indicated that although the world’s second-largest economy has slowed it may be doing so at a controllable pace. The final weeks of the period saw another reversal as a stronger U.S. dollar and likelihood of rising U.S. interest rates brought back unpleasant memories of the 1997 Asian financial crisis for many investors. Asian market fundamentals, however, appear much stronger today, with continued solid prospects for growth.
PERFORMANCE DISCUSSION
Fund outperformance was led by our holdings in China and India, and within consumer discretionary, financials and health care sectors.
The top individual contributor was PC Jeweller, a consumer discretionary stock in India. This operator of a jewelry store chain rallied significantly on higher jewelry and gold sales. Consumer spending generally has improved in India following the May elections that propelled Prime Minister Narendra Modi into power. We believe investors also appreciated the company’s discounted valuation as one of the cheapest stocks in India.
In China, consumer discretionary stock SAIC Motor was another top individual contributor, benefiting from higher auto sales. While GDP growth is slowing in China, auto sales are growing at double-digit levels. With the economy nearly at full employment, wage growth for blue collar workers is quite strong, which has led to higher car sales. Industry-wide car sales have grown at a double-digit pace for the past three years in China. Despite its gains, SAIC remains one of the cheapest auto stocks in the world, with approximately 30% of its market capitalization represented in cash on its balance sheet.
Strides Arcolab in India was also additive to returns, benefiting from the largely positive investment environment following India’s general election. The pharmaceutical company, which is focused on the development and manufacture of niche generic drugs, also received a lift from regulatory re-inspections of its manufacturing plants that prevented import alerts being imposed on its products to the U.S. This also eased investor concerns over withholding cash payments from Mylan, which bought a unit of the company in 2013. Additionally, Strides Arcolab received several product approvals during the period. We sold our position on the stock’s gains.
Our information technology, materials and energy holdings weighed the most on relative returns. From a country perspective, our holdings in South Korea weighed the most on performance.
The consumer discretionary sector contained our largest individual detractor, Louis XIII Holdings. The company, which is building an ultra-upscale resort and casino in Macau, China, was among other Macau-related gambling
Janus Global & International Funds | 1
Table of Contents
Janus Asia Equity Fund (unaudited)
companies that traded lower in the period. Ongoing slowdown in VIP business due to the Chinese government’s two-year anti-corruption drive has weighed on the gaming industry. Longer term, growth trends in Macau should remain strong, in our view. The company’s resort and casino is not due to open until 2016; therefore, we believe these short-term concerns should not affect it.
Information technology firm NCSoft was another main individual detractor. One of the largest online gaming developers in South Korea, the company received a much poorer reception to two of its games – Blade and Soul, and Guild Wars 2 – in China than investors expected. Both games had been well received outside of China and were operated by leading companies Tencent and KongZhong, but gamers’ interests faded after initial euphoria. We added to our position on the stock’s weakness based on its strong market position and healthy financial condition. We also anticipate launches of new games, including mobile games, to spur future growth.
Youku Tudou also weighed on returns. An Internet television company in China, Youku’s platform enables consumers to search, view and share video content across multiple devices. Based on its large customer base, Youku has one of the most effective advertising platforms in the Chinese market, in our view. With its acquisition of Tudou, the company is gaining significant pricing power, which should give it a long-term advantage on content acquisition. However, increasing competition in the online video space has led to increased content costs for the company. Increased regulation and a lag in the company’s ability to monetize mobile video viewing have also been headwinds.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We think comparisons to today and the late 1990s, when the Asian financial crisis occurred, are misplaced since emerging market fundamentals, especially country balance sheets, are much stronger now. This is particularly true in Asia. In the mid- to late-90s, a lack of domestic savings required the use of foreign capital to support emerging markets. That is no longer the case. China has the biggest U.S. dollar reserves in the world and is an exporter of capital. A U.S. interest rate increase is likely sometime next year and may cause a short-term impact to emerging markets, but it is unlikely to create another crisis.
Additionally, in key countries like China, India and Indonesia that are undergoing economic reforms, even 1% lower GDP growth can lead to growing corporate earnings. Stronger earnings growth will result for those companies that are improving their efficiencies and making smart asset allocation decisions. The result would be growth in profitability and a re-rating of a company’s valuation. The main risk we see is a potential hard landing in the key countries in Asia. If a hard landing can be avoided, we expect considerable upside for emerging market and Asian equities.
While we pay attention to the macroeconomic environment, our focus remains on stock picking, and identifying companies that can grow their sales while staying focused on operating efficiencies and capital allocation, which should eventually lead to better shareholder returns.
Thank you for your investment in Janus Asia Equity Fund.
2 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Asia Equity Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| PC Jeweller, Ltd. | 2.09% | |||
| SAIC Motor Corp., Ltd. – Class A | 1.11% | |||
| Strides Arcolab, Ltd. | 0.93% | |||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 0.79% | |||
| Sitoy Group Holdings, Ltd. | 0.76% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Louis XIII Holdings, Ltd. | –0.80% | |||
| NCSoft Corp. | –0.45% | |||
| Youku Tudou, Inc. (ADR) | –0.43% | |||
| Hyundai Motor Co. | –0.40% | |||
| CST Mining Group, Ltd. | –0.39% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI All Country | |||||||||||
| Fund Contribution | (Average % of Equity) | Asia ex-Japan Index Weighting | ||||||||||
| Consumer Discretionary | 2.38% | 19.36% | 10.15% | |||||||||
| Financials | 1.08% | 27.85% | 31.57% | |||||||||
| Health Care | 0.75% | 1.56% | 1.43% | |||||||||
| Other** | 0.24% | 3.07% | 0.00% | |||||||||
| Utilities | 0.09% | 1.87% | 3.95% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI All Country | |||||||||||
| Fund Contribution | (Average % of Equity) | Asia ex-Japan Index Weighting | ||||||||||
| Information Technology | –0.27% | 20.17% | 20.86% | |||||||||
| Materials | –0.18% | 5.90% | 5.70% | |||||||||
| Energy | –0.12% | 5.31% | 6.00% | |||||||||
| Consumer Staples | –0.11% | 4.10% | 5.41% | |||||||||
| Industrials | –0.07% | 9.47% | 8.82% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Global & International Funds | 3
Table of Contents
Janus Asia Equity Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Taiwan Semiconductor Manufacturing Co., Ltd. Semiconductor & Semiconductor Equipment | 4.7% | |||
| SAIC Motor Corp., Ltd. – Class A Automobiles | 3.5% | |||
| Samsung Electronics Co., Ltd. Semiconductor & Semiconductor Equipment | 2.7% | |||
| Daqin Railway Co., Ltd. – Class A Road & Rail | 2.7% | |||
| AIA Group, Ltd. Insurance | 2.3% | |||
| 15.9% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 80.3% of total net assets.
*Includes Cash Equivalents and Other of (2.7)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
4 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Janus Asia Equity Fund – Class A Shares | |||||||||
| NAV | 9.06% | 1.18% | 2.03% | 1.37% | |||||
| MOP | 2.75% | –0.69% | |||||||
| Janus Asia Equity Fund – Class C Shares | |||||||||
| NAV | 8.22% | 0.49% | 2.77% | 2.07% | |||||
| CDSC | 7.22% | 0.49% | |||||||
| Janus Asia Equity Fund – Class D Shares(1) | 9.26% | 1.31% | 1.91% | 1.19% | |||||
| Janus Asia Equity Fund – Class I Shares | 9.43% | 1.46% | 1.70% | 1.10% | |||||
| Janus Asia Equity Fund – Class S Shares | 9.02% | 1.09% | 2.21% | 1.57% | |||||
| Janus Asia Equity Fund – Class T Shares | 9.26% | 1.27% | 2.05% | 1.32% | |||||
| MSCI All Country Asia ex-Japan Index | 8.24% | 2.06% | |||||||
| Morningstar Quartile – Class I Shares | 2nd | 3rd | |||||||
| Morningstar Ranking – based on total return for Pacific/Asia ex-Japan Stock Funds | 29/91 | 53/83 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
See important disclosures on the next page.
Janus Global & International Funds | 5
Table of Contents
Janus Asia Equity Fund (unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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 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 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,053.80 | $ | 6.85 | $ | 1,000.00 | $ | 1,018.40 | $ | 6.73 | 1.33% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,049.70 | $ | 10.64 | $ | 1,000.00 | $ | 1,014.69 | $ | 10.45 | 2.07% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,054.70 | $ | 6.08 | $ | 1,000.00 | $ | 1,019.15 | $ | 5.97 | 1.18% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,054.60 | $ | 5.36 | $ | 1,000.00 | $ | 1,019.85 | $ | 5.27 | 1.04% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,053.80 | $ | 7.93 | $ | 1,000.00 | $ | 1,017.35 | $ | 7.79 | 1.54% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,053.80 | $ | 6.64 | $ | 1,000.00 | $ | 1,018.60 | $ | 6.53 | 1.29% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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
Table of Contents
Janus Asia Equity Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 101.7% | ||||||||||
| Airlines – 0.7% | ||||||||||
| 131,300 | AirAsia Bhd | $ | 101,333 | |||||||
| Auto Components – 1.5% | ||||||||||
| 857 | Hyundai Mobis Co., Ltd. | 208,866 | ||||||||
| Automobiles – 7.1% | ||||||||||
| 154,200 | Astra International Tbk PT | 89,292 | ||||||||
| 1,275 | Hyundai Motor Co. | 229,968 | ||||||||
| 163,300 | SAIC Motor Corp., Ltd. – Class Aß | 480,208 | ||||||||
| 126,000 | Yulon Motor Co., Ltd. | 188,169 | ||||||||
| | ||||||||||
| 987,637 | ||||||||||
| Beverages – 0.6% | ||||||||||
| 219,900 | LT Group, Inc. | 76,587 | ||||||||
| Capital Markets – 1.8% | ||||||||||
| 77,800 | CITIC Securities Co., Ltd. – Class Aß | 168,706 | ||||||||
| 119,000 | Guotai Junan International Holdings, Ltd. | 82,110 | ||||||||
| | ||||||||||
| 250,816 | ||||||||||
| Chemicals – 1.2% | ||||||||||
| 704 | LG Chem, Ltd. | 170,254 | ||||||||
| Commercial Banks – 15.3% | ||||||||||
| 30,500 | Bangkok Bank PCL (NVDR) | 191,893 | ||||||||
| 188,700 | Bank Mandiri Persero Tbk PT | 155,294 | ||||||||
| 28,500 | BOC Hong Kong Holdings, Ltd. | 90,935 | ||||||||
| 204,900 | China Construction Bank Corp. – Class Aß | 135,787 | ||||||||
| 334,000 | China Construction Bank Corp. – Class H | 234,301 | ||||||||
| 202,534 | CTBC Financial Holding Co., Ltd. | 135,967 | ||||||||
| 19,000 | DBS Group Holdings, Ltd. | 273,998 | ||||||||
| 6,860 | Hana Financial Group, Inc. | 248,048 | ||||||||
| 6,856 | ICICI Bank, Ltd. | 158,709 | ||||||||
| 418,000 | Industrial & Commercial Bank of China, Ltd. – Class H | 260,871 | ||||||||
| 45,957 | Metropolitan Bank & Trust Co. | 88,786 | ||||||||
| 3,160 | Shinhan Financial Group Co., Ltd. | 144,344 | ||||||||
| | ||||||||||
| 2,118,933 | ||||||||||
| Construction & Engineering – 1.5% | ||||||||||
| 409,300 | Louis XIII Holdings, Ltd.* | 206,258 | ||||||||
| Construction Materials – 0.4% | ||||||||||
| 73,500 | BBMG Corp. – Class H | 51,011 | ||||||||
| Diversified Telecommunication Services – 1.1% | ||||||||||
| 102,000 | China Unicom Hong Kong, Ltd. | 153,483 | ||||||||
| Electric Utilities – 0.5% | ||||||||||
| 28,583 | Power Grid Corp. of India, Ltd. | 62,591 | ||||||||
| Electrical Equipment – 0.5% | ||||||||||
| 20,252 | Finolex Cables, Ltd. | 69,719 | ||||||||
| Electronic Equipment, Instruments & Components – 5.8% | ||||||||||
| 17,000 | Chroma ATE, Inc. | 47,276 | ||||||||
| 32,000 | FLEXium Interconnect, Inc. | 80,586 | ||||||||
| 42,312 | Hon Hai Precision Industry Co., Ltd. | 133,240 | ||||||||
| 26,600 | Japan Display, Inc.* | 128,893 | ||||||||
| 16,800 | Merry Electronics Co., Ltd. | 78,098 | ||||||||
| 83,000 | WPG Holdings, Ltd. | 101,564 | ||||||||
| 79,600 | Zhen Ding Technology Holding, Ltd. | 229,873 | ||||||||
| | ||||||||||
| 799,530 | ||||||||||
| Food Products – 2.9% | ||||||||||
| 26,480 | Biostime International Holdings, Ltd. | 82,301 | ||||||||
| 206,000 | Golden Agri-Resources, Ltd. | 83,066 | ||||||||
| 37,080 | San Miguel Pure Foods Co., Inc. | 194,061 | ||||||||
| 33,000 | Want Want China Holdings, Ltd. | 41,163 | ||||||||
| | ||||||||||
| 400,591 | ||||||||||
| Health Care Providers & Services – 0.5% | ||||||||||
| 85,182 | Religare Health Trust | 63,402 | ||||||||
| Hotels, Restaurants & Leisure – 1.7% | ||||||||||
| 57,000 | Genting Bhd | 164,949 | ||||||||
| 100,000 | Nagacrop, Ltd. | 71,629 | ||||||||
| | ||||||||||
| 236,578 | ||||||||||
| Independent Power and Renewable Electricity Producers – 1.3% | ||||||||||
| 66,000 | China Resources Power Holdings Co., Ltd. | 178,231 | ||||||||
| Industrial Conglomerates – 2.3% | ||||||||||
| 12,000 | Hutchison Whampoa, Ltd. | 145,039 | ||||||||
| 12,000 | Keppel Corp., Ltd. | 98,671 | ||||||||
| 165,500 | Shun Tak Holdings, Ltd. | 81,231 | ||||||||
| | ||||||||||
| 324,941 | ||||||||||
| Information Technology Services – 0.7% | ||||||||||
| 1,539 | Infosys, Ltd. | 93,573 | ||||||||
| Insurance – 5.3% | ||||||||||
| 61,400 | AIA Group, Ltd. | 316,894 | ||||||||
| 82,400 | China Pacific Insurance Group Co., Ltd. – Class Aß | 260,055 | ||||||||
| 591 | Samsung Fire & Marine Insurance Co., Ltd. | 157,204 | ||||||||
| | ||||||||||
| 734,153 | ||||||||||
| Internet & Catalog Retail – 0.5% | ||||||||||
| 763 | Alibaba Group Holding, Ltd. (ADR)* | 67,793 | ||||||||
| Internet Software & Services – 2.6% | ||||||||||
| 14,600 | Tencent Holdings, Ltd. | 217,344 | ||||||||
| 7,809 | Youku Tudou, Inc. (ADR)* | 139,937 | ||||||||
| | ||||||||||
| 357,281 | ||||||||||
| Machinery – 0.7% | ||||||||||
| 5,344 | Daewoo Shipbuilding & Marine Engineering Co., Ltd. | 102,573 | ||||||||
| Marine – 1.3% | ||||||||||
| 120,000 | China Shipping Development Co., Ltd. – Class H | 75,325 | ||||||||
| 144,411 | First Steamship Co., Ltd. | 98,489 | ||||||||
| | ||||||||||
| 173,814 | ||||||||||
| Metals & Mining – 3.2% | ||||||||||
| 80,000 | Baoshan Iron & Steel Co., Ltd. – Class Aß | 56,475 | ||||||||
| 11,432,000 | CST Mining Group, Ltd.* | 63,317 | ||||||||
| 35,134 | Hindustan Zinc, Ltd. | 91,318 | ||||||||
| 10,011 | Iluka Resources, Ltd. | 68,580 | ||||||||
| 526 | POSCO | 161,239 | ||||||||
| | ||||||||||
| 440,929 | ||||||||||
| Multiline Retail – 1.8% | ||||||||||
| 481 | Hyundai Department Store Co., Ltd. | 72,700 | ||||||||
| 94,000 | Lifestyle International Holdings, Ltd.ß | 176,594 | ||||||||
| | ||||||||||
| 249,294 | ||||||||||
| Oil, Gas & Consumable Fuels – 5.7% | ||||||||||
| 124,400 | China Petroleum & Chemical Corp. – Class H | 108,856 | ||||||||
| 40,500 | China Shenhua Energy Co., Ltd. – Class H | 113,047 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
8 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Oil, Gas & Consumable Fuels – (continued) | ||||||||||
| 545,000 | China Suntien Green Energy Corp., Ltd. – Class H | $ | 135,741 | |||||||
| 77,000 | CNOOC, Ltd. | 132,537 | ||||||||
| 44,000 | PetroChina Co., Ltd. – Class H | 56,440 | ||||||||
| 16,072 | Reliance Industries, Ltd. | 245,375 | ||||||||
| | ||||||||||
| 791,996 | ||||||||||
| Pharmaceuticals – 0.6% | ||||||||||
| 6,061 | Torrent Pharmaceuticals, Ltd. | 85,502 | ||||||||
| Real Estate Investment Trusts (REITs) – 0.7% | ||||||||||
| 81,079 | AIMS AMP Capital Industrial REIT | 91,054 | ||||||||
| Real Estate Management & Development – 6.3% | ||||||||||
| 499,000 | Central China Real Estate, Ltd. | 117,344 | ||||||||
| 2,314,000 | Century Properties Group, Inc. | 65,469 | ||||||||
| 6,000 | Cheung Kong Holdings, Ltd. | 98,474 | ||||||||
| 3,610,000 | CSI Properties, Ltd. | 151,072 | ||||||||
| 92,500 | IJM Land Bhd | 93,237 | ||||||||
| 314,000 | Langham Hospitality Investments and Langham Hospitality Investments, Ltd. | 134,311 | ||||||||
| 447,950 | Siam Future Development PCL | 98,823 | ||||||||
| 8,000 | Sun Hung Kai Properties, Ltd. | 113,195 | ||||||||
| | ||||||||||
| 871,925 | ||||||||||
| Road & Rail – 2.7% | ||||||||||
| 294,400 | Daqin Railway Co., Ltd. – Class Aß | 373,131 | ||||||||
| Semiconductor & Semiconductor Equipment – 12.1% | ||||||||||
| 14,067 | Himax Technologies, Inc. (ADR)# | 142,780 | ||||||||
| 13,000 | MediaTek, Inc. | 192,619 | ||||||||
| 337 | Samsung Electronics Co., Ltd. | 377,322 | ||||||||
| 7,020 | SK Hynix, Inc.* | 310,757 | ||||||||
| 164,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 652,866 | ||||||||
| | ||||||||||
| 1,676,344 | ||||||||||
| Software – 2.6% | ||||||||||
| 1,278 | NCSoft Corp. | 162,709 | ||||||||
| 13,500 | Nexon Co., Ltd. | 111,473 | ||||||||
| 4,334 | Perfect World Co., Ltd. (ADR) | 85,336 | ||||||||
| | ||||||||||
| 359,518 | ||||||||||
| Specialty Retail – 5.1% | ||||||||||
| 231,500 | Baoxin Auto Group, Ltd. | 173,048 | ||||||||
| 118,200 | Chow Tai Fook Jewellery Group, Ltd.# | 153,794 | ||||||||
| 38,000 | L’Occitane International SA | 87,132 | ||||||||
| 75,374 | PC Jeweller, Ltd. | 285,773 | ||||||||
| | ||||||||||
| 699,747 | ||||||||||
| Textiles, Apparel & Luxury Goods – 1.5% | ||||||||||
| 63,300 | Samsonite International SA | 203,752 | ||||||||
| Thrifts & Mortgage Finance – 0.9% | ||||||||||
| 7,292 | Housing Development Finance Corp. | 124,354 | ||||||||
| Tobacco – 0.7% | ||||||||||
| 16,850 | ITC, Ltd. | 101,039 | ||||||||
| Total Common Stock (cost $13,692,872) | 14,058,533 | |||||||||
| Preferred Stock – 1.0% | ||||||||||
| Semiconductor & Semiconductor Equipment – 1.0% | ||||||||||
| 168 | Samsung Electronics Co., Ltd. (cost $157,923) | 142,796 | ||||||||
| Warrant – 0% | ||||||||||
| Real Estate Management & Development – 0% | ||||||||||
| 1,000 | Sun Hung Kai Properties, Ltd. expires 4/22/16* (cost $0) | 1,672 | ||||||||
| Money Market – 3.5% | ||||||||||
| 487,094 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $487,094) | 487,094 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 1.7% | ||||||||||
| 230,825 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $230,825) | 230,825 | ||||||||
| Total Investments (total cost $14,568,714) – 107.9% | 14,920,920 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (7.9)% | (1,093,175) | |||||||||
| Net Assets – 100% | $ | 13,827,745 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| China | $ | 3,898,471 | 26 | .1% | ||||
| South Korea | 2,488,780 | 16 | .7 | |||||
| Hong Kong | 2,090,277 | 14 | .0 | |||||
| Taiwan | 2,081,527 | 14 | .0 | |||||
| India | 1,317,953 | 8 | .8 | |||||
United States†† | 717,919 | 4 | .8 | |||||
| Singapore | 610,191 | 4 | .1 | |||||
| Philippines | 424,903 | 2 | .8 | |||||
| Malaysia | 359,519 | 2 | .4 | |||||
| Thailand | 290,716 | 2 | .0 | |||||
| Indonesia | 244,586 | 1 | .6 | |||||
| Japan | 240,366 | 1 | .6 | |||||
| France | 87,132 | 0 | .6 | |||||
| Australia | 68,580 | 0 | .5 | |||||
| Total | $ | 14,920,920 | 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 7.19% for the one-year period ended September 30, 2014. The Fund’s benchmark, the MSCI Emerging Markets Index, returned 4.30%.
INVESTMENT ENVIRONMENT
Emerging markets delivered positive returns in the past 12 months but continued their persistent underperformance relative to developed markets. Fourth quarter 2013 and early 2014 saw continued declines prompted by persistent concerns about the region’s slowing economic growth, particularly in China, mounting geopolitical risks in countries such as Russia and Thailand, and potential negative prospects around anticipated Federal Reserve tapering of its stimulative bond-buying program. The latter significantly weakened currencies of countries with account and fiscal deficits, as well as sparked large foreign investor outflows from the region. In addition, Brazil continued to suffer from a weak economy and investor disappointment over government policies. A positive market rebound began in February and continued to September, leading to strong gains driven by optimism for pro-business election wins in India and Indonesia, stronger investment inflows, and stabilizing signs from China in areas such as manufacturing that indicated that although the world’s second-largest economy has slowed it may be doing so at a controllable pace. The final weeks of the period saw another reversal as a stronger U.S. dollar and likelihood of rising U.S. interest rates brought back unpleasant memories of the 1997 Asian financial crisis for many investors. Emerging market fundamentals, however, appear much stronger today, with continued solid prospects for growth.
PERFORMANCE DISCUSSION
Fund outperformance was led by holdings in China, India and Taiwan. On a sector basis, consumer discretionary, materials and health care holdings contributed the most to relative outperformance.
The largest individual contributor was PC Jeweller, a consumer discretionary stock in India and one of the Fund’s Top 5 holdings. This operator of a jewelry store chain rallied significantly on higher jewelry and gold sales. Consumer spending generally has improved in India following the May elections that propelled Prime Minister Narendra Modi into power. We believe investors also appreciated the company’s discounted valuation as one of the cheapest stocks in India.
The Fund’s largest holding, Taiwan Semiconductor Manufacturing Co. (TSMC), was another top individual contributor. TSMC 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. It also raised its profitability outlook. We continue to appreciate the company’s dominant market position and consider its valuation attractive relative to the strong earnings growth we anticipate.
In China, consumer discretionary stock SAIC Motor was also additive to relative returns, benefiting from higher auto sales. While GDP growth is slowing in China, auto sales are growing at double-digit levels. With the economy nearly at full employment, wage growth for blue collar workers is quite strong, which has led to higher car sales. Industry-wide car sales have grown at a double-digit pace for the past three years in China. Despite its gains, SAIC remains one of the cheapest auto stocks in the world, with approximately 30% of its market capitalization represented in cash on its balance sheet.
On a country basis, our holdings in South Korea and Brazil, and our small out-of-index position in the UK weighed the most on relative returns. Energy, utilities and industrials were the sectors that detracted the most from relative performance.
London Mining, an iron ore company with mines in Sierra Leone, Greenland and Saudi Arabia, was the largest individual detractor. The company suffered from weak iron
10 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
ore prices, which left the firm strapped for cash after a series of recent mishaps, as well as the Ebola outbreak in Africa, where it operates mines. We sold the stock. We had favored the UK-based miner for its high grade ore reserves and its market position as a low-cost producer. The company’s balance sheet had always been stretched, but we miscalculated their ability to maneuver this successfully. While fears over falling iron ore prices and the company’s ability to refinance its debt negatively impacted the stock during the period, we felt it was fully discounted. The company had also guided for over a year that they were in discussions with a strategic investor to monetize their lucrative mine and restructure their balance sheet. However, with the sudden announcement in late September that Glencore refused to make a prepayment under the terms of its off take agreement for the Marampa mine, the company essentially found itself strapped for cash. London Mining was positioned as one of the smallest positions in the Fund, commensurate with our risk management process to reflect its higher risk profile.
Two other of the Fund’s main individual detractors were Russian related. The first was TCS Group Holding, 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. However, its fundamentals were overwhelmed by the Ukraine crisis and by concerns over potential loan losses and funding weakness.
The second was Sberbank of Russia, Russia’s largest bank. The stock 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.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We think comparisons to today and the late 1990s, when the Asian financial crisis occurred, are misplaced since emerging market fundamentals, especially country balance sheets, are much stronger now. This is particularly true in Asia. In the mid- to late-90s, a lack of domestic savings required the use of foreign capital to support emerging markets. That is no longer the case. China has the biggest U.S. dollar reserves in the world and is an exporter of capital. A U.S. interest rate increase is likely sometime next year and may cause a short-term impact to emerging markets, but it is unlikely to create another crisis.
Additionally, in key countries like China, India and Indonesia that are undergoing economic reforms, even 1% lower GDP growth can lead to growing corporate earnings. Stronger earnings growth will result for those companies that are improving their efficiencies and making smart asset allocation decisions. The result would be growth in profitability and a re-rating of a company’s valuation. The main risk we see is a potential hard landing in key countries. If a hard landing can be avoided, we expect considerable upside for emerging market equities.
While we pay attention to the macroeconomic environment, our focus remains on stock picking and identifying companies that can grow their sales while staying focused on operating efficiencies and capital allocation, which should eventually lead to better shareholder returns.
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 | ||||
| PC Jeweller, Ltd. | 1.81% | |||
| Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 0.91% | |||
| SAIC Motor Corp., Ltd. – Class A | 0.89% | |||
| Sitoy Group Holdings, Ltd. | 0.86% | |||
| Orascom Development Holding AG | 0.73% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| London Mining PLC | –0.76% | |||
| TCS Group Holding PLC (GDR) | –0.76% | |||
| Sberbank of Russia (ADR) | –0.75% | |||
| Louis XIII Holdings, Ltd. | –0.45% | |||
| Globaltrans Investment PLC (GDR) | –0.44% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI Emerging Markets | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Consumer Discretionary | 2.57% | 21.52% | 9.02% | |||||||||
| Materials | 1.05% | 5.15% | 9.25% | |||||||||
| Health Care | 0.79% | 1.38% | 1.75% | |||||||||
| Financials | 0.58% | 30.66% | 26.96% | |||||||||
| Information Technology | 0.40% | 18.03% | 16.49% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI Emerging Markets | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Energy | –0.39% | 6.39% | 10.98% | |||||||||
| Utilities | –0.29% | 0.53% | 3.43% | |||||||||
| Industrials | –0.26% | 7.80% | 6.46% | |||||||||
| Consumer Staples | 0.08% | 5.70% | 8.43% | |||||||||
| Telecommunication Services | 0.11% | 0.50% | 7.23% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
12 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) Semiconductor & Semiconductor Equipment | 4.3% | |||
| Samsung Electronics Co., Ltd. Semiconductor & Semiconductor Equipment | 2.7% | |||
| Itau Unibanco Holding SA (ADR) Commercial Banks | 2.5% | |||
| SAIC Motor Corp., Ltd. – Class A Automobiles | 2.4% | |||
| PC Jeweller, Ltd. Specialty Retail | 2.1% | |||
| 14.0% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 79.8% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 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 September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Janus Emerging Markets Fund – Class A Shares | |||||||||
| NAV | 6.71% | –3.09% | 1.81% | 1.46% | |||||
| MOP | 0.60% | –4.60% | |||||||
| Janus Emerging Markets Fund – Class C Shares | |||||||||
| NAV | 5.98% | –3.73% | 2.54% | 2.17% | |||||
| CDSC | 4.98% | –3.73% | |||||||
| Janus Emerging Markets Fund – Class D Shares(1) | 6.98% | –2.94% | 1.64% | 1.26% | |||||
| Janus Emerging Markets Fund – Class I Shares | 7.19% | –2.80% | 1.50% | 1.14% | |||||
| Janus Emerging Markets Fund – Class S Shares | 6.67% | –3.11% | 1.97% | 1.64% | |||||
| Janus Emerging Markets Fund – Class T Shares | 6.92% | –2.94% | 1.70% | 1.39% | |||||
| MSCI Emerging Markets IndexSM | 4.30% | –0.43% | |||||||
| Morningstar Quartile – Class I Shares | 1st | 4th | |||||||
| Morningstar Ranking – based on total return for Diversified Emerging Markets Funds | 129/702 | 394/464 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
See important disclosures on the next page.
14 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,027.40 | $ | 8.49 | $ | 1,000.00 | $ | 1,016.70 | $ | 8.44 | 1.67% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,022.90 | $ | 11.71 | $ | 1,000.00 | $ | 1,013.49 | $ | 11.66 | 2.31% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,028.80 | $ | 6.71 | $ | 1,000.00 | $ | 1,018.45 | $ | 6.68 | 1.32% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,029.90 | $ | 6.00 | $ | 1,000.00 | $ | 1,019.15 | $ | 5.97 | 1.18% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,026.40 | $ | 8.48 | $ | 1,000.00 | $ | 1,016.70 | $ | 8.44 | 1.67% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,028.70 | $ | 7.22 | $ | 1,000.00 | $ | 1,017.95 | $ | 7.18 | 1.42% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 | SEPTEMBER 30, 2014
Table of Contents
Janus Emerging Markets Fund
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 93.2% | ||||||||||
| Airlines – 0.5% | ||||||||||
| 220,000 | AirAsia Bhd | $ | 169,790 | |||||||
| Auto Components – 1.1% | ||||||||||
| 1,491 | Hyundai Mobis Co., Ltd. | 363,383 | ||||||||
| Automobiles – 5.3% | ||||||||||
| 164,000 | Astra International Tbk PT | 94,967 | ||||||||
| 335,000 | Geely Automobile Holdings, Ltd. | 140,137 | ||||||||
| 2,883 | Hyundai Motor Co. | 519,998 | ||||||||
| 280,000 | SAIC Motor Corp., Ltd. – Class Aß | 823,382 | ||||||||
| 163,157 | Yulon Motor Co., Ltd. | 243,660 | ||||||||
| | ||||||||||
| 1,822,144 | ||||||||||
| Beverages – 2.0% | ||||||||||
| 20,900 | Fomento Economico Mexicano SAB de CV | 192,407 | ||||||||
| 396,721 | LT Group, Inc. | 138,170 | ||||||||
| 6,531 | SABMiller PLC | 363,313 | ||||||||
| | ||||||||||
| 693,890 | ||||||||||
| Capital Markets – 3.5% | ||||||||||
| 47,124 | Atlas Mara Co-Nvest, Ltd. | 461,815 | ||||||||
| 143,000 | CITIC Securities Co., Ltd. – Class Aß | 310,089 | ||||||||
| 20,800 | Grupo BTG Pactual | 274,076 | ||||||||
| 248,000 | Guotai Junan International Holdings, Ltd. | 171,121 | ||||||||
| | ||||||||||
| 1,217,101 | ||||||||||
| Commercial Banks – 14.3% | ||||||||||
| 23,000 | Bangkok Bank PCL (NVDR) | 144,706 | ||||||||
| 298,400 | Bank Mandiri Persero Tbk PT | 245,574 | ||||||||
| 175,831 | BBVA Banco Continental SA | 294,270 | ||||||||
| 373,500 | China Construction Bank Corp. – Class Aß | 247,517 | ||||||||
| 31,079 | Grupo Financiero Santander Mexico SAB de CV (ADR) | 420,499 | ||||||||
| 3,124 | Hana Financial Group, Inc. | 112,959 | ||||||||
| 8,497 | ICICI Bank, Ltd. (ADR) | 417,203 | ||||||||
| 578,000 | Industrial & Commercial Bank of China, Ltd. – Class H | 360,726 | ||||||||
| 61,237 | Itau Unibanco Holding SA (ADR) | 849,970 | ||||||||
| 78,828 | Metropolitan Bank & Trust Co. | 152,290 | ||||||||
| 76,834 | National Bank of Greece SA* | 224,711 | ||||||||
| 6,295 | OTP Bank PLC | 106,928 | ||||||||
| 70,698 | Sberbank of Russia (ADR) | 556,429 | ||||||||
| 8,542 | Shinhan Financial Group Co., Ltd. | 390,187 | ||||||||
| 50,519 | TCS Group Holding PLC (GDR) | 235,164 | ||||||||
| 28,797 | Turkiye Halk Bankasi A/S | 173,071 | ||||||||
| | ||||||||||
| 4,932,204 | ||||||||||
| Construction & Engineering – 1.0% | ||||||||||
| 714,600 | Louis XIII Holdings, Ltd.* | 360,107 | ||||||||
| Construction Materials – 0.4% | ||||||||||
| 185,000 | BBMG Corp. – Class H | 128,396 | ||||||||
| Diversified Consumer Services – 1.6% | ||||||||||
| 85,972 | Kroton Educacional SA | 540,245 | ||||||||
| Diversified Financial Services – 1.2% | ||||||||||
| 65,400 | BM&FBovespa SA | 299,010 | ||||||||
| 10,327,703 | Bolsa de Valores de Colombia | 121,896 | ||||||||
| | ||||||||||
| 420,906 | ||||||||||
| Electric Utilities – 0.5% | ||||||||||
| 76,618 | Power Grid Corp. of India, Ltd. | 167,777 | ||||||||
| Electrical Equipment – 0.6% | ||||||||||
| 61,162 | Finolex Cables, Ltd. | 210,555 | ||||||||
| Electronic Equipment, Instruments & Components – 4.3% | ||||||||||
| 76,000 | Chroma ATE, Inc. | 211,353 | ||||||||
| 67,000 | FLEXium Interconnect, Inc. | 168,728 | ||||||||
| 88,480 | Hon Hai Precision Industry Co., Ltd. | 278,622 | ||||||||
| 55,300 | Japan Display, Inc.* | 267,962 | ||||||||
| 33,600 | Merry Electronics Co., Ltd. | 156,197 | ||||||||
| 160,000 | WPG Holdings, Ltd. | 195,786 | ||||||||
| 77,100 | Zhen Ding Technology Holding, Ltd. | 222,653 | ||||||||
| | ||||||||||
| 1,501,301 | ||||||||||
| Food & Staples Retailing – 2.0% | ||||||||||
| 43,900 | Brasil Pharma SA | 67,621 | ||||||||
| 99,150 | Robinsons Retail Holdings, Inc. | 139,876 | ||||||||
| 26,093 | Shoprite Holdings, Ltd. | 323,238 | ||||||||
| 9,080 | X5 Retail Group NV (GDR) | 167,293 | ||||||||
| | ||||||||||
| 698,028 | ||||||||||
| Food Products – 2.2% | ||||||||||
| 35,357 | AVI, Ltd. | 219,016 | ||||||||
| 49,963 | Biostime International Holdings, Ltd.# | 155,287 | ||||||||
| 18,997 | Oceana Group, Ltd. | 124,701 | ||||||||
| 50,610 | San Miguel Pure Foods Co., Inc. | 264,872 | ||||||||
| | ||||||||||
| 763,876 | ||||||||||
| Health Care Providers & Services – 0.5% | ||||||||||
| 231,000 | Religare Health Trust | 171,937 | ||||||||
| Hotels, Restaurants & Leisure – 2.4% | ||||||||||
| 86,000 | Genting Bhd | 248,870 | ||||||||
| 45,000 | Melco International Development, Ltd. | 104,171 | ||||||||
| 196,000 | Nagacrop, Ltd. | 140,393 | ||||||||
| 11,183 | Orascom Development Holding AG* | 216,157 | ||||||||
| 80,000 | Shangri-La Asia, Ltd. | 118,422 | ||||||||
| | ||||||||||
| 828,013 | ||||||||||
| Independent Power and Renewable Electricity Producers – 0.5% | ||||||||||
| 64,000 | China Resources Power Holdings Co., Ltd. | 172,830 | ||||||||
| Industrial Conglomerates – 0.4% | ||||||||||
| 306,000 | Shun Tak Holdings, Ltd. | 150,190 | ||||||||
| Information Technology Services – 1.3% | ||||||||||
| 3,078 | Infosys, Ltd. | 187,145 | ||||||||
| 8,784 | QIWI PLC (ADR) | 277,487 | ||||||||
| | ||||||||||
| 464,632 | ||||||||||
| Insurance – 2.6% | ||||||||||
| 12,400 | BB Seguridade Participacoes SA | 163,138 | ||||||||
| 72,400 | China Pacific Insurance Group Co., Ltd. – Class Aß | 228,495 | ||||||||
| 1,907 | Samsung Fire & Marine Insurance Co., Ltd. | 507,257 | ||||||||
| | ||||||||||
| 898,890 | ||||||||||
| Internet & Catalog Retail – 0.4% | ||||||||||
| 1,589 | Alibaba Group Holding, Ltd. (ADR)* | 141,183 | ||||||||
| Internet Software & Services – 1.3% | ||||||||||
| 21,200 | Tencent Holdings, Ltd. | 315,595 | ||||||||
| 7,585 | Youku Tudou, Inc. (ADR)* | 135,923 | ||||||||
| | ||||||||||
| 451,518 | ||||||||||
| Machinery – 0.6% | ||||||||||
| 10,416 | Daewoo Shipbuilding & Marine Engineering Co., Ltd. | 199,926 | ||||||||
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
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Marine – 0.4% | ||||||||||
| 232,000 | China Shipping Development Co., Ltd. – Class H | $ | 145,628 | |||||||
| Media – 0.5% | ||||||||||
| 41,400 | Poly Culture Group Corp., Ltd. – Class H* | 154,104 | ||||||||
| Metals & Mining – 2.3% | ||||||||||
| 43,718 | Grupo Mexico SAB de CV – Series B | 146,397 | ||||||||
| 68,594 | Hindustan Zinc, Ltd. | 178,285 | ||||||||
| 15,504 | Iluka Resources, Ltd. | 106,210 | ||||||||
| 256,951 | London Mining PLC* | 32,262 | ||||||||
| 529 | POSCO | 162,158 | ||||||||
| 14,167 | Vale SA (ADR)# | 155,979 | ||||||||
| | ||||||||||
| 781,291 | ||||||||||
| Multiline Retail – 0.9% | ||||||||||
| 131,000 | Lifestyle International Holdings, Ltd.ß | 246,104 | ||||||||
| 10,204 | SACI Falabella | 77,004 | ||||||||
| | ||||||||||
| 323,108 | ||||||||||
| Oil, Gas & Consumable Fuels – 5.3% | ||||||||||
| 20,361 | Africa Oil Corp.* | 89,601 | ||||||||
| 176,600 | China Petroleum & Chemical Corp. – Class H | 154,533 | ||||||||
| 47,000 | China Shenhua Energy Co., Ltd. – Class H | 131,190 | ||||||||
| 810,000 | China Suntien Green Energy Corp., Ltd. – Class H | 201,744 | ||||||||
| 48,000 | CNOOC, Ltd. | 82,620 | ||||||||
| 11,547 | Cobalt International Energy, Inc.* | 157,039 | ||||||||
| 62,020 | Ophir Energy PLC* | 229,408 | ||||||||
| 68,000 | PetroChina Co., Ltd. – Class H | 87,226 | ||||||||
| 25,380 | Petroleo Brasileiro SA (ADR)† | 360,142 | ||||||||
| 21,221 | Reliance Industries, Ltd. | 323,986 | ||||||||
| | ||||||||||
| 1,817,489 | ||||||||||
| Pharmaceuticals – 0.5% | ||||||||||
| 12,573 | Torrent Pharmaceuticals, Ltd. | 177,366 | ||||||||
| Real Estate Investment Trusts (REITs) – 2.7% | ||||||||||
| 304,200 | Concentradora Fibra Hotelera Mexicana SA de CV | 533,005 | ||||||||
| 225,858 | Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 235,578 | ||||||||
| 79,800 | Prologis Property Mexico SA de CV | 167,810 | ||||||||
| | ||||||||||
| 936,393 | ||||||||||
| Real Estate Management & Development – 4.6% | ||||||||||
| 873,000 | Central China Real Estate, Ltd. | 205,293 | ||||||||
| 6,770,000 | CSI Properties, Ltd. | 283,311 | ||||||||
| 26,332 | DLF, Ltd. | 63,944 | ||||||||
| 537,000 | Emaar Malls Group PJSC* | 424,009 | ||||||||
| 33,551 | Etalon Group, Ltd. (GDR) | 122,345 | ||||||||
| 486,000 | Langham Hospitality Investments and Langham Hospitality Investments, Ltd. | 207,883 | ||||||||
| 13,900 | Multiplan Empreendimentos Imobiliarios SA | 284,645 | ||||||||
| | ||||||||||
| 1,591,430 | ||||||||||
| Road & Rail – 2.9% | ||||||||||
| 387,600 | Daqin Railway Co., Ltd. – Class Aß | 491,255 | ||||||||
| 31,166 | Globaltrans Investment PLC (GDR) | 261,733 | ||||||||
| 17,229 | Prime Car Management SA* | 264,669 | ||||||||
| | ||||||||||
| 1,017,657 | ||||||||||
| Semiconductor & Semiconductor Equipment – 10.0% | ||||||||||
| 26,987 | Himax Technologies, Inc. (ADR)# | 273,918 | ||||||||
| 11,000 | MediaTek, Inc. | 162,986 | ||||||||
| 824 | Samsung Electronics Co., Ltd. | 922,592 | ||||||||
| 14,326 | SK Hynix, Inc.* | 634,173 | ||||||||
| 72,978 | Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 1,472,696 | ||||||||
| | ||||||||||
| 3,466,365 | ||||||||||
| Software – 2.8% | ||||||||||
| 5,209 | Globant SA* | 73,291 | ||||||||
| 8,110 | Linx SA | 169,655 | ||||||||
| 2,568 | NCSoft Corp. | 326,945 | ||||||||
| 28,000 | Nexon Co., Ltd. | 231,203 | ||||||||
| 9,106 | Perfect World Co., Ltd. (ADR) | 179,297 | ||||||||
| | ||||||||||
| 980,391 | ||||||||||
| Specialty Retail – 5.1% | ||||||||||
| 448,500 | Baoxin Auto Group, Ltd. | 335,257 | ||||||||
| 175,800 | Chow Tai Fook Jewellery Group, Ltd.# | 228,739 | ||||||||
| 71,750 | L’Occitane International SA | 164,520 | ||||||||
| 195,359 | PC Jeweller, Ltd. | 740,685 | ||||||||
| 30,300 | Via Varejo SA | 302,195 | ||||||||
| | ||||||||||
| 1,771,396 | ||||||||||
| Textiles, Apparel & Luxury Goods – 3.5% | ||||||||||
| 235,000 | China Lilang, Ltd. | 165,018 | ||||||||
| 13,613 | Cie Financiere Richemont SA | 111,339 | ||||||||
| 225,000 | Samsonite International SA | 724,237 | ||||||||
| 267,000 | Sitoy Group Holdings, Ltd. | 215,737 | ||||||||
| | ||||||||||
| 1,216,331 | ||||||||||
| Thrifts & Mortgage Finance – 0.7% | ||||||||||
| 15,046 | Housing Development Finance Corp. | 256,588 | ||||||||
| Tobacco – 0.5% | ||||||||||
| 27,195 | ITC, Ltd. | 163,072 | ||||||||
| Total Common Stock (cost $32,959,516) | 32,267,431 | |||||||||
| Corporate Bond – 0.1% | ||||||||||
| Energy – 0.1% | ||||||||||
| $110,000 | Niko Resources, Ltd. 7.0000%, 12/31/17 (cost $110,594) | 24,656 | ||||||||
| Preferred Stock – 1.4% | ||||||||||
| Chemicals – 0.9% | ||||||||||
| 1,921 | LG Chem, Ltd. | 298,379 | ||||||||
| Semiconductor & Semiconductor Equipment – 0.5% | ||||||||||
| 225 | Samsung Electronics Co., Ltd. | 191,244 | ||||||||
| Total Preferred Stock (cost $390,701) | 489,623 | |||||||||
| Warrant – 0.1% | ||||||||||
| Commercial Banks – 0.1% | ||||||||||
| 27,518 | Atlas Mara Co-Nvest, Ltd. expires 12/17/17 (144A)* (cost $275) | 27,518 | ||||||||
| Money Market – 5.6% | ||||||||||
| 1,938,259 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $1,938,259) | 1,938,259 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
18 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 1.8% | ||||||||||
| 630,400 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $630,400) | $ | 630,400 | |||||||
| Total Investments (total cost $36,029,745) – 102.2% | 35,377,887 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (2.2)% | (766,443) | |||||||||
| Net Assets – 100% | $ | 34,611,444 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| China | $ | 5,492,725 | 15 | .5% | ||||
| South Korea | 4,629,201 | 13 | .1 | |||||
| Brazil | 3,466,676 | 9 | .8 | |||||
| Taiwan | 3,386,599 | 9 | .6 | |||||
| Hong Kong | 2,950,415 | 8 | .3 | |||||
| India | 2,886,606 | 8 | .2 | |||||
United States†† | 2,798,989 | 7 | .9 | |||||
| Russia | 1,620,451 | 4 | .6 | |||||
| Mexico | 1,460,118 | 4 | .1 | |||||
| Philippines | 695,208 | 2 | .0 | |||||
| South Africa | 666,955 | 1 | .9 | |||||
| United Kingdom | 624,983 | 1 | .8 | |||||
| Japan | 499,165 | 1 | .4 | |||||
| Virgin Islands (British) | 489,333 | 1 | .4 | |||||
| United Arab Emirates | 424,009 | 1 | .2 | |||||
| Malaysia | 418,660 | 1 | .2 | |||||
| Turkey | 408,649 | 1 | .2 | |||||
| Indonesia | 340,541 | 1 | .0 | |||||
| Switzerland | 327,496 | 0 | .9 | |||||
| Peru | 294,270 | 0 | .8 | |||||
| Poland | 264,669 | 0 | .7 | |||||
| Greece | 224,711 | 0 | .6 | |||||
| Singapore | 171,937 | 0 | .5 | |||||
| France | 164,520 | 0 | .5 | |||||
| Thailand | 144,706 | 0 | .4 | |||||
| Colombia | 121,896 | 0 | .3 | |||||
| Canada | 114,257 | 0 | .3 | |||||
| Hungary | 106,928 | 0 | .3 | |||||
| Australia | 106,210 | 0 | .3 | |||||
| Chile | 77,004 | 0 | .2 | |||||
| Total | $ | 35,377,887 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 7.3%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| Australian Dollar 10/23/14 | 116,100 | $ | 101,462 | $ | 2,563 | |||||||
| Japanese Yen 10/23/14 | 51,000,000 | 465,154 | 4,269 | |||||||||
| Total | $ | 566,616 | $ | 6,832 | ||||||||
Total Return Swaps outstanding at September 30, 2014
| Unrealized | |||||||||||||||
| Notional | Return Paid | Return Received | Appreciation/ | ||||||||||||
| Counterparty | Amount | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||
| Credit Suisse International | $ | 286,720 | 1 month USD LIBOR plus 100 basis points | Samba Financial Group | 1/27/16 | $ | (3,717) | ||||||||
| Credit Suisse International | 181,162 | 1 month USD LIBOR plus 100 basis points | Saudi International Petrochemical Co. | 2/10/16 | 14,737 | ||||||||||
| Credit Suisse International | 157,261 | 1 month USD LIBOR plus 75 basis points | Moscow Exchange | 12/15/15 | (11,125) | ||||||||||
| Total | $ | (105) | |||||||||||||
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 34.31% over the one-year period ended September 30, 2014, significantly ahead of its primary benchmark, the S&P 500 Index, which returned 19.73%. The Fund also outperformed the MSCI World Health Care Index, the Fund’s secondary benchmark, which returned 24.85% during the period.
INVESTMENT ENVIRONMENT
Global health care stocks delivered strong returns in the past 12 months. Biotechnology momentum provided much of the lift, as did pharmaceuticals thanks to an active merger and acquisition (M&A) environment, particularly for specialty pharmaceutical stocks in tax-advantaged transactions. There were also a number of major drug launches in the period which demonstrated strong prescription trends. Additionally, public health exchanges created through the Affordable Care Act became operational, overcoming early website issues. The initial public offering (IPO) market also accelerated. While this 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. Following a significant correction in biotechnology stocks (small caps in particular) in late March and early April, the health care sector rebounded, led once again by biotechnology as well as a reacceleration in M&A activity, spreading from specialty pharmaceuticals to large pharmaceutical companies, medical device makers and biotechnology firms. Investors also took advantage of technical weakness to add to sector positions where fundamentals appeared to remain strong. The period wound down with strong quarterly financial results for leading biotechnology companies and a number of buyouts at significant premiums to spur investor interest in companies addressing high, unmet medical needs. Hospitals and health insurance companies also performed well on stronger earnings, reflecting increased demand as more previously uninsured Americans entered the health care system through the Affordable Care Act.
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.
Our significant overweight and holdings in biotechnology helped drive the Fund’s outperformance. Puma Biotechnology led the way after its breast cancer drug, neratinib, showed an impressive benefit in adjuvant breast cancer (treatments given after surgery to increase the chance of long-term disease-free survival) in a late-stage clinical trial. This came after earlier disappointing data from a competitive drug had raised questions about the potential for neratinib. While we continue to see significant prospects for Puma in adjuvant breast cancer, we took some profits after the stock’s strong gains.
Also in biotechnology, the Fund’s largest holding, Gilead Sciences, recorded robust gains. An arbitration panel rejected Roche Holding’s patent infringement claims related to Gilead’s key hepatitis C drug, Sovaldi. Since its launch earlier in 2014, the drug has become the largest-selling product in the history of the pharmaceutical industry. We think the launch of a Sovaldi combination pill in the fourth quarter 2014 could be another bellwether for the industry. This combination would provide the first true one-pill, once-a-day treatment for the majority of hepatitis C patients.
Our pharmaceutical holdings were the most additive to relative returns, led by Ireland-based Shire, which appreciated significantly during the period after the company agreed to a merger with U.S.-based
20 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
pharmaceutical company AbbVie. Although this deal was later called off due to concerns about its tax treatment, we continue to favor Shire for its dominant position in the attention deficit and hyperactivity (ADHD) market, its strong portfolio of drugs for rare diseases, and its underappreciated pipeline. The company’s fundamentals remain solid, as reflected in better-than-expected quarterly earnings and raised guidance for the year.
Our largest individual detractor, Aegerion Pharmaceuticals, declined after reporting worse-than-expected earnings and revenue and lowered sales forecasts for the year. Concerns about future competition from another class of cholesterol-lowering drugs as well as the tolerability of its drug, Juxtapid, weighed on the stock. Due to the drug’s increasingly uncertain outlook, we liquidated our position.
Stemline Therapeutics, another individual detractor, traded lower due to manufacturing delays for its lead product. The clinical-stage company, which focuses on developing novel oncology therapeutics that target cancer stem cells and tumor bulk, also suffered from profit taking after a strong run earlier in 2014. The company also filed to issue more stock, then pulled the filing after the stock price declined. Although we continue to see significant sales potential for the company’s pipeline products, we decided to sell our small position in favor of other ideas.
Repros Therapeutics also weighed on performance, as the stock suffered when an FDA advisory panel suggested that doctors were prescribing testosterone drugs too broadly and advised the agency to limit the use of such drugs to a specific patient population. This could effectively extend the regulatory timelines for FDA approval of new drugs in this category and limit the size of the market. We sold our position in Repros, which is seeking marketing approval of its testosterone replacement drug, Androxal, due to heightened regulatory risks.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We believe stock gains have been driven by fundamental improvements, such as profit growth, innovative drugs advancing, and more insured patients gaining access to health care. However, we do see some areas getting more fully valued, such as some small cap biotechnology companies that have been pulled up by the market. We believe caution is warranted for some of these stocks as product development setbacks could lead to significant share price corrections.
Among our major investment themes, we continue to see an acceleration of innovation. Thirty new drugs were approved in the first nine months of 2014, more than all of 2013, and more approvals are expected. Particularly noteworthy during the period were advances in immuno-oncology, an innovative approach to cancer research that seeks to harness the body’s immune system to fight tumor cells. Approval of Merck’s Keytruda in September was a watershed event for this new class of treatments, which could lead to cures for patients with cancers previously considered incurable.
Roche Holding’s acquisition of U.S. biotechnology company Intermune in August for over $8 billion showed that M&A activity continues to be a driving force in the sector. Mitigating this somewhat, the U.S. Treasury took steps during the quarter to discourage tax inversions (re-incorporating a company overseas in order to reduce the tax burden on income earned abroad), which could reduce some of the benefits on those types of mergers. However, we believe low interest rates, high cash balances, excess industry capacity and the need for more innovative products should remain drivers of M&A activity.
The Affordable Care Act was another major driver for the health industry, as over 10 million previously uninsured Americans obtained health coverage through insurance exchanges or Medicaid expansion over the past year. This should continue to be a significant tailwind for hospital companies, which had been providing essentially free care to the uninsured until the advent of health care reform. In states that embraced an expansion of Medicaid eligibility, we have seen a 50% reduction in utilization by uninsured patients, resulting in improved volumes and profitability for hospitals. Health insurance companies and other health care providers also benefited from increased enrollments. We anticipate another uptick in demand as the second year of enrollment opens on November 15 and continues through February 15.
During the period, we realized profits and sold two positions in companies that had been acquired at significant premiums. Our new purchases included a pharmaceutical company with promising prospects for its immuno-oncology therapies, and a biotech company with a potentially viable new drug for hepatitis C, one of the biggest and most attractive markets in the pharmaceutical universe. Both companies fit our theme of investing in companies addressing high, unmet medical needs.
Thank you for your 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 | ||||
| Puma Biotechnology, Inc. | 3.33% | |||
| Gilead Sciences, Inc. | 2.71% | |||
| Shire PLC (ADR) | 1.63% | |||
| Forest Laboratories, Inc. | 1.31% | |||
| Medivation, Inc. | 1.24% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Aegerion Pharmaceuticals, Inc. | –0.94% | |||
| Stemline Therapeutics, Inc. | –0.78% | |||
| Repros Therapeutics, Inc. | –0.61% | |||
| Biostime International Holdings, Ltd. | –0.36% | |||
| Endologix, Inc. | –0.31% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Health Care | 13.41% | 95.34% | 13.33% | |||||||||
| Consumer Discretionary | 1.06% | 0.00% | 12.16% | |||||||||
| Energy | 0.92% | 0.00% | 10.37% | |||||||||
| Industrials | 0.36% | 0.00% | 10.66% | |||||||||
| Financials | 0.20% | 0.99% | 16.18% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Information Technology | –1.78% | 0.00% | 18.66% | |||||||||
| Other** | –0.41% | 2.30% | 0.00% | |||||||||
| Materials | –0.03% | 0.00% | 3.50% | |||||||||
| Consumer Staples | 0.04% | 1.37% | 9.71% | |||||||||
| Utilities | 0.05% | 0.00% | 3.04% | |||||||||
| 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 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Gilead Sciences, Inc. Biotechnology | 3.4% | |||
| Valeant Pharmaceuticals International, Inc. (U.S. Shares) Pharmaceuticals | 2.7% | |||
| Celgene Corp. Biotechnology | 2.6% | |||
| Mallinckrodt PLC Pharmaceuticals | 2.6% | |||
| Johnson & Johnson Pharmaceuticals | 2.5% | |||
| 13.8% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 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 September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Global Life Sciences Fund – Class A Shares | |||||||||||
| NAV | 34.20% | 23.67% | 13.49% | 11.86% | 1.04% | ||||||
| MOP | 26.47% | 22.22% | 12.82% | 11.44% | |||||||
| Janus Global Life Sciences Fund – Class C Shares | |||||||||||
| NAV | 33.16% | 22.73% | 12.63% | 11.03% | 1.83% | ||||||
| CDSC | 32.16% | 22.73% | 12.63% | 11.03% | |||||||
| Janus Global Life Sciences Fund – Class D Shares(1) | 34.41% | 23.87% | 13.66% | 12.02% | 0.87% | ||||||
| Janus Global Life Sciences Fund – Class I Shares | 34.51% | 23.96% | 13.61% | 11.99% | 0.77% | ||||||
| Janus Global Life Sciences Fund – Class S Shares | 33.97% | 23.45% | 13.30% | 11.69% | 1.20% | ||||||
| Janus Global Life Sciences Fund – Class T Shares | 34.31% | 23.78% | 13.61% | 11.99% | 0.95% | ||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 4.98% | |||||||
| MSCI World Health Care Index | 24.85% | 17.19% | 9.83% | 5.88% | |||||||
| Morningstar Quartile – Class T Shares | 1st | 2nd | 2nd | 1st | |||||||
| Morningstar Ranking – based on total return for Health Funds | 10/127 | 34/121 | 39/116 | 17/69 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
24 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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.
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 of 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.”
| * | 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,137.80 | $ | 5.41 | $ | 1,000.00 | $ | 1,020.01 | $ | 5.11 | 1.01% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,133.40 | $ | 9.57 | $ | 1,000.00 | $ | 1,016.09 | $ | 9.05 | 1.79% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,138.80 | $ | 4.40 | $ | 1,000.00 | $ | 1,020.96 | $ | 4.15 | 0.82% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,139.10 | $ | 4.08 | $ | 1,000.00 | $ | 1,021.26 | $ | 3.85 | 0.76% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,136.60 | $ | 6.27 | $ | 1,000.00 | $ | 1,019.20 | $ | 5.92 | 1.17% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,138.20 | $ | 4.93 | $ | 1,000.00 | $ | 1,020.46 | $ | 4.66 | 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 183/365 (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 | SEPTEMBER 30, 2014
Table of Contents
Janus Global Life Sciences Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 95.5% | ||||||||||
| Biotechnology – 30.7% | ||||||||||
| 742,705 | ACADIA Pharmaceuticals, Inc.*,# | $ | 18,389,376 | |||||||
| 2,592,332 | Achillion Pharmaceuticals, Inc.*,# | 25,871,473 | ||||||||
| 179,307 | Actelion, Ltd. | 21,026,767 | ||||||||
| 226,113 | Alexion Pharmaceuticals, Inc.* | 37,494,058 | ||||||||
| 515,684 | Alkermes PLC* | 22,107,373 | ||||||||
| 671,767 | Arrowhead Research Corp.*,# | 9,921,999 | ||||||||
| 191,815 | Biogen Idec, Inc.* | 63,454,320 | ||||||||
| 710,400 | Celgene Corp.* | 67,331,712 | ||||||||
| 773,375 | Chimerix, Inc.* | 21,360,617 | ||||||||
| 2,615,375 | Dyax Corp.* | 26,467,595 | ||||||||
| 827,108 | Gilead Sciences, Inc.*,† | 88,045,647 | ||||||||
| 373,205 | Incyte Corp.* | 18,305,705 | ||||||||
| 856,486 | Insmed, Inc.* | 11,177,142 | ||||||||
| 677,020 | Insys Therapeutics, Inc.*,# | 26,254,836 | ||||||||
| 2,967,131 | Ironwood Pharmaceuticals, Inc.* | 38,439,182 | ||||||||
| 1,831,501 | Juno Therapeutics, Inc. – Private Placement*,§ | 4,999,998 | ||||||||
| 416,632 | Medivation, Inc.* | 41,192,406 | ||||||||
| 711,656 | Neurocrine Biosciences, Inc.* | 11,151,650 | ||||||||
| 1,215,775 | NPS Pharmaceuticals, Inc.* | 31,610,150 | ||||||||
| 1,239,297 | OvaScience, Inc.*,#,£ | 20,572,330 | ||||||||
| 511,493 | Pharmacyclics, Inc.*,# | 60,064,623 | ||||||||
| 5,714,285 | Pronai Therapeutics, Inc. – Private Placement*,§ | 3,999,999 | ||||||||
| 405,305 | PTC Therapeutics, Inc.*,# | 17,837,473 | ||||||||
| 88,785 | Puma Biotechnology, Inc.* | 21,181,437 | ||||||||
| 80,126 | Regeneron Pharmaceuticals, Inc.* | 28,887,026 | ||||||||
| 934,410 | Sangamo BioSciences, Inc.*,# | 10,077,612 | ||||||||
| 1,207,387 | Swedish Orphan Biovitrum AB* | 12,872,111 | ||||||||
| 152,445 | Synageva BioPharma Corp.*,# | 10,485,167 | ||||||||
| 320,701 | Vertex Pharmaceuticals, Inc.* | 36,017,929 | ||||||||
| | ||||||||||
| 806,597,713 | ||||||||||
| Food & Staples Retailing – 0.4% | ||||||||||
| 71 | Diplomat Pharmacy, Inc. – Private Placement*,§ | 9,987,448 | ||||||||
| Food Products – 1.0% | ||||||||||
| 4,068,906 | Biostime International Holdings, Ltd.# | 12,646,296 | ||||||||
| 134,694 | Mead Johnson Nutrition Co. | 12,960,256 | ||||||||
| | ||||||||||
| 25,606,552 | ||||||||||
| Health Care Equipment & Supplies – 8.3% | ||||||||||
| 779,798 | Abbott Laboratories | 32,431,799 | ||||||||
| 1,236,130 | Endologix, Inc.* | 13,102,978 | ||||||||
| 525,483 | GenMark Diagnostics, Inc.*,# | 4,713,583 | ||||||||
| 303,887 | HeartWare International, Inc.*,# | 23,590,748 | ||||||||
| 438,130 | Medtronic, Inc. | 27,142,153 | ||||||||
| 769,228 | Novadaq Technologies, Inc.* | 9,761,503 | ||||||||
| 433,197 | Quidel Corp.* | 11,640,003 | ||||||||
| 538,134 | St Jude Medical, Inc. | 32,357,997 | ||||||||
| 218,665 | Varian Medical Systems, Inc.* | 17,519,440 | ||||||||
| 446,305 | Zimmer Holdings, Inc. | 44,875,968 | ||||||||
| | ||||||||||
| 217,136,172 | ||||||||||
| Health Care Providers & Services – 14.7% | ||||||||||
| 766,730 | Aetna, Inc. | 62,105,130 | ||||||||
| 376,027 | AmerisourceBergen Corp. | 29,066,887 | ||||||||
| 869,069 | Catamaran Corp. (U.S. Shares)* | 36,631,258 | ||||||||
| 320,872 | DaVita HealthCare Partners, Inc.* | 23,468,578 | ||||||||
| 561,811 | Express Scripts Holding Co.* | 39,680,711 | ||||||||
| 707,294 | HCA Holdings, Inc.# | 49,878,373 | ||||||||
| 158,656 | Henry Schein, Inc.* | 18,478,664 | ||||||||
| 333,081 | MEDNAX, Inc.* | 18,259,501 | ||||||||
| 445,569 | NMC Health PLC | 3,445,516 | ||||||||
| 524,825 | Omnicare, Inc. | 32,675,605 | ||||||||
| 3,510,400 | Sinopharm Group Co., Ltd. – Class H | 12,820,803 | ||||||||
| 632,031 | Tenet Healthcare Corp.* | 37,536,321 | ||||||||
| 197,990 | Universal Health Services, Inc. – Class B | 20,689,955 | ||||||||
| | ||||||||||
| 384,737,302 | ||||||||||
| Health Care Technology ��� 1.7% | ||||||||||
| 184,370 | athenahealth, Inc.*,# | 24,279,685 | ||||||||
| 1,040,770 | HMS Holdings Corp.* | 19,618,515 | ||||||||
| | ||||||||||
| 43,898,200 | ||||||||||
| Household Products – 0.6% | ||||||||||
| 196,474 | Reckitt Benckiser Group PLC | 17,003,189 | ||||||||
| Insurance – 1.0% | ||||||||||
| 301,592 | Aon PLC | 26,440,571 | ||||||||
| Life Sciences Tools & Services – 2.0% | ||||||||||
| 315,585 | Genfit* | 16,791,335 | ||||||||
| 67,992 | Mettler-Toledo International, Inc.* | 17,414,791 | ||||||||
| 148,118 | Thermo Fisher Scientific, Inc. | 18,025,960 | ||||||||
| | ||||||||||
| 52,232,086 | ||||||||||
| Pharmaceuticals – 34.6% | ||||||||||
| 805,474 | AbbVie, Inc. | 46,524,178 | ||||||||
| 209,724 | Actavis PLC* | 50,602,207 | ||||||||
| 510,932 | AstraZeneca PLC (ADR) | 36,500,982 | ||||||||
| 203,462 | Bayer AG | 28,492,087 | ||||||||
| 877,390 | Bristol-Myers Squibb Co. | 44,904,820 | ||||||||
| 467,911 | Concordia Healthcare Corp. | 15,427,107 | ||||||||
| 482,323 | Eli Lilly & Co. | 31,278,647 | ||||||||
| 573,824 | Endo International PLC* | 39,215,132 | ||||||||
| 1,271,821 | Fibrogen, Inc. – Private Placement*,§ | 5,990,277 | ||||||||
| 216,254 | GW Pharmaceuticals PLC (ADR)# | 17,484,136 | ||||||||
| 225,656 | Jazz Pharmaceuticals PLC* | 36,231,327 | ||||||||
| 618,737 | Johnson & Johnson | 65,951,177 | ||||||||
| 286,651 | Lipocine, Inc.*,£ | 1,751,438 | ||||||||
| 743,705 | Mallinckrodt PLC* | 67,045,006 | ||||||||
| 1,514,049 | Meda AB – Class A | 21,284,249 | ||||||||
| 842,787 | Nektar Therapeutics* | 10,172,439 | ||||||||
| 475,486 | Novartis AG | 44,789,747 | ||||||||
| 575,785 | Novo Nordisk A/S – Class B | 27,439,183 | ||||||||
| 219,694 | Pacira Pharmaceuticals, Inc.* | 21,292,742 | ||||||||
| 197,367 | Perrigo Co. PLC | 29,642,550 | ||||||||
| 502,481 | ProQR Therapeutics NV* | 8,637,648 | ||||||||
| 1,037,269 | Relypsa, Inc.*,# | 21,876,003 | ||||||||
| 199,044 | Roche Holding AG | 58,949,692 | ||||||||
| 179,002 | Shire PLC (ADR) | 46,370,468 | ||||||||
| 804,270 | Teva Pharmaceutical Industries, Ltd. (ADR) | 43,229,512 | ||||||||
| 534,560 | Valeant Pharmaceuticals International, Inc. (U.S. Shares)# | 70,134,272 | ||||||||
| 441,872 | ZS Pharma, Inc.*,# | 17,334,639 | ||||||||
| | ||||||||||
| 908,551,665 | ||||||||||
| Real Estate Investment Trusts (REITs) – 0.5% | ||||||||||
| 202,510 | Ventas, Inc. | 12,545,495 | ||||||||
| Total Common Stock (cost $1,824,562,248) | 2,504,736,393 | |||||||||
| Money Market – 3.0% | ||||||||||
| 78,179,785 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $78,179,785) | 78,179,785 | ||||||||
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
As of September 30, 2014
| Shares | Value | |||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 5.9% | ||||||||||
| 154,989,666 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $154,989,666) | $ | 154,989,666 | |||||||
| Total Investments (total cost $2,057,731,699) – 104.4% | 2,737,905,844 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (4.4)% | (115,082,041) | |||||||||
| Net Assets – 100% | $ | 2,622,823,803 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 2,176,167,983 | 79 | .5% | ||||
| Canada | 131,954,140 | 4 | .8 | |||||
| Switzerland | 124,766,206 | 4 | .6 | |||||
| United Kingdom | 120,804,291 | 4 | .4 | |||||
| Israel | 43,229,512 | 1 | .6 | |||||
| Sweden | 34,156,360 | 1 | .3 | |||||
| Germany | 28,492,087 | 1 | .0 | |||||
| Denmark | 27,439,183 | 1 | .0 | |||||
| China | 25,467,099 | 0 | .9 | |||||
| France | 16,791,335 | 0 | .6 | |||||
| Netherlands | 8,637,648 | 0 | .3 | |||||
| Total | $ | 2,737,905,844 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 8.5%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Bank of America: | ||||||||||||
| Swedish Krona 11/6/14 | 38,500,000 | $ | 5,336,525 | $ | (30,572) | |||||||
| Swiss Franc 11/6/14 | 9,500,000 | 9,956,620 | 42,040 | |||||||||
| 15,293,145 | 11,468 | |||||||||||
| Credit Suisse International: | ||||||||||||
| Swedish Krona 10/23/14 | 37,000,000 | 5,128,824 | 67,864 | |||||||||
| Swiss Franc 10/23/14 | 12,970,000 | 13,591,256 | 240,459 | |||||||||
| 18,720,080 | 308,323 | |||||||||||
| HSBC Securities (USA), Inc.: Swiss Franc 10/9/14 | 14,175,000 | 14,851,797 | 674,193 | |||||||||
| JPMorgan Chase & Co.: | ||||||||||||
| Swedish Krona 10/16/14 | 20,000,000 | 2,772,418 | 34,738 | |||||||||
| Swiss Franc 10/16/14 | 7,900,000 | 8,277,799 | 180,336 | |||||||||
| 11,050,217 | 215,074 | |||||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| Swedish Krona 10/16/14 | 30,000,000 | 4,158,627 | 79,335 | |||||||||
| Swiss Franc 10/16/14 | 14,170,000 | 14,847,647 | 380,725 | |||||||||
| 19,006,274 | 460,060 | |||||||||||
| Total | $ | 78,921,513 | $ | 1,669,118 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
28 | SEPTEMBER 30, 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 12.82% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the MSCI World Index, returned 12.20%, and its secondary benchmark, the MSCI All Country World Index, returned 11.32% during the period.
INVESTMENT ENVIRONMENT
Global stocks delivered strong returns during the past 12 months. The period began with moderate gains supported by solid U.S. market performance, even as the Federal Reserve (Fed) announced a gradual reduction in its bond-buying program that would begin in January. Europe benefitted from improving trade, manufacturing and other economic data, while returns from Japan slowed and emerging markets continued to underperform. First quarter 2014 saw additional positive euro-zone growth balanced by continued signs of slowdown in China, weaker Japanese stocks due to lack of economic reform progress and the potential for higher U.S. interest rates earlier than expected – all of which helped to keep global stock gains modest. Investors also doubted emerging markets’ ability to prop up their economies, although decisive central bank actions helped stabilize the region until Russian troops entered Crimea, causing new uncertainty.
After recovering from volatility in April due to momentum stock selling pressure and mounting geopolitical tensions, global markets rebounded. Catalysts included the European Central Bank’s interest rate cut and other measures designed to boost inflation and economic growth, as well as stronger credit market confidence in European peripheral countries. Emerging markets also showed notable improvement, led by pro-business election wins in India. As the period drew to a close, geopolitical turmoil in Ukraine and the Middle East more than offset generally positive U.S. economic news, pushing global markets lower. A brief Portugal banking scare and worries over Scotland’s independence vote, which was ultimately defeated, also weighed on investor sentiment, as did renewed concerns about China’s economic prospects. Corporate quarterly earnings, meanwhile, were largely in line with market expectations, and Japan’s economic growth did not fall as much as feared from a consumption tax increase earlier in the year. The Fed also helped markets by pledging to keep interest rates near zero for a “considerable time.”
PERFORMANCE DISCUSSION
Our Fund, which represents the best ideas of our seven global sector teams, employs a bottom-up, fundamental approach to identify what we consider the best global opportunities. Outperformance for the period was led by our industrials, health care and energy holdings.
Within industrials, the Fund’s largest holding, Canadian Pacific Railway, was our top individual contributor. The railroad company reported better-than-expected earnings on strong sales growth led by higher grain shipments. Management also increased its share repurchases during the period. We believe a new management team is improving the railroad company’s culture, operational performance and capital allocation decisions.
Apple, a top 5 holding, also aided performance on investor anticipation and subsequent announcements of new versions of its popular iPhone, along with an Apple Watch and a mobile payments system. We felt the product announcements demonstrate the company’s continued strength in combining hardware, software and services, which serve as an important differentiator from competitors. In addition, the cross-device integration between all of Apple’s products will continue to strengthen and expand its ecosystem, in our view. Even with recent gains, we still view the stock’s risk/reward profile as attractive.
Shire led the strong relative performance of our health care holdings. The Ireland-based specialty pharmaceutical firm rebuffed buyout attempts from U.S.-based AbbVie, citing undervaluation, during the period. We favor Shire for its dominant position in the attention deficit and hyperactivity (ADHD) market as well as its portfolio of drugs for rare diseases.
Despite Apple’s strong performance, our technology holdings detracted from relative performance, as did positions in the financials and consumer sectors. The largest individual detractor was consumer stock Whole Foods Market, which declined on disappointing long-term guidance due to increased competitive pressures. We believe the natural and organic foods grocery operator will
Janus Global & International Funds | 29
Table of Contents
Janus Global Research Fund (unaudited)
continue to gain market share and will be aggressive in acquiring store sites and consumers from competitors to grow long term, but we recognize that effort will also lead to slower earnings growth over the short-to-intermediate term. We are continuing to analyze the competitive environment to assess whether that will restrict the long-term growth we anticipate for Whole Foods.
Within financials, Sberbank was another top individual detractor. Russia’s largest bank suffered as a proxy for the broader Russian market, which sold off over the Ukraine crisis. 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.
Volkswagen also weighed on performance. The automaker encountered production issues related to implementing its new shared manufacturing strategy and suffered from a more cautious outlook from management for a European recovery, given rising geopolitical risks. Volkswagen also announced a restructuring program in its European operations, which raised doubts the company would be able to reach operating profit targets for its namesake brand. While the European recovery has not been as smooth as we expected, it is still recovering, in our view. Volkswagen also remains one of the largest and cheapest auto manufacturers in the world and continues to generate strong free cash flow. We also believe the company’s shared production platform will ultimately be successful in reducing costs and improving efficiencies.
OUTLOOK
Around the world, inflation and interest rates remain low, a mix of conditions that support higher multiples. At the same time, we see subdued economic growth and worry that a sharp change in risk tolerance could mean a contraction in market multiples.
In the U.S., it seems that the slow-but-steady recovery is continuing. Recent earnings were generally in line or ahead of expectations, and stocks responded modestly. The years in which companies meeting market expectations meant beating expectations are well behind us as markets have moderated their risk assessments. Most measures of risk suggest that investors have become complacent, but we are watchful. The shift this spring from momentum-based stocks and their subsequent underperformance reminded us how quickly markets penalize those chasing rather than anticipating a trend.
The rest of the world is not wholly different, but there are distinctions. In Europe, economic growth will not do as much for earnings as company restructuring. In the third quarter, economic data suggested slower growth, hurting equity prices. We think the Ukrainian situation weighed on sentiment. A new round of stimulus could boost optimism, and a weaker euro could help propel equities. With interest rates low in Europe and price-to-earnings multiples low, Europe holds promise for stock selection.
Emerging markets carry more macroeconomic risks, but those could be easing. We are past elections in India and Indonesia (with pro-market outcomes), nearing the presidential selection in Brazil and seeing China settle in at a slower but sustainable growth rate. Correlations between these markets have fallen in the last two years versus the two years before that when macro forces were stronger.
With equity markets remaining fairly priced (not expensive but not cheap either) in our view, the key is to find companies that can create value beyond expectations through superior growth or improved operations. Companies that are creating value can help equity portfolios. And, with interest rates low and bond spreads tight to Treasurys, the relative attractiveness of equities remains interesting.
Thank you for your investment in Janus Global Research Fund.
30 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Global Research Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Canadian Pacific Railway, Ltd. | 1.36% | |||
| Apple, Inc. | 0.74% | |||
| Shire PLC | 0.63% | |||
| Maruti Suzuki India, Ltd. | 0.57% | |||
| Gilead Sciences, Inc. | 0.57% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Whole Foods Market, Inc. | –0.34% | |||
| Sberbank of Russia (ADR) | –0.27% | |||
| Volkswagen AG | –0.24% | |||
| Brenntag AG | –0.20% | |||
| Petrofac, Ltd. | –0.20% | |||
3 Top Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Industrials | 2.41% | 20.12% | 20.20% | |||||||||
| Health Care | 0.87% | 12.24% | 12.18% | |||||||||
| Energy | 0.14% | 12.90% | 12.85% | |||||||||
4 Bottom Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Technology | –0.98% | 9.49% | 9.62% | |||||||||
| Financials | –0.60% | 21.22% | 21.51% | |||||||||
| Consumer | –0.58% | 14.31% | 14.36% | |||||||||
| Communications | –0.29% | 9.25% | 9.28% | |||||||||
| 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
Table of Contents
Janus Global Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Canadian Pacific Railway, Ltd. Road & Rail | 2.5% | |||
| Apple, Inc. Technology Hardware, Storage & Peripherals | 2.2% | |||
| AIA Group, Ltd. Insurance | 2.1% | |||
| MarkWest Energy Partners LP Oil, Gas & Consumable Fuels | 1.5% | |||
| NGK Spark Plug Co., Ltd. Auto Components | 1.4% | |||
| 9.7% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
32 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Global Research Fund – Class A Shares | |||||||||||
| NAV | 12.67% | 11.91% | 9.37% | 1.19% | 1.09% | ||||||
| MOP | 6.19% | 10.59% | 8.69% | ||||||||
| Janus Global Research Fund – Class C Shares | |||||||||||
| NAV | 11.84% | 11.03% | 8.51% | 1.96% | 1.86% | ||||||
| CDSC | 10.84% | 11.03% | 8.51% | ||||||||
| Janus Global Research Fund – Class D Shares(1) | 12.92% | 12.07% | 9.46% | 0.95% | 0.85% | ||||||
| Janus Global Research Fund – Class I Shares | 12.98% | 12.15% | 9.42% | 0.90% | 0.80% | ||||||
| Janus Global Research Fund – Class R Shares | 12.25% | 11.48% | 8.97% | 1.51% | 1.41% | ||||||
| Janus Global Research Fund – Class S Shares | 12.54% | 11.69% | 9.13% | 1.27% | 1.17% | ||||||
| Janus Global Research Fund – Class T Shares | 12.82% | 11.98% | 9.42% | 1.03% | 0.93% | ||||||
| MSCI World IndexSM | 12.20% | 10.86% | 6.08% | ||||||||
| MSCI All Country World IndexSM | 11.32% | 10.07% | 6.18% | ||||||||
| Morningstar Quartile – Class T Shares | 1st | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for World Stock Funds | 172/1,150 | 179/780 | 11/505 | ||||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
See important disclosures on the next page.
Janus Global & International Funds | 33
Table of Contents
Janus Global Research Fund (unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,035.50 | $ | 4.54 | $ | 1,000.00 | $ | 1,020.61 | $ | 4.51 | 0.89% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,031.70 | $ | 8.40 | $ | 1,000.00 | $ | 1,016.80 | $ | 8.34 | 1.65% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,036.60 | $ | 3.52 | $ | 1,000.00 | $ | 1,021.61 | $ | 3.50 | 0.69% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,036.80 | $ | 3.11 | $ | 1,000.00 | $ | 1,022.01 | $ | 3.09 | 0.61% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,033.40 | $ | 6.58 | $ | 1,000.00 | $ | 1,018.60 | $ | 6.53 | 1.29% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,034.80 | $ | 5.31 | $ | 1,000.00 | $ | 1,019.85 | $ | 5.27 | 1.04% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,036.20 | $ | 4.03 | $ | 1,000.00 | $ | 1,021.11 | $ | 4.00 | 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 183/365 (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
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 98.2% | ||||||||||
| Aerospace & Defense – 0.8% | ||||||||||
| 88,134 | Precision Castparts Corp. | $ | 20,877,182 | |||||||
| Air Freight & Logistics – 0.6% | ||||||||||
| 133,882 | Panalpina Welttransport Holding AG | 16,837,133 | ||||||||
| Airlines – 1.0% | ||||||||||
| 533,200 | United Continental Holdings, Inc.* | 24,948,428 | ||||||||
| Auto Components – 1.4% | ||||||||||
| 1,279,300 | NGK Spark Plug Co., Ltd. | 37,723,004 | ||||||||
| Automobiles – 0.5% | ||||||||||
| 4,919 | Hyundai Motor Co. | 887,226 | ||||||||
| 251,515 | Maruti Suzuki India, Ltd. | 12,469,834 | ||||||||
| | ||||||||||
| 13,357,060 | ||||||||||
| Beverages – 2.7% | ||||||||||
| 349,863 | PepsiCo, Inc. | 32,568,747 | ||||||||
| 88,607 | Pernod Ricard SA | 10,013,692 | ||||||||
| 490,557 | SABMiller PLC | 27,255,267 | ||||||||
| | ||||||||||
| 69,837,706 | ||||||||||
| Biotechnology – 5.2% | ||||||||||
| 134,591 | Actelion, Ltd. | 15,783,062 | ||||||||
| 61,981 | Biogen Idec, Inc.* | 20,503,934 | ||||||||
| 209,979 | Celgene Corp.* | 19,901,810 | ||||||||
| 200,931 | Gilead Sciences, Inc.* | 21,389,105 | ||||||||
| 1,341,741 | Ironwood Pharmaceuticals, Inc.* | 17,382,255 | ||||||||
| 134,971 | Medivation, Inc.* | 13,344,583 | ||||||||
| 429,058 | NPS Pharmaceuticals, Inc.* | 11,155,508 | ||||||||
| 148,181 | Pharmacyclics, Inc.* | 17,400,895 | ||||||||
| | ||||||||||
| 136,861,152 | ||||||||||
| Capital Markets – 3.6% | ||||||||||
| 980,453 | Blackstone Group LP | 30,864,660 | ||||||||
| 472,938 | Deutsche Bank AG | 16,586,629 | ||||||||
| 775,410 | E*TRADE Financial Corp.* | 17,516,512 | ||||||||
| 1,680,160 | UBS AG | 29,157,078 | ||||||||
| | ||||||||||
| 94,124,879 | ||||||||||
| Chemicals – 2.6% | ||||||||||
| 160,700 | Air Products & Chemicals, Inc. | 20,919,926 | ||||||||
| 3,103,194 | Alent PLC | 16,492,550 | ||||||||
| 167,115 | LyondellBasell Industries NV – Class A | 18,158,716 | ||||||||
| 110,785 | Monsanto Co. | 12,464,420 | ||||||||
| | ||||||||||
| 68,035,612 | ||||||||||
| Commercial Banks – 6.8% | ||||||||||
| 13,633,000 | China Construction Bank Corp. – Class H | 9,563,556 | ||||||||
| 448,657 | Citigroup, Inc. | 23,249,406 | ||||||||
| 2,737,774 | HSBC Holdings PLC | 27,859,053 | ||||||||
| 1,723,369 | ING Groep NV* | 24,509,865 | ||||||||
| 385,859 | JPMorgan Chase & Co. | 23,244,146 | ||||||||
| 11,987,492 | Lloyds Banking Group PLC* | 14,851,675 | ||||||||
| 717,093 | Sberbank of Russia (ADR) | 5,643,881 | ||||||||
| 6,426,400 | Seven Bank, Ltd. | 26,212,810 | ||||||||
| 1,045,239 | Turkiye Halk Bankasi A/S | 6,281,912 | ||||||||
| 400,900 | U.S. Bancorp | 16,769,647 | ||||||||
| | ||||||||||
| 178,185,951 | ||||||||||
| Communications Equipment – 1.6% | ||||||||||
| 493,360 | CommScope Holding Co., Inc.* | 11,796,238 | ||||||||
| 165,844 | Motorola Solutions, Inc. | 10,494,608 | ||||||||
| 1,663,655 | Telefonaktiebolaget LM Ericsson – Class B | 21,006,375 | ||||||||
| | ||||||||||
| 43,297,221 | ||||||||||
| Consumer Finance – 0.7% | ||||||||||
| 214,345 | American Express Co. | 18,763,761 | ||||||||
| Containers & Packaging – 0.8% | ||||||||||
| 472,439 | Crown Holdings, Inc.* | 21,032,984 | ||||||||
| Diversified Financial Services – 0.6% | ||||||||||
| 85,048 | Intercontinental Exchange, Inc. | 16,588,612 | ||||||||
| Electric Utilities – 0.6% | ||||||||||
| 426,206 | Brookfield Infrastructure Partners LP | 16,195,828 | ||||||||
| Electrical Equipment – 0.8% | ||||||||||
| 474,457 | Sensata Technologies Holding NV* | 21,127,570 | ||||||||
| Electronic Equipment, Instruments & Components – 1.9% | ||||||||||
| 85,000 | Keyence Corp. | 36,982,450 | ||||||||
| 250,298 | TE Connectivity, Ltd. (U.S. Shares) | 13,838,977 | ||||||||
| | ||||||||||
| 50,821,427 | ||||||||||
| Energy Equipment & Services – 1.4% | ||||||||||
| 147,363 | Core Laboratories NV | 21,566,575 | ||||||||
| 80,255 | National Oilwell Varco, Inc. | 6,107,406 | ||||||||
| 555,070 | Petrofac, Ltd. | 9,276,916 | ||||||||
| | ||||||||||
| 36,950,897 | ||||||||||
| Food & Staples Retailing – 1.5% | ||||||||||
| 466,042 | Kroger Co. | 24,234,184 | ||||||||
| 408,103 | Whole Foods Market, Inc. | 15,552,805 | ||||||||
| | ||||||||||
| 39,786,989 | ||||||||||
| Food Products – 1.5% | ||||||||||
| 135,995 | Hershey Co. | 12,978,003 | ||||||||
| 359,369 | Nestle SA | 26,365,131 | ||||||||
| | ||||||||||
| 39,343,134 | ||||||||||
| Health Care Equipment & Supplies – 0.7% | ||||||||||
| 179,697 | Zimmer Holdings, Inc. | 18,068,533 | ||||||||
| Health Care Providers & Services – 2.6% | ||||||||||
| 231,316 | Aetna, Inc. | 18,736,596 | ||||||||
| 357,659 | Catamaran Corp. (U.S. Shares)* | 15,075,327 | ||||||||
| 243,199 | Express Scripts Holding Co.* | 17,177,145 | ||||||||
| 296,492 | Omnicare, Inc. | 18,459,592 | ||||||||
| | ||||||||||
| 69,448,660 | ||||||||||
| Hotels, Restaurants & Leisure – 0.7% | ||||||||||
| 3,952,337 | Bwin.Party Digital Entertainment PLC | 5,815,703 | ||||||||
| 177,219 | Starbucks Corp. | 13,372,946 | ||||||||
| | ||||||||||
| 19,188,649 | ||||||||||
| Household Durables – 0.3% | ||||||||||
| 374,800 | Sony Corp. | 6,754,618 | ||||||||
| Household Products – 1.1% | ||||||||||
| 443,802 | Colgate-Palmolive Co. | 28,944,766 | ||||||||
| Information Technology Services – 2.3% | ||||||||||
| 284,851 | Amdocs, Ltd. (U.S. Shares) | 13,068,964 | ||||||||
| 417,009 | MasterCard, Inc. – Class A | 30,825,305 | ||||||||
| 84,059 | Visa, Inc. – Class A | 17,935,669 | ||||||||
| | ||||||||||
| 61,829,938 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
36 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Insurance – 4.2% | ||||||||||
| 10,750,700 | AIA Group, Ltd. | $ | 55,485,825 | |||||||
| 311,635 | Aon PLC | 27,321,040 | ||||||||
| 1,305,333 | Prudential PLC | 28,988,065 | ||||||||
| | ||||||||||
| 111,794,930 | ||||||||||
| Internet & Catalog Retail – 1.5% | ||||||||||
| 146,921 | Alibaba Group Holding, Ltd. (ADR)* | 13,053,931 | ||||||||
| 39,477 | Amazon.com, Inc.* | 12,728,964 | ||||||||
| 11,137 | Priceline Group, Inc.* | 12,903,105 | ||||||||
| | ||||||||||
| 38,686,000 | ||||||||||
| Internet Software & Services – 2.1% | ||||||||||
| 113,664 | Facebook, Inc. – Class A* | 8,984,003 | ||||||||
| 31,478 | Google, Inc. – Class A* | 18,521,970 | ||||||||
| 35,747 | Google, Inc. – Class C* | 20,638,888 | ||||||||
| 356,400 | Youku Tudou, Inc. (ADR)* | 6,386,688 | ||||||||
| | ||||||||||
| 54,531,549 | ||||||||||
| Leisure Products – 0.3% | ||||||||||
| 281,693 | Mattel, Inc. | 8,633,891 | ||||||||
| Machinery – 1.3% | ||||||||||
| 268,457 | Colfax Corp.* | 15,293,996 | ||||||||
| 149,243 | Dover Corp. | 11,988,690 | ||||||||
| 281,998 | Rexnord Corp. | 8,022,843 | ||||||||
| | ||||||||||
| 35,305,529 | ||||||||||
| Media – 3.6% | ||||||||||
| 139,135 | CBS Corp. – Class B | 7,443,722 | ||||||||
| 191,117 | CBS Outdoor Americas, Inc. | 5,722,043 | ||||||||
| 372,811 | Comcast Corp. – Class A | 20,049,776 | ||||||||
| 134,255 | Liberty Global PLC – Class A* | 5,711,208 | ||||||||
| 264,944 | Liberty Global PLC – Class C* | 10,866,678 | ||||||||
| 58,124 | Time Warner Cable, Inc. | 8,340,213 | ||||||||
| 589,794 | Twenty-First Century Fox, Inc. – Class A | 20,224,036 | ||||||||
| 194,958 | Walt Disney Co. | 17,357,111 | ||||||||
| | ||||||||||
| 95,714,787 | ||||||||||
| Metals & Mining – 0.6% | ||||||||||
| 589,138 | ThyssenKrupp AG | 15,467,744 | ||||||||
| Oil, Gas & Consumable Fuels – 11.2% | ||||||||||
| 278,887 | Anadarko Petroleum Corp. | 28,290,297 | ||||||||
| 698,745 | Encana Corp. (U.S. Shares) | 14,820,382 | ||||||||
| 920,036 | Enterprise Products Partners LP | 37,077,451 | ||||||||
| 1,330,500 | Inpex Corp. | 18,838,613 | ||||||||
| 295,548 | Keyera Corp. | 23,814,338 | ||||||||
| 476,458 | Koninklijke Vopak NV | 25,650,692 | ||||||||
| 504,462 | MarkWest Energy Partners LP | 38,752,771 | ||||||||
| 504,127 | MEG Energy Corp.* | 15,477,662 | ||||||||
| 355,297 | Noble Energy, Inc. | 24,288,103 | ||||||||
| 308,262 | Phillips 66 | 25,064,783 | ||||||||
| 403,526 | Royal Dutch Shell PLC (ADR) | 30,720,434 | ||||||||
| 267,432 | Valero Energy Corp. | 12,374,079 | ||||||||
| | ||||||||||
| 295,169,605 | ||||||||||
| Pharmaceuticals – 4.3% | ||||||||||
| 259,263 | Endo International PLC* | 17,718,033 | ||||||||
| 116,723 | Jazz Pharmaceuticals PLC* | 18,741,045 | ||||||||
| 1,043,917 | Meda AB – Class A | 14,675,212 | ||||||||
| 81,903 | Roche Holding AG | 24,256,730 | ||||||||
| 337,453 | Teva Pharmaceutical Industries, Ltd. (ADR) | 18,138,099 | ||||||||
| 160,979 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 21,120,445 | ||||||||
| | ||||||||||
| 114,649,564 | ||||||||||
| Professional Services – 0.8% | ||||||||||
| 57,717 | IHS, Inc. – Class A* | 7,225,591 | ||||||||
| 244,618 | Verisk Analytics, Inc. – Class A* | 14,894,790 | ||||||||
| | ||||||||||
| 22,120,381 | ||||||||||
| Real Estate Investment Trusts (REITs) – 1.7% | ||||||||||
| 204,045 | American Tower Corp. | 19,104,733 | ||||||||
| 820,491 | Lexington Realty Trust | 8,032,607 | ||||||||
| 94,211 | Simon Property Group, Inc. | 15,490,173 | ||||||||
| 54,938 | Ventas, Inc. | 3,403,409 | ||||||||
| | ||||||||||
| 46,030,922 | ||||||||||
| Real Estate Management & Development – 2.0% | ||||||||||
| 468,874 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 21,080,575 | ||||||||
| 150,525 | Jones Lang LaSalle, Inc. | 19,017,328 | ||||||||
| 588,000 | Mitsubishi Estate Co., Ltd. | 13,248,463 | ||||||||
| | ||||||||||
| 53,346,366 | ||||||||||
| Road & Rail – 3.5% | ||||||||||
| 184,704 | Canadian National Railway Co. | 13,114,677 | ||||||||
| 317,306 | Canadian Pacific Railway, Ltd. | 65,861,255 | ||||||||
| 109,727 | Kansas City Southern | 13,298,912 | ||||||||
| | ||||||||||
| 92,274,844 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.6% | ||||||||||
| 1,800,369 | ARM Holdings PLC | 26,228,785 | ||||||||
| 1,398,502 | Atmel Corp.* | 11,299,896 | ||||||||
| 320,606 | Freescale Semiconductor, Ltd.* | 6,261,435 | ||||||||
| 5,912 | Samsung Electronics Co., Ltd. | 6,619,373 | ||||||||
| 4,624,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 18,407,649 | ||||||||
| | ||||||||||
| 68,817,138 | ||||||||||
| Software – 2.2% | ||||||||||
| 530,278 | Microsoft Corp. | 24,583,688 | ||||||||
| 420,000 | Nexon Co., Ltd. | 3,468,040 | ||||||||
| 97,800 | Nintendo Co., Ltd. | 10,645,965 | ||||||||
| 230,132 | Oracle Corp. | 8,809,453 | ||||||||
| 174,304 | Solera Holdings, Inc. | 9,823,774 | ||||||||
| | ||||||||||
| 57,330,920 | ||||||||||
| Specialty Retail – 2.7% | ||||||||||
| 6,304,400 | Chow Tai Fook Jewellery Group, Ltd. | 8,202,855 | ||||||||
| 300,030 | Lowe’s Cos., Inc. | 15,877,588 | ||||||||
| 151,669 | PetSmart, Inc. | 10,630,480 | ||||||||
| 142,062 | Tiffany & Co. | 13,681,991 | ||||||||
| 116,093 | Ulta Salon Cosmetics & Fragrance, Inc. | 13,718,710 | ||||||||
| 134,120 | Williams-Sonoma, Inc. | 8,928,368 | ||||||||
| | ||||||||||
| 71,039,992 | ||||||||||
| Technology Hardware, Storage & Peripherals – 2.2% | ||||||||||
| 565,022 | Apple, Inc. | 56,925,967 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.8% | ||||||||||
| 108,909 | Cie Financiere Richemont SA | 8,926,710 | ||||||||
| 194,845 | NIKE, Inc. – Class B | 17,380,174 | ||||||||
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
As of September 30, 2014
| Shares | Value | |||||||||
| Textiles, Apparel & Luxury Goods – (continued) | ||||||||||
| 1,176,484 | Prada SpA | $ | 7,132,138 | |||||||
| 4,177,500 | Samsonite International SA | 13,446,674 | ||||||||
| | ||||||||||
| 46,885,696 | ||||||||||
| Tobacco – 1.8% | ||||||||||
| 581,288 | Imperial Tobacco Group PLC | 25,000,867 | ||||||||
| 713,500 | Japan Tobacco, Inc. | 23,227,765 | ||||||||
| | ||||||||||
| 48,228,632 | ||||||||||
| Trading Companies & Distributors – 2.2% | ||||||||||
| 732,565 | Brenntag AG | 35,963,344 | ||||||||
| 180,837 | MSC Industrial Direct Co., Inc. – Class A | 15,454,330 | ||||||||
| 191,401 | NOW, Inc. | 5,820,504 | ||||||||
| | ||||||||||
| 57,238,178 | ||||||||||
| Wireless Telecommunication Services – 1.3% | ||||||||||
| 513,294 | T-Mobile U.S., Inc. | 14,818,798 | ||||||||
| 12,787,800 | Tower Bersama Infrastructure Tbk PT | 8,401,370 | ||||||||
| 3,574,189 | Vodafone Group PLC | 11,779,901 | ||||||||
| | ||||||||||
| 35,000,069 | ||||||||||
| Total Common Stock (cost $2,172,136,246) | 2,594,124,398 | |||||||||
| Preferred Stock – 0.9% | ||||||||||
| Automobiles – 0.9% | ||||||||||
| 108,080 | Volkswagen AG (cost $28,571,885) | 22,435,296 | ||||||||
| Money Market – 0.4% | ||||||||||
| 10,289,000 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $10,289,000) | 10,289,000 | ||||||||
| Total Investments (total cost $2,210,997,131) – 99.5% | 2,626,848,694 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.5% | 13,974,995 | |||||||||
| Net Assets – 100% | $ | 2,640,823,689 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 1,537,357,385 | 58 | .5% | ||||
| United Kingdom | 224,269,216 | 8 | .5 | |||||
| Canada | 190,364,661 | 7 | .3 | |||||
| Japan | 177,101,728 | 6 | .7 | |||||
| Switzerland | 121,325,844 | 4 | .6 | |||||
| Germany | 90,453,013 | 3 | .5 | |||||
| Hong Kong | 77,135,354 | 2 | .9 | |||||
| Netherlands | 50,160,557 | 1 | .9 | |||||
| Sweden | 35,681,587 | 1 | .4 | |||||
| China | 29,004,175 | 1 | .1 | |||||
| Taiwan | 18,407,649 | 0 | .7 | |||||
| Israel | 18,138,099 | 0 | .7 | |||||
| India | 12,469,834 | 0 | .5 | |||||
| France | 10,013,692 | 0 | .4 | |||||
| Indonesia | 8,401,370 | 0 | .3 | |||||
| South Korea | 7,506,599 | 0 | .3 | |||||
| Italy | 7,132,138 | 0 | .3 | |||||
| Turkey | 6,281,912 | 0 | .2 | |||||
| Russia | 5,643,881 | 0 | .2 | |||||
| Total | $ | 2,626,848,694 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 0.4%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
38 | SEPTEMBER 30, 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 one-year period ended September 30, 2014, Janus Global Select Fund’s Class T Shares returned 13.46% versus a return of 11.32% for the Fund’s benchmark, the MSCI All Country World Index.
INVESTMENT ENVIRONMENT
Global stocks delivered strong returns during the past 12 months. The period began with moderate gains supported by solid U.S. market performance, even as the Federal Reserve (Fed) announced a gradual reduction in its bond-buying program that would begin in January. Europe benefitted from improving trade, manufacturing and other economic data, while returns from Japan slowed and emerging markets continued to underperform. First quarter 2014 saw additional positive euro-zone growth balanced by continued signs of slowdown in China, weaker Japanese stocks due to lack of economic reform progress and the potential for higher U.S. interest rates earlier than expected – all of which helped to keep global stock gains modest. Investors also doubted emerging markets’ ability to prop up their economies, although decisive central bank actions helped stabilize the region until Russian troops entered Crimea, causing new uncertainty.
After recovering from volatility in April due to momentum stock selling pressure and mounting geopolitical tensions, global markets rebounded. Catalysts included the European Central Bank’s interest rate cut and other measures designed to boost inflation and economic growth, as well as stronger credit market confidence in European peripheral countries. Emerging markets also showed notable improvement, led by pro-business election wins in India. As the period drew to a close, geopolitical turmoil in Ukraine and the Middle East more than offset generally positive U.S. economic news, pushing global markets lower. A brief Portugal banking scare and worries over Scotland’s independence vote, which was ultimately defeated, also weighed on investor sentiment, as did renewed concerns about China’s economic prospects. Corporate quarterly earnings, meanwhile, were largely in line with market expectations, and Japan’s economic growth did not fall as much as feared from a consumption tax increase earlier in the year. The Fed also helped markets by pledging to keep interest rates near zero for a “considerable time.”
PERFORMANCE DISCUSSION
We employ a high-conviction investment approach, which seeks strong risk-adjusted performance over the long term, although we are pleased when the Fund outperforms over shorter periods as it did in this period.
Our holdings within the U.S., Canada and the UK drove relative outperformance. On a sector basis, health care, industrials and telecommunication services were the top contributors.
Jazz Pharmaceuticals was the largest individual contributor. 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.
Within industrials, Canadian Pacific Railway was another top individual contributor. The railroad company’s management team continued to drive significant improvement in its operations. Canadian Pacific reported better-than-expected quarterly earnings in April despite difficult winter weather conditions and began a stock repurchase program.
Ireland-based Shire was also an additive to relative returns. The specialty pharmaceutical firm rebuffed buyout attempts from U.S.-based AbbVie and Allergan, citing undervaluation, during the period. We favor Shire for its
Janus Global & International Funds | 39
Table of Contents
Janus Global Select Fund (unaudited)
dominant position in the attention deficit and hyperactivity (ADHD) market as well as its portfolio of drugs for rare diseases.
Holdings in Sweden, Cyprus and Greece weighed the most on performance, as did holdings within information technology, consumer discretionary and financials.
Online gaming company Bwin.Party Digital Entertainment was the largest individual detractor. The prospect of increased competition in the U.S., where only three states have approved online gaming, weighed on the consumer discretionary stock. The acquisition of PokerStars by a small Canadian company, Amaya, also rattled investors in Bwin.Party. We think those concerns are overdone and remain optimistic that Bwin.Party will maintain a significant market position based on its key partnerships with casinos, its differentiated technology and the company’s critical mass of customers. Additionally, we think a new board chairman and an activist investor on the board could lead to shareholder value creation over the medium term. Finally, we consider the stock meaningfully undervalued.
Youku Tudou was another top individual detractor. An Internet television company in China, Youku’s platform enables consumers to search, view and share video content across multiple devices. Based on its large customer base, Youku has one of the most effective advertising platforms in the Chinese market, in our view. With its acquisition of Tudou, the company is gaining significant pricing power, which should give it a long-term advantage on content acquisition. However, increasing competition in the online video space has led to increased content costs for the company. Increased regulation and a lag in the company’s ability to monetize mobile video viewing have also been headwinds.
Within information technology, Teradata also weighed on performance. The U.S.-based data warehousing provider suffered from pressures from a lower-cost competitor and a significant slowing in its core market. Based on the competitive threat, we sold our position.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
A period of synchronized global growth has given way to one of diverging economic paths. The U.S., UK and Ireland are showing growth, while other developed countries such as France are stagnating. We are waiting to see where Japan’s economy settles following its consumption tax increase but find few signs of sustainable growth so far. China, meanwhile, is growing but more slowly than earlier this year.
Economic growth matters, but for investment returns, business fundamentals and equity valuations are most important. Valuations in the U.S. equity markets are fair and interesting relative to other asset classes, in our view. Underlying fundamentals are also attractive. While some market observers see the economy in a late-stage recovery, we see it as being early, with employment just starting to improve and without significant inflationary pressures. We are anticipating approximately 3% growth in U.S. gross domestic product by the end of the year. We think the U.S. is still a good place to invest.
The UK macroeconomic backdrop is also favorable, but we are having some difficulty finding attractively valued companies that meet our investment criteria. The European peripheral countries also had solid growth, but as in the UK, attractive businesses at the right valuations are more difficult to identify. We think Ireland, Spain and Greece are among countries that should perform well going forward. A weaker euro also increases the relative attractiveness of exporters.
Similarly, a weaker yen favors Japanese exporters, but our holdings in Japan are based on attractive company fundamentals rather than a positive macroeconomic backdrop. We believe the market is running out of patience for Prime Minister Shinzo Abe’s reform efforts because he has yet to address some of the key structural issues in Japan’s economy, such as labor, corporate tax and health care.
Economic uncertainty can pressure business models but a robust economic picture is not critical to our success. Our investment approach seeks out companies where the market is not properly valuing future cash flows and constructs a portfolio reflecting our stock-picking judgment. Our recent performance is pleasing, but more importantly we remain confident in our long-term approach.
Thank you for your investment in Janus Global Select Fund.
40 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Global Select Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Jazz Pharmaceuticals PLC | 1.22% | |||
| Canadian Pacific Railway, Ltd. | 1.08% | |||
| Shire PLC | 1.03% | |||
| Sumco Corp. | 0.96% | |||
| Valero Energy Corp. | 0.94% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Bwin.Party Digital Entertainment PLC | –0.57% | |||
| Youku Tudou, Inc. (ADR) | –0.55% | |||
| Teradata Corp. | –0.39% | |||
| Prada SpA | –0.34% | |||
| Countrywide PLC | –0.33% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI All Country | |||||||||||
| Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
| Health Care | 3.01% | 12.84% | 10.55% | |||||||||
| Industrials | 2.48% | 11.55% | 10.74% | |||||||||
| Telecommunication Services | 0.34% | 2.90% | 4.00% | |||||||||
| Energy | 0.33% | 7.81% | 9.79% | |||||||||
| Consumer Staples | 0.05% | 6.93% | 9.70% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI All Country | |||||||||||
| Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
| Information Technology | –1.68% | 13.64% | 12.67% | |||||||||
| Consumer Discretionary | –1.44% | 14.85% | 11.69% | |||||||||
| Financials | –0.33% | 21.43% | 21.52% | |||||||||
| Utilities | –0.06% | 3.34% | 3.25% | |||||||||
| Other** | –0.05% | 0.59% | 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 Global & International Funds | 41
Table of Contents
Janus Global Select Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Tyco International, Ltd. (U.S. Shares) Commercial Services & Supplies | 3.1% | |||
| Citigroup, Inc. Commercial Banks | 3.1% | |||
| Telefonaktiebolaget LM Ericsson – Class B Communications Equipment | 3.0% | |||
| AIA Group, Ltd. Insurance | 2.9% | |||
| JPMorgan Chase & Co. Commercial Banks | 2.6% | |||
| 14.7% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 10.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
42 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Global Select Fund – Class A Shares | |||||||||||
| NAV | 13.52% | 7.63% | 8.28% | 2.32% | 1.18% | ||||||
| MOP | 7.02% | 6.36% | 7.64% | 1.89% | |||||||
| Janus Global Select Fund – Class C Shares | |||||||||||
| NAV | 12.37% | 6.77% | 7.42% | 1.53% | 1.94% | ||||||
| CDSC | 11.37% | 6.77% | 7.42% | 1.53% | |||||||
| Janus Global Select Fund – Class D Shares(1) | 13.55% | 7.87% | 8.41% | 2.41% | 0.91% | ||||||
| Janus Global Select Fund – Class I Shares | 13.63% | 7.95% | 8.37% | 2.38% | 0.76% | ||||||
| Janus Global Select Fund – Class R Shares | 12.94% | 7.24% | 7.82% | 1.89% | 1.46% | ||||||
| Janus Global Select Fund – Class S Shares | 13.17% | 7.59% | 8.14% | 2.17% | 1.21% | ||||||
| Janus Global Select Fund – Class T Shares | 13.46% | 7.79% | 8.37% | 2.38% | 0.96% | ||||||
| MSCI All Country World IndexSM | 11.32% | 10.07% | 7.28% | 3.61% | |||||||
| Morningstar Quartile – Class T Shares | 1st | 4th | 2nd | 4th | |||||||
| Morningstar Ranking – based on total return for World Stock Funds | 134/1,150 | 678/780 | 150/480 | 298/364 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Global & International Funds | 43
Table of Contents
Janus Global Select Fund (unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 of 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 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,028.70 | $ | 5.24 | $ | 1,000.00 | $ | 1,019.90 | $ | 5.22 | 1.03% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,023.80 | $ | 9.34 | $ | 1,000.00 | $ | 1,015.84 | $ | 9.30 | 1.84% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,028.80 | $ | 4.12 | $ | 1,000.00 | $ | 1,021.01 | $ | 4.10 | 0.81% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,029.50 | $ | 3.56 | $ | 1,000.00 | $ | 1,021.56 | $ | 3.55 | 0.70% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,025.90 | $ | 7.21 | $ | 1,000.00 | $ | 1,017.95 | $ | 7.18 | 1.42% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,027.00 | $ | 5.89 | $ | 1,000.00 | $ | 1,019.25 | $ | 5.87 | 1.16% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,028.00 | $ | 4.63 | $ | 1,000.00 | $ | 1,020.51 | $ | 4.61 | 0.91% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 99.0% | ||||||||||
| Air Freight & Logistics – 1.1% | ||||||||||
| 150,281 | FedEx Corp. | $ | 24,262,867 | |||||||
| Airlines – 2.0% | ||||||||||
| 945,136 | United Continental Holdings, Inc.* | 44,222,913 | ||||||||
| Auto Components – 1.0% | ||||||||||
| 775,600 | NGK Spark Plug Co., Ltd. | 22,870,290 | ||||||||
| Automobiles – 1.9% | ||||||||||
| 140,702 | Hyundai Motor Co. | 25,378,009 | ||||||||
| 5,737,640 | SAIC Motor Corp., Ltd. – Class Aß | 16,872,398 | ||||||||
| | ||||||||||
| 42,250,407 | ||||||||||
| Beverages – 2.0% | ||||||||||
| 797,905 | SABMiller PLC | 44,331,472 | ||||||||
| Biotechnology – 3.2% | ||||||||||
| 404,860 | Medivation, Inc.* | 40,028,508 | ||||||||
| 258,281 | Pharmacyclics, Inc.* | 30,329,938 | ||||||||
| | ||||||||||
| 70,358,446 | ||||||||||
| Capital Markets – 2.1% | ||||||||||
| 1,380,029 | Morgan Stanley | 47,707,603 | ||||||||
| Chemicals – 3.7% | ||||||||||
| 297,812 | Air Products & Chemicals, Inc. | 38,769,166 | ||||||||
| 218,004 | PPG Industries, Inc. | 42,890,107 | ||||||||
| | ||||||||||
| 81,659,273 | ||||||||||
| Commercial Banks – 10.7% | ||||||||||
| 379,973 | BNP Paribas SA | 25,123,977 | ||||||||
| 1,313,988 | Citigroup, Inc. | 68,090,858 | ||||||||
| 945,284 | JPMorgan Chase & Co. | 56,943,908 | ||||||||
| 9,813,687 | National Bank of Greece SA* | 28,701,379 | ||||||||
| 4,511,200 | Seven Bank, Ltd. | 18,400,851 | ||||||||
| 396,689 | State Bank of India | 15,658,794 | ||||||||
| 3,294,890 | UniCredit SpA | 25,799,198 | ||||||||
| | ||||||||||
| 238,718,965 | ||||||||||
| Commercial Services & Supplies – 3.1% | ||||||||||
| 1,573,634 | Tyco International, Ltd. (U.S. Shares) | 70,136,867 | ||||||||
| Communications Equipment – 3.0% | ||||||||||
| 5,309,340 | Telefonaktiebolaget LM Ericsson – Class B | 67,039,132 | ||||||||
| Diversified Consumer Services – 1.6% | ||||||||||
| 5,729,292 | Kroton Educacional SA | 36,002,660 | ||||||||
| Electric Utilities – 1.2% | ||||||||||
| 712,997 | Brookfield Infrastructure Partners LP | 27,093,886 | ||||||||
| Electrical Equipment – 0.8% | ||||||||||
| 402,039 | Sensata Technologies Holding NV* | 17,902,797 | ||||||||
| Electronic Equipment, Instruments & Components – 0.9% | ||||||||||
| 616,393 | National Instruments Corp. | 19,065,035 | ||||||||
| Food & Staples Retailing – 1.3% | ||||||||||
| 577,030 | Kroger Co. | 30,005,560 | ||||||||
| Food Products – 2.3% | ||||||||||
| 523,422 | Mead Johnson Nutrition Co. | 50,363,665 | ||||||||
| Health Care Providers & Services – 1.7% | ||||||||||
| 545,240 | Express Scripts Holding Co.* | 38,510,301 | ||||||||
| Hotels, Restaurants & Leisure – 1.7% | ||||||||||
| 25,477,238 | Bwin.Party Digital Entertainment PLC | 37,488,717 | ||||||||
| Independent Power and Renewable Electricity Producers – 2.1% | ||||||||||
| 1,530,058 | NRG Energy, Inc. | 46,636,168 | ||||||||
| Insurance – 5.5% | ||||||||||
| 12,578,600 | AIA Group, Ltd. | 64,919,865 | ||||||||
| 1,533,407 | CNO Financial Group, Inc. | 26,006,583 | ||||||||
| 982,100 | Tokio Marine Holdings, Inc. | 30,502,219 | ||||||||
| | ||||||||||
| 121,428,667 | ||||||||||
| Internet & Catalog Retail – 1.3% | ||||||||||
| 321,654 | Alibaba Group Holding, Ltd. (ADR)* | 28,578,958 | ||||||||
| Internet Software & Services – 0.9% | ||||||||||
| 1,065,130 | Youku Tudou, Inc. (ADR)* | 19,087,130 | ||||||||
| Leisure Products – 0.4% | ||||||||||
| 598,700 | Sega Sammy Holdings, Inc. | 9,642,327 | ||||||||
| Machinery – 0.6% | ||||||||||
| 242,705 | Colfax Corp.* | 13,826,904 | ||||||||
| Media – 1.5% | ||||||||||
| 230,752 | Time Warner Cable, Inc. | 33,110,604 | ||||||||
| Metals & Mining – 1.2% | ||||||||||
| 892,147 | ArcelorMittal | 12,243,686 | ||||||||
| 4,880,351 | Fortescue Metals Group, Ltd. | 14,768,345 | ||||||||
| | ||||||||||
| 27,012,031 | ||||||||||
| Oil, Gas & Consumable Fuels – 7.2% | ||||||||||
| 264,005 | Chevron Corp. | 31,501,077 | ||||||||
| 2,559,200 | Inpex Corp. | 36,235,834 | ||||||||
| 1,068,414 | MEG Energy Corp.* | 32,802,351 | ||||||||
| 2,002,895 | Petroleo Brasileiro SA (ADR) | 28,421,080 | ||||||||
| 676,745 | Valero Energy Corp. | 31,312,991 | ||||||||
| | ||||||||||
| 160,273,333 | ||||||||||
| Pharmaceuticals – 8.4% | ||||||||||
| 462,505 | AstraZeneca PLC | 33,130,733 | ||||||||
| 829,579 | Bristol-Myers Squibb Co. | 42,457,853 | ||||||||
| 169,344 | Endo International PLC* | 11,572,969 | ||||||||
| 285,391 | Jazz Pharmaceuticals PLC* | 45,822,379 | ||||||||
| 511,013 | Johnson & Johnson | 54,468,876 | ||||||||
| | ||||||||||
| 187,452,810 | ||||||||||
| Real Estate Management & Development – 0.9% | ||||||||||
| 2,756,510 | Countrywide PLC | 20,079,971 | ||||||||
| Road & Rail – 3.9% | ||||||||||
| 169,314 | Canadian Pacific Railway, Ltd. | 35,143,466 | ||||||||
| 423,025 | Kansas City Southern | 51,270,630 | ||||||||
| | ||||||||||
| 86,414,096 | ||||||||||
| Semiconductor & Semiconductor Equipment – 5.7% | ||||||||||
| 4,682,485 | Atmel Corp.* | 37,834,479 | ||||||||
| 4,862,737 | ON Semiconductor Corp.* | 43,472,869 | ||||||||
| 3,794,663 | Sumco Corp. | 45,860,592 | ||||||||
| | ||||||||||
| 127,167,940 | ||||||||||
| Software – 0.9% | ||||||||||
| 192,800 | Nintendo Co., Ltd. | 20,987,138 | ||||||||
| Specialty Retail – 2.2% | ||||||||||
| 504,390 | Gap, Inc. | 21,028,019 | ||||||||
| 11,744,500 | L’Occitane International SA | 26,929,667 | ||||||||
| | ||||||||||
| 47,957,686 | ||||||||||
| Technology Hardware, Storage & Peripherals – 2.0% | ||||||||||
| 451,416 | Apple, Inc. | 45,480,162 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
46 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Textiles, Apparel & Luxury Goods – 2.6% | ||||||||||
| 3,425,800 | Prada SpA | $ | 20,768,049 | |||||||
| 11,270,700 | Samsonite International SA | 36,278,500 | ||||||||
| | ||||||||||
| 57,046,549 | ||||||||||
| Thrifts & Mortgage Finance – 1.9% | ||||||||||
| 5,473,874 | MGIC Investment Corp.* | 42,750,956 | ||||||||
| Tobacco – 1.5% | ||||||||||
| 1,057,600 | Japan Tobacco, Inc. | 34,429,831 | ||||||||
| Wireless Telecommunication Services – 3.0% | ||||||||||
| 1,231,858 | T-Mobile U.S., Inc. | 35,563,740 | ||||||||
| 48,740,700 | Tower Bersama Infrastructure Tbk PT | 32,021,824 | ||||||||
| | ||||||||||
| 67,585,564 | ||||||||||
| Total Common Stock (cost $1,830,344,411) | 2,206,939,681 | |||||||||
| Preferred Stock – 0.7% | ||||||||||
| Automobiles – 0.7% | ||||||||||
| 82,559 | Volkswagen AG (cost $15,038,392) | 17,137,635 | ||||||||
| Money Market – 0.3% | ||||||||||
| 6,260,000 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $6,260,000) | 6,260,000 | ||||||||
| Total Investments (total cost $1,851,642,803) – 100.0% | 2,230,337,316 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0)% | (898,235) | |||||||||
| Net Assets – 100% | $ | 2,229,439,081 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 1,266,701,238 | 56 | .8% | ||||
| Japan | 218,929,082 | 9 | .8 | |||||
| United Kingdom | 135,030,893 | 6 | .1 | |||||
| Hong Kong | 101,198,365 | 4 | .5 | |||||
| Canada | 67,945,817 | 3 | .0 | |||||
| Sweden | 67,039,132 | 3 | .0 | |||||
| China | 64,538,486 | 2 | .9 | |||||
| Brazil | 64,423,740 | 2 | .9 | |||||
| France | 64,297,330 | 2 | .9 | |||||
| Italy | 46,567,247 | 2 | .1 | |||||
| Indonesia | 32,021,824 | 1 | .4 | |||||
| Greece | 28,701,379 | 1 | .3 | |||||
| South Korea | 25,378,009 | 1 | .1 | |||||
| Germany | 17,137,635 | 0 | .8 | |||||
| India | 15,658,794 | 0 | .7 | |||||
| Australia | 14,768,345 | 0 | .7 | |||||
| Total | $ | 2,230,337,316 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 0.3%. |
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 14.62% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the S&P 500 Index, returned 19.73%, and its secondary benchmark, the MSCI World Information Technology Index, returned 24.43% during the period.
MARKET ENVIRONMENT
Global technology stocks performed well in the past 12 months. The sector led broader indices higher early in the period, driven by strong performance in computer hardware and Internet software, though first quarter gains slowed given a quick early year pullback and subsequent rebound. After a sell-off in some highly valued subsectors in late March and early April, technology stocks rebounded to outperform broader global indices, a trend that continued through period end despite growing volatility. Sector heavyweight Apple’s well-received earnings report and heavily anticipated iPhone 6 launch powered strong hardware subsector returns. Internet software and systems software were other strong performing subgroups as the period wound down, while application software and communications equipment were among areas that lagged. Microsoft, an approximate 8.5% index weighting, led systems software on a strong earnings report. Momentum-driven cloud software companies also performed well. Qualcomm, one of the world’s biggest mobile chipmakers, weighed on the communications equipment subsector due to regulatory issues in China.
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 potentially higher returns longer term.
Relative performance in the period suffered as some of the higher-growth companies we owned did not participate in the somewhat narrow and shallow technology rally. The largest index gains tended to be centered on what we consider lower-quality large enterprise IT companies and very high-growth companies – both of which carry higher risk. Meanwhile, our holdings that we consider resilient also lagged. The results did not affect our portfolio construction. Instead, we took advantage of declines in certain companies to add to our positions.
Among subsectors, our holdings in Internet software, led lower by ChannelAdvisor and Care.com, weighed significantly on relative performance. Both were among companies that had initial public offerings (IPOs) earlier in the year that declined off their highs as investors weeded out smaller positions in their portfolios.
ChannelAdvisor, a software-as-a-service provider for managing retail sales and inventory in various online channels, also suffered from disappointing third quarter guidance and weak customer additions. We added to our position. With retail shifting from store sales to online marketplaces, ChannelAdvisor should benefit from increased demand for its services, in our view. We also added to our position in Care.com, a leading online marketplace for matching families to caregivers. We believe the company is well positioned in a growing market.
Other relative detractors included our semiconductor holdings, led lower by ARM Holdings. The UK semiconductor intellectual property licensing firm suffered from concerns over the slowing of the high-end smartphone market, its key market segment. ARM has two other markets it is pursuing, embedded systems and networking, but those are small compared to mobile, so it
48 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
is unclear if those areas will be sufficient to pick up the slack. The company also reported results that were in line with market expectations, although its income from royalties was somewhat soft. More importantly, the company’s licensing revenue growth, a leading indicator of future royalties, remained strong. Additionally, we think its royalty income will improve later this year based on production forecasts by semiconductor manufacturers. We believe the company will continue to benefit from growth in smartphones and revenue licensing from semiconductor manufacturers.
Among individual contributors, our three largest positions were also the most additive to performance, with our largest holding, Apple, heading the list. Investor anticipation and subsequent announcements of new versions of its popular iPhone, along with an Apple Watch and a mobile payments system, drove the stock higher. We felt the product announcements demonstrate the company’s continued strength in combining hardware, software and services, which serve as an important differentiator from competitors. In addition, the cross-device integration between all of Apple’s products will continue to strengthen and expand its ecosystem, in our view. Despite recent gains, we still view the stock’s risk/reward profile as attractive.
Internet search engine leader Google, our second-largest holding, was also a top contributor. The company 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.
Microsoft, our third-largest position, also aided performance after the software giant reported adjusted earnings that beat market forecasts, driven by strong subscriptions to Office applications (Office 365) and its Azure cloud-hosting platform. As the company’s cloud-based sales grow to a higher percentage of its total revenue, investors should value the stock higher, in our view. Earlier, the company announced a restructuring plan that would eliminate up to 18,000 jobs over the next year. We believe new CEO Satya Nadella is moving the company in the right direction by de-emphasizing hardware to increase focus on productivity tools and its public and private cloud offerings, which should lead to durable recurring revenues. We also appreciate Nadella’s efforts of combining various development teams to improve efficiencies.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Promising areas in technology include a potential rebound in enterprise spending, supply chain companies ramping up production for Apple’s iPhone 6 smartphones, and semiconductor companies and electronic component providers that serve the auto and industrial markets.
A slowdown in enterprise IT spending that has been evident since the summer of 2012 has begun to reverse in part due to maturation in cloud computing software products or tools that are enabling hybrid clouds, a combination of public clouds (using off-premises servers) and private clouds (on-premises servers). Greater flexibility through hybrid clouds means pent-up decisions by companies’ IT departments are finally being made as evidenced by stabilizing fundamentals in data center-related companies. We now believe the transition to the cloud for many companies could be more rapid than the market currently anticipates.
Rather than cutting operating and capital expenditures as they have for several years, IT departments can redeploy resources more efficiently into areas, such as applications that should add value to their respective businesses rather than just to reduce costs. We believe this could be the beginning stages of an enterprise IT spending expansion, not from a total amount perspective but from reallocating from hardware to software now that the architecture on how to use the software is available.
Among cloud companies, we are focusing on those that offer platforms that other companies can build onto rather than those that offer single products that could become part of another company’s platform. We added several cloud software companies after recent declines made their valuations more attractive. We also believe Enterprise IT leader Oracle, a Top 5 holding, should have success transitioning its customers to the hybrid cloud. Additionally, we own a company that provides legal, finance and accounting cloud services, a dominant provider in sales and marketing cloud services and a platform provider for smaller companies. All are related to the theme.
Besides the cloud, we are also seeing increased consolidation in the IT supply chain, particularly among semiconductor companies. We believe the trend is likely to continue and possibly accelerate due to slowing growth
Janus Global & International Funds | 49
Table of Contents
Janus Global Technology Fund (unaudited)
rates, low interest rates and management teams realizing they need to consolidate. We are invested in supply chain companies we favor for their own dynamics (products, end markets, etc.), but recognize potential buyers could appreciate the same factors and bid the stocks higher than our valuations. We added more supply chain companies to offer more diversification in this area. We like these companies for their own prospects but also believe they could be merger and acquisition targets.
In consumer IT, the Internet of Things (IoT) or increasing connectivity of electronic devices continues to be an area gaining considerable attention from companies and investors. We view this as a longer-term investment theme, but Apple’s Watch could significantly accelerate the wearables category or the personal side of IoT.
There are also an increasing number of commercial applications, such as gas stations using sensors to monitor fuel levels so refueling trucks can be sent automatically when levels are low. Google, meanwhile, has logged an impressive number of miles with its self-driving cars, with only one accident (a rear-end collision). We think autonomous cars could be a significant IoT application in five to 15 years.
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 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 non-obvious 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 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
50 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
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.
Janus Global & International Funds | 51
Table of Contents
Janus Global Technology Fund (unaudited)
Janus Global Technology Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Apple, Inc. | 4.60% | |||
| Google, Inc. – Class A | 2.26% | |||
| Microsoft Corp. | 1.17% | |||
| Amphenol Corp. – Class A | 0.97% | |||
| Cadence Design Systems, Inc. | 0.57% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| ChannelAdvisor Corp. | –0.53% | |||
| Care.com, Inc. | –0.38% | |||
| ARM Holdings PLC | –0.28% | |||
| SFX Entertainment, Inc. | –0.25% | |||
| Belden, Inc. | –0.25% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Energy | 0.81% | 0.00% | 10.37% | |||||||||
| Financials | 0.42% | 3.96% | 16.18% | |||||||||
| Consumer Discretionary | 0.19% | 8.10% | 12.16% | |||||||||
| Consumer Staples | 0.18% | 0.19% | 9.71% | |||||||||
| Utilities | 0.07% | 0.00% | 3.04% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Information Technology | –4.05% | 79.45% | 18.66% | |||||||||
| Health Care | –0.92% | 0.90% | 13.33% | |||||||||
| Other** | –0.63% | 2.84% | 0.00% | |||||||||
| Industrials | –0.38% | 3.95% | 10.66% | |||||||||
| Materials | –0.03% | 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. |
52 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 11.7% | |||
| Google, Inc. – Class C Internet Software & Services | 9.7% | |||
| Microsoft Corp. Software | 4.7% | |||
| Oracle Corp. Software | 3.7% | |||
| QUALCOMM, Inc. Communications Equipment | 3.7% | |||
| 33.5% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 7.6% of total net assets.
*Includes Securities Sold Short of (0.5)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Global & International Funds | 53
Table of Contents
Janus Global Technology Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Global Technology Fund – Class A Shares | |||||||||||
| NAV | 14.49% | 14.91% | 10.97% | 6.41% | 1.09% | ||||||
| MOP | 7.92% | 13.55% | 10.32% | 6.01% | |||||||
| Janus Global Technology Fund – Class C Shares | |||||||||||
| NAV | 13.67% | 14.09% | 10.15% | 5.64% | 1.82% | ||||||
| CDSC | 12.67% | 14.09% | 10.15% | 5.64% | |||||||
| Janus Global Technology Fund – Class D Shares(1) | 14.73% | 15.14% | 11.13% | 6.57% | 0.92% | ||||||
| Janus Global Technology Fund – Class I Shares | 14.84% | 15.23% | 11.09% | 6.55% | 0.81% | ||||||
| Janus Global Technology Fund – Class S Shares | 14.39% | 14.76% | 10.82% | 6.26% | 1.22% | ||||||
| Janus Global Technology Fund – Class T Shares | 14.62% | 15.07% | 11.09% | 6.55% | 0.97% | ||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 4.98% | |||||||
| MSCI World Information Technology Index | 24.43% | 13.57% | 8.37% | 2.65% | |||||||
| Morningstar Quartile – Class T Shares | 4th | 2nd | 2nd | 2nd | |||||||
| Morningstar Ranking – based on total return for Technology Funds | 168/204 | 88/203 | 67/195 | 49/129 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
54 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 of 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. |
Janus Global & International Funds | 55
Table of Contents
Janus Global Technology 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,039.10 | $ | 5.52 | $ | 1,000.00 | $ | 1,019.65 | $ | 5.47 | 1.08% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,035.20 | $ | 9.08 | $ | 1,000.00 | $ | 1,016.14 | $ | 9.00 | 1.78% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,039.90 | $ | 4.30 | $ | 1,000.00 | $ | 1,020.86 | $ | 4.26 | 0.84% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,040.60 | $ | 3.94 | $ | 1,000.00 | $ | 1,021.21 | $ | 3.90 | 0.77% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,038.40 | $ | 6.08 | $ | 1,000.00 | $ | 1,019.10 | $ | 6.02 | 1.19% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,039.20 | $ | 4.75 | $ | 1,000.00 | $ | 1,020.41 | $ | 4.71 | 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 183/365 (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. |
56 | SEPTEMBER 30, 2014
Table of Contents
Janus Global Technology Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 98.0% | ||||||||||
| Communications Equipment – 4.4% | ||||||||||
| 318,849 | CommScope Holding Co., Inc.* | $ | 7,623,680 | |||||||
| 518,525 | QUALCOMM, Inc. | 38,770,114 | ||||||||
| | ||||||||||
| 46,393,794 | ||||||||||
| Consumer Finance – 1.9% | ||||||||||
| 178,639 | American Express Co. | 15,638,058 | ||||||||
| 66,529 | Discover Financial Services | 4,283,802 | ||||||||
| | ||||||||||
| 19,921,860 | ||||||||||
| Electrical Equipment – 1.6% | ||||||||||
| 374,878 | Sensata Technologies Holding NV* | 16,693,317 | ||||||||
| Electronic Equipment, Instruments & Components – 10.5% | ||||||||||
| 321,831 | Amphenol Corp. – Class A | 32,138,043 | ||||||||
| 285,287 | Belden, Inc. | 18,264,074 | ||||||||
| 1,004,390 | National Instruments Corp. | 31,065,783 | ||||||||
| 536,253 | TE Connectivity, Ltd. (U.S. Shares) | 29,649,428 | ||||||||
| | ||||||||||
| 111,117,328 | ||||||||||
| Food & Staples Retailing – 0.2% | ||||||||||
| 54,218 | Whole Foods Market, Inc. | 2,066,248 | ||||||||
| Health Care Technology – 0.6% | ||||||||||
| 52,754 | athenahealth, Inc.*,# | 6,947,174 | ||||||||
| Household Durables – 0.6% | ||||||||||
| 360,400 | Sony Corp. | 6,495,102 | ||||||||
| Information Technology Services – 1.7% | ||||||||||
| 193,113 | Amdocs, Ltd. (U.S. Shares) | 8,860,025 | ||||||||
| 117,637 | Gartner, Inc.* | 8,642,790 | ||||||||
| | ||||||||||
| 17,502,815 | ||||||||||
| Internet & Catalog Retail – 4.7% | ||||||||||
| 85,396 | Alibaba Group Holding, Ltd. (ADR)* | 7,587,435 | ||||||||
| 24,500 | Amazon.com, Inc.* | 7,899,780 | ||||||||
| 154,678 | Coupons.com, Inc.*,# | 1,849,949 | ||||||||
| 146,730 | Ctrip.com International, Ltd. (ADR)* | 8,328,395 | ||||||||
| 98,823 | HomeAway, Inc.* | 3,508,217 | ||||||||
| 130,217 | MakeMyTrip, Ltd.* | 3,623,939 | ||||||||
| 17,171 | Netflix, Inc.* | 7,747,212 | ||||||||
| 6,749 | Priceline Group, Inc.* | 7,819,256 | ||||||||
| 52,213 | Qunar Cayman Islands, Ltd. (ADR)# | 1,443,689 | ||||||||
| | ||||||||||
| 49,807,872 | ||||||||||
| Internet Software & Services – 17.8% | ||||||||||
| 612,829 | Care.com, Inc.*,# | 4,994,556 | ||||||||
| 360,599 | ChannelAdvisor Corp.*,# | 5,913,824 | ||||||||
| 37,282 | Demandware, Inc.*,# | 1,898,399 | ||||||||
| 64,014 | eBay, Inc.* | 3,625,113 | ||||||||
| 286,735 | Endurance International Group Holdings, Inc.*,# | 4,665,178 | ||||||||
| 113,398 | Facebook, Inc. – Class A* | 8,962,978 | ||||||||
| 176,150 | Google, Inc. – Class C* | 101,701,964 | ||||||||
| 19,705 | LinkedIn Corp. – Class A* | 4,094,502 | ||||||||
| 93,627 | MercadoLibre, Inc.# | 10,172,574 | ||||||||
| 369,848 | Okta, Inc. – Private Placement*,§ | 4,387,063 | ||||||||
| 78,276 | Shutterstock, Inc.# | 5,587,341 | ||||||||
| 604,300 | Tencent Holdings, Ltd. | 8,995,953 | ||||||||
| 89,177 | Twitter, Inc.* | 4,599,750 | ||||||||
| 159,478 | Yandex NV – Class A* | 4,432,691 | ||||||||
| 305,208 | Youku Tudou, Inc. (ADR)* | 5,469,327 | ||||||||
| 65,502 | Zillow, Inc. – Class A*,# | 7,597,577 | ||||||||
| | ||||||||||
| 187,098,790 | ||||||||||
| Media – 3.7% | ||||||||||
| 240,648 | Comcast Corp. – Class A | 12,942,049 | ||||||||
| 345,906 | SFX Entertainment, Inc.# | 1,736,448 | ||||||||
| 95,779 | Time Warner Cable, Inc. | 13,743,329 | ||||||||
| 116,119 | Walt Disney Co. | 10,338,075 | ||||||||
| | ||||||||||
| 38,759,901 | ||||||||||
| Professional Services – 0.9% | ||||||||||
| 68,309 | Corporate Executive Board Co. | 4,103,322 | ||||||||
| 44,566 | IHS, Inc. – Class A* | 5,579,217 | ||||||||
| | ||||||||||
| 9,682,539 | ||||||||||
| Real Estate Investment Trusts (REITs) – 2.5% | ||||||||||
| 281,274 | American Tower Corp. | 26,335,685 | ||||||||
| Semiconductor & Semiconductor Equipment – 11.9% | ||||||||||
| 2,470,214 | ARM Holdings PLC | 35,987,462 | ||||||||
| 1,572,864 | Atmel Corp.* | 12,708,741 | ||||||||
| 71,914 | Avago Technologies, Ltd. | 6,256,518 | ||||||||
| 366,372 | Freescale Semiconductor, Ltd.*,# | 7,155,245 | ||||||||
| 228,883 | Intersil Corp. – Class A | 3,252,428 | ||||||||
| 192,000 | MediaTek, Inc. | 2,844,839 | ||||||||
| 87,858 | Microchip Technology, Inc.# | 4,149,533 | ||||||||
| 964,914 | ON Semiconductor Corp.* | 8,626,331 | ||||||||
| 6,949 | Samsung Electronics Co., Ltd. | 7,780,451 | ||||||||
| 74,235 | Silicon Laboratories, Inc.* | 3,016,910 | ||||||||
| 205,110 | SK Hynix, Inc.* | 9,079,666 | ||||||||
| 5,223,999 | Taiwan Semiconductor Manufacturing Co., Ltd. | 20,796,185 | ||||||||
| 78,692 | Xilinx, Inc. | 3,332,606 | ||||||||
| | ||||||||||
| 124,986,915 | ||||||||||
| Software – 20.7% | ||||||||||
| 117,512 | Advent Software, Inc. | 3,708,679 | ||||||||
| 128,823 | ANSYS, Inc.* | 9,748,037 | ||||||||
| 188,929 | Apptio, Inc. – Private Placement*,§ | 4,287,668 | ||||||||
| 58,203 | Aveva Group PLC | 1,451,759 | ||||||||
| 233,890 | Blackbaud, Inc. | 9,189,538 | ||||||||
| 1,224,142 | Cadence Design Systems, Inc.* | 21,067,484 | ||||||||
| 85,056 | Guidewire Software, Inc. | 3,771,383 | ||||||||
| 159,352 | Informatica Corp.* | 5,456,213 | ||||||||
| 1,077,912 | Microsoft Corp. | 49,972,000 | ||||||||
| 67,282 | NetSuite, Inc.*,# | 6,024,430 | ||||||||
| 186,384 | NICE Systems, Ltd. (ADR) | 7,602,603 | ||||||||
| 71,960 | Nintendo Co., Ltd. | 7,833,166 | ||||||||
| 1,029,828 | Oracle Corp.† | 39,421,816 | ||||||||
| 233,889 | PROS Holdings, Inc.* | 5,894,003 | ||||||||
| 264,359 | RealPage, Inc.* | 4,097,565 | ||||||||
| 112,378 | Salesforce.com, Inc.* | 6,465,106 | ||||||||
| 54,917 | ServiceNow, Inc. | 3,228,021 | ||||||||
| 102,939 | Solera Holdings, Inc. | 5,801,642 | ||||||||
| 208,907 | SS&C Technologies Holdings, Inc.* | 9,168,928 | ||||||||
| 37,968 | Tyler Technologies, Inc.* | 3,356,371 | ||||||||
| 15,901 | Ultimate Software Group, Inc.* | 2,250,151 | ||||||||
| 31,551 | Workday, Inc. – Class A | 2,602,958 | ||||||||
| 245,209 | Zendesk, Inc.*,# | 5,294,062 | ||||||||
| | ||||||||||
| 217,693,583 | ||||||||||
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
As of September 30, 2014
| Shares | Value | |||||||||
| Technology Hardware, Storage & Peripherals – 14.0% | ||||||||||
| 1,219,949 | Apple, Inc.† | $ | 122,909,862 | |||||||
| 635,546 | EMC Corp. | 18,596,076 | ||||||||
| 54,001 | Seagate Technology PLC | 3,092,637 | ||||||||
| 26,102 | Stratasys, Ltd.*,# | 3,152,599 | ||||||||
| | ||||||||||
| 147,751,174 | ||||||||||
| Wireless Telecommunication Services – 0.3% | ||||||||||
| 271,587 | RingCentral, Inc. – Class A | 3,451,871 | ||||||||
| Total Common Stock (cost $813,439,162) | 1,032,705,968 | |||||||||
| Money Market – 3.0% | ||||||||||
| 31,761,750 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $31,761,750) | 31,761,750 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 5.5% | ||||||||||
| 57,871,589 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $57,871,589) | 57,871,589 | ||||||||
| Total Investments (total cost $903,072,501) – 106.5% | 1,122,339,307 | |||||||||
| Securities Sold Short – (0.5)% | ||||||||||
| Common Stock Sold Short – (0.5)% | ||||||||||
| Commercial Services & Supplies – (0.1)% | ||||||||||
| 34,230 | ADT Corp. | (1,213,796) | ||||||||
| Household Durables – (0.2)% | ||||||||||
| 113,200 | Nikon Corp. | (1,739,178) | ||||||||
| Semiconductor & Semiconductor Equipment – (0.2)% | ||||||||||
| 16,080 | Cree, Inc.* | (658,476) | ||||||||
| 20,723 | Synaptics, Inc.* | (1,516,923) | ||||||||
| | ||||||||||
| (2,175,399) | ||||||||||
| Total Securities Sold Short (proceeds $5,025,344) | (5,128,373) | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (6.0)% | (63,734,304) | |||||||||
| Net Assets – 100% | $ | 1,053,476,630 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 982,586,645 | 87 | .6% | ||||
| United Kingdom | 37,439,221 | 3 | .3 | |||||
| China | 31,824,799 | 2 | .8 | |||||
| Taiwan | 23,641,024 | 2 | .1 | |||||
| South Korea | 16,860,117 | 1 | .5 | |||||
| Japan | 14,328,268 | 1 | .3 | |||||
| Israel | 7,602,603 | 0 | .7 | |||||
| Russia | 4,432,691 | 0 | .4 | |||||
| India | 3,623,939 | 0 | .3 | |||||
| Total | $ | 1,122,339,307 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 8.0%. |
Summary of Investments by Country – (Short Positions) (unaudited)
| % of Securities | ||||||||
| Country | Value | Sold Short | ||||||
| United States | $ | (3,389,195) | 66 | .1% | ||||
| Japan | (1,739,178) | 33 | .9 | |||||
| Total | $ | (5,128,373) | 100 | .0% | ||||
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Bank of America: | ||||||||||||
| British Pound 11/6/14 | 1,200,000 | $ | 1,944,438 | $ | 4,998 | |||||||
| Japanese Yen 11/6/14 | 95,000,000 | 866,551 | 3,077 | |||||||||
| 2,810,989 | 8,075 | |||||||||||
| Credit Suisse International: | ||||||||||||
| British Pound 10/23/14 | 1,245,000 | 2,017,608 | 19,213 | |||||||||
| Japanese Yen 10/23/14 | 293,000,000 | 2,672,357 | 24,524 | |||||||||
| 4,689,965 | 43,737 | |||||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| British Pound 10/9/14 | 780,000 | 1,264,217 | 27,771 | |||||||||
| Japanese Yen 10/9/14 | 224,000,000 | 2,042,795 | 115,596 | |||||||||
| 3,307,012 | 143,367 | |||||||||||
| JPMorgan Chase & Co.: | ||||||||||||
| British Pound 10/16/14 | 880,000 | 1,426,198 | 2,329 | |||||||||
| Japanese Yen 10/16/14 | 198,000,000 | 1,805,789 | 41,615 | |||||||||
| 3,231,987 | 43,944 | |||||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| British Pound 10/16/14 | 1,565,000 | 2,536,364 | 16,151 | |||||||||
| Japanese Yen 10/16/14 | 229,000,000 | 2,088,514 | 94,518 | |||||||||
| 4,624,878 | 110,669 | |||||||||||
| Total | $ | 18,664,831 | $ | 349,792 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
58 | SEPTEMBER 30, 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
Janus International Equity Fund’s Class I Shares returned 3.54% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the MSCI EAFE Index, returned 4.25%, and its secondary benchmark, the MSCI All Country World ex-U.S. Index, returned 4.77% during the period.
INVESTMENT ENVIRONMENT
The past 12 months marked a volatile period for international markets. The period began with improving European trade and manufacturing helping to lift indices higher, even as gains in Japan slowed when optimism for Prime Minister Shinzo Abe’s stimulative policies began to wane. Emerging markets also continued to lag due to struggles with inflation, rising rates, political turmoil and ongoing worries over slowing economic growth. Japan increasingly weighed on developed market returns at the start of 2014, largely over disappointment in difficulty pushing forward structural reform, as well as a stronger yen that pressured stocks. Europe performed relatively better than Asia, reflecting a number of positive recovery signs and notable credit market improvement.
Second quarter 2014 was the period’s strongest. Japan rebounded on positive economic signals, and European markets responded favorably to the European Central Bank’s move to negative real interest rates in an effort to combat deflation, weak sentiment and soft manufacturing data. Emerging markets also began to outperform, driven by strengthening currencies and by pro-business election wins in India. However, summer stock declines, most notably in Europe, weighed heavily on indices. European companies grew more cautious in response to China and Brazil economic weakness, as well as escalating geopolitical risk in Ukraine that contributed to a fairly sharp deceleration in the region’s growth. Additionally, there were overhangs such as the Scottish independence vote and the French government’s slim survival from a no-confidence vote. Japan’s market returns were also lower for U.S. investors due to a strengthening dollar relative to the yen. Emerging markets pulled back as well. India’s economy has yet to accelerate under Prime Minister Narendra Modi’s reforms, and it will likely take another quarter or two before there is any tangible impact. China’s economy also continued to slow as expected, but we believe that is already discounted in the market.
PERFORMANCE DISCUSSION
Most of the Fund’s relative underperformance came from our holdings in Japan and within the consumer discretionary, energy and consumer staples sectors. Holdings in materials, health care and financials, as well as our out-of-index exposure to the United States, provided the strongest positive contributions to returns.
Netherlands-based parcel delivery firm TNT Express was our most significant individual detractor. A slower-than-expected recovery in freight volumes forced the company to implement additional cost cuts following previous restructuring moves, which disappointed investors. We believe the market is underestimating the company’s value in a more normal macroeconomic environment. Its strong balance sheet also provides it with staying power until its profit margins recover, in our view.
Sega Sammy was also a large individual detractor. A Japanese maker of pachislot and pachinko machines, the company has been weak since lowering guidance substantially in February based on the expectation it would delay the timing of some key new title launches into next year. Since the pachinko/pachislot business is hit-driven, the delay negatively impacted its earnings outlook for this year. We continue to find the long-term, cash-flow generation of the pachinko/pachislot business attractive, and believe that the market does not accurately value the potential for Sega Sammy’s casino business.
Gaming firm Melco International Development also weighed on performance. The company, along with other casino operators in Macau, China, suffered due to a decline in VIP traffic. There was increased scrutiny on junket operators, which provide the casinos with VIP gamblers, after one operator defaulted on its obligations
Janus Global & International Funds | 59
Table of Contents
Janus International Equity Fund (unaudited)
and absconded with a large sum of money. This led to lowered expectations for the casinos. Melco is less reliant on the VIP business for its earnings, with most of its profits coming from the premium mass market. We took advantage of the stock’s decline to add to our position. We consider Macau an undersupplied market that is benefiting from a rising middle class in China.
Shire was the Fund’s largest individual contributor. The specialty pharmaceutical firm in Ireland rebuffed a buyout attempt from U.S.-based AbbVie, citing undervaluation, during the period. We favor Shire for its dominant position in the attention deficit and hyperactivity (ADHD) market as well as its portfolio of drugs for rare diseases.
LyondellBasell Industries, one of our materials holdings, was another top individual contributor. The company reported record quarterly earnings in July, with both sales and profits higher than market estimates. The chemicals provider also continued its stock buyback program. Lyondell has been benefiting from low natural gas prices, as a result of high production from North American shale development fields. The company’s expansion efforts also began adding to profitability during its most recent quarter. We feel the market is underestimating earnings and free-cash-flow growth from its expansion efforts.
Denmark-based transportation and energy conglomerate AP Moeller-Maersk also aided performance, benefiting 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.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Asian markets, particularly China, have been inexpensive for a while, but the discount recently widened, especially relative to the U.S. We believe as the Chinese economy transitions from an export-led economy to a consumer-led economy, it will be structurally better balanced. While we expect China will continue to slow, the government has demonstrated through liquidity injections it wants to manage its slower growth rate through short-term, more targeted measures as opposed to broader actions, such as a large interest rate cut. We believe the market has discounted its slower growth rate.
In Japan, we remain somewhat skeptical of Abe’s reforms, since he has been reluctant to tackle difficult decisions on health care reform to rein in rising expenditures, labor reforms to encourage more employment and deregulation to improve competition. He has agreed to proceed with reforming corporate taxes, but we view that as tinkering around the edges of economic reform, rather than taking the necessary steps for lasting growth. The Fund’s neutral position in Japan reflects the fact we are still identifying great companies in which to invest, while not being optimistic about Abenomics.
The European recovery remains fragile, as demonstrated by the third quarter setback, but we think it remains on a path to improvement. As the region’s growth improves, its companies have one of the best outlooks for earnings growth, since their operating margins are widening off a low base. Many companies were quick to adjust to the third quarter dip by cutting costs. In relation to our European Union (EU) banks, we conducted internal stress tests ahead of the asset quality review (AQR) and stress tests due in the fourth quarter. As a result, we are confident our EU bank holdings won’t have to raise additional capital.
Thank you for your investment in Janus International Equity Fund.
60 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus International Equity Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Shire PLC | 1.79% | |||
| LyondellBasell Industries NV – Class A | 0.94% | |||
| AP Moeller – Maersk A/S – Class B | 0.78% | |||
| NGK Spark Plug Co., Ltd. | 0.71% | |||
| Canadian Pacific Railway, Ltd. | 0.55% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| TNT Express NV | –0.63% | |||
| Sega Sammy Holdings, Inc. | –0.62% | |||
| Melco International Development, Ltd. | –0.61% | |||
| Fuji Media Holdings, Inc. | –0.58% | |||
| Mitsubishi Estate Co., Ltd. | –0.48% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI EAFE® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Materials | 1.36% | 9.47% | 8.08% | |||||||||
| Health Care | 1.11% | 8.60% | 10.36% | |||||||||
| Financials | 0.53% | 23.35% | 25.65% | |||||||||
| Information Technology | 0.27% | 10.73% | 4.45% | |||||||||
| Industrials | 0.17% | 9.64% | 12.77% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI EAFE® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Consumer Discretionary | –2.50% | 19.50% | 11.75% | |||||||||
| Energy | –0.74% | 4.44% | 6.98% | |||||||||
| Consumer Staples | –0.28% | 10.78% | 11.02% | |||||||||
| Other** | –0.26% | 2.06% | 0.00% | |||||||||
| Telecommunication Services | –0.25% | 1.08% | 5.22% | |||||||||
| 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 | 61
Table of Contents
Janus International Equity Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| AIA Group, Ltd. Insurance | 3.0% | |||
| NGK Spark Plug Co., Ltd. Auto Components | 2.8% | |||
| Japan Tobacco, Inc. Tobacco | 2.6% | |||
| Telefonaktiebolaget LM Ericsson – Class B Communications Equipment | 2.3% | |||
| Inpex Corp. Oil, Gas & Consumable Fuels | 2.2% | |||
| 12.9% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 13.9% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
62 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||
| One | Five | Since | Total Annual Fund | ||||||
| Year | Year | Inception* | Operating Expenses | ||||||
| Janus International Equity Fund – Class A Shares | |||||||||
| NAV | 3.22% | 7.60% | 4.89% | 1.16% | |||||
| MOP | –2.69% | 6.33% | 4.10% | ||||||
| Janus International Equity Fund – Class C Shares | |||||||||
| NAV | 2.41% | 6.75% | 4.01% | 1.99% | |||||
| CDSC | 1.41% | 6.75% | 4.01% | ||||||
| Janus International Equity Fund – Class D Shares(1) | 3.39% | 7.83% | 5.09% | 0.96% | |||||
| Janus International Equity Fund – Class I Shares | 3.54% | 7.97% | 5.18% | 0.86% | |||||
| Janus International Equity Fund – Class N Shares | 3.52% | 7.97% | 5.18% | 0.80% | |||||
| Janus International Equity Fund – Class R Shares | 2.74% | 7.17% | 4.37% | 1.56% | |||||
| Janus International Equity Fund – Class S Shares | 3.05% | 7.75% | 5.06% | 1.30% | |||||
| Janus International Equity Fund – Class T Shares | 3.31% | 7.75% | 4.99% | 1.07% | |||||
| MSCI EAFE® Index | 4.25% | 6.56% | 2.07% | ||||||
| MSCI All Country World ex-U.S. IndexSM | 4.77% | 6.03% | 2.59% | ||||||
| Morningstar Quartile – Class I Shares | 3rd | 1st | 1st | ||||||
| Morningstar Ranking – based on total return for Foreign Large Blend Funds | 452/805 | 76/699 | 24/575 | ||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Global & International Funds | 63
Table of Contents
Janus International Equity Fund (unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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 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. |
64 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 986.80 | $ | 5.33 | $ | 1,000.00 | $ | 1,019.70 | $ | 5.42 | 1.07% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 983.60 | $ | 9.20 | $ | 1,000.00 | $ | 1,015.79 | $ | 9.35 | 1.85% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 987.50 | $ | 4.48 | $ | 1,000.00 | $ | 1,020.56 | $ | 4.56 | 0.90% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 988.30 | $ | 3.94 | $ | 1,000.00 | $ | 1,021.11 | $ | 4.00 | 0.79% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 988.20 | $ | 3.64 | $ | 1,000.00 | $ | 1,021.41 | $ | 3.70 | 0.73% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 984.40 | $ | 7.41 | $ | 1,000.00 | $ | 1,017.60 | $ | 7.54 | 1.49% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 985.70 | $ | 6.17 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.28 | 1.24% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 987.40 | $ | 4.88 | $ | 1,000.00 | $ | 1,020.16 | $ | 4.96 | 0.98% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 | 65
Table of Contents
Janus International Equity Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 96.2% | ||||||||||
| Air Freight & Logistics – 3.1% | ||||||||||
| 44,156 | Panalpina Welttransport Holding AG | $ | 5,553,102 | |||||||
| 664,296 | TNT Express NV | 4,179,071 | ||||||||
| | ||||||||||
| 9,732,173 | ||||||||||
| Auto Components – 2.8% | ||||||||||
| 297,000 | NGK Spark Plug Co., Ltd. | 8,757,705 | ||||||||
| Beverages – 3.9% | ||||||||||
| 472,600 | AMBEV SA | 3,097,244 | ||||||||
| 8,938,400 | LT Group, Inc. | 3,113,066 | ||||||||
| 104,804 | SABMiller PLC | 5,822,893 | ||||||||
| | ||||||||||
| 12,033,203 | ||||||||||
| Biotechnology – 0.8% | ||||||||||
| 229,760 | Swedish Orphan Biovitrum AB* | 2,449,501 | ||||||||
| Capital Markets – 1.4% | ||||||||||
| 121,016 | Deutsche Bank AG | 4,244,209 | ||||||||
| Chemicals – 5.4% | ||||||||||
| 781,014 | Alent PLC | 4,150,856 | ||||||||
| 185,000 | Kansai Paint Co., Ltd. | 2,765,385 | ||||||||
| 63,083 | LyondellBasell Industries NV – Class A | 6,854,599 | ||||||||
| 44,900 | Shin-Etsu Chemical Co., Ltd. | 2,937,628 | ||||||||
| | ||||||||||
| 16,708,468 | ||||||||||
| Commercial Banks – 14.0% | ||||||||||
| 481,828 | Banco Bilbao Vizcaya Argentaria SA | 5,770,531 | ||||||||
| 588,300 | Bangkok Bank PCL (NVDR) | 3,701,328 | ||||||||
| 38,965 | BNP Paribas SA | 2,576,382 | ||||||||
| 639,178 | HSBC Holdings PLC | 6,504,150 | ||||||||
| 160,687 | ICICI Bank, Ltd. | 3,719,728 | ||||||||
| 873,619 | National Bank of Greece SA* | 2,555,010 | ||||||||
| 1,556,400 | Seven Bank, Ltd. | 6,348,440 | ||||||||
| 112,714 | Societe Generale SA | 5,728,410 | ||||||||
| 247,637 | Turkiye Halk Bankasi A/S | 1,488,304 | ||||||||
| 681,698 | UniCredit SpA | 5,337,739 | ||||||||
| | ||||||||||
| 43,730,022 | ||||||||||
| Commercial Services & Supplies – 1.3% | ||||||||||
| 162,688 | Edenred | 4,008,301 | ||||||||
| Communications Equipment – 2.3% | ||||||||||
| 557,634 | Telefonaktiebolaget LM Ericsson – Class B | 7,041,045 | ||||||||
| Electronic Equipment, Instruments & Components – 2.9% | ||||||||||
| 102,755 | Hexagon AB – Class B | 3,249,025 | ||||||||
| 13,700 | Keyence Corp. | 5,960,701 | ||||||||
| | ||||||||||
| 9,209,726 | ||||||||||
| Food Products – 1.0% | ||||||||||
| 82,490 | Unilever NV | 3,278,576 | ||||||||
| Health Care Equipment & Supplies – 1.8% | ||||||||||
| 52,108 | Essilor International SA | 5,695,874 | ||||||||
| Health Care Providers & Services – 1.7% | ||||||||||
| 123,723 | Catamaran Corp.* | 5,211,657 | ||||||||
| Hotels, Restaurants & Leisure – 1.9% | ||||||||||
| 2,581,000 | Melco International Development, Ltd. | 5,974,783 | ||||||||
| Household Durables – 0.2% | ||||||||||
| 58,987 | Iida Group Holdings Co., Ltd. | 722,366 | ||||||||
| Household Products – 1.9% | ||||||||||
| 68,639 | Reckitt Benckiser Group PLC | 5,940,134 | ||||||||
| Independent Power and Renewable Electricity Producers – 1.2% | ||||||||||
| 101,916 | Abengoa Yield PLC* | 3,626,171 | ||||||||
| Industrial Conglomerates – 0.8% | ||||||||||
| 116,096 | Smiths Group PLC | 2,377,649 | ||||||||
| Information Technology Services – 0.8% | ||||||||||
| 2,236,000 | TravelSky Technology, Ltd. – Class H | 2,406,959 | ||||||||
| Insurance – 5.8% | ||||||||||
| 1,782,200 | AIA Group, Ltd. | 9,198,176 | ||||||||
| 176,800 | BB Seguridade Participacoes SA | 2,326,031 | ||||||||
| 291,289 | Prudential PLC | 6,468,774 | ||||||||
| | ||||||||||
| 17,992,981 | ||||||||||
| Internet & Catalog Retail – 1.6% | ||||||||||
| 38,025 | Alibaba Group Holding, Ltd. (ADR)* | 3,378,521 | ||||||||
| 26,031 | Ctrip.com International, Ltd. (ADR)* | 1,477,520 | ||||||||
| | ||||||||||
| 4,856,041 | ||||||||||
| Internet Software & Services – 1.0% | ||||||||||
| 206,900 | Tencent Holdings, Ltd. | 3,080,031 | ||||||||
| Leisure Products – 1.4% | ||||||||||
| 267,900 | Sega Sammy Holdings, Inc. | 4,314,647 | ||||||||
| Marine – 1.0% | ||||||||||
| 1,349 | AP Moeller – Maersk A/S – Class B | 3,196,832 | ||||||||
| Media – 1.6% | ||||||||||
| 114,112 | Liberty Global PLC – Class A* | 4,854,325 | ||||||||
| Metals & Mining – 4.6% | ||||||||||
| 51,761 | APERAM* | 1,609,091 | ||||||||
| 1,225,786 | Glencore PLC | 6,781,306 | ||||||||
| 212,476 | Outokumpu Oyj* | 1,474,501 | ||||||||
| 176,055 | ThyssenKrupp AG | 4,622,302 | ||||||||
| | ||||||||||
| 14,487,200 | ||||||||||
| Oil, Gas & Consumable Fuels – 4.5% | ||||||||||
| 248,083 | Athabasca Oil Corp.* | 1,269,437 | ||||||||
| 493,600 | Inpex Corp. | 6,988,906 | ||||||||
| 72,960 | Koninklijke Vopak NV | 3,927,890 | ||||||||
| 61,424 | MEG Energy Corp.* | 1,885,834 | ||||||||
| | ||||||||||
| 14,072,067 | ||||||||||
| Pharmaceuticals – 3.5% | ||||||||||
| 100,175 | Novo Nordisk A/S – Class B | 4,773,865 | ||||||||
| 20,941 | Roche Holding AG | 6,201,973 | ||||||||
| | ||||||||||
| 10,975,838 | ||||||||||
| Real Estate Investment Trusts (REITs) – 0.5% | ||||||||||
| 1,035 | Mori Hills REIT Investment Corp. | 1,438,801 | ||||||||
| Real Estate Management & Development – 4.5% | ||||||||||
| 413,324 | Countrywide PLC | 3,010,885 | ||||||||
| 368,194 | Kennedy Wilson Europe Real Estate PLC | 6,513,546 | ||||||||
| 202,000 | Mitsubishi Estate Co., Ltd. | 4,551,343 | ||||||||
| | ||||||||||
| 14,075,774 | ||||||||||
| Semiconductor & Semiconductor Equipment – 4.8% | ||||||||||
| 288,173 | ARM Holdings PLC | 4,198,266 | ||||||||
| 329,700 | Sumco Corp. | 3,984,606 | ||||||||
| 1,733,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 6,898,887 | ||||||||
| | ||||||||||
| 15,081,759 | ||||||||||
| Software – 0.9% | ||||||||||
| 40,632 | SAP SE | 2,929,639 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
66 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Specialty Retail – 1.0% | ||||||||||
| 1,436,250 | L’Occitane International SA | $ | 3,293,264 | |||||||
| Textiles, Apparel & Luxury Goods – 3.0% | ||||||||||
| 55,364 | Cie Financiere Richemont SA | 4,537,902 | ||||||||
| 1,536,700 | Samsonite International SA | 4,946,381 | ||||||||
| | ||||||||||
| 9,484,283 | ||||||||||
| Thrifts & Mortgage Finance – 0.5% | ||||||||||
| 86,393 | Housing Development Finance Corp. | 1,473,307 | ||||||||
| Tobacco – 4.1% | ||||||||||
| 788,222 | ITC, Ltd. | 4,726,504 | ||||||||
| 244,800 | Japan Tobacco, Inc. | 7,969,386 | ||||||||
| | ||||||||||
| 12,695,890 | ||||||||||
| Trading Companies & Distributors – 1.5% | ||||||||||
| 98,512 | Brenntag AG | 4,836,186 | ||||||||
| Wireless Telecommunication Services – 1.2% | ||||||||||
| 1,122,790 | Vodafone Group PLC | 3,700,519 | ||||||||
| Total Common Stock (cost $272,677,109) | 299,987,906 | |||||||||
| Preferred Stock – 2.0% | ||||||||||
| Automobiles – 2.0% | ||||||||||
| 30,739 | Volkswagen AG (cost $7,949,505) | 6,380,816 | ||||||||
| Right – 0% | ||||||||||
| Commercial Banks – 0% | ||||||||||
| 481,828 | Banco Bilbao Vizcaya Argentaria SA* (cost $48,885) | 48,072 | ||||||||
| Money Market – 1.5% | ||||||||||
| 4,524,322 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $4,524,322) | 4,524,322 | ||||||||
| Total Investments (total cost $285,199,821) – 99.7% | 310,941,116 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.3% | 829,173 | |||||||||
| Net Assets – 100% | $ | 311,770,289 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Japan | $ | 56,739,914 | 18 | .3% | ||||
| United Kingdom | 48,955,432 | 15 | .7 | |||||
| Germany | 23,013,152 | 7 | .4 | |||||
| France | 22,911,322 | 7 | .4 | |||||
United States†† | 22,746,792 | 7 | .3 | |||||
| Hong Kong | 20,119,340 | 6 | .5 | |||||
| Switzerland | 16,292,977 | 5 | .2 | |||||
| Sweden | 12,739,571 | 4 | .1 | |||||
| Netherlands | 11,385,537 | 3 | .7 | |||||
| China | 10,343,031 | 3 | .3 | |||||
| India | 9,919,539 | 3 | .2 | |||||
| Spain | 9,444,774 | 3 | .0 | |||||
| Canada | 8,366,928 | 2 | .7 | |||||
| Denmark | 7,970,697 | 2 | .6 | |||||
| Taiwan | 6,898,887 | 2 | .2 | |||||
| Brazil | 5,423,275 | 1 | .7 | |||||
| Italy | 5,337,739 | 1 | .7 | |||||
| Thailand | 3,701,328 | 1 | .2 | |||||
| Philippines | 3,113,066 | 1 | .0 | |||||
| Greece | 2,555,010 | 0 | .8 | |||||
| Turkey | 1,488,304 | 0 | .5 | |||||
| Finland | 1,474,501 | 0 | .5 | |||||
| Total | $ | 310,941,116 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 1.5%. |
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 believe that company fundamentals drive share prices over the long-term. I use intensive, fundamental research to make high-conviction investments. |  Brent Lynn portfolio manager |
PERFORMANCE
During the 12-month period ending September 30, 2014, Janus Overseas Fund’s Class T Shares returned 2.98%. Its primary benchmark, the MSCI All-Country World ex-U.S Index returned 4.77%, and its secondary benchmark, the MSCI EAFE Index, returned 4.25%.
Despite the positive absolute return, I am disappointed with the Fund’s one-year performance and especially with the performance of the Fund over the past several years. In my 23 year career at Janus, I’ve learned that holding the course when your stocks are going against you is the hardest thing to do in this business. In a high-conviction portfolio that is very different than its index, where stock picking matters so much, it is especially difficult. But I’ve also learned that if we really have faith in our fundamental company analysis, holding the course is the key to generating strong long-term performance. I am extremely optimistic about the long-term prospects for my Fund for the simple and powerful reason that I believe my stocks have strong long-term prospects and compelling valuations.
MARKET ENVIRONMENT
I believe that the most important reason for the Fund’s underperformance during the past 12 months was that my opportunistic style of investment has been out of favor. During 2014, the market remained heavily momentum oriented. Companies with near-term visibility of earnings and cash flows, especially with near-term growth, performed extremely well, and in my opinion, rose to very high valuations.
Meanwhile, many stocks with a problematic or uncertain near term outlook dramatically underperformed, seemingly independent of extremely low valuations or longer-term growth prospects. Janus Overseas Fund is overwhelmingly invested in companies with attractive long-term growth potential. Many of these holdings, however, are also cyclical businesses that are sensitive to, or perceived to be sensitive to, a slow-growth global economic environment and heightened geopolitical risks.
I like situations where fear and short-term noise provide opportunities to own companies with great long-term prospects at compelling valuations. In the long-term, I believe my fundholders will benefit. For example, the Fund has large relative exposure to emerging markets, energy stocks and cyclical companies, all areas that today are out of favor. I don’t try to predict sentiment, however, I have held onto key positions as long as we continue to believe in long-term fundamentals of our companies, and I have bought more out of favor stocks where we believe that the company’s long-term prospects and stock price are extremely disconnected.
I believe that, relative to the rest of the market, the valuations of many of our holdings are as attractive, or even more attractive, than during the 2008-09 financial crisis. I also think they are poised to rebound. A modest easing of company specific or macro concerns can result in dramatic rebounds in stocks. For example, during the European sovereign debt crisis of recent years, our European bank rose sharply after the European central bank expressed a strong willingness to control the crisis. Similarly, our U.S. airlines sharply rerated as the companies demonstrated that they could deliver solid earnings and cash flows even in a slow-growth economic environment with high oil prices. And in India, which had been one of the world’s worst performing markets until the past year, soared in anticipation of a new leadership. Investors shifted their focus away from short-term concerns and looked at the longer-term growth potential and valuations of companies.
Even in periods of underperformance, I will remain committed to buying stocks which undervalue long-term opportunities because of misplaced shorter-term sentiment.
PERFORMANCE DISCUSSION
Relative to its primary benchmark, the MSCI All-Country World ex-U.S. Index, the Fund’s heavy investments in energy, information technology, and consumer discretionary significantly hurt performance during the
68 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
12-month period. On a geographic basis, the Fund’s investments in Russia, Hong Kong, and Canada also negatively impacted performance.
Russian bank, Sberbank was the biggest detractor during the period. Despite solid earnings and business fundamentals, our Sberbank position was hit hard by macro fears over the Ukraine crisis and potential Western sanctions against Russia. Although I believed in Sberbank’s dominant franchise and attractive returns, innovative management team, and extremely low stock valuation, I sold the position. The position’s extreme sensitivity to unpredictable geopolitical events in Ukraine changed the investment thesis from one based on fundamentals to one based on tougher, political calculations.
Two oil exploration companies, U.S.-based Cobalt International Energy and Canada-based Africa Oil, were the second and third biggest detractors during the period. The sharp decline in oil prices played the more important role in the weak performance of these two stocks, but both companies experienced some modest exploration disappointments. A Cobalt well offshore Angola contained less oil than expected, and Africa Oil didn’t expand its Kenyan oil reserves as much as investors hoped. I believe that both stocks are trading at significant discounts to the values of their discovered resources, and both companies have exciting prospects to be drilled in the coming year.
China based internet video provider, Youku Tudou, was the fourth largest detractor during the period. The stock declined as higher external media content purchase costs and increased investment in internally produced content delayed the company’s transition to profitability. With 400 million mobile daily views and Alibaba’s recent purchase of a stake in the company, Youku has the potential to become a powerful online video and media company in China, in my view. I took advantage of stock weakness to add to our position during the period.
Currency detracted from the Fund’s absolute performance during the period primarily due to the fall in the European currencies, the Canadian dollar, Australian dollar, and Brazilian real. The Fund’s hedge against Japanese yen exposure had a positive impact on performance. For the past few years, I have hedged most of our yen exposure because I felt Japan’s high level of government debt would eventually lead to a weaker yen. Relative to the MSCI All-Country World ex-U.S. Index, currency had a significant positive impact as the Fund was underweight underperforming currencies in Europe, Japan, and Australia.
Relative to the MSCI All-Country World ex-U.S. Index, the Fund’s investments in the industrials sector, and geographically, in India, were significant positive contributors to performance.
India-based ports, power, and coal trading conglomerate, Adani Enterprises, was the largest positive contributor to performance during the period. Adani Enterprises showed continued strong growth in ports volumes. In addition, the company benefitted from moves by the Indian government to resolve coal availability and power pricing issues as well as from investor optimism about a new investment led growth cycle in India under the Modi administration. I continue to believe that Adani Enterprises has exciting growth potential in all of its core businesses, but I cut the position modestly based on valuation.
U.S.-based airline, United Continental, was the second largest positive contributor to performance during the period. Improving operations and merger synergies, as well as continued industry capacity discipline and consolidation allowed United to show improving margins and earnings. The company is also benefitting from the recent sharp decline in jet fuel prices. I believe that the company’s cash flow generation potential is not yet appreciated by the market, but I cut the position modestly based on valuation.
In aggregate, derivatives detracted from performance during the period. In addition to the currency hedge on the Japanese yen mentioned earlier, the Fund also selectively utilized swaps during the period. The positive impact of the yen hedge was more than offset by the negative impact of the Fund’s swaps. Reasons for using these instruments included hedging downside risks, achieving market access, and establishing positions more quickly.
Please see the Derivatives Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
I too am a shareholder of Janus Overseas Fund, but more importantly, I am a steward of your money. I take my responsibility very seriously. I recognize that you have trusted me and Janus with your hard-earned savings.
One learns a lot in a 23-year career but the most important lesson is to believe in the process, even in tough times. After a tough stretch, I am tested but my conviction is not waning. My conviction in the portfolio comes from our team’s tremendous, in-depth fundamental research. Markets obsessed with near-term predictability over long-term opportunity will not last forever. We have tremendous opportunities to buy strong franchises on sale
Janus Global & International Funds | 69
Table of Contents
Janus Overseas Fund (unaudited)
around the world. 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 fundholders.
Thank you for your continued investment in Janus Overseas Fund.
70 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Overseas Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Adani Enterprises, Ltd. | 3.15% | |||
| United Continental Holdings, Inc. | 2.22% | |||
| Jazz Pharmaceuticals PLC | 1.81% | |||
| Reliance Industries, Ltd. | 1.20% | |||
| Axis Bank, Ltd. | 1.10% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Sberbank of Russia Total Return Swaps | –1.29% | |||
| Cobalt International Energy, Inc. | –1.12% | |||
| Africa Oil Corp. | –1.03% | |||
| Youku Tudou, Inc. (ADR) | –0.94% | |||
| TCS Group Holding PLC (GDR) | –0.92% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI All Country World ex-U.S. | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Industrials | 5.03% | 15.37% | 11.04% | |||||||||
| Health Care | 1.01% | 5.79% | 8.05% | |||||||||
| Materials | 0.60% | 2.74% | 8.58% | |||||||||
| Consumer Staples | 0.21% | 2.50% | 9.90% | |||||||||
| Other** | 0.03% | 0.43% | 0.00% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI All Country World ex-U.S. | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Energy | –3.96% | 21.76% | 9.24% | |||||||||
| Information Technology | –2.64% | 12.23% | 6.75% | |||||||||
| Consumer Discretionary | –2.18% | 19.37% | 10.71% | |||||||||
| Financials | –1.26% | 19.40% | 26.79% | |||||||||
| Telecommunication Services | –0.13% | 0.00% | 5.46% | |||||||||
| 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 | 71
Table of Contents
Janus Overseas Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Reliance Industries, Ltd. Oil, Gas & Consumable Fuels | 7.9% | |||
| United Continental Holdings, Inc. Airlines | 6.1% | |||
| Li & Fung, Ltd. Textiles, Apparel & Luxury Goods | 5.0% | |||
| Petroleo Brasileiro SA (ADR) Oil, Gas & Consumable Fuels | 3.6% | |||
| Jazz Pharmaceuticals PLC Pharmaceuticals | 3.5% | |||
| 26.1% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 41.9% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
72 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Overseas Fund – Class A Shares | |||||||||||
| NAV | 2.80% | –0.09% | 8.84% | 9.32% | 0.94% | ||||||
| MOP | –3.10% | –1.26% | 8.19% | 9.01% | |||||||
| Janus Overseas Fund – Class C Shares | |||||||||||
| NAV | 2.00% | –0.86% | 8.00% | 8.59% | 1.75% | ||||||
| CDSC | 1.01% | –0.86% | 8.00% | 8.59% | |||||||
| Janus Overseas Fund – Class D Shares(1) | 3.07% | 0.17% | 9.04% | 9.47% | 0.60% | ||||||
| Janus Overseas Fund – Class I Shares | 3.14% | 0.24% | 8.99% | 9.44% | 0.54% | ||||||
| Janus Overseas Fund – Class N Shares | 3.24% | 0.08% | 8.99% | 9.44% | 0.43% | ||||||
| Janus Overseas Fund – Class R Shares | 2.48% | –0.42% | 8.41% | 8.93% | 1.18% | ||||||
| Janus Overseas Fund – Class S Shares | 2.71% | –0.17% | 8.69% | 9.17% | 0.93% | ||||||
| Janus Overseas Fund – Class T Shares | 2.98% | 0.08% | 8.99% | 9.44% | 0.68% | ||||||
| MSCI All Country World ex-U.S. IndexSM | 4.77% | 6.03% | 7.06% | N/A** | |||||||
| MSCI EAFE® Index | 4.25% | 6.56% | 6.32% | 5.10% | |||||||
| Morningstar Quartile – Class T Shares | 3rd | 4th | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Foreign Large Blend Funds | 522/805 | 691/699 | 40/502 | 11/185 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Global & International Funds | 73
Table of Contents
Janus Overseas Fund (unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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 – May 2, 1994 | |
| ** | Since inception index return is not available for indices created subsequent to fund inception. | |
| (1) | Closed to new investors. |
74 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 965.50 | $ | 4.34 | $ | 1,000.00 | $ | 1,020.66 | $ | 4.46 | 0.88% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 961.80 | $ | 8.02 | $ | 1,000.00 | $ | 1,016.90 | $ | 8.24 | 1.63% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 966.80 | $ | 2.76 | $ | 1,000.00 | $ | 1,022.26 | $ | 2.84 | 0.56% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 967.20 | $ | 2.47 | $ | 1,000.00 | $ | 1,022.56 | $ | 2.54 | 0.50% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 967.40 | $ | 2.12 | $ | 1,000.00 | $ | 1,022.91 | $ | 2.18 | 0.43% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 963.90 | $ | 5.81 | $ | 1,000.00 | $ | 1,019.15 | $ | 5.97 | 1.18% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 965.00 | $ | 4.58 | $ | 1,000.00 | $ | 1,020.41 | $ | 4.71 | 0.93% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 966.20 | $ | 3.35 | $ | 1,000.00 | $ | 1,021.66 | $ | 3.45 | 0.68% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 | 75
Table of Contents
Janus Overseas Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 95.7% | ||||||||||
| Air Freight & Logistics – 1.7% | ||||||||||
| 503,157 | Panalpina Welttransport Holding AG | $ | 63,277,525 | |||||||
| Airlines – 6.1% | ||||||||||
| 4,738,756 | United Continental Holdings, Inc.*,† | 221,726,393 | ||||||||
| Automobiles – 0.4% | ||||||||||
| 4,498,500 | SAIC Motor Corp., Ltd. – Class Aß | 13,228,519 | ||||||||
| Beverages – 1.1% | ||||||||||
| 534,669 | Remy Cointreau SA# | 38,484,417 | ||||||||
| Capital Markets – 0.8% | ||||||||||
| 2,857,769 | Atlas Mara Co-Nvest, Ltd. | 28,006,136 | ||||||||
| Commercial Banks – 3.0% | ||||||||||
| 5,794,647 | Axis Bank, Ltd. | 35,323,780 | ||||||||
| 915,691 | State Bank of India | 36,145,738 | ||||||||
| 3,337,801 | TCS Group Holding PLC (GDR) | 15,537,349 | ||||||||
| 4,016,133 | Turkiye Halk Bankasi A/S | 24,137,059 | ||||||||
| | ||||||||||
| 111,143,926 | ||||||||||
| Construction & Engineering – 0.5% | ||||||||||
| 34,453,800 | Louis XIII Holdings, Ltd.*,#,£ | 17,362,253 | ||||||||
| Food & Staples Retailing – 1.4% | ||||||||||
| 2,843,703 | X5 Retail Group NV (GDR) | 52,393,235 | ||||||||
| Food Products – 0.1% | ||||||||||
| 184,405,502 | Chaoda Modern Agriculture Holdings, Ltd.*,ß,#,£ | 3,562,428 | ||||||||
| Hotels, Restaurants & Leisure – 6.3% | ||||||||||
| 46,209,074 | Bwin.Party Digital Entertainment PLC£ | 67,994,768 | ||||||||
| 21,009,600 | Melco Crown Philippines Resorts Corp.* | 6,173,617 | ||||||||
| 15,581,535 | Melco International Development, Ltd.# | 36,069,851 | ||||||||
| 1,219,723 | Orascom Development Holding AG* | 23,576,178 | ||||||||
| 64,549,165 | Shangri-La Asia, Ltd. | 95,550,346 | ||||||||
| | ||||||||||
| 229,364,760 | ||||||||||
| Household Durables – 2.2% | ||||||||||
| 440,856 | Iida Group Holdings Co., Ltd. | 5,398,809 | ||||||||
| 19,808,900 | MRV Engenharia e Participacoes SA | 66,447,832 | ||||||||
| 21,496,560 | PDG Realty SA Empreendimentos e Participacoes | 9,661,376 | ||||||||
| | ||||||||||
| 81,508,017 | ||||||||||
| Independent Power and Renewable Electricity Producers – 0.4% | ||||||||||
| 19,386,826 | Adani Power, Ltd.* | 13,581,945 | ||||||||
| Industrial Conglomerates – 0.8% | ||||||||||
| 57,723,112 | Shun Tak Holdings, Ltd. | 28,331,545 | ||||||||
| Information Technology Services – 1.2% | ||||||||||
| 1,372,747 | QIWI PLC (ADR)#,£ | 43,365,078 | ||||||||
| Internet & Catalog Retail – 4.6% | ||||||||||
| 351,164 | Alibaba Group Holding, Ltd. (ADR)* | 31,200,921 | ||||||||
| 1,830,685 | Ctrip.com International, Ltd. (ADR)* | 103,909,681 | ||||||||
| 1,203,984 | MakeMyTrip, Ltd.* | 33,506,875 | ||||||||
| | ||||||||||
| 168,617,477 | ||||||||||
| Internet Software & Services – 2.5% | ||||||||||
| 5,031,225 | Youku Tudou, Inc. (ADR)*,# | 90,159,552 | ||||||||
| Metals & Mining – 2.9% | ||||||||||
| 10,144,264 | Hindustan Zinc, Ltd. | 26,366,295 | ||||||||
| 4,704,061 | Outokumpu Oyj*,# | 32,644,366 | ||||||||
| 12,218,138 | Turquoise Hill Resources, Ltd.*,# | 45,935,311 | ||||||||
| | ||||||||||
| 104,945,972 | ||||||||||
| Oil, Gas & Consumable Fuels – 25.1% | ||||||||||
| 14,362,584 | Africa Oil Corp.*,# | 63,104,048 | ||||||||
| 2,921,946 | Africa Oil Corp. – Private Placement*,§ | 12,858,322 | ||||||||
| 9,163,356 | Athabasca Oil Corp.*,# | 46,888,757 | ||||||||
| 9,231,635 | Cairn Energy PLC | 26,251,236 | ||||||||
| 4,847,183 | Cobalt International Energy, Inc.*,† | 65,921,689 | ||||||||
| 2,493,733 | Euronav NV*,# | 28,096,234 | ||||||||
| 9,237,023 | Karoon Gas Australia, Ltd.*,# | 28,031,103 | ||||||||
| 20,455,298 | Ophir Energy PLC* | 75,662,975 | ||||||||
| 6,395,288 | Pacific Rubiales Energy Corp.# | 107,254,428 | ||||||||
| 9,137,752 | Petroleo Brasileiro SA (ADR)†,# | 129,664,701 | ||||||||
| 18,769,662 | Reliance Industries, Ltd. | 286,560,496 | ||||||||
| 1,868,519 | Trilogy Energy Corp.# | 42,316,165 | ||||||||
| | ||||||||||
| 912,610,154 | ||||||||||
| Pharmaceuticals – 6.5% | ||||||||||
| 562,160 | Endo International PLC* | 38,418,014 | ||||||||
| 21,025,416 | Genomma Lab Internacional SAB de CV – Class B* | 50,523,499 | ||||||||
| 788,727 | Jazz Pharmaceuticals PLC*,† | 126,638,007 | ||||||||
| 250,770 | Mallinckrodt PLC* | 22,606,916 | ||||||||
| | ||||||||||
| 238,186,436 | ||||||||||
| Real Estate Investment Trusts (REITs) – 2.0% | ||||||||||
| 17,025,400 | Concentradora Fibra Hotelera Mexicana SA de CV | 29,831,089 | ||||||||
| 27,967,785 | Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 29,171,427 | ||||||||
| 6,935,800 | Prologis Property Mexico SA de CV | 14,585,157 | ||||||||
| | ||||||||||
| 73,587,673 | ||||||||||
| Real Estate Management & Development – 7.5% | ||||||||||
| 2,848,581 | Countrywide PLC | 20,750,668 | ||||||||
| 37,849,967 | DLF, Ltd. | 91,913,674 | ||||||||
| 305,287,268 | Evergrande Real Estate Group, Ltd.# | 114,523,357 | ||||||||
| 2,564,266 | Kennedy Wilson Europe Real Estate PLC | 45,363,218 | ||||||||
| | ||||||||||
| 272,550,917 | ||||||||||
| Road & Rail – 0.9% | ||||||||||
| 3,819,769 | Globaltrans Investment PLC (GDR) | 32,078,519 | ||||||||
| Semiconductor & Semiconductor Equipment – 4.0% | ||||||||||
| 7,711,514 | ARM Holdings PLC | 112,345,658 | ||||||||
| 2,814,700 | Sumco Corp.# | 34,017,200 | ||||||||
| | ||||||||||
| 146,362,858 | ||||||||||
| Software – 3.8% | ||||||||||
| 7,169,700 | Nexon Co., Ltd. | 59,201,918 | ||||||||
| 725,100 | Nintendo Co., Ltd. | 78,930,362 | ||||||||
| | ||||||||||
| 138,132,280 | ||||||||||
| Textiles, Apparel & Luxury Goods – 6.8% | ||||||||||
| 302,222,180 | Global Brands Group Holding, Ltd.* | 66,439,734 | ||||||||
| 158,678,429 | Li & Fung, Ltd. | 179,977,619 | ||||||||
| | ||||||||||
| 246,417,353 | ||||||||||
| Trading Companies & Distributors – 3.1% | ||||||||||
| 14,687,355 | Adani Enterprises, Ltd. | 111,453,688 | ||||||||
| Total Common Stock (cost $3,726,902,432) | 3,480,439,056 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
76 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Money Market – 1.9% | ||||||||||
| 67,472,000 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $67,472,000) | $ | 67,472,000 | |||||||
| Investment Purchased with Cash Collateral From Securities Lending – 8.4% | ||||||||||
| 306,383,352 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $306,383,352) | 306,383,352 | ||||||||
| Total Investments (total cost $4,100,757,784) – 106.0% | 3,854,294,408 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (6.0)% | (219,718,217) | |||||||||
| Net Assets – 100% | $ | 3,634,576,191 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 894,529,589 | 23 | .2% | ||||
| India | 634,852,491 | 16 | .5 | |||||
| Hong Kong | 423,731,348 | 11 | .0 | |||||
| China | 356,584,458 | 9 | .2 | |||||
| Canada | 318,357,031 | 8 | .3 | |||||
| United Kingdom | 303,005,305 | 7 | .9 | |||||
| Brazil | 205,773,909 | 5 | .3 | |||||
| Japan | 177,548,289 | 4 | .6 | |||||
| Russia | 143,374,181 | 3 | .7 | |||||
| Mexico | 94,939,745 | 2 | .5 | |||||
| Switzerland | 86,853,703 | 2 | .3 | |||||
| Turkey | 53,308,486 | 1 | .4 | |||||
| France | 38,484,417 | 1 | .0 | |||||
| Finland | 32,644,366 | 0 | .8 | |||||
| Belgium | 28,096,234 | 0 | .7 | |||||
| Australia | 28,031,103 | 0 | .7 | |||||
| Virgin Islands (British) | 28,006,136 | 0 | .7 | |||||
| Philippines | 6,173,617 | 0 | .2 | |||||
| Total | $ | 3,854,294,408 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 9.7%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: Japanese Yen 10/23/14 | 4,950,000,000 | $ | 45,147,335 | $ | 414,317 | |||||||
| HSBC Securities (USA), Inc.: Japanese Yen 10/9/14 | 5,400,000,000 | 49,245,956 | 2,786,690 | |||||||||
| JPMorgan Chase & Co.: Japanese Yen 10/16/14 | 2,070,000,000 | 18,878,705 | 435,068 | |||||||||
| RBC Capital Markets Corp.: Japanese Yen 10/16/14 | 5,100,000,000 | 46,512,753 | 2,104,978 | |||||||||
| Total | $ | 159,784,749 | $ | 5,741,053 | ||||||||
Total Return Swap outstanding at September 30, 2014
| Unrealized | |||||||||||||||
| Notional | Return Paid | Return Received | Appreciation/ | ||||||||||||
| Counterparty | Amount | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||
| Credit Suisse International | $ | 36,678,204 | 1 month USD LIBOR plus 75 basis points | Moscow Exchange | 12/15/15 | $ | (2,594,844) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 77
Table of Contents
Notes to Schedules of Investments and Other Information
| 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 | |
| LP | Limited Partnership | |
| LIBOR | London Interbank Offered Rate | |
| LLC | Limited Liability Company | |
| NVDR | Non-Voting Depositary Receipt | |
| PCL | Public Company Limited | |
| PJSC | Private Joint Stock Company | |
| 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 year ended September 30, 2014 is indicated in the table below: |
| Value as a % | ||||||||||
| Fund | Value | of Net Assets | ||||||||
| Janus Emerging Markets Fund | $ | 27,518 | 0.1 | % | ||||||
| * | Non-income producing security. | |
78 | SEPTEMBER 30, 2014
Table of Contents
| † | 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 September 30, 2014, is noted below. |
��
| Fund | Aggregate Value | ||||
| Janus Emerging Markets Fund | $ | 170,280 | |||
| Janus Global Life Sciences Fund | 37,257,500 | ||||
| Janus Global Technology Fund | �� | 19,476,418 | |||
| Janus Overseas Fund | 414,289,250 | ||||
| ß | Security is illiquid. | |
°° | Rate shown is the 7-day yield as of September 30, 2014. | |
| # | Loaned security; a portion of the security is on loan at September 30, 2014. |
| § | Schedule of Restricted and Illiquid Securities (as of September 30, 2014) |
| Acquisition | Acquisition | Value as a | ||||||||||||
| Date | Cost | Value | % of Net Assets | |||||||||||
Janus Global Life Sciences Fund | ||||||||||||||
| Diplomat Pharmacy, Inc. – Private Placement | 3/31/14 | $ | 9,987,448 | $ | 9,987,448 | 0.4 | % | |||||||
| Fibrogen, Inc. – Private Placement | 12/28/04 – 11/8/05 | 5,786,786 | 5,990,277 | 0.2 | ||||||||||
| Juno Therapeutics, Inc. – Private Placement | 8/1/14 | 4,999,998 | 4,999,998 | 0.2 | ||||||||||
| Pronai Therapeutics, Inc. – Private Placement | 4/17/14 | 3,999,999 | 3,999,999 | 0.2 | ||||||||||
| Total | $ | 24,774,231 | $ | 24,977,722 | 1.0 | % | ||||||||
Janus Global Technology Fund | ||||||||||||||
| Apptio, Inc. – Private Placement | 5/2/13 | $ | 4,287,668 | $ | 4,287,668 | 0.4 | % | |||||||
| Okta, Inc. – Private Placement | 5/23/14 | 4,387,063 | 4,387,063 | 0.4 | ||||||||||
| Total | $ | 8,674,731 | $ | 8,674,731 | 0.8 | % | ||||||||
Janus Overseas Fund | ||||||||||||||
| Africa Oil Corp. – Private Placement | 10/17/13 | $ | 23,586,134 | $ | 12,858,322 | 0.4 | % | |||||||
The Funds have registration rights for certain restricted securities held as of September 30, 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 year ended September 30, 2014. Unless otherwise indicated, all information in the table is for the year ended September 30, 2014. |
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 9/30/14 | Gain/(Loss) | Income | at 9/30/14 | |||||||||||||||
Janus Asia Equity Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 1,064,375 | (833,550) | 230,825 | $ | – | $ | 3,211(1) | $ | 230,825 | |||||||||||
| Janus Cash Liquidity Fund LLC | 246,000 | 16,453,247 | (16,212,153) | 487,094 | – | 313 | 487,094 | ||||||||||||||
| Total | $ | – | $ | 3,524 | $ | 717,919 | |||||||||||||||
Janus Emerging Markets Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 5,774,210 | (5,143,810) | 630,400 | $ | – | $ | 6,584(1) | $ | 630,400 | |||||||||||
| Janus Cash Liquidity Fund LLC | 265,066 | 18,194,452 | (16,521,259) | 1,938,259 | – | 514 | 1,938,259 | ||||||||||||||
| Total | $ | – | $ | 7,098 | $ | 2,568,659 | |||||||||||||||
Janus Global & International Funds | 79
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 9/30/14 | Gain/(Loss) | Income | at 9/30/14 | |||||||||||||||
Janus Global Life Sciences Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 751,617,668 | (596,628,002) | 154,989,666 | $ | – | $ | 580,600(1) | $ | 154,989,666 | |||||||||||
| Janus Cash Liquidity Fund LLC | 59,727,573 | 759,599,212 | (741,147,000) | 78,179,785 | – | 32,425 | 78,179,785 | ||||||||||||||
Lipocine, Inc.(2) | 755,969 | 12,957 | (482,275) | 286,651 | 683,253 | – | N/A | ||||||||||||||
| OvaScience, Inc. | 908,774 | 342,258 | (11,735) | 1,239,297 | (13,341) | – | 20,572,330 | ||||||||||||||
| Total | $ | 669,912 | $ | 613,025 | $ | 253,741,781 | |||||||||||||||
Janus Global Research Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 21,439,471 | 444,094,063 | (455,244,534) | 10,289,000 | $ | – | $ | 8,249 | $ | 10,289,000 | |||||||||||
Janus Global Select Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 2,020,000 | 319,913,830 | (315,673,830) | 6,260,000 | $ | – | $ | 2,812 | $ | 6,260,000 | |||||||||||
Janus Global Technology Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 226,366,991 | (168,495,402) | 57,871,589 | $ | – | $ | 498,503(1) | $ | 57,871,589 | |||||||||||
| Janus Cash Liquidity Fund LLC | 51,814,872 | 213,451,107 | (233,504,229) | 31,761,750 | – | 15,687 | 31,761,750 | ||||||||||||||
| Total | $ | – | $ | 514,190 | $ | 89,633,339 | |||||||||||||||
Janus International Equity Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | – | 129,354,424 | (124,830,102) | 4,524,322 | $ | – | $ | 4,004 | $ | 4,524,322 | |||||||||||
Janus Overseas Fund | |||||||||||||||||||||
| Bwin.Party Digital Entertainment PLC | – | 46,259,805 | (50,731) | 46,209,074 | $ | (7,002) | $ | 1,834,569 | $ | 67,994,768 | |||||||||||
| Chaoda Modern Agriculture Holdings, Ltd. | 184,405,502 | – | – | 184,405,502 | – | – | 3,562,428 | ||||||||||||||
| Janus Cash Collateral Fund LLC | – | 982,333,675 | (675,950,323) | 306,383,352 | – | 4,142,449(1) | 306,383,352 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 5,128,000 | 872,467,901 | (810,123,901) | 67,472,000 | – | 9,544 | 67,472,000 | ||||||||||||||
| John Keells Holdings PLC | 74,878,133 | 4,263,403 | (79,141,536) | – | 56,451,613 | 1,540,265 | – | ||||||||||||||
| John Keells Holdings PLC Warrant expires 11/12/15 | – | 1,421,182 | (1,421,182) | – | 466,709 | – | – | ||||||||||||||
| John Keells Holdings PLC Warrant expires 11/11/16 | – | 1,421,182 | (1,421,182) | – | 533,754 | – | – | ||||||||||||||
| Louis XIII Holdings, Ltd. | 34,683,800 | – | (230,000) | 34,453,800 | (1,927) | – | 17,362,253 | ||||||||||||||
QIWI PLC (ADR)(2) | 966,190 | 831,173 | (424,616) | 1,372,747 | 6,795,663 | 1,815,095 | N/A | ||||||||||||||
| Total | �� | $ | 64,238,810 | $ | 9,341,922 | $ | 462,774,801 | ||||||||||||||
| (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 September 30, 2014. |
80 | SEPTEMBER 30, 2014
Table of Contents
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of September 30, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Asia Equity Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Airlines | $ | – | $ | 101,333 | $ | – | |||||
| Auto Components | – | 208,866 | – | ||||||||
| Automobiles | – | 987,637 | – | ||||||||
| Beverages | – | 76,587 | – | ||||||||
| Capital Markets | – | 250,816 | – | ||||||||
| Chemicals | – | 170,254 | – | ||||||||
| Commercial Banks | – | 2,118,933 | – | ||||||||
| Construction & Engineering | – | 206,258 | – | ||||||||
| Construction Materials | – | 51,011 | – | ||||||||
| Diversified Telecommunication Services | – | 153,483 | – | ||||||||
| Electric Utilities | – | 62,591 | – | ||||||||
| Electrical Equipment | – | 69,719 | – | ||||||||
| Electronic Equipment, Instruments & Components | – | 799,530 | – | ||||||||
| Food Products | – | 400,591 | – | ||||||||
| Health Care Providers & Services | – | 63,402 | – | ||||||||
| Hotels, Restaurants & Leisure | – | 236,578 | – | ||||||||
| Independent Power and Renewable Electricity Producers | – | 178,231 | – | ||||||||
| Industrial Conglomerates | – | 324,941 | – | ||||||||
| Information Technology Services | – | 93,573 | – | ||||||||
| Insurance | – | 734,153 | – | ||||||||
| Internet & Catalog Retail | 67,793 | – | – | ||||||||
| Internet Software & Services | 139,937 | 217,344 | – | ||||||||
| Machinery | – | 102,573 | – | ||||||||
| Marine | – | 173,814 | – | ||||||||
| Metals & Mining | – | 440,929 | – | ||||||||
| Multiline Retail | – | 249,294 | – | ||||||||
| Oil, Gas & Consumable Fuels | – | 791,996 | – | ||||||||
| Pharmaceuticals | – | 85,502 | – | ||||||||
| Real Estate Investment Trusts (REITs) | – | 91,054 | – | ||||||||
| Real Estate Management & Development | 98,823 | 773,102 | – | ||||||||
| Road & Rail | – | 373,131 | – | ||||||||
| Semiconductor & Semiconductor Equipment | 142,780 | 1,533,564 | – | ||||||||
| Software | 85,336 | 274,182 | – | ||||||||
| Specialty Retail | – | 699,747 | – | ||||||||
| Textiles, Apparel & Luxury Goods | – | 203,752 | – | ||||||||
| Thrifts & Mortgage Finance | – | 124,354 | – | ||||||||
| Tobacco | – | 101,039 | – | ||||||||
Preferred Stock | – | 142,796 | – | ||||||||
Warrant | 1,672 | – | – | ||||||||
Money Market | – | 487,094 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 230,825 | – | ||||||||
Total Assets | $ | 536,341 | $ | 14,384,579 | $ | – | |||||
Janus Global & International Funds | 81
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Emerging Markets Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Airlines | $ | – | $ | 169,790 | $ | – | |||||
| Auto Components | – | 363,383 | – | ||||||||
| Automobiles | – | 1,822,144 | – | ||||||||
| Beverages | 192,407 | 501,483 | – | ||||||||
| Capital Markets | 735,891 | 481,210 | – | ||||||||
| Commercial Banks | 1,981,942 | 2,950,262 | – | ||||||||
| Construction & Engineering | – | 360,107 | – | ||||||||
| Construction Materials | – | 128,396 | – | ||||||||
| Electric Utilities | – | 167,777 | – | ||||||||
| Electrical Equipment | – | 210,555 | – | ||||||||
| Electronic Equipment, Instruments & Components | – | 1,501,301 | – | ||||||||
| Food & Staples Retailing | 67,621 | 630,407 | – | ||||||||
| Food Products | – | 763,876 | – | ||||||||
| Health Care Providers & Services | – | 171,937 | – | ||||||||
| Hotels, Restaurants & Leisure | – | 828,013 | – | ||||||||
| Independent Power and Renewable Electricity Producers | – | 172,830 | – | ||||||||
| Industrial Conglomerates | – | 150,190 | – | ||||||||
| Information Technology Services | 277,487 | 187,145 | – | ||||||||
| Insurance | 163,138 | 735,752 | – | ||||||||
| Internet Software & Services | 135,923 | 315,595 | – | ||||||||
| Machinery | – | 199,926 | – | ||||||||
| Marine | – | 145,628 | – | ||||||||
| Media | – | 154,104 | – | ||||||||
| Metals & Mining | 302,376 | 478,915 | – | ||||||||
| Multiline Retail | 77,004 | 246,104 | – | ||||||||
| Oil, Gas & Consumable Fuels | 517,181 | 1,300,308 | – | ||||||||
| Pharmaceuticals | – | 177,366 | – | ||||||||
| Real Estate Investment Trusts (REITs) | 700,815 | 235,578 | – | ||||||||
| Real Estate Management & Development | 708,654 | 882,776 | – | ||||||||
| Road & Rail | – | 1,017,657 | – | ||||||||
| Semiconductor & Semiconductor Equipment | 1,746,614 | 1,719,751 | – | ||||||||
| Software | 422,243 | 558,148 | – | ||||||||
| Specialty Retail | 302,195 | 1,469,201 | – | ||||||||
| Textiles, Apparel & Luxury Goods | – | 1,216,331 | – | ||||||||
| Thrifts & Mortgage Finance | – | 256,588 | – | ||||||||
| Tobacco | – | 163,072 | – | ||||||||
| All Other | 1,102,334 | – | – | ||||||||
Corporate Bond | – | 24,656 | – | ||||||||
Preferred Stock | – | 489,623 | – | ||||||||
Warrant | 27,518 | – | – | ||||||||
Money Market | – | 1,938,259 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 630,400 | – | ||||||||
| Total Investments in Securities | $ | 9,461,343 | $ | 25,916,544 | $ | – | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 6,832 | $ | – | |||||
Outstanding Swap Contracts at Value | – | 14,737 | – | ||||||||
Total Assets | $ | 9,461,343 | $ | 25,938,113 | $ | – | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
Outstanding Swap Contracts at Value | $ | – | $ | 14,842 | $ | – | |||||
82 | SEPTEMBER 30, 2014
Table of Contents
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Global Life Sciences Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Biotechnology | $ | 763,698,838 | $ | 33,898,878 | 8,999,997 | ||||||
| Food & Staples Retailing | – | – | 9,987,448 | ||||||||
| Food Products | 12,960,256 | 12,646,296 | – | ||||||||
| Health Care Providers & Services | 368,470,983 | 16,266,319 | – | ||||||||
| Household Products | – | 17,003,189 | – | ||||||||
| Life Sciences Tools & Services | 35,440,751 | 16,791,335 | – | ||||||||
| Pharmaceuticals | 721,606,430 | 180,954,958 | 5,990,277 | ||||||||
| All Other | 300,020,438 | – | – | ||||||||
Money Market | – | 78,179,785 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 154,989,666 | – | ||||||||
| Total Investments in Securities | $ | 2,202,197,696 | $ | 510,730,426 | $ | 24,977,722 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 1,699,690 | $ | – | |||||
Total Assets | $ | 2,202,197,696 | $ | 512,430,116 | $ | 24,977,722 | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 30,572 | $ | – | |||||
| Janus Global Research Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Air Freight & Logistics | $ | – | $ | 16,837,133 | $ | – | |||||
| Auto Components | – | 37,723,004 | – | ||||||||
| Automobiles | – | 13,357,060 | – | ||||||||
| Beverages | 32,568,747 | 37,268,959 | – | ||||||||
| Biotechnology | 121,078,090 | 15,783,062 | – | ||||||||
| Capital Markets | 48,381,172 | 45,743,707 | – | ||||||||
| Chemicals | 51,543,062 | 16,492,550 | – | ||||||||
| Commercial Banks | 63,263,199 | 114,922,752 | – | ||||||||
| Communications Equipment | 22,290,846 | 21,006,375 | – | ||||||||
| Electronic Equipment, Instruments & Components | 13,838,977 | 36,982,450 | – | ||||||||
| Energy Equipment & Services | 27,673,981 | 9,276,916 | – | ||||||||
| Food Products | 12,978,003 | 26,365,131 | – | ||||||||
| Hotels, Restaurants & Leisure | 13,372,946 | 5,815,703 | – | ||||||||
| Household Durables | – | 6,754,618 | – | ||||||||
| Insurance | 27,321,040 | 84,473,890 | – | ||||||||
| Metals & Mining | – | 15,467,744 | – | ||||||||
| Oil, Gas & Consumable Fuels | 250,680,300 | 44,489,305 | – | ||||||||
| Pharmaceuticals | 75,717,622 | 38,931,942 | – | ||||||||
| Real Estate Management & Development | 40,097,903 | 13,248,463 | – | ||||||||
| Semiconductor & Semiconductor Equipment | 17,561,331 | 51,255,807 | – | ||||||||
| Software | 43,216,915 | 14,114,005 | – | ||||||||
| Specialty Retail | 62,837,137 | 8,202,855 | – | ||||||||
| Textiles, Apparel & Luxury Goods | 17,380,174 | 29,505,522 | – | ||||||||
| Tobacco | – | 48,228,632 | – | ||||||||
| Trading Companies & Distributors | 21,274,834 | 35,963,344 | – | ||||||||
| Wireless Telecommunication Services | 14,818,798 | 20,181,271 | – | ||||||||
| All Other | 807,837,121 | – | – | ||||||||
Preferred Stock | – | 22,435,296 | – | ||||||||
Money Market | – | 10,289,000 | – | ||||||||
Total Assets | $ | 1,785,732,198 | $ | 841,116,496 | $ | – | |||||
Janus Global & International Funds | 83
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Global Select Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Auto Components | $ | – | $ | 22,870,290 | $ | – | |||||
| Automobiles | – | 42,250,407 | – | ||||||||
| Beverages | – | 44,331,472 | – | ||||||||
| Commercial Banks | 125,034,766 | 113,684,199 | – | ||||||||
| Communications Equipment | – | 67,039,132 | – | ||||||||
| Hotels, Restaurants & Leisure | – | 37,488,717 | – | ||||||||
| Insurance | 26,006,583 | 95,422,084 | – | ||||||||
| Leisure Products | – | 9,642,327 | – | ||||||||
| Metals & Mining | – | 27,012,031 | – | ||||||||
| Oil, Gas & Consumable Fuels | 124,037,499 | 36,235,834 | – | ||||||||
| Pharmaceuticals | 154,322,077 | 33,130,733 | – | ||||||||
| Real Estate Management & Development | – | 20,079,971 | – | ||||||||
| Semiconductor & Semiconductor Equipment | 81,307,348 | 45,860,592 | – | ||||||||
| Software | – | 20,987,138 | – | ||||||||
| Specialty Retail | 21,028,019 | 26,929,667 | – | ||||||||
| Textiles, Apparel & Luxury Goods | – | 57,046,549 | – | ||||||||
| Tobacco | – | 34,429,831 | – | ||||||||
| Wireless Telecommunication Services | 35,563,740 | 32,021,824 | – | ||||||||
| All Other | 873,176,851 | – | – | ||||||||
Preferred Stock | – | 17,137,635 | – | ||||||||
Money Market | – | 6,260,000 | – | ||||||||
Total Assets | $ | 1,440,476,883 | $ | 789,860,433 | $ | – | |||||
| Janus Global Technology Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Household Durables | $ | – | $ | 6,495,102 | $ | – | |||||
| Internet Software & Services | 173,715,774 | 8,995,953 | 4,387,063 | ||||||||
| Semiconductor & Semiconductor Equipment | 48,498,312 | 76,488,603 | – | ||||||||
| Software | 204,120,990 | 9,284,925 | 4,287,668 | ||||||||
| All Other | 496,431,578 | – | – | ||||||||
Money Market | – | 31,761,750 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 57,871,589 | – | ||||||||
| Total Investments in Securities | $ | 922,766,654 | $ | 190,897,922 | $ | 8,674,731 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 349,792 | $ | – | |||||
Total Assets | $ | 922,766,654 | $ | 191,247,714 | $ | 8,674,731 | |||||
Liabilities | |||||||||||
Investments in Securities Sold Short: | |||||||||||
Common Stock | |||||||||||
| Household Durables | $ | – | $ | 1,739,178 | $ | – | |||||
| All Other | 3,389,195 | – | – | ||||||||
Total Liabilities | $ | 3,389,195 | $ | 1,739,178 | $ | – | |||||
84 | SEPTEMBER 30, 2014
Table of Contents
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus International Equity Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Air Freight & Logistics | $ | – | $ | 9,732,173 | $ | – | |||||
| Auto Components | – | 8,757,705 | – | ||||||||
| Beverages | 3,097,244 | 8,935,959 | – | ||||||||
| Biotechnology | – | 2,449,501 | – | ||||||||
| Capital Markets | – | 4,244,209 | – | ||||||||
| Chemicals | 6,854,599 | 9,853,869 | – | ||||||||
| Commercial Banks | – | 43,730,022 | – | ||||||||
| Commercial Services & Supplies | – | 4,008,301 | – | ||||||||
| Communications Equipment | – | 7,041,045 | – | ||||||||
| Electronic Equipment, Instruments & Components | – | 9,209,726 | – | ||||||||
| Food Products | – | 3,278,576 | – | ||||||||
| Health Care Equipment & Supplies | – | 5,695,874 | – | ||||||||
| Hotels, Restaurants & Leisure | – | 5,974,783 | – | ||||||||
| Household Durables | – | 722,366 | – | ||||||||
| Household Products | – | 5,940,134 | – | ||||||||
| Industrial Conglomerates | – | 2,377,649 | – | ||||||||
| Information Technology Services | – | 2,406,959 | – | ||||||||
| Insurance | 2,326,031 | 15,666,950 | – | ||||||||
| Internet Software & Services | – | 3,080,031 | – | ||||||||
| Leisure Products | – | 4,314,647 | – | ||||||||
| Marine | – | 3,196,832 | – | ||||||||
| Metals & Mining | – | 14,487,200 | – | ||||||||
| Oil, Gas & Consumable Fuels | 3,155,271 | 10,916,796 | – | ||||||||
| Pharmaceuticals | – | 10,975,838 | – | ||||||||
| Real Estate Investment Trusts (REITs) | – | 1,438,801 | – | ||||||||
| Real Estate Management & Development | – | 14,075,774 | – | ||||||||
| Semiconductor & Semiconductor Equipment | – | 15,081,759 | – | ||||||||
| Software | – | 2,929,639 | – | ||||||||
| Specialty Retail | – | 3,293,264 | – | ||||||||
| Textiles, Apparel & Luxury Goods | – | 9,484,283 | – | ||||||||
| Thrifts & Mortgage Finance | – | 1,473,307 | – | ||||||||
| Tobacco | – | 12,695,890 | – | ||||||||
| Trading Companies & Distributors | – | 4,836,186 | – | ||||||||
| Wireless Telecommunication Services | – | 3,700,519 | – | ||||||||
| All Other | 18,548,194 | – | – | ||||||||
Preferred Stock | – | 6,380,816 | – | ||||||||
Right | 48,072 | – | – | ||||||||
Money Market | – | 4,524,322 | – | ||||||||
Total Assets | $ | 34,029,411 | $ | 276,911,705 | $ | – | |||||
Janus Global & International Funds | 85
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Overseas Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Air Freight & Logistics | $ | – | $ | 63,277,525 | $ | – | |||||
| Automobiles | – | 13,228,519 | – | ||||||||
| Beverages | – | 38,484,417 | – | ||||||||
| Commercial Banks | – | 111,143,926 | – | ||||||||
| Construction & Engineering | – | 17,362,253 | – | ||||||||
| Food & Staples Retailing | – | 52,393,235 | – | ||||||||
| Food Products | – | – | 3,562,428 | ||||||||
| Hotels, Restaurants & Leisure | – | 229,364,760 | – | ||||||||
| Household Durables | 76,109,208 | 5,398,809 | – | ||||||||
| Independent Power and Renewable Electricity Producers | – | 13,581,945 | – | ||||||||
| Industrial Conglomerates | – | 28,331,545 | – | ||||||||
| Metals & Mining | 45,935,311 | 59,010,661 | – | ||||||||
| Oil, Gas & Consumable Fuels | 455,149,788 | 457,460,366 | – | ||||||||
| Real Estate Investment Trusts (REITs) | 44,416,246 | 29,171,427 | – | ||||||||
| Real Estate Management & Development | – | 272,550,917 | – | ||||||||
| Road & Rail | – | 32,078,519 | – | ||||||||
| Semiconductor & Semiconductor Equipment | – | 146,362,858 | – | ||||||||
| Software | – | 138,132,280 | – | ||||||||
| Textiles, Apparel & Luxury Goods | – | 246,417,353 | – | ||||||||
| Trading Companies & Distributors | – | 111,453,688 | – | ||||||||
| All Other | 790,061,072 | – | – | ||||||||
Money Market | – | 67,472,000 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 306,383,352 | – | ||||||||
| Total Investments in Securities | $ | 1,411,671,625 | $ | 2,439,060,355 | $ | 3,562,428 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 5,741,053 | $ | – | |||||
Total Assets | $ | 1,411,671,625 | $ | 2,444,801,408 | $ | 3,562,428 | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
Outstanding Swap Contracts at Value | $ | – | $ | 2,594,844 | $ | – | |||||
| (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. |
86 | SEPTEMBER 30, 2014
Table of Contents
[This page intentionally left blank.]
Janus Global & International Funds | 87
Table of Contents
Statements of Assets and Liabilities
| Janus | ||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Overseas | ||||||||||||||||||||||||||
| As of September 30, 2014 | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | Select Fund | Technology Fund | Equity Fund | Fund | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Investments at cost | $ | 14,568,714 | $ | 36,029,745 | $ | 2,057,731,699 | $ | 2,210,997,131 | $ | 1,851,642,803 | $ | 903,072,501 | $ | 285,199,821 | $ | 4,100,757,784 | ||||||||||||||||
Unaffiliated investments at value(1) | $ | 14,203,001 | $ | 32,809,228 | $ | 2,484,164,063 | $ | 2,616,559,694 | $ | 2,224,077,316 | $ | 1,032,705,968 | $ | 306,416,794 | $ | 3,391,519,607 | ||||||||||||||||
Affiliated investments at value(1) | 717,919 | 2,568,659 | 253,741,781 | 10,289,000 | 6,260,000 | 89,633,339 | 4,524,322 | 462,774,801 | ||||||||||||||||||||||||
| Repurchase agreements at value | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||
| Cash | – | – | – | – | 65,794 | 728 | – | – | ||||||||||||||||||||||||
Cash denominated in foreign currency(2) | 7,335 | 10,233 | – | – | – | – | 84 | 6,089,649 | ||||||||||||||||||||||||
| Restricted cash (Note 1) | 66,797 | 562,018 | – | – | 1,023,753 | – | – | 59,309,451 | ||||||||||||||||||||||||
| Deposits with broker for short sales | – | – | – | – | – | 5,025,344 | – | – | ||||||||||||||||||||||||
| Forward currency contracts | – | 6,832 | 1,699,690 | – | – | 349,792 | – | 5,741,053 | ||||||||||||||||||||||||
| Closed foreign currency contracts | – | 370 | 390,026 | – | – | 72,425 | – | 860,188 | ||||||||||||||||||||||||
| Outstanding swap contracts at value | – | 14,737 | – | – | – | – | – | – | ||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation | 326 | 717 | 54,152 | 54,662 | 46,144 | 21,799 | 6,451 | 75,337 | ||||||||||||||||||||||||
| Receivables: | ||||||||||||||||||||||||||||||||
| Investments sold | 1,173,228 | – | 51,531,043 | 18,298,467 | 18,991,175 | 14,878,576 | 133,708 | 38,717,948 | ||||||||||||||||||||||||
| Fund shares sold | 55,849 | 48,634 | 7,445,953 | 483,406 | 202,688 | 198,364 | 167,209 | 1,070,633 | ||||||||||||||||||||||||
| Dividends | 11,106 | 18,424 | 352,693 | 3,433,249 | 3,095,975 | 413,978 | 696,346 | 3,099,302 | ||||||||||||||||||||||||
| Dividends from affiliates | 40 | 63 | 3,123 | 811 | 14 | 1,601 | 270 | 1,014 | ||||||||||||||||||||||||
| Foreign dividend tax reclaim | 41 | 1,337 | 677,788 | 1,564,946 | 2,107,519 | 270,241 | 516,729 | 971,241 | ||||||||||||||||||||||||
| Interest | – | 1,742 | 49,364 | – | – | – | – | – | ||||||||||||||||||||||||
| Other assets | 296 | – | 46,579 | 50,190 | 42,779 | 20,203 | 5,744 | 1,965,209 | ||||||||||||||||||||||||
| Total Assets | 16,235,938 | 36,042,994 | 2,800,156,255 | 2,650,734,425 | 2,255,913,157 | 1,143,592,358 | 312,467,657 | 3,972,195,433 | ||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Due to custodian | 1,417 | 8,439 | 1,995,765 | 43,623 | – | – | 35,307 | 64,167 | ||||||||||||||||||||||||
| Collateral for securities loaned (Note 3) | 230,825 | 630,400 | 154,989,666 | – | – | 57,871,589 | – | 306,383,352 | ||||||||||||||||||||||||
Short sales, at value(3) | – | – | – | – | – | 5,128,373 | – | – | ||||||||||||||||||||||||
| Forward currency contracts | – | – | 30,572 | – | – | – | – | – | ||||||||||||||||||||||||
| Closed foreign currency contracts | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||
| Outstanding swap contracts at value | – | 14,842 | – | – | – | – | – | 2,594,844 | ||||||||||||||||||||||||
| Payables: | ||||||||||||||||||||||||||||||||
| Investments purchased | 80,571 | 591,943 | 17,234,857 | 6,368,355 | 23,535,363 | 25,969,611 | 102,495 | 18,050,587 | ||||||||||||||||||||||||
| Fund shares repurchased | 1,984,854 | 65,631 | 1,026,278 | 1,416,157 | 785,791 | 212,845 | 166,453 | 7,277,991 | ||||||||||||||||||||||||
| Advisory fees | 8,354 | 29,799 | 1,366,607 | 1,205,014 | 1,208,215 | 570,102 | 169,527 | 1,313,180 | ||||||||||||||||||||||||
| Fund administration fees | 137 | 292 | 21,353 | 22,249 | 18,878 | 8,908 | 2,655 | 32,687 | ||||||||||||||||||||||||
| Internal servicing cost | 34 | 71 | 1,721 | 608 | 213 | 169 | 980 | 2,975 | ||||||||||||||||||||||||
| Administrative services fees | 1,417 | 1,455 | 327,400 | 364,952 | 284,729 | 139,047 | 7,787 | 535,603 | ||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees | 651 | 189 | 47,075 | 17,988 | 4,846 | 4,807 | 30,172 | 186,131 | ||||||||||||||||||||||||
| Administrative, networking and omnibus fees | 63 | 197 | 24,653 | 16,835 | 9,460 | 5,053 | 18,848 | 176,757 | ||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 111 | 222 | 14,201 | 18,115 | 15,698 | 7,152 | 2,158 | 29,748 | ||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation fees | 326 | 717 | 54,152 | 54,662 | 46,144 | 21,799 | 6,451 | 75,337 | ||||||||||||||||||||||||
| Foreign tax liability | 31,322 | – | – | – | – | – | 16,066 | 35,847 | ||||||||||||||||||||||||
| Accrued expenses and other payables | 68,111 | 87,353 | 198,152 | 382,178 | 564,739 | 176,273 | 138,469 | 860,036 | ||||||||||||||||||||||||
| Total Liabilities | 2,408,193 | 1,431,550 | 177,332,452 | 9,910,736 | 26,474,076 | 90,115,728 | 697,368 | 337,619,242 | ||||||||||||||||||||||||
| Net Assets | $ | 13,827,745 | $ | 34,611,444 | $ | 2,622,823,803 | $ | 2,640,823,689 | $ | 2,229,439,081 | $ | 1,053,476,630 | $ | 311,770,289 | $ | 3,634,576,191 | ||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
88 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
89
Table of Contents
Statements of Assets and Liabilities (continued)
| Janus | ||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Overseas | ||||||||||||||||||||||||||
| As of September 30, 2014 | 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)* | $ | 13,162,765 | $ | 37,222,658 | $ | 1,676,004,464 | $ | 2,804,328,814 | $ | 2,467,221,934 | $ | 669,677,544 | $ | 270,767,642 | $ | 5,014,666,848 | ||||||||||||||||
| Undistributed net investment income/(loss)* | 163,244 | 522,082 | (546,077) | 21,990,051 | 12,330,585 | 946,176 | 4,859,752 | 26,686,093 | ||||||||||||||||||||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 181,709 | (2,484,513) | 265,547,233 | (601,195,370) | (628,582,549) | 163,360,883 | 10,454,288 | (1,162,987,131) | ||||||||||||||||||||||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(4) | 320,027 | (648,783) | 681,818,183 | 415,700,194 | 378,469,111 | 219,492,027 | 25,688,607 | (243,789,619) | ||||||||||||||||||||||||
| Total Net Assets | $ | 13,827,745 | $ | 34,611,444 | $ | 2,622,823,803 | $ | 2,640,823,689 | $ | 2,229,439,081 | $ | 1,053,476,630 | $ | 311,770,289 | $ | 3,634,576,191 | ||||||||||||||||
| Net Assets - Class A Shares | $ | 456,371 | $ | 377,679 | $ | 75,566,081 | $ | 11,627,195 | $ | 5,605,964 | $ | 8,616,818 | $ | 51,902,720 | $ | 80,632,028 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 46,597 | 43,864 | 1,450,760 | 183,846 | 422,473 | 355,975 | 3,847,492 | 2,289,778 | ||||||||||||||||||||||||
Net Asset Value Per Share(5) | $ | 9.79 | $ | 8.61 | $ | 52.09 | $ | 63.24 | $ | 13.27 | $ | 24.21 | $ | 13.49 | $ | 35.21 | ||||||||||||||||
Maximum Offering Price Per Share(6) | $ | 10.39 | $ | 9.14 | $ | 55.27 | $ | 67.10 | $ | 14.08 | $ | 25.69 | $ | 14.31 | $ | 37.36 | ||||||||||||||||
| Net Assets - Class C Shares | $ | 331,738 | $ | 94,462 | $ | 41,251,068 | $ | 6,512,660 | $ | 3,919,741 | $ | 3,030,661 | $ | 16,700,166 | $ | 52,598,812 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 34,145 | 11,116 | 824,616 | 104,776 | 303,886 | 130,318 | 1,267,535 | 1,523,779 | ||||||||||||||||||||||||
Net Asset Value Per Share(5) | $ | 9.72 | $ | 8.50 | $ | 50.02 | $ | 62.16 | $ | 12.90 | $ | 23.26 | $ | 13.18 | $ | 34.52 | ||||||||||||||||
| Net Assets - Class D Shares | $ | 9,084,009 | $ | 10,889,064 | $ | 1,243,469,737 | $ | 1,450,165,413 | $ | 1,615,507,452 | $ | 705,264,359 | $ | 22,196,866 | $ | 1,143,816,276 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 923,238 | 1,268,544 | 23,649,267 | 23,188,574 | 122,408,078 | 28,801,076 | 1,651,067 | 32,464,054 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.84 | $ | 8.58 | $ | 52.58 | $ | 62.54 | $ | 13.20 | $ | 24.49 | $ | 13.44 | $ | 35.23 | ||||||||||||||||
| Net Assets - Class I Shares | $ | 2,898,514 | $ | 21,896,118 | $ | 255,398,041 | $ | 137,265,718 | $ | 35,502,979 | $ | 17,322,178 | $ | 82,289,870 | $ | 382,219,652 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 294,244 | 2,543,536 | 4,849,983 | 2,164,791 | 2,681,138 | 703,707 | 6,110,397 | 10,817,292 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.85 | $ | 8.61 | $ | 52.66 | $ | 63.41 | $ | 13.24 | $ | 24.62 | $ | 13.47 | $ | 35.33 | ||||||||||||||||
| Net Assets - Class N Shares | N/A | N/A | N/A | N/A | N/A | N/A | $ | 112,592,804 | $ | 148,599,265 | ||||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | N/A | N/A | N/A | N/A | N/A | 8,368,212 | 4,213,633 | ||||||||||||||||||||||||
| Net Asset Value Per Share | N/A | N/A | N/A | N/A | N/A | N/A | $ | 13.45 | $ | 35.27 | ||||||||||||||||||||||
| Net Assets - Class R Shares | N/A | N/A | N/A | $ | 2,624,201 | $ | 559,994 | N/A | $ | 3,905,504 | $ | 66,291,740 | ||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | N/A | N/A | 41,820 | 42,789 | N/A | 294,218 | 1,910,249 | ||||||||||||||||||||||||
| Net Asset Value Per Share | N/A | N/A | N/A | $ | 62.75 | $ | 13.09 | N/A | $ | 13.27 | $ | 34.70 | ||||||||||||||||||||
| Net Assets - Class S Shares | $ | 344,708 | $ | 147,453 | $ | 6,145,799 | $ | 42,894,328 | $ | 423,814 | $ | 2,356,735 | $ | 13,253,256 | $ | 397,833,974 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 35,217 | 17,225 | 118,918 | 677,361 | 31,822 | 98,035 | 958,987 | 11,362,491 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.79 | $ | 8.56 | $ | 51.68 | $ | 63.33 | $ | 13.32 | $ | 24.04 | $ | 13.82 | $ | 35.01 | ||||||||||||||||
| Net Assets - Class T Shares | $ | 712,405 | $ | 1,206,668 | $ | 1,000,993,077 | $ | 989,734,174 | $ | 567,919,137 | $ | 316,885,879 | $ | 8,929,103 | $ | 1,362,584,444 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 72,637 | 140,310 | 19,077,356 | 15,846,642 | 42,986,987 | 12,979,208 | 668,886 | 38,711,144 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.81 | $ | 8.60 | $ | 52.47 | $ | 62.46 | $ | 13.21 | $ | 24.41 | $ | 13.35 | $ | 35.20 | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Unaffiliated/Affiliated investments at value includes $217,507, $597,591, $151,090,884, $56,510,956 and $291,684,223 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 $7,335, $10,233, $84 and $6,105,851 for Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus International Equity Fund and Janus Overseas Fund, respectively. | |
| (3) | Proceeds $5,025,344 for Janus Global Technology Fund. | |
| (4) | Net of foreign tax on investments of $31,322, $16,066 and $35,847 for Janus Asia Equity Fund, Janus International Equity Fund and Janus Overseas Fund, 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. | |
See Notes to Financial Statements.
90 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
91
Table of Contents
Statements of Operations
| Janus | ||||||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | International | Janus | ||||||||||||||||||||||||||||||
| For the year ended September 30, 2014 | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | Select Fund | Technology Fund | Equity Fund | Overseas Fund | ||||||||||||||||||||||||||||
| Investment Income: | ||||||||||||||||||||||||||||||||||||
| Interest | $ | – | $ | 7,095 | $ | 216,976 | $ | – | $ | 10 | $ | – | $ | – | $ | – | ||||||||||||||||||||
| Affiliated securities lending income, net | 3,211 | 6,584 | 580,600 | – | – | 498,503 | – | 4,142,449 | ||||||||||||||||||||||||||||
| Interest proceeds from short sales | – | – | – | – | 1,164 | 4,592 | – | – | ||||||||||||||||||||||||||||
| Dividends | 625,511 | 1,169,335 | 16,104,730 | 48,656,401 | 37,199,134 | 10,082,939 | 7,858,947 | 100,179,659 | ||||||||||||||||||||||||||||
| Dividends from affiliates | 313 | 514 | 32,425 | 8,249 | 2,812 | 15,687 | 4,004 | 5,199,473 | ||||||||||||||||||||||||||||
| Other income | 202 | 379 | 168 | 7,460 | 20,842 | 35 | 4,740 | 1,596 | ||||||||||||||||||||||||||||
| Foreign tax withheld | (49,032) | (91,994) | (403,601) | (1,846,138) | (952,700) | (214,258) | (433,930) | (2,852,527) | ||||||||||||||||||||||||||||
| Total Investment Income | 580,205 | 1,091,913 | 16,531,298 | 46,825,972 | 36,271,262 | 10,387,498 | 7,433,761 | 106,670,650 | ||||||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||||||
| Advisory fees | 134,590 | 282,895 | 12,457,439 | 14,679,985 | 14,531,598 | 6,615,322 | 1,920,347 | 16,779,386 | ||||||||||||||||||||||||||||
| Internal servicing expense - Class A Shares | 110 | 37 | 3,535 | 1,314 | 700 | 780 | 5,708 | 15,682 | ||||||||||||||||||||||||||||
| Internal servicing expense - Class C Shares | 144 | 30 | 2,550 | 1,028 | 741 | 410 | 2,799 | 12,071 | ||||||||||||||||||||||||||||
| Internal servicing expense - Class I Shares | 123 | 874 | 4,060 | 5,354 | 1,596 | 560 | 2,849 | 22,921 | ||||||||||||||||||||||||||||
| Shareholder reports expense | 2,695 | 1,498 | 264,380 | 400,931 | 377,459 | 200,678 | 8,856 | 337,231 | ||||||||||||||||||||||||||||
| Transfer agent fees and expenses | 3,289 | 4,830 | 303,347 | 528,491 | 793,209 | 345,551 | 12,101 | 391,516 | ||||||||||||||||||||||||||||
| Registration fees | 101,652 | 77,106 | 150,217 | 143,521 | 142,939 | 126,494 | 161,695 | 188,444 | ||||||||||||||||||||||||||||
| Custodian fees | 26,470 | 23,827 | 40,837 | 130,280 | 146,999 | 41,406 | 54,932 | 820,090 | ||||||||||||||||||||||||||||
| Professional fees | 55,630 | 60,044 | 67,961 | 124,478 | 87,960 | 78,528 | 61,131 | 104,151 | ||||||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 392 | 483 | 58,608 | 70,781 | 62,841 | 28,469 | 8,375 | 101,756 | ||||||||||||||||||||||||||||
| Short sales dividend expense | – | – | – | – | – | 38,162 | – | – | ||||||||||||||||||||||||||||
| Short sales interest expense | – | – | – | – | – | 21,139 | – | – | ||||||||||||||||||||||||||||
| Stock loan fees | – | – | – | – | – | 27,382 | – | – | ||||||||||||||||||||||||||||
| Fund administration fees | 1,411 | 2,877 | 181,798 | 239,743 | 206,660 | 94,379 | 27,936 | 394,821 | ||||||||||||||||||||||||||||
| Administrative services fees - Class D Shares | 10,362 | 11,994 | 1,262,535 | 1,738,523 | 1,952,427 | 839,768 | 28,138 | 1,525,455 | ||||||||||||||||||||||||||||
| Administrative services fees - Class R Shares | N/A | N/A | N/A | 5,066 | 1,979 | N/A | 6,996 | 205,772 | ||||||||||||||||||||||||||||
| Administrative services fees - Class S Shares | 1,880 | 814 | 27,692 | 113,805 | 1,354 | 5,100 | 26,164 | 1,321,046 | ||||||||||||||||||||||||||||
| Administrative services fees - Class T Shares | 3,392 | 2,802 | 1,807,587 | 2,481,260 | 1,492,000 | 770,028 | 26,190 | 4,229,805 | ||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 2,632 | 768 | 90,884 | 30,501 | 16,483 | 19,029 | 136,579 | 370,661 | ||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 8,020 | 1,846 | 195,328 | 60,914 | 42,240 | 26,720 | 163,909 | 662,416 | ||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class R Shares | N/A | N/A | N/A | 10,132 | 3,959 | N/A | 13,992 | 411,544 | ||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 1,880 | 814 | 27,692 | 113,805 | 1,354 | 5,100 | 26,164 | 1,321,046 | ||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class A Shares | 252 | 638 | 31,340 | 13,311 | 7,181 | 11,103 | 50,300 | 268,959 | ||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class C Shares | – | 210 | 21,693 | 6,973 | 7,572 | 2,851 | 21,512 | 161,530 | ||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class I Shares | 35 | 540 | 85,255 | 85,499 | 13,714 | 15,527 | 36,836 | 489,349 | ||||||||||||||||||||||||||||
| Other expenses | 8,800 | 22,891 | 90,672 | 149,649 | 136,603 | 72,038 | 23,725 | 266,466 | ||||||||||||||||||||||||||||
| Total Expenses | 363,759 | 497,818 | 17,175,410 | 21,135,344 | 20,029,568 | 9,386,524 | 2,827,234 | 30,402,118 | ||||||||||||||||||||||||||||
| Less: Expense and Fee Offset | – | (12) | (872) | (1,436) | (1,756) | (785) | (69) | (1,803) | ||||||||||||||||||||||||||||
| Less: Excess Expense Reimbursement | (166,805) | (105,008) | (35,134) | (1,623,912) | (71,983) | (25,719) | (1,473) | (178,213) | ||||||||||||||||||||||||||||
| Net Expenses | 196,954 | 392,798 | 17,139,404 | 19,509,996 | 19,955,829 | 9,360,020 | 2,825,692 | 30,222,102 | ||||||||||||||||||||||||||||
| Net Investment Income/(Loss) | 383,251 | 699,115 | (608,106) | 27,315,976 | 16,315,433 | 1,027,478 | 4,608,069 | 76,448,548 | ||||||||||||||||||||||||||||
| Net Realized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||||||
| Investments and foreign currency transactions | 352,605 | 986,935 | 287,781,890 | 229,553,363 | 318,518,854 | 161,734,183 | 27,481,407 | (92,529,398) | ||||||||||||||||||||||||||||
| Investments in affiliates | – | – | 669,912 | – | – | – | – | 64,238,810 | ||||||||||||||||||||||||||||
| Short sales | – | – | – | – | – | (47,484) | – | – | ||||||||||||||||||||||||||||
| Swap contracts | (20,199) | (12,558) | – | – | – | – | – | (89,074,770) | ||||||||||||||||||||||||||||
| Written options contracts | – | – | – | – | – | 1,949,701 | – | – | ||||||||||||||||||||||||||||
| Total Net Realized Gain/(Loss) on Investments | 332,406 | 974,377 | 288,451,802 | 229,553,363 | 318,518,854 | 163,636,400 | 27,481,407 | (117,365,358) | ||||||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
92 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
93
Table of Contents
Statements of Operations (continued)
| Janus | ||||||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | International | Janus | ||||||||||||||||||||||||||||||
| For the year ended September 30, 2014 | 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: | ||||||||||||||||||||||||||||||||||||
Investments, foreign currency translations and non-interested Trustees’ deferred compensation(1) | $ | 713,773 | $ | 340,418 | $ | 251,221,361 | $ | 56,234,409 | $ | (47,740,820) | $ | (25,665,672) | $ | (23,132,570) | $ | 223,980,270 | ||||||||||||||||||||
| Short sales | – | – | – | – | – | 1,110,376 | – | – | ||||||||||||||||||||||||||||
| Swap contracts | – | 12,942 | – | – | – | – | – | 6,099,289 | ||||||||||||||||||||||||||||
| Written options contracts | – | – | – | – | – | (1,115,830) | – | – | ||||||||||||||||||||||||||||
| Total Change in Unrealized Net Appreciation/Depreciation | 713,773 | 353,360 | 251,221,361 | 56,234,409 | (47,740,820) | (25,671,126) | (23,132,570) | 230,079,559 | ||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,429,430 | $ | 2,026,852 | $ | 539,065,057 | $ | 313,103,748 | $ | 287,093,467 | $ | 138,992,752 | $ | 8,956,906 | $ | 189,162,749 | ||||||||||||||||||||
| (1) | Net of foreign tax on investments of $31,322, $16,066 and $35,847 for Janus Asia Equity Fund, Janus International Equity Fund and Janus Overseas Fund, respectively. | |
See Notes to Financial Statements.
94 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
95
Table of Contents
Statements of Changes in Net Assets
| Janus Emerging | Janus Global | Janus Global | ||||||||||||||||||||||||||||||
| Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | |||||||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 383,251 | $ | 71,035 | $ | 699,115 | $ | 194,902 | $ | (608,106) | $ | (2,737,609) | $ | 27,315,976 | $ | 15,350,697 | ||||||||||||||||
| Net realized gain/(loss) on investments | 332,406 | 816,455 | 974,377 | 740,552 | 288,451,802 | 112,812,422 | 229,553,363 | 191,776,492 | ||||||||||||||||||||||||
Change in unrealized net appreciation/depreciation(3) | 713,773 | (769,350) | 353,360 | (283,940) | 251,221,361 | 254,417,408 | 56,234,409 | (12,172,266) | ||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 1,429,430 | 118,140 | 2,026,852 | 651,514 | 539,065,057 | 364,492,221 | 313,103,748 | 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.
96 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
97
Table of Contents
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 each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||
| Class A Shares | 251,874 | 328,649 | 165,868 | 456,062 | 63,164,781 | 8,804,957 | 1,758,437 | 3,057,233 | ||||||||||||||||||||||||
| Class C Shares | – | 13,150 | 10,255 | 49,470 | 32,787,365 | 5,624,762 | 1,228,357 | 1,488,522 | ||||||||||||||||||||||||
| Class D Shares | 4,951,918 | 11,339,922 | 5,366,291 | 5,565,370 | 237,810,460 | 125,728,122 | 35,548,025 | 21,607,668 | ||||||||||||||||||||||||
| Class I Shares | 2,456,090 | 1,316,031 | 6,318,528 | 9,703,704 | 240,228,615 | 10,699,962 | 41,105,094 | 33,691,607 | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | 1,188,352 | 427,943 | ||||||||||||||||||||||||
| Class S Shares | – | 319,529 | 13,922 | 20,930 | 10,534,557 | 8,437,902 | 7,151,614 | 4,901,518 | ||||||||||||||||||||||||
| Class T Shares | 6,800,728 | 6,351,046 | 2,164,453 | 6,287,567 | 559,644,930 | 159,021,190 | 55,178,795 | 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 | 424,519 | 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 | (846,709) | (249,743) | (78,576) | (1,215,748) | (10,158,478) | (1,684,528) | (3,336,241) | (7,306,050) | ||||||||||||||||||||||||
| Class C Shares | (568,982) | – | (127,288) | (678,212) | (3,109,938) | (223,936) | (1,008,465) | (1,024,346) | ||||||||||||||||||||||||
| Class D Shares | (3,976,895) | (7,187,372) | (4,160,205) | (6,048,131) | (141,400,079) | (76,410,161) | (124,634,022) | (91,051,699) | ||||||||||||||||||||||||
| Class I Shares | (1,217,736) | (1,264,318) | (1,749,713) | (2,175,815) | (26,315,250) | (3,279,663) | (20,762,555) | (22,630,073) | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | (330,511) | (204,106) | ||||||||||||||||||||||||
| Class S Shares | (536,218) | (303,593) | (237,440) | (403,217) | (16,282,528) | (426,154) | (16,861,980) | (9,344,360) | ||||||||||||||||||||||||
| Class T Shares | (7,894,990) | (5,618,052) | (1,859,175) | (7,780,891) | (240,799,231) | (57,206,671) | (125,570,320) | (132,086,148) | ||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 85,914 | 5,122,158 | 6,600,063 | 3,891,064 | 820,863,568 | 208,917,304 | (136,472,192) | 1,978,553,203 | ||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 843,296 | 5,162,946 | 7,848,445 | 4,432,421 | 1,242,969,415 | 543,019,539 | 163,411,997 | 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 | $ | 13,827,745 | $ | 12,984,449 | $ | 34,611,444 | $ | 26,762,999 | $ | 2,622,823,803 | $ | 1,379,854,388 | $ | 2,640,823,689 | $ | 2,477,411,692 | ||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 163,244 | $ | (8,008) | $ | 522,082 | $ | 549,764 | $ | (546,077) | $ | (89,259) | $ | 21,990,051 | $ | 10,886,532 | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. | |
| (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. | |
| (3) | Net of foreign tax on investments of $31,322, $16,066 and $35,847 for Janus Asia Equity Fund, Janus International Equity Fund and Janus Overseas Fund, respectively. | |
See Notes to Financial Statements.
98 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
99
Table of Contents
Statements of Changes in Net Assets (continued)
| Janus Global | Janus Global | Janus International | Janus | |||||||||||||||||||||||||||||
| Select Fund | Technology Fund | Equity Fund | Overseas Fund | |||||||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 16,315,433 | $ | 11,407,410 | $ | 1,027,478 | $ | 407,196 | $ | 4,608,069 | $ | 2,571,549 | $ | 76,448,548 | $ | 31,337,257 | ||||||||||||||||
| Net realized gain/(loss) on investments | 318,518,854 | 80,014,723 | 163,636,400 | 77,403,988 | 27,481,407 | 18,517,437 | (117,365,358) | (126,409,485) | ||||||||||||||||||||||||
Change in unrealized net appreciation/depreciation(2) | (47,740,820) | 396,598,832 | (25,671,126) | 113,640,266 | (23,132,570) | 31,776,682 | 230,079,559 | 836,693,631 | ||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 287,093,467 | 488,020,965 | 138,992,752 | 191,451,450 | 8,956,906 | 52,865,668 | 189,162,749 | 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.
100 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
101
Table of Contents
Statements of Changes in Net Assets (continued)
| Janus Global | Janus Global | Janus International | Janus | |||||||||||||||||||||||||||||
| Select Fund | Technology Fund | Equity Fund | Overseas Fund | |||||||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||
| Class A Shares | 512,742 | 938,009 | 3,101,666 | 2,670,693 | 23,762,718 | 8,870,066 | 22,768,533 | 61,320,391 | ||||||||||||||||||||||||
| Class C Shares | 121,822 | 204,519 | 1,115,525 | 971,462 | 5,316,918 | 1,972,213 | 4,371,815 | 7,722,202 | ||||||||||||||||||||||||
| Class D Shares | 36,574,655 | 34,778,451 | 28,086,194 | 27,953,427 | 5,561,849 | 10,399,219 | 27,446,017 | 43,813,128 | ||||||||||||||||||||||||
| Class I Shares | 4,729,476 | 21,764,754 | 10,127,562 | 4,067,396 | 50,034,520 | 16,525,749 | 169,989,614 | 202,097,671 | ||||||||||||||||||||||||
| Class N Shares | N/A | N/A | N/A | N/A | 7,310,815 | 38,707,922 | 151,620,006 | 11,791,079 | ||||||||||||||||||||||||
| Class R Shares | 105,318 | 643,487 | N/A | N/A | 2,364,001 | 454,281 | 13,842,849 | 23,585,293 | ||||||||||||||||||||||||
| Class S Shares | 86,782 | 305,063 | 1,398,708 | 816,020 | 8,169,141 | 4,813,436 | 67,575,426 | 113,998,050 | ||||||||||||||||||||||||
| Class T Shares | 33,124,454 | 36,072,590 | 53,570,136 | 36,533,358 | 3,394,456 | 3,957,900 | 105,078,690 | 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 | (3,222,801) | (7,352,850) | (1,219,499) | (1,373,324) | (20,290,836) | (17,803,743) | (136,346,580) | (247,927,782) | ||||||||||||||||||||||||
| Class C Shares | (1,040,328) | (2,964,772) | (535,853) | (384,924) | (3,505,743) | (4,662,742) | (29,166,582) | (56,527,729) | ||||||||||||||||||||||||
| Class D Shares | (174,126,131) | (280,658,451) | (72,500,964) | (78,575,656) | (5,736,065) | (5,736,397) | (209,274,485) | (334,842,269) | ||||||||||||||||||||||||
| Class I Shares | (6,596,653) | (10,733,608) | (3,922,156) | (3,975,614) | (20,160,907) | (31,901,386) | (452,630,361) | (543,918,559) | ||||||||||||||||||||||||
| Class N Shares | N/A | N/A | N/A | N/A | (9,495,134) | (14,071,702) | (55,048,359) | (23,346,819) | ||||||||||||||||||||||||
| Class R Shares | (570,332) | (2,019,287) | N/A | N/A | (452,080) | (413,754) | (40,921,081) | (76,225,673) | ||||||||||||||||||||||||
| Class S Shares | (471,378) | (937,589) | (509,005) | (303,965) | (3,078,851) | (1,108,822) | (315,952,531) | (517,083,939) | ||||||||||||||||||||||||
| Class T Shares | (137,289,672) | (233,931,615) | (60,928,361) | (56,960,127) | (5,061,456) | (7,146,388) | (693,320,437) | (1,311,595,758) | ||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | (238,261,758) | (432,552,905) | 30,472,370 | (65,646,246) | 40,422,622 | 5,008,483 | (1,199,099,254) | (2,278,507,340) | ||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 38,811,105 | 43,875,514 | 95,032,855 | 122,822,921 | 46,966,406 | 55,565,709 | (1,186,699,407) | (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 | $ | 2,229,439,081 | $ | 2,190,627,976 | $ | 1,053,476,630 | $ | 958,443,775 | $ | 311,770,289 | $ | 264,803,883 | $ | 3,634,576,191 | $ | 4,821,275,598 | ||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 12,330,585 | $ | 8,782,575 | $ | 946,176 | $ | (145,123) | $ | 4,859,752 | $ | 2,370,440 | $ | 26,686,093 | $ | 173,546,697 | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. | |
| (2) | Net of foreign tax on investments of $31,322, $16,066 and $35,847 for Janus Asia Equity Fund, Janus International Equity Fund and Janus Overseas Fund, respectively. | |
See Notes to Financial Statements.
102 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
103
Table of Contents
Financial Highlights
Class A Shares
| Janus Asia Equity Fund | ||||||||||||||||||
| For a share outstanding during each 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.23(2)(3) | 0.07 | 0.14 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.59 | 0.20 | 1.68 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.82 | 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 | $9.79 | $9.44 | $9.25 | $7.43 | ||||||||||||||
| Total Return** | 9.06% | 2.88% | 24.50% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $456 | $973 | $878 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,053 | $1,063 | $768 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.49% | 2.03% | 4.43% | 28.35% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.38% | 1.52% | 1.55% | 1.35% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.35%(3) | 0.51% | 0.87% | 0.85% | ||||||||||||||
| Portfolio Turnover Rate | 72% | 104% | 75% | 2% | ||||||||||||||
Class A Shares
| Janus Emerging | ||||||||||||||||||
| Markets Fund | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.23 | $7.99 | $7.41 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.15(2)(3) | 0.28 | 0.03 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.39 | (0.01) | 0.62 | (2.58) | ||||||||||||||
| Total from Investment Operations | 0.54 | 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 | $8.61 | $8.23 | $7.99 | $7.41 | ||||||||||||||
| Total Return** | 6.71% | 3.34% | 8.78% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $378 | $275 | $992 | $971 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $307 | $759 | $1,028 | $1,107 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.97% | 1.81% | 2.37% | 4.16% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.65% | 1.48% | 1.46% | 1.34% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.73%(3) | 0.06% | 0.47% | 0.81% | ||||||||||||||
| Portfolio Turnover Rate | 59% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (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 0.97%, respectively, for Janus Asia Equity Fund, and $0.08 and 0.94%, respectively, for Janus Emerging Markets Fund. | |
| (4) | Period from December 28, 2010 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
104 | SEPTEMBER 30, 2014
Table of Contents
Class A Shares
| For a share outstanding during each year or period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.12)(3) | 0.09 | 0.05 | (0.24) | 0.21 | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 13.56 | 12.19 | 8.17 | 0.94 | 2.28 | 1.89 | ||||||||||||||||||||
| Total from Investment Operations | 13.44 | 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 | $52.09 | $42.09 | $30.94 | $22.72 | $22.16 | $19.69 | ||||||||||||||||||||
| Total Return** | 34.20% | 41.11% | 36.18% | 3.14% | 12.65% | 10.56% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $75,566 | $12,847 | $3,324 | $1,072 | $1,571 | $61 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $36,354 | $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*** | 1.03% | 1.04% | 1.09% | 1.07% | 1.11% | 1.10% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.03% | 1.04% | 1.09% | 1.07% | 1.11% | 1.05% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.25)% | (0.45)% | (0.42)% | (0.68)% | 1.66% | (0.19)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 52% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during each year or period ended | Janus Global Research Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.54(3) | 0.20 | 0.25 | 0.35 | 0.16 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.58 | 9.01 | 7.78 | (2.96) | 6.51 | 4.97 | ||||||||||||||||||||
| Total from Investment Operations | 7.12 | 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 | $63.24 | $56.34 | $47.32 | $39.39 | $42.44 | $35.83 | ||||||||||||||||||||
| Total Return** | 12.67% | 19.55% | 20.40% | (6.33)% | 18.64% | 16.00% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $11,627 | $11,746 | $11,173 | $2,144 | $756 | $85 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $12,200 | $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*** | 0.97% | 1.09% | 1.20% | 1.16% | 1.28% | 1.40% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.91% | 1.03% | 1.20% | 1.16% | 1.27% | 0.93% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.88% | 0.57% | 0.55% | 0.29% | 0.58% | (3.12)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 43% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 105
Table of Contents
Financial Highlights (continued)
Class A Shares
| For a share outstanding during each year or period ended | Janus Global Select Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.07(3) | 0.07 | 0.06 | 0.19 | (0.01) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.51 | 2.27 | 0.22 | (1.93) | 1.97 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.58 | 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 | $13.27 | $11.69 | $9.35 | $9.14 | $10.99 | $9.03 | ||||||||||||||||||||
| Total Return** | 13.52% | 25.03% | 3.11% | (16.04)% | 21.71% | 18.97% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,606 | $7,427 | $11,777 | $21,288 | $33,737 | $23,859 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,593 | $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*** | 1.05% | 1.18% | 1.20% | 1.08% | 1.11% | 1.19% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.05% | 1.17% | 1.18% | 1.08% | 1.10% | 1.16% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.51% | 0.23% | 0.13% | 0.48% | 0.19% | (0.36)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 55% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during each year or period ended | Janus Global Technology Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.84 | $18.47 | $15.05 | $15.25 | $12.56 | $10.96 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.02)(3) | 0.01 | (0.03) | (0.02) | (0.03) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.18 | 4.43 | 3.45 | (0.18) | 2.72 | 1.59 | ||||||||||||||||||||
| Total from Investment Operations | 3.16 | 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 | –(4) | –(4) | –(4) | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $24.21 | $22.84 | $18.47 | $15.05 | $15.25 | $12.56 | ||||||||||||||||||||
| Total Return** | 14.49% | 24.11% | 22.72% | (1.31)% | 21.42% | 14.60% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $8,617 | $5,849 | $3,550 | $2,150 | $1,273 | $232 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $7,596 | $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*** | 1.11% | 1.09% | 1.18% | 1.12% | 1.26% | 1.07% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.11% | 1.09% | 1.18% | 1.11% | 1.26% | 0.99% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.08)% | (0.10)% | (0.35)% | (0.39)% | (0.66)% | (0.45)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 57% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
106 | SEPTEMBER 30, 2014
Table of Contents
Class A Shares
| Janus International Equity Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $13.16 | $10.60 | $9.41 | $10.90 | $9.65 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.19(1) | 0.12 | 0.14 | 0.14 | 0.06 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 2.54 | 1.17 | (1.57) | 1.20 | |||||||||||||||||
| Total from Investment Operations | 0.42 | 2.66 | 1.31 | (1.43) | 1.26 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.09) | (0.10) | (0.12) | (0.06) | (0.01) | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | – | –(2) | |||||||||||||||||
| Total Distributions and Other | (0.09) | (0.10) | (0.12) | (0.06) | (0.01) | |||||||||||||||||
| Net Asset Value, End of Period | $13.49 | $13.16 | $10.60 | $9.41 | $10.90 | |||||||||||||||||
| Total Return | 3.22% | 25.26% | 14.06% | (13.21)% | 13.04% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $51,903 | $46,617 | $45,259 | $51,188 | $75,583 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $54,632 | $45,869 | $49,289 | $76,011 | $68,357 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.10% | 1.16% | 1.31% | 1.22% | 1.34% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.10% | 1.16% | 1.31% | 1.22% | 1.34% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.36% | 0.88% | 1.01% | 1.02% | 0.76% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class A Shares
| For a share outstanding during each year or period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.47 | $32.28 | $33.87 | $47.51 | $38.63 | $33.51 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.56(1) | 1.81 | 1.18 | 0.08 | (0.01) | 0.22 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.43 | 2.33 | (0.10) | (13.67) | 9.03 | 4.90 | ||||||||||||||||||||
| Total from Investment Operations | 0.99 | 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 | $35.21 | $35.47 | $32.28 | $33.87 | $47.51 | $38.63 | ||||||||||||||||||||
| Total Return** | 2.77% | 12.99% | 3.27% | (28.64)% | 23.39% | 15.28% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $80,632 | $184,757 | $337,951 | $569,936 | $781,965 | $462,533 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $148,264 | $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*** | 0.87% | 0.94% | 1.00% | 1.03% | 1.07% | 1.00% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.87% | 0.87% | 0.98% | 1.03% | 1.07% | 1.00% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.51% | 0.36% | 0.62% | 0.31% | 0.13% | 0.39% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (2) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Global & International Funds | 107
Table of Contents
Financial Highlights (continued)
Class C Shares
| Janus Asia Equity Fund | ||||||||||||||||||
| For a share outstanding during each 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.16(2)(3) | –(4) | 0.06 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.59 | 0.21 | 1.69 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.75 | 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 | $9.72 | $9.38 | $9.18 | $7.43 | ||||||||||||||
| Total Return** | 8.22% | 2.24% | 23.55% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $332 | $804 | $775 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $802 | $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*** | 2.12% | 2.23% | 2.30% | 1.38%(5) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.68%(3) | (0.20)% | 0.08% | 0.82% | ||||||||||||||
| Portfolio Turnover Rate | 72% | 104% | 75% | 2% | ||||||||||||||
Class C Shares
| Janus Emerging | ||||||||||||||||||
| Markets Fund | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(6) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.12 | $7.91 | $7.39 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.11(2)(3) | (0.20) | (0.03) | (0.05) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.36 | 0.41 | 0.62 | (2.56) | ||||||||||||||
| Total from Investment Operations | 0.47 | 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 | $8.50 | $8.12 | $7.91 | $7.39 | ||||||||||||||
| Total Return** | 5.85% | 2.65% | 7.98% | (26.10)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $94 | $194 | $771 | $677 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $185 | $428 | $788 | $838 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.68% | 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%(7) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.32%(3) | (0.97)% | (0.27)% | 0.33% | ||||||||||||||
| Portfolio Turnover Rate | 59% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (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 0.97%, respectively, for Janus Asia Equity Fund, and $0.08 and 0.94%, respectively, for Janus Emerging Markets Fund. | |
| (4) | Less than $0.005 on a per share basis. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.34% in 2011 without the waiver of these fees and expenses. | |
| (6) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (7) | 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.
108 | SEPTEMBER 30, 2014
Table of Contents
Class C Shares
| For a share outstanding during each year or period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.47)(3) | 0.34 | (0.34) | (0.18) | 0.13 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 13.08 | 11.34 | 8.23 | 0.71 | 2.20 | 1.86 | ||||||||||||||||||||
| Total from Investment Operations | 12.61 | 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 | $50.02 | $40.85 | $30.30 | $22.41 | $21.97 | $19.64 | ||||||||||||||||||||
| Total Return** | 33.13% | 39.97% | 35.21% | 2.39% | 11.86% | 10.28% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $41,251 | $6,686 | $510 | $461 | $187 | $21 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $19,533 | $2,021 | $456 | $289 | $75 | $7 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.80% | 1.83% | 1.83% | 1.77% | 1.88% | 1.87% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.80% | 1.83% | 1.83% | 1.77% | 1.88% | 1.80% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.04)% | (1.31)% | (1.16)% | (1.23)% | 1.27% | (1.09)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 52% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during each year or period ended | Janus Global Research Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.07(3) | (0.07) | (0.03) | 0.06 | 0.03 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.51 | 8.77 | 7.64 | (2.99) | 6.40 | 4.90 | ||||||||||||||||||||
| Total from Investment Operations | 6.58 | 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 | $62.16 | $55.58 | $46.88 | $39.27 | $42.48 | $36.11 | ||||||||||||||||||||
| Total Return** | 11.84% | 18.56% | 19.38% | (7.02)% | 17.79% | 15.60% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $6,513 | $5,646 | $2,971 | $1,624 | $447 | $188 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,091 | $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*** | 1.73% | 1.86% | 2.04% | 1.93% | 1.95% | 1.55% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.67% | 1.79% | 2.04% | 1.93% | 1.95% | 1.31% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.11% | (0.16)% | (0.40)% | (0.49)% | (0.03)% | (1.32)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 43% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 109
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during each year or period ended | Janus Global Select Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.04)(3) | (0.17) | (0.09) | 0.10 | (0.07) | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.46 | 2.40 | 0.30 | (1.91) | 1.95 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.42 | 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 | $12.90 | $11.48 | $9.25 | $9.04 | $10.89 | $9.01 | ||||||||||||||||||||
| Total Return** | 12.37% | 24.11% | 2.32% | (16.68)% | 20.87% | 18.71% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,920 | $4,333 | $5,985 | $10,384 | $14,285 | $9,611 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $4,224 | $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*** | 1.88% | 1.94% | 1.96% | 1.81% | 1.88% | 2.13% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.88% | 1.93% | 1.93% | 1.81% | 1.88% | 1.93% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.29)% | (0.54)% | (0.61)% | (0.23)% | (0.57)% | (1.14)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 55% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during each year or period ended | Janus Global Technology Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.16 | $18.04 | $14.79 | $15.12 | $12.53 | $10.96 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.18)(3) | (0.02) | (0.16) | (0.11) | (0.09) | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.07 | 4.21 | 3.41 | (0.22) | 2.68 | 1.57 | ||||||||||||||||||||
| Total from Investment Operations | 2.89 | 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 | –(5) | –(5) | –(5) | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.26 | $22.16 | $18.04 | $14.79 | $15.12 | $12.53 | ||||||||||||||||||||
| Total Return** | 13.67% | 23.29% | 21.97% | (2.18)% | 20.67% | 14.32% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,031 | $2,152 | $1,234 | $995 | $613 | $36 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,672 | $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*** | 1.82% | 1.82% | 1.99% | 1.84% | 1.98% | 1.82% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.82% | 1.81% | 1.99% | 1.84% | 1.98% | 1.75% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.81)% | (0.83)% | (1.17)% | (1.11)% | (1.35)% | (1.20)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 57% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. | |
| (5) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
110 | SEPTEMBER 30, 2014
Table of Contents
Class C Shares
| Janus International Equity Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $12.87 | $10.37 | $9.19 | $10.68 | $9.52 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.07(1) | –(2) | 0.02 | 0.02 | (0.02) | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.24 | 2.51 | 1.18 | (1.51) | 1.18 | |||||||||||||||||
| Total from Investment Operations | 0.31 | 2.51 | 1.20 | (1.49) | 1.16 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.01) | (0.02) | – | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | – | –(3) | |||||||||||||||||
| Total Distributions and Other | – | (0.01) | (0.02) | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $13.18 | $12.87 | $10.37 | $9.19 | $10.68 | |||||||||||||||||
| Total Return | 2.41% | 24.26% | 13.11% | (13.95)% | 12.18% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $16,700 | $14,574 | $14,108 | $15,027 | $21,096 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $16,391 | $14,616 | $14,752 | $20,507 | $18,979 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.90% | 1.99% | 2.13% | 1.98% | 2.13% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.90% | 1.99% | 2.13% | 1.98% | 2.13% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 0.56% | 0.07% | 0.18% | 0.26% | (0.04)% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class C Shares
| For a share outstanding during each year or period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(4) | 2009(5) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $34.73 | $31.56 | $33.42 | $47.17 | $38.52 | $33.51 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.28(1) | 0.34 | 0.41 | (0.34) | (0.24) | 0.10 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.43 | 3.43 | 0.40 | (13.41) | 8.93 | 4.91 | ||||||||||||||||||||
| Total from Investment Operations | 0.71 | 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 | $34.52 | $34.73 | $31.56 | $33.42 | $47.17 | $38.52 | ||||||||||||||||||||
| Total Return** | 2.00% | 12.04% | 2.46% | (29.15)% | 22.57% | 14.95% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $52,599 | $75,376 | $113,481 | $184,001 | $281,217 | $185,858 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $66,242 | $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*** | 1.65% | 1.75% | 1.78% | 1.77% | 1.76% | 2.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.65% | 1.71% | 1.73% | 1.77% | 1.76% | 1.92% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.77% | (0.47)% | (0.12)% | (0.44)% | (0.56)% | (0.56)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (2) | Less than $0.005 on a per share basis. | |
| (3) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (5) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Global & International Funds | 111
Table of Contents
Financial Highlights (continued)
Class D Shares
| Janus Asia Equity Fund | ||||||||||||||||||
| For a share outstanding during each 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/(loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.24(2)(3) | 0.05 | 0.25 | (0.18) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.61 | 0.23 | 1.59 | (2.40) | ||||||||||||||
| Total from Investment Operations | 0.85 | 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 | –(4) | –(4) | ||||||||||||||
| Total Distributions and Other | (0.49) | (0.06) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.84 | $9.48 | $9.26 | $7.42 | ||||||||||||||
| Total Return** | 9.26% | 3.01% | 24.80% | (25.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $9,084 | $7,477 | $3,394 | $1,035 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $8,635 | $7,523 | $2,654 | $963 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.31% | 1.91% | 2.77% | 31.23% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.25% | 1.40% | 1.53% | 1.39%(5) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.52%(3) | 0.63% | 1.33% | 0.90% | ||||||||||||||
| Portfolio Turnover Rate | 72% | 104% | 75% | 2% | ||||||||||||||
Class D Shares
| Janus Emerging | ||||||||||||||||||
| Markets Fund | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(6) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.24 | $8.00 | $7.42 | $10.00 | ||||||||||||||
| Income/(loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.19(2)(3) | 0.20 | 0.05 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.37 | 0.09 | 0.60 | (2.59) | ||||||||||||||
| Total from Investment Operations | 0.56 | 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 | –(4) | 0.02 | ||||||||||||||
| Total Distributions and Other | (0.22) | (0.05) | (0.07) | 0.02 | ||||||||||||||
| Net Asset Value, End of Period | $8.58 | $8.24 | $8.00 | $7.42 | ||||||||||||||
| Total Return** | 6.98% | 3.56% | 8.76% | (25.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $10,889 | $9,136 | $9,359 | $6,699 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $9,995 | $9,679 | $8,963 | $6,847 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.67% | 1.64% | 2.15% | 4.38% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.34% | 1.30% | 1.35% | 1.32%(7) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.18%(3) | 0.61% | 0.66% | 0.91% | ||||||||||||||
| Portfolio Turnover Rate | 59% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (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 0.97%, respectively, for Janus Asia Equity Fund, and $0.08 and 0.94%, respectively, for Janus Emerging Markets Fund. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.26% in 2011 without the waiver of these fees and expenses. | |
| (6) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (7) | 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.
112 | SEPTEMBER 30, 2014
Table of Contents
Class D Shares
| For a share outstanding during each year or period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||
| 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.02(2) | 0.06 | (0.04) | (0.10) | 0.24 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 13.61 | 12.36 | 8.35 | 0.84 | 0.32 | |||||||||||||||||
| Total from Investment Operations | 13.63 | 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 | $52.58 | $42.39 | $31.10 | $22.83 | $22.21 | |||||||||||||||||
| Total Return** | 34.41% | 41.36% | 36.43% | 3.32% | 2.59% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,243,470 | $846,769 | $559,004 | $421,225 | $432,620 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,052,112 | $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*** | 0.84% | 0.87% | 0.90% | 0.90% | 1.00% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.87% | 0.90% | 0.90% | 1.00% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.03% | (0.24)% | (0.21)% | (0.45)% | 1.74% | |||||||||||||||||
| Portfolio Turnover Rate | 52% | 47% | 50% | 54% | 42% | |||||||||||||||||
Class D Shares
| For a share outstanding during each year or period ended | Janus Global Research Fund | |||||||||||||||||||||
| 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.65(2) | 0.32 | 0.25 | 0.21 | 0.28 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.52 | 8.87 | 7.75 | (2.76) | 5.05 | |||||||||||||||||
| Total from Investment Operations | 7.17 | 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 | $62.54 | $55.69 | $46.78 | $38.91 | $41.86 | |||||||||||||||||
| Total Return** | 12.92% | 19.76% | 20.55% | (6.21)% | 14.59% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,450,165 | $1,365,936 | $118,021 | $104,911 | $111,287 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,448,769 | $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*** | 0.77% | 0.85% | 1.03% | 1.00% | 1.09% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.71% | 0.74% | 1.03% | 1.00% | 1.08% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.07% | 1.11% | 0.56% | 0.41% | 1.21% | |||||||||||||||||
| Portfolio Turnover Rate | 43% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 113
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.09(2) | 0.06 | 0.07 | 0.22 | 0.01 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.49 | 2.31 | 0.24 | (1.93) | 1.18 | |||||||||||||||||
| Total from Investment Operations | 1.58 | 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 | –(3) | –(3) | N/A | |||||||||||||||||
| Total Distributions and Other | (0.06) | (0.06) | (0.11) | (0.13) | – | |||||||||||||||||
| Net Asset Value, End of Period | $13.20 | $11.68 | $9.37 | $9.17 | $11.01 | |||||||||||||||||
| Total Return** | 13.55% | 25.38% | 3.42% | (15.80)% | 12.12% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,615,507 | $1,548,438 | $1,455,243 | $1,611,690 | $2,121,813 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,627,022 | $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*** | 0.86% | 0.91% | 0.90% | 0.85% | 0.90% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 0.91% | 0.89% | 0.85% | 0.90% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.74% | 0.54% | 0.48% | 0.73% | 0.57% | |||||||||||||||||
| Portfolio Turnover Rate | 55% | 53% | 182% | 138% | 116% | |||||||||||||||||
Class D Shares
| For a share outstanding during each year or period ended | Janus Global Technology Fund | |||||||||||||||||||||
| 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.03(2) | 0.02 | –(4) | –(4) | 0.02 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.21 | 4.49 | 3.50 | (0.19) | 1.81 | |||||||||||||||||
| Total from Investment Operations | 3.24 | 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 | –(3) | –(3) | –(3) | |||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $24.49 | $23.04 | $18.60 | $15.10 | $15.29 | |||||||||||||||||
| Total Return** | 14.73% | 24.31% | 23.18% | (1.24)% | 13.60% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $705,264 | $655,911 | $574,770 | $507,871 | $546,899 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $699,807 | $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*** | 0.88% | 0.92% | 0.94% | 0.91% | 1.08% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.88% | 0.92% | 0.94% | 0.91% | 1.08% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.12% | 0.06% | (0.12)% | (0.22)% | (0.39)% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
114 | SEPTEMBER 30, 2014
Table of Contents
Class D Shares
| Janus International Equity Fund | ||||||||||||||||||||||
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.21(2) | 0.14 | 0.13 | 0.12 | 0.03 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 2.54 | 1.18 | (1.54) | 1.16 | |||||||||||||||||
| Total from Investment Operations | 0.44 | 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 | $13.44 | $13.12 | $10.56 | $9.40 | $10.91 | |||||||||||||||||
| Total Return** | 3.39% | 25.57% | 14.08% | (13.07)% | 12.36% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $22,197 | $21,548 | $12,927 | $8,146 | $5,558 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $23,448 | $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*** | 0.91% | 0.96% | 1.26% | 1.15% | 1.16% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.91% | 0.96% | 1.26% | 1.15% | 1.16% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.51% | 1.17% | 1.17% | 1.12% | 1.10% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class D Shares
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.69(2) | 1.11 | 1.03 | 0.19 | 0.16 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.40 | 3.15 | 0.18 | (13.73) | 5.92 | |||||||||||||||||
| Total from Investment Operations | 1.09 | 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 | $35.23 | $35.61 | $32.52 | $33.98 | $47.60 | |||||||||||||||||
| Total Return** | 3.04% | 13.31% | 3.67% | (28.50)% | 14.67% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,143,816 | $1,281,830 | $1,402,452 | $1,573,265 | $2,440,197 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,271,212 | $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*** | 0.58% | 0.60% | 0.63% | 0.82% | 0.87% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.58% | 0.60% | 0.63% | 0.82% | 0.87% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.86% | 0.68% | 1.05% | 0.49% | 0.66% | |||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Redemption fees aggregated less than $0.005 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 I Shares
| Janus Asia Equity Fund | ||||||||||||||||||
| For a share outstanding during each 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.26(2)(3) | 0.04 | 0.19 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.60 | 0.26 | 1.65 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.86 | 0.30 | 1.84 | (2.57) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.17) | (0.08) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Total Distributions | (0.50) | (0.08) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.85 | $9.49 | $9.27 | $7.43 | ||||||||||||||
| Total Return** | 9.43% | 3.21% | 24.76% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $2,899 | $1,295 | $1,145 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,751 | $1,549 | $848 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.15% | 1.70% | 3.63% | 28.10% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.07% | 1.26% | 1.29% | 1.34% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.75%(3) | 0.55% | 1.19% | 0.86% | ||||||||||||||
| Portfolio Turnover Rate | 72% | 104% | 75% | 2% | ||||||||||||||
Class I Shares
| Janus Emerging | ||||||||||||||||||
| Markets Fund | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.27 | $8.01 | $7.41 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.20(2)(3) | 0.19 | 0.07 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.38 | 0.11 | 0.60 | (2.58) | ||||||||||||||
| Total from Investment Operations | 0.58 | 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 | –(5) | –(5) | ||||||||||||||
| Total Distributions and Other | (0.24) | (0.04) | (0.07) | – | ||||||||||||||
| Net Asset Value, End of Period | $8.61 | $8.27 | $8.01 | $7.41 | ||||||||||||||
| Total Return** | 7.19% | 3.78% | 9.05% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $21,896 | $15,996 | $8,392 | $3,347 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $19,341 | $12,309 | $5,502 | $3,574 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.52% | 1.50% | 1.81% | 3.87% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.18% | 1.14% | 1.19% | 1.33% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.29%(3) | 1.16% | 0.90% | 0.87% | ||||||||||||||
| Portfolio Turnover Rate | 59% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (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 0.97%, respectively, for Janus Asia Equity Fund, and $0.08 and 0.94%, respectively, for Janus Emerging Markets Fund. | |
| (4) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (5) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
116 | SEPTEMBER 30, 2014
Table of Contents
Class I Shares
| For a share outstanding during each year or period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.04)(3) | 0.10 | (0.01) | (0.11) | 0.24 | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 13.73 | 12.35 | 8.32 | 0.86 | 2.28 | 1.90 | ||||||||||||||||||||
| Total from Investment Operations | 13.69 | 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 | $52.66 | $42.41 | $31.09 | $22.82 | $22.22 | $19.71 | ||||||||||||||||||||
| Total Return** | 34.55% | 41.47% | 36.49% | 3.37% | 12.85% | 10.67% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $255,398 | $18,712 | $7,392 | $4,313 | $4,319 | $991 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $104,365 | $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*** | 0.77% | 0.77% | 0.86% | 0.87% | 0.92% | 0.87% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.77% | 0.86% | 0.87% | 0.91% | 0.77% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.08)% | (0.17)% | (0.16)% | (0.45)% | 1.81% | 0.10% | ||||||||||||||||||||
| Portfolio Turnover Rate | 52% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during each year or period ended | Janus Global Research Fund | |||||||||||||||||||||||||
| September 30 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.72(3) | 0.35 | 0.25 | 0.28 | 0.28 | 0.09 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.58 | 9.05 | 7.87 | (2.80) | 6.48 | 4.85 | ||||||||||||||||||||
| Total from Investment Operations | 7.30 | 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 | $63.41 | $56.50 | $47.45 | $39.49 | $42.51 | $35.81 | ||||||||||||||||||||
| Total Return** | 12.98% | 19.92% | 20.59% | (6.10)% | 18.93% | 16.00% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $137,266 | $103,604 | $59,140 | $33,967 | $14,228 | $37 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $120,064 | $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*** | 0.67% | 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/(Loss) to Average Net Assets*** | 1.16% | 0.91% | 0.66% | 0.52% | 1.34% | 1.01% | ||||||||||||||||||||
| Portfolio Turnover Rate | 43% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. | |
| (5) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 117
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during each year or period ended | Janus Global Select Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.11(3) | 0.07 | 0.08 | 0.21 | 0.03 | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.49 | 2.32 | 0.22 | (1.92) | 1.97 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.60 | 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 | –(5) | –(5) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | (0.08) | (0.04) | (0.10) | (0.15) | (0.01) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $13.24 | $11.72 | $9.37 | $9.17 | $11.03 | $9.04 | ||||||||||||||||||||
| Total Return** | 13.73% | 25.63% | 3.30% | (15.83)% | 22.17% | 19.10% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $35,503 | $33,056 | $16,902 | $26,051 | $52,107 | $9,121 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $34,589 | $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*** | 0.73% | 0.76% | 0.95% | 0.84% | 0.79% | 0.74% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.76% | 0.93% | 0.84% | 0.79% | 0.66% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.87% | 0.89% | 0.41% | 0.69% | 0.57% | (0.31)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 55% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during each year or period ended | Janus Global Technology Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.05(3) | 0.04 | –(4) | –(4) | –(4) | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.23 | 4.50 | 3.51 | (0.17) | 2.74 | 1.61 | ||||||||||||||||||||
| Total from Investment Operations | 3.28 | 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 | –(5) | –(5) | 0.01 | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | 0.01 | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $24.62 | $23.13 | $18.66 | $15.15 | $15.32 | $12.57 | ||||||||||||||||||||
| Total Return** | 14.84% | 24.40% | 23.17% | (1.11)% | 21.88% | 14.69% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $17,322 | $9,679 | $7,737 | $6,562 | $5,959 | $973 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $13,502 | $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*** | 0.82% | 0.81% | 0.92% | 0.87% | 1.10% | 0.85% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.82% | 0.81% | 0.92% | 0.86% | 1.10% | 0.63% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.21% | 0.16% | (0.10)% | (0.16)% | (0.52)% | (1.27)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 57% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. | |
| (5) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
118 | SEPTEMBER 30, 2014
Table of Contents
Class I Shares
| Janus International Equity Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $13.14 | $10.57 | $9.41 | $10.90 | $9.65 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.24(1) | 0.20 | 0.26 | 0.16 | 0.09 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.22 | 2.50 | 1.07 | (1.55) | 1.20 | |||||||||||||||||
| Total from Investment Operations | 0.46 | 2.70 | 1.33 | (1.39) | 1.29 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.13) | (0.13) | (0.17) | (0.10) | (0.04) | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | |||||||||||||||||
| Total Distributions and Other | (0.13) | (0.13) | (0.17) | (0.10) | (0.04) | |||||||||||||||||
| Net Asset Value, End of Period | $13.47 | $13.14 | $10.57 | $9.41 | $10.90 | |||||||||||||||||
| Total Return | 3.54% | 25.74% | 14.33% | (12.93)% | 13.44% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $82,290 | $51,080 | $54,979 | $111,307 | $131,905 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $69,670 | $50,216 | $107,482 | $142,120 | $110,413 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 0.80% | 0.86% | 0.99% | 0.90% | 0.99% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 0.80% | 0.86% | 0.99% | 0.90% | 0.99% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.72% | 1.18% | 1.41% | 1.36% | 1.13% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class I Shares
| For a share outstanding during each year or period | ||||||||||||||||||||||||||
| ended September 30 and the period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.68 | $32.56 | $34.03 | $47.67 | $38.67 | $33.51 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.67(1) | 1.50 | 1.27 | 0.22 | 0.08 | 0.21 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.45 | 2.79 | (0.07) | (13.73) | 9.08 | 4.95 | ||||||||||||||||||||
| Total from Investment Operations | 1.12 | 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 | –(2) | –(2) | 0.01 | –(2) | ||||||||||||||||||||
| Total Distributions and Other | (1.47) | (1.17) | (2.67) | (0.13) | (0.16) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $35.33 | $35.68 | $32.56 | $34.03 | $47.67 | $38.67 | ||||||||||||||||||||
| Total Return** | 3.11% | 13.38% | 3.63% | (28.42)% | 23.78% | 15.40% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $382,220 | $638,610 | $882,908 | $1,275,662 | $1,534,256 | $542,392 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $459,134 | $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*** | 0.54% | 0.54% | 0.62% | 0.75% | 0.80% | 0.70% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.54% | 0.54% | 0.62% | 0.75% | 0.77% | 0.69% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.80% | 0.71% | 1.06% | 0.61% | 0.48% | 0.64% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (2) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Global & International Funds | 119
Table of Contents
Financial Highlights (continued)
Class N Shares
| Janus International Equity Fund | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $13.13 | $10.58 | $9.59 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | 0.23(2) | 0.16 | 0.04 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 2.54 | 0.95 | |||||||||||
| Total from Investment Operations | 0.46 | 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 | $13.45 | $13.13 | $10.58 | |||||||||||
| Total Return** | 3.52% | 25.78% | 10.32% | |||||||||||
| Net Assets, End of Period (in thousands) | $112,593 | $110,785 | $66,213 | |||||||||||
| Average Net Assets for the Period (in thousands) | $115,799 | $87,061 | $59,567 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.80% | 0.91% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.80% | 0.91% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.65% | 1.36% | 1.19% | |||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | |||||||||||
Class N Shares
| Janus Overseas Fund | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $35.65 | $32.56 | $30.64 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | 0.77(2) | 0.94 | 0.36 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.39 | 3.38 | 1.56 | |||||||||||
| Total from Investment Operations | 1.16 | 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 | $35.27 | $35.65 | $32.56 | |||||||||||
| Total Return** | 3.24% | 13.50% | 6.27% | |||||||||||
| Net Assets, End of Period (in thousands) | $148,599 | $54,195 | $58,250 | |||||||||||
| Average Net Assets for the Period (in thousands) | $159,178 | $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/(Loss) to Average Net Assets*** | 2.08% | 0.84% | 0.82% | |||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
120 | SEPTEMBER 30, 2014
Table of Contents
Class R Shares
| Janus Global Research Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(1) | ||||||||
| Net Asset Value, Beginning of Period | $55.95 | $52.58 | ||||||||
| Income/(Loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.31(2) | 0.03 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.55 | 3.34 | ||||||||
| Total from Investment Operations | 6.86 | 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 | $62.75 | $55.95 | ||||||||
| Total Return** | 12.27% | 6.41% | ||||||||
| Net Assets, End of Period (in thousands) | $2,624 | $1,567 | ||||||||
| Average Net Assets for the Period (in thousands) | $2,026 | $1,373 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.35% | 1.41% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.29% | 1.30% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.51% | 0.61% | ||||||||
| Portfolio Turnover Rate | 43% | 67% | ||||||||
Class R Shares
| For a share outstanding during each year or period ended | Janus Global Select Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.59 | $9.30 | $9.09 | $10.94 | $9.02 | $7.59 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.02(2) | (0.09) | –(5) | 0.13 | (0.03) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.48 | 2.38 | 0.26 | (1.90) | 1.95 | 1.44 | ||||||||||||||||||||
| Total from Investment Operations | 1.50 | 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 | –(6) | –(6) | – | – | ||||||||||||||||||||
| Total Distributions and Other | – | – | (0.05) | (0.08) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $13.09 | $11.59 | $9.30 | $9.09 | $10.94 | $9.02 | ||||||||||||||||||||
| Total Return** | 12.94% | 24.62% | 2.85% | (16.35)% | 21.29% | 18.84% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $560 | $919 | $1,915 | $2,159 | $3,426 | $1,597 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $792 | $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*** | 1.44% | 1.46% | 1.47% | 1.46% | 1.50% | 1.49% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.44% | 1.46% | 1.47% | 1.46% | 1.50% | 1.47% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.13% | (0.09)% | (0.14)% | 0.13% | (0.21)% | (0.71)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 55% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (5) | Less than $0.005 on a per share basis. | |
| (6) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 121
Table of Contents
Financial Highlights (continued)
Class R Shares
| Janus International Equity Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $12.97 | $10.50 | $9.30 | $10.79 | $9.58 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.14(1) | 0.05 | (0.03) | 0.10 | 0.03 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.21 | 2.54 | 1.29 | (1.56) | 1.18 | |||||||||||||||||
| Total from Investment Operations | 0.35 | 2.59 | 1.26 | (1.46) | 1.21 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.05) | (0.12) | (0.06) | (0.03) | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | |||||||||||||||||
| Total Distributions and Other | (0.05) | (0.12) | (0.06) | (0.03) | – | |||||||||||||||||
| Net Asset Value, End of Period | $13.27 | $12.97 | $10.50 | $9.30 | $10.79 | |||||||||||||||||
| Total Return | 2.74% | 24.81% | 13.63% | (13.58)% | 12.63% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,906 | $1,982 | $1,552 | $568 | $764 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,798 | $1,768 | $665 | $902 | $672 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.50% | 1.56% | 1.70% | 1.63% | 1.71% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.50% | 1.56% | 1.70% | 1.63% | 1.71% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.03% | 0.51% | 0.69% | 0.63% | 0.41% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class R Shares
| For a share outstanding during each year or period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.03 | $31.96 | $33.64 | $47.32 | $38.58 | $33.51 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.46(1) | 0.90 | 0.74 | (0.09) | (0.13) | 0.16 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.41 | 3.09 | 0.25 | (13.59) | 8.95 | 4.91 | ||||||||||||||||||||
| Total from Investment Operations | 0.87 | 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 | –(2) | –(2) | 0.01 | – | ||||||||||||||||||||
| Total Distributions and Other | (1.20) | (0.92) | (2.67) | – | (0.08) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $34.70 | $35.03 | $31.96 | $33.64 | $47.32 | $38.58 | ||||||||||||||||||||
| Total Return** | 2.45% | 12.65% | 3.01% | (28.91)% | 22.91% | 15.13% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $66,292 | $90,140 | $129,777 | $132,118 | $158,469 | $99,338 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $82,309 | $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*** | 1.25% | 0.07% | 0.44% | (0.08)% | (0.27)% | (0.07)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (2) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
122 | SEPTEMBER 30, 2014
Table of Contents
Class S Shares
| Janus Asia Equity Fund | ||||||||||||||||||
| For a share outstanding during each 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.23(2)(3) | 0.05 | 0.10 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.59 | 0.22 | 1.70 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.82 | 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 | $9.79 | $9.43 | $9.23 | $7.43 | ||||||||||||||
| Total Return** | 9.02% | 2.86% | 24.23% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $345 | $791 | $769 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $752 | $874 | $710 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.58% | 2.21% | 4.97% | 28.59% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.46% | 1.65% | 1.75% | 1.36%(4) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.42%(3) | 0.29% | 0.63% | 0.84% | ||||||||||||||
| Portfolio Turnover Rate | 72% | 104% | 75% | 2% | ||||||||||||||
Class S Shares
| Janus Emerging | ||||||||||||||||||
| Markets Fund | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.24 | $7.97 | $7.41 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.18(2)(3) | 0.14 | 0.02 | (0.03) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.36 | 0.14 | 0.61 | (2.56) | ||||||||||||||
| Total from Investment Operations | 0.54 | 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 | $8.56 | $8.24 | $7.97 | $7.41 | ||||||||||||||
| Total Return** | 6.67% | 3.55% | 8.50% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $147 | $337 | $676 | $617 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $326 | $481 | $676 | $800 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.05% | 1.97% | 2.50% | 4.61% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.54% | 1.48% | 1.64% | 1.39%(6) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.10%(3) | 0.05% | 0.29% | 0.62% | ||||||||||||||
| Portfolio Turnover Rate | 59% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (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 0.97%, respectively, for Janus Asia Equity Fund, and $0.08 and 0.94%, respectively, for Janus Emerging Markets Fund. | |
| (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 1.84% 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 1.82% in 2011 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Global & International Funds | 123
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during each year or period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.13)(3) | 0.28 | (0.23) | (0.20) | 0.21 | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 13.40 | 11.88 | 8.39 | 0.85 | 2.23 | 1.85 | ||||||||||||||||||||
| Total from Investment Operations | 13.27 | 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 | $51.68 | $41.85 | $30.82 | $22.66 | $22.09 | $19.66 | ||||||||||||||||||||
| Total Return** | 33.97% | 40.88% | 36.01% | 2.94% | 12.46% | 10.39% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $6,146 | $9,021 | $161 | $181 | $189 | $11 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $11,077 | $2,122 | $199 | $207 | $149 | $1 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.20% | 1.23% | 1.24% | 1.33% | 1.48% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.16% | 1.20% | 1.23% | 1.24% | 1.33% | 1.24% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.27)% | (0.89)% | (0.52)% | (0.80)% | 1.16% | (0.07)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 52% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during each year or period ended | Janus Global Research Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.45(3) | 0.38 | 0.03 | 0.29 | 0.10 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.62 | 8.77 | 7.93 | (3.02) | 6.52 | 4.94 | ||||||||||||||||||||
| Total from Investment Operations | 7.07 | 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 | $63.33 | $56.38 | $47.36 | $39.59 | $42.57 | $36.01 | ||||||||||||||||||||
| Total Return** | 12.56% | 19.38% | 20.13% | (6.50)% | 18.40% | 15.80% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $42,894 | $47,077 | $3,895 | $192 | $13 | $13 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $45,522 | $26,983 | $3,136 | $154 | $12 | $2 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.10% | 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*** | 0.73% | 0.79% | 0.20% | 0.21% | 0.40% | (1.18)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 43% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. | |
| (5) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
124 | SEPTEMBER 30, 2014
Table of Contents
Class S Shares
| For a share outstanding during each year or period ended | Janus Global Select Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.04(3) | 0.16 | 0.04 | 0.29 | (0.03) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.52 | 2.20 | 0.27 | (2.05) | 1.98 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.56 | 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 | –(4) | –(4) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | – | (0.08) | – | (0.05) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $13.32 | $11.76 | $9.48 | $9.17 | $10.98 | $9.03 | ||||||||||||||||||||
| Total Return** | 13.27% | 25.00% | 3.38% | (16.12)% | 21.59% | 18.97% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $424 | $733 | $1,120 | $802 | $12,076 | $13,346 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $542 | $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*** | 1.19% | 1.21% | 0.74%(5) | 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%(5) | 1.21% | 1.24% | 1.21% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.34% | 0.22% | 0.68% | 0.14% | 0.04% | (0.46)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 55% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during each year or period ended | Janus Global Technology Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.71 | $18.39 | $14.99 | $15.22 | $12.55 | $10.96 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.04)(3) | 0.01 | –(6) | (0.05) | (0.05) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.16 | 4.38 | 3.40 | (0.18) | 2.72 | 1.58 | ||||||||||||||||||||
| Total from Investment Operations | 3.12 | 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 | –(4) | –(4) | –(4) | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $24.04 | $22.71 | $18.39 | $14.99 | $15.22 | $12.55 | ||||||||||||||||||||
| Total Return** | 14.39% | 23.94% | 22.68% | (1.51)% | 21.27% | 14.51% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,357 | $1,226 | $532 | $259 | $213 | $67 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,040 | $772 | $340 | $268 | $165 | $38 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.20% | 1.22% | 1.26% | 1.25% | 1.43% | 1.31% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.20% | 1.22% | 1.26% | 1.25% | 1.42% | 1.26% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.18)% | (0.24)% | (0.40)% | (0.54)% | (0.80)% | (0.61)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 57% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 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 1.22% and 1.21%, respectively, without the inclusion of the non-recurring expense adjustment. | |
| (6) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Global & International Funds | 125
Table of Contents
Financial Highlights (continued)
Class S Shares
| Janus International Equity Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $13.51 | $10.93 | $9.52 | $11.04 | $9.78 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.17(1) | (0.08) | 0.22 | 0.20 | 0.04 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.24 | 2.80 | 1.24 | (1.67) | 1.23 | |||||||||||||||||
| Total from Investment Operations | 0.41 | 2.72 | 1.46 | (1.47) | 1.27 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.10) | (0.14) | (0.05) | (0.05) | (0.01) | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | |||||||||||||||||
| Total Distributions and Other | (0.10) | (0.14) | (0.05) | (0.05) | (0.01) | |||||||||||||||||
| Net Asset Value, End of Period | $13.82 | $13.51 | $10.93 | $9.52 | $11.04 | |||||||||||||||||
| Total Return | 3.05% | 25.13% | 15.44% | (13.41)% | 13.03% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $13,253 | $8,045 | $3,173 | $2,865 | $6,363 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $10,466 | $5,131 | $2,714 | $5,948 | $5,510 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.25% | 1.30% | 1.01%(3) | 1.38% | 1.46% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.25% | 1.30% | 1.00%(3) | 1.38% | 1.46% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.19% | 0.83% | 2.19% | 0.84% | 0.63% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class S Shares
| For a share outstanding during each year or period | ||||||||||||||||||||||||||
| ended September 30 and the period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(4) | 2009(5) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.32 | $32.23 | $33.82 | $47.44 | $38.61 | $33.51 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.55(1) | 1.18 | 0.90 | (0.01) | (0.04) | 0.20 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.42 | 2.93 | 0.18 | (13.62) | 8.97 | 4.89 | ||||||||||||||||||||
| Total from Investment Operations | 0.97 | 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 | –(2) | 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 | $35.01 | $35.32 | $32.23 | $33.82 | $47.44 | $38.61 | ||||||||||||||||||||
| Total Return** | 2.71% | 12.91% | 3.28% | (28.71)% | 23.20% | 15.22% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $397,834 | $620,750 | $924,703 | $1,132,967 | $1,728,739 | $1,371,807 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $528,419 | $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*** | 0.93% | 0.93% | 0.99% | 1.18% | 1.22% | 1.18% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.49% | 0.31% | 0.67% | 0.13% | (0.04)% | 0.18% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (2) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | 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. | |
| (4) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (5) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
126 | SEPTEMBER 30, 2014
Table of Contents
Class T Shares
| Janus Asia Equity Fund | ||||||||||||||||||
| For a share outstanding during each 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.24(2)(3) | 0.13 | 0.15 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.61 | 0.15 | 1.67 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.85 | 0.28 | 1.82 | (2.57) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.08) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Total Distributions | (0.49) | (0.08) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.81 | $9.45 | $9.25 | $7.43 | ||||||||||||||
| Total Return** | 9.37% | 2.99% | 24.50% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $712 | $1,644 | $861 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,357 | $1,331 | $798 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.44% | 2.05% | 4.33% | 28.34% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.43% | 1.54% | 1.35% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.49%(3) | 0.63% | 0.89% | 0.85% | ||||||||||||||
| Portfolio Turnover Rate | 72% | 104% | 75% | 2% | ||||||||||||||
Class T Shares
| Janus Emerging | ||||||||||||||||||
| Markets Fund | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.26 | $7.99 | $7.41 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.19(2)(3) | 0.29 | 0.05 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.37 | 0.01 | 0.60 | (2.59) | ||||||||||||||
| Total from Investment Operations | 0.56 | 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 | –(5) | 0.01 | ||||||||||||||
| Total Distributions and Other | (0.22) | (0.03) | (0.07) | 0.01 | ||||||||||||||
| Net Asset Value, End of Period | $8.60 | $8.26 | $7.99 | $7.41 | ||||||||||||||
| Total Return** | 6.92% | 3.73% | 8.78% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,207 | $825 | $2,141 | $1,301 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,121 | $2,105 | $2,004 | $1,320 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.77% | 1.70% | 2.13% | 4.08% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.41% | 1.37% | 1.42% | 1.34% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.19%(3) | (0.19)% | 0.58% | 0.85% | ||||||||||||||
| Portfolio Turnover Rate | 59% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (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 0.97%, respectively, for Janus Asia Equity Fund, and $0.08 and 0.94%, respectively, for Janus Emerging Markets Fund. | |
| (4) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (5) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 127
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during each year or period | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| ended September 30 and the year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $42.34 | $31.09 | $22.81 | $22.19 | $19.70 | $17.78 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.04)(2) | 0.03 | (0.06) | (0.12) | 0.27 | 0.04 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 13.61 | 12.35 | 8.35 | 0.84 | 2.22 | 1.94 | ||||||||||||||||||||
| Total from Investment Operations | 13.57 | 12.38 | 8.29 | 0.72 | 2.49 | 1.98 | ||||||||||||||||||||
| 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) | ||||||||||||||||||||
| Total Distributions and Other | (3.44) | (1.13) | (0.01) | (0.10) | – | (0.06) | ||||||||||||||||||||
| Net Asset Value, End of Period | $52.47 | $42.34 | $31.09 | $22.81 | $22.19 | $19.70 | ||||||||||||||||||||
| Total Return** | 34.31% | 41.24% | 36.34% | 3.26% | 12.65% | 11.21% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,000,993 | $485,819 | $266,444 | $203,916 | $230,708 | $646,206 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $723,035 | $328,041 | $233,296 | $232,934 | $381,186 | $618,360 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.95% | 0.98% | 1.00% | 1.01% | 1.04% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.94% | 0.98% | 1.00% | 1.01% | 1.03% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.08)% | (0.32)% | (0.28)% | (0.56)% | 0.80% | 0.28% | ||||||||||||||||||||
| Portfolio Turnover Rate | 52% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each year or period ended | Janus Global Research Fund | |||||||||||||||||||||||||
| September 30 and the year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $55.62 | $46.72 | $38.85 | $41.80 | $35.23 | $27.28 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.60(2) | 0.38 | 0.22 | 0.12 | 0.19 | 0.15 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.52 | 8.77 | 7.71 | (2.70) | 6.38 | 8.05 | ||||||||||||||||||||
| Total from Investment Operations | 7.12 | 9.15 | 7.93 | (2.58) | 6.57 | 8.20 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.28) | (0.25) | (0.06) | (0.37) | –(3) | (0.25) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (0.28) | (0.25) | (0.06) | (0.37) | – | (0.25) | ||||||||||||||||||||
| Net Asset Value, End of Period | $62.46 | $55.62 | $46.72 | $38.85 | $41.80 | $35.23 | ||||||||||||||||||||
| Total Return** | 12.85% | 19.66% | 20.42% | (6.27)% | 18.67% | 30.46% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $989,734 | $941,836 | $110,487 | $93,622 | $114,874 | $203,125 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $992,504 | $557,218 | $108,203 | $118,574 | $142,843 | $166,030 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.85% | 0.93% | 1.12% | 1.10% | 1.18% | 1.25% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.81% | 1.11% | 1.10% | 1.18% | 1.24% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.00% | 1.03% | 0.49% | 0.30% | 0.47% | 0.56% | ||||||||||||||||||||
| Portfolio Turnover Rate | 43% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Less than $0.005 on a per share basis. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
128 | SEPTEMBER 30, 2014
Table of Contents
Class T Shares
| For a share outstanding during each year or period | Janus Global Select Fund | |||||||||||||||||||||||||
| ended September 30 and the year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.69 | $9.37 | $9.16 | $11.01 | $9.03 | $7.14 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.09(2) | 0.05 | 0.06 | 0.20 | (0.01) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.48 | 2.32 | 0.25 | (1.93) | 1.99 | 1.95 | ||||||||||||||||||||
| Total from Investment Operations | 1.57 | 2.37 | 0.31 | (1.73) | 1.98 | 1.96 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.05) | (0.05) | (0.10) | (0.12) | –(3) | (0.06) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Return of capital | – | – | – | – | – | (0.01) | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | (0.05) | (0.05) | (0.10) | (0.12) | – | (0.07) | ||||||||||||||||||||
| Net Asset Value, End of Period | $13.21 | $11.69 | $9.37 | $9.16 | $11.01 | $9.03 | ||||||||||||||||||||
| Total Return** | 13.46% | 25.33% | 3.38% | (15.97)% | 21.96% | 27.96% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $567,919 | $595,722 | $653,810 | $831,865 | $1,381,716 | $3,133,551 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $596,800 | $616,392 | $811,160 | $1,277,525 | $2,008,730 | $2,600,372 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.96% | 0.97% | 0.96% | 0.95% | 0.97% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.95% | 0.97% | 0.96% | 0.95% | 0.96% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.67% | 0.49% | 0.39% | 0.59% | 0.22% | 0.14% | ||||||||||||||||||||
| Portfolio Turnover Rate | 55% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each year or period ended | Janus Global Technology Fund | |||||||||||||||||||||||||
| September 30 and the year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.99 | $18.56 | $15.09 | $15.28 | $12.57 | $9.29 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.01(2) | –(3) | (0.02) | (0.03) | (0.05) | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.20 | 4.50 | 3.49 | (0.16) | 2.76 | 3.28 | ||||||||||||||||||||
| Total from Investment Operations | 3.21 | 4.50 | 3.47 | �� | (0.19) | 2.71 | 3.28 | |||||||||||||||||||
| 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) | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $24.41 | $22.99 | $18.56 | $15.09 | $15.28 | $12.57 | ||||||||||||||||||||
| Total Return** | 14.62% | 24.31% | 23.00% | (1.24)% | 21.56% | 35.31% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $316,886 | $283,627 | $247,798 | $225,429 | $265,438 | $713,536 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $308,011 | $255,617 | $244,166 | $283,158 | $424,663 | $584,300 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.97% | 1.01% | 1.00% | 1.13% | 1.06% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.96% | 1.01% | 1.00% | 1.13% | 1.05% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.06% | 0.02% | (0.19)% | (0.31)% | (0.66)% | (0.32)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 57% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Less than $0.005 on a per share basis. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 129
Table of Contents
Financial Highlights (continued)
Class T Shares
| Janus International Equity Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $13.02 | $10.50 | $9.34 | $10.86 | $9.64 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.20(1) | 0.10 | 0.14 | 0.11 | 0.05 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 2.55 | 1.18 | (1.53) | 1.22 | |||||||||||||||||
| Total from Investment Operations | 0.43 | 2.65 | 1.32 | (1.42) | 1.27 | |||||||||||||||||
| 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 | –(2) | –(2) | –(2) | |||||||||||||||||
| Total Distributions and Other | (0.10) | (0.13) | (0.16) | (0.10) | (0.05) | |||||||||||||||||
| Net Asset Value, End of Period | $13.35 | $13.02 | $10.50 | $9.34 | $10.86 | |||||||||||||||||
| Total Return | 3.31% | 25.50% | 14.25% | (13.23)% | 13.22% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $8,929 | $10,173 | $11,027 | $5,184 | $2,137 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $10,476 | $11,504 | $6,256 | $4,425 | $645 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.00% | 1.07% | 1.19% | 1.12% | 1.26% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 0.99% | 1.07% | 1.19% | 1.12% | 1.26% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 1.46% | 1.03% | 1.28% | 1.13% | 1.14% | |||||||||||||||||
| Portfolio Turnover Rate | 57% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class T Shares
| For a share outstanding during each year or | ||||||||||||||||||||||||||
| period ended September 30 and the year ended | Janus Overseas Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(3) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.55 | $32.44 | $33.95 | $47.56 | $38.65 | $27.12 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.65(1) | 1.28 | 1.06 | 0.11 | 0.01 | 0.41 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.42 | 2.94 | 0.10 | (13.68) | 9.04 | 12.66 | ||||||||||||||||||||
| Total from Investment Operations | 1.07 | 4.22 | 1.16 | (13.57) | 9.05 | 13.07 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (1.42) | (1.11) | – | (0.05) | (0.15) | (0.22) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | (1.33) | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||
| Total Distributions and Other | (1.42) | (1.11) | (2.67) | (0.04) | (0.14) | (1.54) | ||||||||||||||||||||
| Net Asset Value, End of Period | $35.20 | $35.55 | $32.44 | $33.95 | $47.56 | $38.65 | ||||||||||||||||||||
| Total Return** | 2.98% | 13.22% | 3.52% | (28.54)% | 23.48% | 51.63% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,362,584 | $1,875,618 | $2,712,057 | $3,719,191 | $6,113,812 | $7,112,657 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,691,922 | $2,301,346 | $3,426,766 | $6,059,513 | $6,528,596 | $5,182,633 | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.75% | 0.56% | 0.90% | 0.37% | 0.14% | 0.90% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (2) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
See Notes to Financial Statements.
130 | SEPTEMBER 30, 2014
Table of Contents
Notes to Financial Statements
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 year ended September 30, 2014. The Trust offers forty-six 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. Class D 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 no 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
Janus Global & International Funds | 131
Table of Contents
Notes to Financial Statements (continued)
securities held by it by using prices provided by one or more professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Certain 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.
Indemnifications
In the normal course of business, the Funds may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. A Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against a Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
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.
132 | SEPTEMBER 30, 2014
Table of Contents
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.
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 September 30, 2014, Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Select Fund, and Janus Overseas Fund had restricted cash in the amounts of $66,797, $562,018, $1,023,753, and $59,309,451, 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 may be 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, swaps, investments in unregistered investment companies, 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.
Janus Global & International Funds | 133
Table of Contents
Notes to Financial Statements (continued)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of September 30, 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.
The Funds did not hold a significant amount of Level 3 securities as of September 30, 2014.
The following table shows the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the year. The Funds recognize transfers between the levels as of the beginning of the fiscal year.
| Transfers Out | Transfers Out | |||||||||
| of Level 1 | of Level 2 | |||||||||
| Fund | to Level 2 | to Level 1 | ||||||||
| Janus Asia Equity Fund | $ | 10,035,319 | $ | – | ||||||
| Janus Emerging Markets Fund | 13,263,910 | 2,632,083 | ||||||||
| Janus Global Life Sciences Fund | 86,664,310 | 32,724,387 | ||||||||
| Janus Global Research Fund | 612,819,981 | 35,636,356 | ||||||||
| Janus Global Select Fund | 483,516,202 | 30,969,234 | ||||||||
| Janus Global Technology Fund | 56,474,176 | 29,832,659 | ||||||||
| Janus International Equity Fund | 135,580,040 | 4,209,998 | ||||||||
| Janus Overseas Fund | 2,049,612,677 | 522,699,593 | ||||||||
Financial assets were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current fiscal year and no factor was applied at the end of the prior fiscal year.
Financial assets were transferred out of Level 2 to Level 1 as the current market for the securities with quoted prices are considered active.
| 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 year ended September 30, 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 purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative (to earn income and 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. |
134 | SEPTEMBER 30, 2014
Table of Contents
| • | 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 net asset value (“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 investments and foreign currency transactions” on the Statements of Operations (if applicable).
During the year, Janus Emerging Markets Fund, Janus Global Life Sciences Fund, Janus Global Technology Fund, Janus International Equity Fund, and Janus Overseas Fund entered into forward contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by each Fund.
The following table provides average ending monthly currency units on sold forward contracts during the year ended September 30, 2014.
| Fund | Sold | |||||
| Janus Emerging Markets Fund | 36,851,554 | |||||
| Janus Global Life Sciences Fund | 55,080,846 | |||||
| Janus Global Technology Fund | 2,458,477,692 | |||||
| Janus International Equity Fund | 1,649,230,769 | |||||
| Janus Overseas Fund | 42,274,615,385 | |||||
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
Janus Global & International Funds | 135
Table of Contents
Notes to Financial Statements (continued)
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.
During the year, Janus Global Select Fund and Janus Global Technology Fund purchased call options on various equity securities for the purpose of increasing exposure to individual equity risk.
The following table provides average ending monthly market value amounts on purchased call options during the year ended September 30, 2014.
| Fund | Purchased Call Options | |||||
| Janus Global Select Fund | $ | 709,094 | ||||
| Janus Global Technology Fund | 121,483 | |||||
During the year, Janus Global Technology Fund wrote put options on various equity securities for the purpose of increasing exposure to individual equity risk and/or generating income.
The following table provides average ending monthly market value amounts on written put options during the year ended September 30, 2014.
| Fund | Written Put Options | |||||
| Janus Global Technology Fund | $ | 167,056 | ||||
Written option activity for the year ended September 30, 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 | (4,494) | (2,250,599) | ||||||
| Options expired | – | – | ||||||
| Options exercised | (390) | (154,750) | ||||||
| Options outstanding at September 30, 2014 | – | $ | – | |||||
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
136 | SEPTEMBER 30, 2014
Table of Contents
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 are typically 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. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. 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.
During the year, Janus Asia Equity Fund, Janus Emerging Markets Fund, and Janus Overseas Fund entered into total return swaps on equity securities or indices to increase exposure to equity risk. These total return swaps require each Fund to pay a floating reference interest rate, and an amount equal to the negative price movement of securities or an index multiplied by the notional amount of the contract. Each Fund will receive payments equal to the positive price movement of the same securities or index multiplied by the notional amount of the contract and, in some cases, dividends paid on the securities.
The following table provides average ending monthly notional amount on total return swaps which are long the reference asset during the year ended September 30, 2014.
| Fund | Long | |||||
| Janus Asia Equity Fund | $ | 13,525 | ||||
| Janus Emerging Markets Fund | 327,031 | |||||
| Janus Overseas Fund | 11,296,596,745 | |||||
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 September 30, 2014.
Fair Value of Derivative Instruments as of September 30, 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 | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 6,832 | |||||||||
| Equity Contracts | Outstanding swap contracts at value | 14,737 | Outstanding swap contracts at value | $ | 14,842 | |||||||
| Total | $ | 21,569 | $ | 14,842 | ||||||||
Janus Global Life Sciences Fund | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 1,699,690 | Forward currency contracts | $ | 30,572 | ||||||
Janus Global Technology Fund | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 349,792 | |||||||||
Janus Overseas Fund | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 5,741,053 | |||||||||
| Equity Contracts | Outstanding swap contracts at value | $ | 2,594,844 | |||||||||
Janus Global & International Funds | 137
Table of Contents
Notes to Financial Statements (continued)
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the year ended September 30, 2014.
The effect of Derivative Instruments on the Statements of Operations for the year ended September 30, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||
| Derivatives not accounted for as | Investments and foreign | |||||||||||||||
| hedging instruments | currency transactions | Swap contracts | Written options contracts | Total | ||||||||||||
Janus Asia Equity Fund | ||||||||||||||||
| Equity Contracts | $ | – | $ | (20,199 | ) | $ | – | $ | (20,199 | ) | ||||||
Janus Emerging Markets Fund | ||||||||||||||||
| Currency Contracts | $ | 35,534 | $ | – | $ | – | $ | 35,534 | ||||||||
| Equity Contracts | – | (12,558 | ) | – | (12,558 | ) | ||||||||||
| Total | $ | 35,534 | $ | (12,558 | ) | $ | – | $ | 22,976 | |||||||
Janus Global Life Sciences Fund | ||||||||||||||||
| Currency Contracts | $ | 1,434,599 | $ | – | $ | – | $ | 1,434,599 | ||||||||
Janus Global Select Fund | ||||||||||||||||
| Equity Contracts | $ | (4,768,000 | )* | $ | – | $ | – | $ | (4,768,000 | ) | ||||||
Janus Global Technology Fund | ||||||||||||||||
| Currency Contracts | $ | 1,073,381 | $ | – | $ | – | $ | 1,073,381 | ||||||||
| Equity Contracts | 364,898* | – | 1,949,701 | 2,314,599 | ||||||||||||
| Total | $ | 1,438,279 | $ | – | $ | 1,949,701 | $ | 3,387,980 | ||||||||
Janus International Equity Fund | ||||||||||||||||
| Currency Contracts | $ | 1,222,167 | $ | – | $ | – | $ | 1,222,167 | ||||||||
Janus Overseas Fund | ||||||||||||||||
| Currency Contracts | $ | 31,543,234 | $ | – | $ | – | $ | 31,543,234 | ||||||||
| Equity Contracts | – | (89,074,770 | ) | – | (89,074,770 | ) | ||||||||||
| Total | $ | 31,543,234 | $ | (89,074,770 | ) | $ | – | $ | (57,531,536 | ) | ||||||
| * | 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 | ||||||||||||||||
| Currency Contracts | $ | 14,045 | $ | – | $ | – | $ | 14,045 | ||||||||
| Equity Contracts | – | 12,942 | – | 12,942 | ||||||||||||
| Total | $ | 14,045 | $ | 12,942 | $ | – | $ | 26,987 | ||||||||
Janus Global Life Sciences Fund | ||||||||||||||||
| Currency Contracts | $ | 2,242,719 | $ | – | $ | – | $ | 2,242,719 | ||||||||
Janus Global Select Fund | ||||||||||||||||
| Equity Contracts | $ | 2,917,642* | $ | – | $ | – | $ | 2,917,642 | ||||||||
Janus Global Technology Fund | ||||||||||||||||
| Currency Contracts | $ | 783,981 | $ | – | $ | – | $ | 783,981 | ||||||||
| Equity Contracts | (143,182 | )* | – | (1,115,830 | ) | (1,259,012 | ) | |||||||||
| Total | $ | 640,799 | $ | – | $ | (1,115,830 | ) | $ | (475,031 | ) | ||||||
Janus International Equity Fund | ||||||||||||||||
| Currency Contracts | $ | 248,374 | $ | – | $ | – | $ | 248,374 | ||||||||
Janus Overseas Fund | ||||||||||||||||
| Currency Contracts | $ | 9,498,415 | $ | – | $ | – | $ | 9,498,415 | ||||||||
| Equity Contracts | – | 6,099,289 | – | 6,099,289 | ||||||||||||
| Total | $ | 9,498,415 | $ | 6,099,289 | $ | – | $ | 15,597,704 | ||||||||
| * | Amounts relate to purchased options. |
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
138 | SEPTEMBER 30, 2014
Table of Contents
| 3. | Other Investments and Strategies |
Additional Investment Risk
The financial crisis that began in 2008 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 took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient each could 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 continue to impact 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. As a result, 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 provided 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 remain pending and 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 increased 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 restructurings 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 year ended September 30, 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.
Janus Global & International Funds | 139
Table of Contents
Notes to Financial Statements (continued)
As of September 30, 2014, Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Select Fund, and Janus Overseas Fund have available investment quota of $61,855, $94,693, $1,004,818, and $788,015, 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 with respect to financial assets and liabilities approximates its carrying value. See the “Offsetting Assets and Liabilities” section of this Note for further details.
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 market countries.” 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, sanctions or imposition of restrictions by various governmental entities on investment and trading, 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 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 instruments’ payables and/or receivables with
140 | SEPTEMBER 30, 2014
Table of Contents
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 instruments’ 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). For corresponding information grouped by type of instrument, see either the “Fair Value of Derivative Instruments as of September 30, 2014” table located in Note 2 of these Notes to Financial Statements and/or the applicable Fund’s Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets
Janus Asia Equity Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Assets | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Deutsche Bank AG | $ | 217,507 | $ | – | $ | (217,507) | $ | – | ||||||||||
Janus Emerging Markets Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Assets | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 21,569 | $ | (14,842) | $ | – | $ | 6,727 | ||||||||||
| Deutsche Bank AG | 597,591 | – | (597,591) | – | ||||||||||||||
| Total | $ | 619,160 | $ | (14,842) | $ | (597,591) | $ | 6,727 | ||||||||||
Janus Global Life Sciences Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Assets | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Bank of America | $ | 42,040 | $ | (30,572) | $ | – | $ | 11,468 | ||||||||||
| Credit Suisse International | 308,323 | – | – | 308,323 | ||||||||||||||
| Deutsche Bank AG | 151,090,884 | – | (151,090,884) | – | ||||||||||||||
| HSBC Securities (USA), Inc. | 674,193 | – | – | 674,193 | ||||||||||||||
| JPMorgan Chase & Co. | 215,074 | – | – | 215,074 | ||||||||||||||
| RBC Capital Markets Corp. | 460,060 | – | – | 460,060 | ||||||||||||||
| Total | $ | 152,790,574 | $ | (30,572) | $ | (151,090,884) | $ | 1,669,118 | ||||||||||
Janus Global Technology Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Assets | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Bank of America | $ | 8,075 | $ | – | $ | – | $ | 8,075 | ||||||||||
| Credit Suisse International | 43,737 | – | – | 43,737 | ||||||||||||||
| Deutsche Bank AG | 56,510,956 | – | (56,510,956) | – | ||||||||||||||
| HSBC Securities (USA), Inc. | 143,367 | – | – | 143,367 | ||||||||||||||
| JPMorgan Chase & Co. | 43,944 | – | – | 43,944 | ||||||||||||||
| RBC Capital Markets Corp. | 110,669 | – | – | 110,669 | ||||||||||||||
| Total | $ | 56,860,748 | $ | – | $ | (56,510,956) | $ | 349,792 | ||||||||||
Janus Overseas Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Assets | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 414,317 | $ | (414,317) | $ | – | $ | – | ||||||||||
| Deutsche Bank AG | 291,684,223 | – | (291,684,223) | – | ||||||||||||||
| HSBC Securities (USA), Inc. | 2,786,690 | – | – | 2,786,690 | ||||||||||||||
| JPMorgan Chase & Co. | 435,068 | – | – | 435,068 | ||||||||||||||
| RBC Capital Markets Corp. | 2,104,978 | – | – | 2,104,978 | ||||||||||||||
| Total | $ | 297,425,276 | $ | (414,317) | $ | (291,684,223) | $ | 5,326,736 | ||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities
Janus Emerging Markets Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Liabilities | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 14,842 | $ | (14,842) | $ | – | $ | – | ||||||||||
Janus Global Life Sciences Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Liabilities | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Bank of America | $ | 30,572 | $ | (30,572) | $ | – | $ | – | ||||||||||
Janus Global & International Funds | 141
Table of Contents
Notes to Financial Statements (continued)
Janus Global Technology Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Liabilities | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Goldman Sachs International | $ | 5,128,373 | $ | – | $ | (5,128,373) | $ | – | ||||||||||
Janus Overseas Fund
| Gross Amounts of | Offsetting Asset | |||||||||||||||||
| Counterparty | Recognized Liabilities | or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 2,594,843 | $ | (414,317) | $ | (2,180,526) | $ | – | ||||||||||
| (a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statements of Assets and Liabilities. | |
| (b) | 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 exchange collateral on its forward currency contracts with its counterparties; however, a Fund will segregate cash or high-grade securities in an amount at all times equal to or greater than a Fund’s commitment with respect to these contracts. Such segregated assets, if with the Fund’s custodian, 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
142 | SEPTEMBER 30, 2014
Table of Contents
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 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
Janus Global & International Funds | 143
Table of Contents
Notes to Financial Statements (continued)
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.
| 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 | ||||||||||
| Average Daily | Investment | |||||||||
| Net Assets | Advisory Fee/ | |||||||||
| Fund | of the Fund | Base Fee (%) | ||||||||
| 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 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. The performance adjusted investment advisory fee rates before any waivers and/or reimbursements of expenses for the year ended September 30, 2014 are below:
| Performance Adjusted | ||||||
| Investment Advisory | ||||||
| Fund | Fee Rate (%) | |||||
| Janus Asia Equity Fund | 0.88 | |||||
| Janus Emerging Markets Fund | 0.90 | |||||
| Janus Global Research Fund | 0.56 | |||||
| Janus International Equity Fund | 0.63 | |||||
| Janus Overseas Fund | 0.38 | |||||
Janus Capital Singapore Pte. Limited (“Janus Singapore”) serves as subadviser to Janus Asia Equity Fund. In addition, Janus Singapore serves as subadviser for a portion of Janus Emerging Markets Fund. Janus Singapore provides day-to-day management of the Janus Asia Equity Fund’s portfolio operations and a portion of the investment operations of the Janus Emerging Markets Fund. Janus Singapore is an indirect wholly-owned subsidiary of Janus Capital. 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 Janus Emerging Markets 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 and Janus Emerging Markets Fund’s performance relative to each Fund’s respective benchmark index over the performance measurement period.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including,
144 | SEPTEMBER 30, 2014
Table of Contents
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.
Under separate distribution and shareholder servicing plans (each, a “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Funds may pay the Trust’s distributor, Janus Distributors LLC, a wholly-owned subsidiary of Janus Capital, a fee at an annual rate 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. Under the terms of each Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Funds. Payments under each 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 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 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.
Janus Global & International Funds | 145
Table of Contents
Notes to Financial Statements (continued)
| 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 September 30, 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 year ended September 30, 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 $283,000 were paid by the Trust to a Trustee under the Deferred Plan during the year ended September 30, 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 $522,703 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 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 year ended September 30, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | ||||||
| Fund (Class A Shares) | Sales Charge | |||||
| Janus Asia Equity Fund | $ | 1,738 | ||||
| Janus Emerging Markets Fund | 1,025 | |||||
| Janus Global Life Sciences Fund | 165,780 | |||||
| Janus Global Research Fund | 1,654 | |||||
| Janus Global Select Fund | 1,441 | |||||
| Janus Global Technology Fund | 5,391 | |||||
| Janus International Equity Fund | 14,926 | |||||
| Janus Overseas Fund | 5,902 | |||||
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 year ended September 30, 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 year ended September 30, 2014, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | |||||
| Janus Asia Equity Fund | $ | 42 | ||||
| Janus Global Life Sciences Fund | 8,397 | |||||
| Janus Global Research Fund | 404 | |||||
| Janus Global Select Fund | 593 | |||||
| Janus Global Technology Fund | 138 | |||||
| Janus International Equity Fund | 427 | |||||
| Janus Overseas Fund | 5,453 | |||||
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).
146 | SEPTEMBER 30, 2014
Table of Contents
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 year ended September 30, 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 September 30, 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 | 7 | % | 1 | % | ||||||
| Janus Asia Equity Fund - Class C Shares | 95 | 2 | ||||||||
| Janus Asia Equity Fund - Class D Shares | – | – | ||||||||
| Janus Asia Equity Fund - Class I Shares | 83 | 15 | ||||||||
| Janus Asia Equity Fund - Class S Shares | 100 | 2 | ||||||||
| Janus Asia Equity Fund - Class T Shares | – | – | ||||||||
| Janus Emerging Markets Fund - Class A Shares | – | – | ||||||||
| Janus Emerging Markets Fund - Class C Shares | – | – | ||||||||
| Janus Emerging Markets Fund - Class D Shares | – | – | ||||||||
| Janus Emerging Markets Fund - Class I Shares | 84 | 53 | ||||||||
| Janus Emerging Markets Fund - Class S Shares | 72 | 0 | ||||||||
| 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 | 25 | 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 | 98 | 35 | ||||||||
| Janus International Equity Fund - Class R Shares | – | – | ||||||||
| Janus International Equity Fund - Class S Shares | – | – | ||||||||
| Janus International Equity Fund - Class T Shares | – | – | ||||||||
| Janus Overseas Fund - Class A Shares | – | – | ||||||||
| Janus Overseas Fund - Class C Shares | – | – | ||||||||
| Janus Overseas Fund - Class D Shares | – | – | ||||||||
| Janus Overseas Fund - Class I Shares | – | – | ||||||||
| Janus Overseas Fund - Class N Shares | 21 | 1 | ||||||||
| Janus Overseas Fund - Class R Shares | – | – | ||||||||
| Janus Overseas Fund - Class S Shares | – | – | ||||||||
| Janus Overseas Fund - Class T Shares | – | – | ||||||||
| 5. | Federal Income Tax |
The tax components of capital shown in the table below represent: (1) distribution requirements the Funds must satisfy under the income tax regulations; (2) losses or deductions the Funds may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes (reduced by foreign tax liability).
Other book to tax differences primarily consist of deferred compensation, derivatives and foreign currency contract adjustments. The Funds have elected to treat gains and
Janus Global & International Funds | 147
Table of Contents
Notes to Financial Statements (continued)
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 Funds have elected to defer post-October losses and qualified late-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| Undistributed | Undistributed | Loss Deferrals | Other Book | Net Tax | |||||||||||||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year | Post-October | to Tax | Appreciation/ | |||||||||||||||||||||||||
| Fund | Income | Gains | Capital Losses | Ordinary Loss | Capital Loss | Differences | (Depreciation) | ||||||||||||||||||||||||
| Janus Asia Equity Fund | $527,694 | $– | $– | $– | $(92,895) | $(1,183) | $231,364 | ||||||||||||||||||||||||
| Janus Emerging Markets Fund | 580,181 | – | (2,147,656) | – | – | (4,366) | (1,039,370) | ||||||||||||||||||||||||
| Janus Global Life Sciences Fund | 69,762,604 | 211,969,160 | – | – | – | (61,361) | 665,148,936 | ||||||||||||||||||||||||
| Janus Global Research Fund | 23,578,700 | – | (601,502,017) | – | – | (188,249) | 414,606,444 | ||||||||||||||||||||||||
| Janus Global Select Fund | 15,736,046 | – | (620,128,835) | – | (6,757,360) | (169,593) | 373,536,889 | ||||||||||||||||||||||||
| Janus Global Technology Fund | 9,069,459 | 155,939,110 | – | – | – | (42,725) | 218,833,244 | ||||||||||||||||||||||||
| Janus International Equity Fund | 5,886,759 | 10,944,852 | – | – | – | (42,677) | 24,213,714 | ||||||||||||||||||||||||
| Janus Overseas Fund | 28,775,196 | – | (984,218,550) | – | (145,960,512) | (433,956) | (278,252,835) | ||||||||||||||||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2014, 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, 2014
For the year ended September 30, 2014
| September 30, | September 30, | No Expiration | Accumulated | ||||||||||||||||||||
| Fund | 2016 | 2017 | Short-Term | Long-Term | Capital Losses | ||||||||||||||||||
| Janus Emerging Markets Fund | $ | – | $ | – | $ | (235,707) | $ | (1,911,949) | $ | (2,147,656) | |||||||||||||
Janus Global Research Fund(1) | (7,723,818) | (593,778,199) | – | – | (601,502,017) | ||||||||||||||||||
Janus Global Select Fund(2) | (3,575,412) | (616,553,423) | – | – | (620,128,835) | ||||||||||||||||||
Janus Overseas Fund(3) | (330,727,597) | – | – | (653,490,953) | (984,218,550) | ||||||||||||||||||
| (1) | Capital loss carryovers subject to annual limitations, $(597,640,108) should be available in the next fiscal year. | |
| (2) | Capital loss carryovers subject to annual limitations, $(618,341,129) should be available in the next fiscal year. | |
| (3) | Capital loss carryovers subject to annual limitations, $(984,218,550) should be available in the next fiscal year. |
During the year ended September 30, 2014, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| Capital Loss | ||||||||||||||||||
| Carryover | ||||||||||||||||||
| Fund | Utilized | |||||||||||||||||
| Janus Emerging Markets Fund | $ | 917,234 | ||||||||||||||||
| Janus Global Research Fund | 225,325,733 | |||||||||||||||||
| Janus Global Select Fund | 326,908,299 | |||||||||||||||||
| Janus International Equity Fund | 16,455,857 | |||||||||||||||||
| Janus Overseas Fund | 89,952,474 | |||||||||||||||||
148 | SEPTEMBER 30, 2014
Table of Contents
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 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.
| Federal Tax | Unrealized | Unrealized | ||||||||||||
| Fund | Cost | Appreciation | (Depreciation) | |||||||||||
| Janus Asia Equity Fund | $ | 14,658,234 | $ | 1,251,290 | $ | (988,604) | ||||||||
| Janus Emerging Markets Fund | 36,417,257 | 2,689,367 | (3,728,737) | |||||||||||
| Janus Global Life Sciences Fund | 2,072,756,908 | 700,058,715 | (34,909,779) | |||||||||||
| Janus Global Research Fund | 2,212,242,250 | 491,155,251 | (76,548,807) | |||||||||||
| Janus Global Select Fund | 1,856,800,427 | 463,288,778 | (89,751,889) | |||||||||||
| Janus Global Technology Fund | 903,403,034 | 241,079,719 | (22,143,446) | |||||||||||
| Janus International Equity Fund | 286,711,336 | 43,409,477 | (19,179,697) | |||||||||||
| Janus Overseas Fund | 4,132,511,396 | 744,665,016 | (1,022,882,004) | |||||||||||
Information on the tax components of securities sold short as of September 30, 2014 is as follows:
| Federal Tax | Unrealized | Unrealized | ||||||||||||
| Fund | Cost | (Appreciation) | Depreciation | |||||||||||
| Janus Global Technology Fund | $ | (5,025,344) | $ | (728,212) | $ | 625,183 | ||||||||
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. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
For the year ended September 30, 2014
| Distributions | ||||||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||||||
| Janus Asia Equity Fund | $ | 210,632 | $ | 461,416 | $ | – | $ | – | ||||||||||||||||||
| Janus Emerging Markets Fund | 778,470 | – | – | – | ||||||||||||||||||||||
| Janus Global Life Sciences Fund | 20,335,822 | 96,623,388 | – | – | ||||||||||||||||||||||
| Janus Global Research Fund | 13,219,559 | – | – | – | ||||||||||||||||||||||
| Janus Global Select Fund | 10,020,604 | – | – | – | ||||||||||||||||||||||
| Janus Global Technology Fund | – | 74,432,267 | – | – | ||||||||||||||||||||||
| Janus International Equity Fund | 2,413,122 | – | – | – | ||||||||||||||||||||||
| Janus Overseas Fund | 176,762,902 | – | – | – | ||||||||||||||||||||||
For the year ended September 30, 2013
| Distributions | ||||||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||||||
| Janus Asia Equity Fund | $ | 77,352 | $ | – | $ | – | $ | – | ||||||||||||||||||
| Janus Emerging Markets Fund | 110,157 | – | – | – | ||||||||||||||||||||||
| Janus Global Life Sciences Fund | – | 30,389,985 | – | – | ||||||||||||||||||||||
| Janus Global Research Fund | 20,439,224 | – | – | – | ||||||||||||||||||||||
| Janus Global Select Fund | 11,592,546 | – | – | – | ||||||||||||||||||||||
| Janus Global Technology Fund | – | 2,982,283 | – | (420,270) | ||||||||||||||||||||||
| Janus International Equity Fund | 2,308,441 | – | – | – | ||||||||||||||||||||||
| Janus Overseas Fund | 203,417,114 | – | – | – | ||||||||||||||||||||||
Janus Global & International Funds | 149
Table of Contents
Notes to Financial Statements (continued)
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Funds:
| Increase/(Decrease) | Increase/(Decrease) | |||||||||||||
| Increase/(Decrease) | to Undistributed Net | to Undistributed Net | ||||||||||||
| Fund | to Capital | Investment Income/Loss | Realized Gain/Loss | |||||||||||
| Janus Asia Equity Fund | $ | – | $ | (1,367) | $ | 1,367 | ||||||||
| Janus Emerging Markets Fund | (6,220) | 51,673 | (45,453) | |||||||||||
| Janus Global Life Sciences Fund | – | 151,288 | (151,288) | |||||||||||
| Janus Global Research Fund | 32 | (2,992,898) | 2,992,866 | |||||||||||
| Janus Global Select Fund | – | (2,746,819) | 2,746,819 | |||||||||||
| Janus Global Technology Fund | – | 63,821 | (63,821) | |||||||||||
| Janus International Equity Fund | – | 294,365 | (294,365) | |||||||||||
| Janus Overseas Fund | 15 | (46,546,250) | 46,546,235 | |||||||||||
150 | SEPTEMBER 30, 2014
Table of Contents
| 6. | Capital Share Transactions |
| Janus | Janus | Janus | ||||||||||||||||||||||||
| Asia Equity | Emerging Markets | Global Life Sciences | ||||||||||||||||||||||||
| Fund | Fund | Fund | ||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Shares sold | 25,160 | 33,392 | 19,210 | 51,447 | 1,327,255 | 241,503 | ||||||||||||||||||||
| Reinvested dividends and distributions | 5,360 | 878 | 588 | 394 | 35,855 | 4,800 | ||||||||||||||||||||
| Shares repurchased | (86,977) | (26,133) | (9,343) | (142,644) | (217,587) | (48,500) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (56,457) | 8,137 | 10,455 | (90,803) | 1,145,523 | 197,803 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 103,054 | 94,917 | 33,409 | 124,212 | 305,237 | 107,434 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 46,597 | 103,054 | 43,864 | 33,409 | 1,450,760 | 305,237 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Shares sold | – | 1,317 | 1,171 | 6,405 | 712,167 | 152,155 | ||||||||||||||||||||
| Reinvested dividends and distributions | 3,807 | 52 | 268 | – | 18,716 | 858 | ||||||||||||||||||||
| Shares repurchased | (55,423) | – | (14,256) | (79,896) | (69,923) | (6,176) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (51,616) | 1,369 | (12,817) | (73,491) | 660,960 | 146,837 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 85,761 | 84,392 | 23,933 | 97,424 | 163,656 | 16,819 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 34,145 | 85,761 | 11,116 | 23,933 | 824,616 | 163,656 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Shares sold | 498,409 | 1,162,229 | 623,093 | 658,607 | 5,071,090 | 3,549,293 | ||||||||||||||||||||
| Reinvested dividends and distributions | 45,894 | 3,751 | 30,849 | 6,340 | 1,662,379 | 655,068 | ||||||||||||||||||||
| Shares repurchased | (409,486) | (743,871) | (493,770) | (726,571) | (3,060,792) | (2,199,868) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 134,817 | 422,109 | 160,172 | (61,624) | 3,672,677 | 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 | 923,238 | 788,421 | 1,268,544 | 1,108,372 | 23,649,267 | 19,976,590 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Shares sold | 269,453 | 137,875 | 754,772 | 1,141,965 | 4,921,829 | 290,309 | ||||||||||||||||||||
| Reinvested dividends and distributions | 7,216 | 1,674 | 58,484 | 5,244 | 42,974 | 7,676 | ||||||||||||||||||||
| Shares repurchased | (118,830) | (126,657) | (203,597) | (261,109) | (555,987) | (94,547) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 157,839 | 12,892 | 609,659 | 886,100 | 4,408,816 | 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 | 294,244 | 136,405 | 2,543,536 | 1,933,877 | 4,849,983 | 441,167 | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Shares sold | – | 31,122 | 1,628 | 2,676 | 233,324 | 220,952 | ||||||||||||||||||||
| Reinvested dividends and distributions | 4,203 | 562 | 1,103 | 129 | 17,756 | 237 | ||||||||||||||||||||
| Shares repurchased | (52,881) | (31,122) | (26,382) | (46,773) | (347,705) | (10,883) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (48,678) | 562 | (23,651) | (43,968) | (96,625) | 210,306 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 83,895 | 83,333 | 40,876 | 84,844 | 215,543 | 5,237 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 35,217 | 83,895 | 17,225 | 40,876 | 118,918 | 215,543 | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Shares sold | 706,412 | 669,198 | 259,841 | 714,436 | 11,783,584 | 4,239,667 | ||||||||||||||||||||
| Reinvested dividends and distributions | 5,704 | 895 | 2,841 | 879 | 1,016,573 | 311,631 | ||||||||||||||||||||
| Shares repurchased | (813,491) | (589,190) | (222,192) | (883,381) | (5,197,142) | (1,647,023) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (101,375) | 80,903 | 40,490 | (168,066) | 7,603,015 | 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 | 72,637 | 174,012 | 140,310 | 99,820 | 19,077,356 | 11,474,341 | ||||||||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
Janus Global & International Funds | 151
Table of Contents
Notes to Financial Statements (continued)
| Janus Global | Janus | Janus Global | ||||||||||||||||||||||||
| Research | Global Select | Technology | ||||||||||||||||||||||||
| Fund | Fund | Fund | ||||||||||||||||||||||||
| For each year ended September 30 | 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 | 132,514 | N/A | ||||||||||||||||||||
| Shares sold | 28,560 | 60,370 | 38,875 | 88,339 | 19,319 | 131,713 | ||||||||||||||||||||
| Reinvested dividends and distributions | 712 | 812 | – | – | (51,929) | 644 | ||||||||||||||||||||
| Shares repurchased | (53,925) | (140,707) | (251,667) | (712,174) | – | (68,425) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (24,653) | (27,608) | (212,792) | (623,835) | 99,904 | 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 | 183,846 | 208,499 | 422,473 | 635,265 | 355,975 | 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 | 20,016 | 29,922 | 9,713 | 18,891 | 48,655 | 48,715 | ||||||||||||||||||||
| Reinvested dividends and distributions | – | – | – | – | 8,179 | 201 | ||||||||||||||||||||
| Shares repurchased | (16,821) | (20,060) | (83,419) | (288,161) | (23,637) | (20,194) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 3,195 | 38,176 | (73,706) | (269,270) | 33,197 | 28,722 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 101,581 | 63,405 | 377,592 | 646,862 | 97,121 | 68,399 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 104,776 | 101,581 | 303,886 | 377,592 | 130,318 | 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 | 590,112 | 422,543 | 2,877,318 | 3,282,566 | 1,181,566 | 1,393,615 | ||||||||||||||||||||
| Reinvested dividends and distributions | 129,654 | 14,576 | 604,370 | 848,440 | 2,189,159 | 106,099 | ||||||||||||||||||||
| Shares repurchased | (2,058,356) | (1,745,807) | (13,666,898) | (26,811,724) | (3,043,094) | (3,935,019) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (1,338,590) | 22,004,506 | (10,185,210) | (22,680,718) | 327,631 | (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 | 23,188,574 | 24,527,164 | 122,408,078 | 132,593,288 | 28,801,076 | 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 | 659,261 | 654,626 | 367,566 | 2,025,873 | 418,726 | 198,965 | ||||||||||||||||||||
| Reinvested dividends and distributions | 12,131 | 8,711 | 17,399 | 5,923 | 31,417 | 1,233 | ||||||||||||||||||||
| Shares repurchased | (340,200) | (435,786) | (523,291) | (1,015,240) | (164,797) | (196,529) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 331,192 | 587,705 | (138,326) | 1,016,556 | 285,346 | 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 | 2,164,791 | 1,833,599 | 2,681,138 | 2,819,464 | 703,707 | 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 | 19,177 | 7,981 | 8,322 | 63,526 | N/A | N/A | ||||||||||||||||||||
| Reinvested dividends and distributions | 23 | – | – | – | N/A | N/A | ||||||||||||||||||||
| Shares repurchased | (5,376) | (3,775) | (44,805) | (190,118) | N/A | N/A | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 13,824 | 27,996 | (36,483) | (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 | 41,820 | 27,996 | 42,789 | 79,272 | N/A | N/A | ||||||||||||||||||||
152 | SEPTEMBER 30, 2014
Table of Contents
| Janus Global | Janus | Janus Global | ||||||||||||||||||||||||
| Research | Global Select | Technology | ||||||||||||||||||||||||
| Fund | Fund | Fund | ||||||||||||||||||||||||
| For each year ended September 30 | 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 | 116,146 | 93,069 | 6,612 | 29,995 | 59,649 | 40,173 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,640 | 226 | – | 938 | 6,099 | 121 | ||||||||||||||||||||
| Shares repurchased | (275,342) | (176,662) | (37,081) | (86,754) | (21,707) | (15,218) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (157,556) | 752,703 | (30,469) | (55,821) | 44,041 | 25,076 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 834,917 | 82,214 | 62,291 | 118,112 | 53,994 | 28,918 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 677,361 | 834,917 | 31,822 | 62,291 | 98,035 | 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 | 911,626 | 704,807 | 2,598,099 | 3,398,888 | 2,245,812 | 1,793,112 | ||||||||||||||||||||
| Reinvested dividends and distributions | 79,539 | 11,657 | 192,521 | 280,502 | 966,607 | 45,715 | ||||||||||||||||||||
| Shares repurchased | (2,076,513) | (2,533,001) | (10,769,936) | (22,469,497) | (2,572,731) | (2,849,568) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (1,085,348) | 14,567,265 | (7,979,316) | (18,790,107) | 639,688 | (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 | 15,846,642 | 16,931,990 | 42,986,987 | 50,966,303 | 12,979,208 | 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) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
Janus Global & International Funds | 153
Table of Contents
Notes to Financial Statements (continued)
| Janus | Janus | |||||||||||||||||
| International Equity | Overseas | |||||||||||||||||
| Fund | Fund | |||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 1,747,126 | 760,347 | 621,182 | 1,793,126 | ||||||||||||||
| Reinvested dividends and distributions | 23,779 | 33,903 | 132,239 | 197,918 | ||||||||||||||
| Shares repurchased | (1,464,917) | (1,524,084) | (3,672,221) | (7,251,788) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 305,988 | (729,834) | (2,918,800) | (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 | 3,847,492 | 3,541,504 | 2,289,778 | 5,208,578 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 397,881 | 171,966 | 120,868 | 230,652 | ||||||||||||||
| Reinvested dividends and distributions | – | 1,028 | 38,661 | 39,847 | ||||||||||||||
| Shares repurchased | (262,837) | (401,379) | (806,341) | (1,695,189) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 135,044 | (228,385) | (646,812) | (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 | 1,267,535 | 1,132,491 | 1,523,779 | 2,170,591 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 412,731 | 889,122 | 745,903 | 1,275,984 | ||||||||||||||
| Reinvested dividends and distributions | 15,830 | 13,555 | 1,405,331 | 1,390,560 | ||||||||||||||
| Shares repurchased | (419,502) | (484,493) | (5,688,549) | (9,796,468) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 9,059 | 418,184 | (3,537,315) | (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 | 1,651,067 | 1,642,008 | 32,464,054 | 36,001,369 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 3,658,534 | 1,413,642 | 4,573,004 | 5,852,201 | ||||||||||||||
| Reinvested dividends and distributions | 34,046 | 41,268 | 512,195 | 821,142 | ||||||||||||||
| Shares repurchased | (1,469,379) | (2,768,442) | (12,166,683) | (15,890,847) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 2,223,201 | (1,313,532) | (7,081,484) | (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 | 6,110,397 | 3,887,196 | 10,817,292 | 17,898,776 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | 537,345 | 3,282,898 | 3,968,125 | 339,406 | ||||||||||||||
| Reinvested dividends and distributions | 88,935 | 83,560 | 212,056 | 63,024 | ||||||||||||||
| Shares repurchased | (696,912) | (1,187,375) | (1,486,614) | (671,238) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (70,632) | 2,179,083 | 2,693,567 | (268,808) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 8,438,844 | 6,259,761 | 1,520,066 | 1,788,874 | ||||||||||||||
| Shares Outstanding, End of Period | 8,368,212 | 8,438,844 | 4,213,633 | 1,520,066 | ||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
| Shares sold | 174,284 | 38,655 | 381,074 | 695,310 | ||||||||||||||
| Reinvested dividends and distributions | 676 | 1,523 | 74,220 | 82,526 | ||||||||||||||
| Shares repurchased | (33,559) | (35,243) | (1,118,249) | (2,264,764) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 141,401 | 4,935 | (662,955) | (1,486,928) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 152,817 | 147,882 | 2,573,204 | 4,060,132 | ||||||||||||||
| Shares Outstanding, End of Period | 294,218 | 152,817 | 1,910,249 | 2,573,204 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | 574,983 | 393,012 | 1,848,288 | 3,351,532 | ||||||||||||||
| Reinvested dividends and distributions | 4,744 | 3,918 | 557,417 | 775,094 | ||||||||||||||
| Shares repurchased | (216,238) | (91,746) | (8,617,851) | (15,244,632) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 363,489 | 305,184 | (6,212,146) | (11,118,006) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 595,498 | 290,314 | 17,574,637 | 28,692,643 | ||||||||||||||
| Shares Outstanding, End of Period | 958,987 | 595,498 | 11,362,491 | 17,574,637 | ||||||||||||||
154 | SEPTEMBER 30, 2014
Table of Contents
| Janus | Janus | |||||||||||||||||
| International Equity | Overseas | |||||||||||||||||
| Fund | Fund | |||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 251,969 | 334,999 | 2,841,938 | 5,045,353 | ||||||||||||||
| Reinvested dividends and distributions | 5,927 | 12,462 | 1,900,946 | 2,446,175 | ||||||||||||||
| Shares repurchased | (370,411) | (615,994) | (18,794,720) | (38,337,667) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (112,515) | (268,533) | (14,051,836) | (30,846,139) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 781,401 | 1,049,934 | 52,762,980 | 83,609,119 | ||||||||||||||
| Shares Outstanding, End of Period | 668,886 | 781,401 | 38,711,144 | 52,762,980 | ||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
| 7. | Purchases and Sales of Investment Securities |
For the year ended September 30, 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 | $ | 10,874,881 | $ | 10,566,766 | $ | – | $ | – | ||||||
| Janus Emerging Markets Fund | 23,016,878 | 17,648,422 | – | – | ||||||||||
| Janus Global Life Sciences Fund | 1,674,788,750 | 991,179,292 | – | – | ||||||||||
| Janus Global Research Fund | 1,128,450,537 | 1,233,406,437 | – | – | ||||||||||
| Janus Global Select Fund | 1,236,898,775 | 1,469,577,987 | – | – | ||||||||||
| Janus Global Technology Fund | 574,316,018 | 586,511,426 | – | – | ||||||||||
| Janus International Equity Fund | 211,205,142 | 168,036,413 | – | – | ||||||||||
| Janus Overseas Fund | 1,274,227,522 | 2,698,101,644 | – | – | ||||||||||
| 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 |
Janus Global & International Funds | 155
Table of Contents
Notes to Financial Statements (continued)
| financial history, became the Combined Fund’s historical performance. |
| • | The Combined Fund will use the expense structure of Janus Worldwide Fund, including maintaining the base management fee rate of Janus Worldwide Fund of 0.60%, and the benchmark index of Janus Worldwide Fund, the 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 events or transactions occurred subsequent to September 30, 2014 and through the date of issuance of the Funds’ financial statements and determined that there were material events or transactions that would require recognition or disclosure in the Funds’ financial statements.
Effective November 5, 2014, the Sub-Advisory Agreement between Janus Capital Management LLC and Janus Capital Singapore Pte. Limited, on behalf of Janus International Equity Fund, was terminated.
156 | SEPTEMBER 30, 2014
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders
of Janus Investment Fund:
of Janus Investment Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of 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 (eight of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at September 30, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
November 14, 2014
Janus Global & International Funds | 157
Table of Contents
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund 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,
158 | SEPTEMBER 30, 2014
Table of Contents
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. |
Janus Global & International Funds | 159
Table of Contents
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. |
160 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Global & International Funds | 161
Table of Contents
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. |
162 | SEPTEMBER 30, 2014
Table of Contents
| • | 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
Janus Global & International Funds | 163
Table of Contents
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 |
164 | SEPTEMBER 30, 2014
Table of Contents
| 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. |
Janus Global & International Funds | 165
Table of Contents
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. |
166 | SEPTEMBER 30, 2014
Table of Contents
| • | 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
Janus Global & International Funds | 167
Table of Contents
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.
168 | SEPTEMBER 30, 2014
Table of Contents
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 September 30, 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 Global & International Funds | 169
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
170 | SEPTEMBER 30, 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 managers. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Global & International Funds | 171
Table of Contents
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the year ended September 30, 2014:
Capital Gain Distributions
| Fund | ||||||||||
| Janus Asia Equity Fund | $ | 461,416 | ||||||||
| Janus Global Life Sciences Fund | 96,623,388 | |||||||||
| Janus Global Technology Fund | 74,432,267 | |||||||||
Foreign Taxes Paid and Foreign Source Income
| Fund | Foreign Taxes Paid | Foreign Source Income | ||||||||
| Janus Asia Equity Fund | $ | 46,405 | $ | 625,511 | ||||||
| Janus Emerging Markets Fund | 82,952 | 1,169,335 | ||||||||
| Janus International Equity Fund | 413,059 | 7,858,947 | ||||||||
| Janus Overseas Fund | 2,356,269 | 105,143,126 | ||||||||
Dividends Received Deduction Percentage
| Fund | ||||||||||
| Janus Global Life Sciences Fund | 8 | % | ||||||||
| Janus Global Research Fund | 49 | |||||||||
| Janus Global Select Fund | 58 | |||||||||
| Janus Global Technology Fund | 73 | |||||||||
| Janus International Equity Fund | 2 | |||||||||
| Janus Overseas Fund | 1 | |||||||||
Qualified Dividend Income Percentage
| Fund | ||||||||||
| Janus Asia Equity Fund | 73 | % | ||||||||
| Janus Emerging Markets Fund | 100 | |||||||||
| Janus Global Life Sciences Fund | 18 | |||||||||
| Janus Global Research Fund | 100 | |||||||||
| Janus Global Select Fund | 100 | |||||||||
| Janus Global Technology Fund | 100 | |||||||||
| Janus International Equity Fund | 100 | |||||||||
| Janus Overseas Fund | 92 | |||||||||
172 | SEPTEMBER 30, 2014
Table of Contents
Trustees and Officers (unaudited)
The Funds’ Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Funds’ Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Funds’ Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 58 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Funds may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
Independent Trustees | ||||||||||
| William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | Chairman Trustee | 1/08-Present 6/02-Present | Chief Executive Officer, Imprint Capital (impact investment firm) (since 2013), and Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 58 | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds), and Director of the F.B. Heron Foundation (a private grantmaking foundation). | |||||
Janus Global & International Funds | 173
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Alan A. Brown 151 Detroit Street Denver, CO 80206 DOB: 1962 | Trustee | 1/13-Present | Managing Director, Institutional Markets, of Dividend Capital Group (private equity real estate investment management firm) (since 2012). Formerly, Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 58 | Director of MotiveQuest LLC (strategic social market research company) (since 2003), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of Nuveen Global Investors LLC (2007-2011); Director of Communities in Schools (2004-2010); and Director of Mutual Fund Education Alliance (until 2010). | |||||
| William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | Trustee | 1/11-Present | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgewater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 58 | Managing Trustee of National Retirement Partners Liquidating Trust (since 2013). Formerly, Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). | |||||
174 | SEPTEMBER 30, 2014
Table of Contents
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | Trustee | 1/97-Present | Co-founder and Managing Director of Roaring Fork Capital SBIC, L.P. (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004), and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | 58 | Formerly, Director of Red Robin Gourmet Burgers, Inc. (RRGB) (2004- 2014). | |||||
| William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | Trustee | 6/84-Present | Retired. Formerly, Corporate Vice President and General Manager of MKS Instruments - HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products) (1976-2012). | 58 | None | |||||
Janus Global & International Funds | 175
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 58 | Director of Chicago Community Trust (Regional Community Foundation), Chicago Council on Global Affairs, The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Lurie Children’s Hospital (Chicago, IL), Rehabilitation Institute of Chicago, Walmart, and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Convention & Tourism Bureau (until 2014). | |||||
Trustee Consultant | ||||||||||
| Raudline Etienne 151 Detroit Street Denver, CO 80206 DOB: 1965 | Consultant | 6/14-Present | Senior Vice President, Albright Stonebridge Group LLC (global strategy firm) (since 2011). Formerly, Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | N/A | None | |||||
176 | SEPTEMBER 30, 2014
Table of Contents
OFFICERS
| Positions Held | Term of Office* and | Principal Occupations | ||||
| Name, Address, and Age | with the Trust | Length of Time Served | During the Past Five Years | |||
| Andrew Acker 151 Detroit Street Denver, CO 80206 DOB: 1972 | Executive Vice President and Portfolio Manager Janus Global Life Sciences Fund | 5/07-Present | Vice President and Research Analyst of Janus Capital, and Portfolio Manager for other Janus accounts. | |||
| Wahid Chammas 151 Detroit Street Denver, CO 80206 DOB: 1975 | Executive Vice President and Co-Portfolio Manager Janus Emerging Markets Fund | 12/10-Present | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. | |||
| James P. Goff 151 Detroit Street Denver, CO 80206 DOB: 1964 | Executive Vice President Janus Global Research Fund | 3/13-Present | Vice President and Director of Equity Research of Janus Capital. | |||
| Brinton Johns 151 Detroit Street Denver, CO 80206 DOB: 1973 | Executive Vice President and Co-Portfolio Manager Janus Global Technology Fund | 1/14-Present | Portfolio Manager for other Janus accounts and Equity Research Analyst for Janus Capital. | |||
| Brent A. Lynn 151 Detroit Street Denver, CO 80206 DOB: 1964 | Executive Vice President and Portfolio Manager Janus Overseas Fund | 1/01-Present | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| George P. Maris 151 Detroit Street Denver, CO 80206 DOB: 1968 | Executive Vice President and Portfolio Manager Janus Global Select Fund | 8/12-Present | Vice President of Janus Capital. Formerly, Portfolio Manager for Northern Trust (2008-2011). | |||
| Julian McManus 151 Detroit Street Denver, CO 80206 DOB: 1970 | Executive Vice President and Co-Portfolio Manager Janus International Equity Fund | 6/10-Present | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. | |||
| Guy Scott 151 Detroit Street Denver, CO 80206 DOB: 1966 | Executive Vice President and Co-Portfolio Manager Janus International Equity Fund | 6/10-Present | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. | |||
| J. Bradley Slingerlend 151 Detroit Street Denver, CO 80206 DOB: 1978 | Executive Vice President and Co-Portfolio Manager Janus Global Technology Fund | 5/11-Present | Portfolio Manager for other Janus accounts. | |||
| Carmel Wellso 151 Detroit Street Denver, CO 80206 DOB: 1964 | Executive Vice President and Co-Portfolio Manager Janus International Equity Fund | 6/10-Present | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. | |||
| Hiroshi Yoh #36-02 AXA Tower 8 Shenton Way Singapore 068811 DOB: 1963 | Executive Vice President and Portfolio Manager Janus Asia Equity Fund Executive Vice President and Co-Portfolio Manager Janus Emerging Markets Fund | 7/11-Present 8/12-Present | Director of Janus Capital Singapore Pte. Limited and Portfolio Manager for other Janus accounts. Formerly, Chief Investment Officer and a portfolio manager with Tokio Marine Asset Management International Pte. Ltd., a Singapore-based asset management firm (1999-2011). | |||
| Stephanie Grauerholz 151 Detroit Street Denver, CO 80206 DOB: 1970 | Chief Legal Counsel and Secretary Vice President | 1/06-Present 3/06-Present | Vice President and Assistant General Counsel of Janus Capital and Vice President and Assistant Secretary of Janus Distributors LLC. | |||
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
Janus Global & International Funds | 177
Table of Contents
Trustees and Officers (unaudited) (continued)
OFFICERS (continued)
| Positions Held | Term of Office* and | Principal Occupations | ||||
| Name, Address, and Age | with the Trust | Length of Time Served | During the Past Five Years | |||
| Bruce L. Koepfgen 151 Detroit Street Denver, CO 80206 DOB: 1952 | President and Chief Executive Officer | 7/14-Present | President of Janus Capital Group Inc. and Janus Capital Management LLC (since August 2013); Executive Vice President and Director of Janus International Holding LLC (since August 2011); Executive Vice President of Janus Distributors LLC and Janus Services LLC (since July 2011); Executive Vice President and Working Director of INTECH Investment Management LLC (since July 2011); Executive Vice President and Director of Perkins Investment Management LLC (since July 2011); and Executive Vice President and Director of Janus Management Holdings Corporation (since May 2011). Formerly, Executive Vice President of Janus Capital Group Inc. and Janus Capital Management LLC (May 2011-July 2013); Chief Financial Officer of Janus Capital Group Inc., Janus Capital Management LLC, Janus Distributors LLC, Janus Management Holdings Corporation, and Janus Services LLC (July 2011-July 2013); and Co-Chief Executive Officer of Allianz Global Investors Management Partners and Chief Executive Officer of Oppenheimer Capital (2003-2009). | |||
| David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 6/02-Present | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC; and Director of The Janus Foundation. | |||
| Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | Chief Financial Officer Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present 2/05-Present | Vice President of Janus Capital and Janus Services LLC. | |||
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
178 | SEPTEMBER 30, 2014
Table of Contents
Notes
Janus Global & International Funds | 179
Table of Contents
Notes
180 | SEPTEMBER 30, 2014
Table of Contents
Notes
Janus Global & International Funds | 181
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-1114-74424 | 125-02-01000 11-14 |
Table of Contents
annual report
September 30, 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 |
Table of Contents
Janus Growth & Core Funds
| 1 | ||
| 17 | ||
| 26 | ||
| 35 | ||
| 43 | ||
| 54 | ||
| 63 | ||
| 72 | ||
| 82 | ||
| 89 | ||
| 98 | ||
| 106 | ||
| 110 | ||
| 114 | ||
| 122 | ||
| 158 | ||
| 188 | ||
| 189 | ||
| 200 | ||
| 203 | ||
| 204 |
Table of Contents
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 SUMMARY
Janus Balanced Fund’s Class T Shares returned 11.77% for the 12-month period ended September 30, 2014. That compares with 19.73% for the Fund’s primary benchmark, the S&P 500 Index, and 3.96% for the Fund’s secondary benchmark, the Barclays U.S. Aggregate Bond Index. The Balanced Index, an internally calculated benchmark composed of a 55% weighting in the S&P 500 Index and a 45% weighting in the Barclays U.S. Aggregate Bond Index, returned 12.48%.
INVESTMENT ENVIRONMENT
The global economy was increasingly challenged during the period. Starting in the 2013 fourth quarter, there was anxiety that the Federal Reserve (Fed) could exit loose monetary policy sooner than expected amid news that it planned to start tapering its quantitative easing (QE) program. The Treasury sell-off that ensued was dubbed the “taper tantrum.” The yield on the 10-year Treasury rose about 40 basis points to end 2013 at 3.03%. However, the strong U.S. economy was a boon for equities. The S&P 500 rose about 10% in the 2013 fourth quarter.
By the 2014 first quarter, a harsh winter had stalled the U.S. recovery. It became clear that besides slowly tapering its QE program, the Fed would otherwise maintain its loose monetary policy. Treasury yields began a swift decline, defying expectations that yields would continue their rise in 2014. The faltering U.S. economy weighed on equities as well, and the S&P 500 ended the first quarter with a meager gain. Meanwhile, concerns about slowing growth in China weakened emerging markets (EM). In the eurozone, a sluggish recovery drove speculation that the European Central Bank (ECB) would need to take action.
During the second quarter, concerns about China’s growth ebbed and the U.S. economy proved resilient. Nevertheless, Treasury yields remained capped by geopolitical tensions abroad, which sparked safe haven purchases. Sovereign yields in the eurozone hit record lows as the ECB boosted monetary stimulus measures. Japan continued to use its “zero interest-rate policy” to prop up its own economy. Despite steady, albeit moderate, U.S. economic growth in the third quarter, Treasury rates remained capped amid purchases by yield hungry foreign investors, especially those whose currencies were depreciating against the strengthening U.S. dollar. As the third quarter drew to a close, an economic slowdown had spread around the globe. Concerns that corporate prospects were vulnerable boosted volatility in the high-yield credit and equity markets. For the 12-month period overall, equities did well as stock investors focused on U.S. growth rather than slowing growth abroad.
PERFORMANCE DISCUSSION
The Fund, which seeks to provide more consistent returns over time by allocating across the spectrum of fixed income and equity securities, underperformed the Balanced Index, its blended benchmark of the S&P 500 Index (55%) and the Barclays U.S. Aggregate Bond Index (45%). The Fund underperformed its primary benchmark, the S&P 500 Index, but outperformed its secondary benchmark, the Barclays U.S. Aggregate Bond Index.
As of September 30, 2014, the Fund was approximately 57% weighted to equities and 42% weighted to fixed income (with the remainder in cash), compared with roughly 53% and 45% (with the remainder in cash), respectively, as of September 30, 2013. The difference in weightings between the two periods is a reflection of our belief that equities offered greater risk-adjusted opportunities versus fixed income as the period progressed.
The Fund’s equity sleeve outperformed the S&P 500 Index during the period, benefiting from our overweight and stock selection in the health care sector, followed by stock selection in materials. Stock selection and our overweight in the consumer discretionary sector detracted from relative performance.
Individual equity contributors were led by LyondellBasell Industries. Chemical company LyondellBasell is benefiting from stronger pricing, and it helped drive relative contribution by the equity’s sleeve’s materials sector. The
Janus Growth & Core Funds | 1
Table of Contents
Janus Balanced Fund (unaudited)
company’s margin expansion and the restructuring in its European operations led to its cash flow beating market expectations.
Mobile device and computer maker Apple was also a lead contributor. The company’s stock benefited from optimism about profit gains from product launches, including the iPhone 6 in the 2014 third quarter.
Pharmaceutical firm Allergan was among the several health care names that contributed as it was a part of increased merger and acquisition activity in the health care sector. During the period, the maker of Botox rejected a takeover bid from Canada-based Valeant Pharmaceuticals. Valeant responded with a series of higher bids. The stock became more fully valued following the rise in its price, in our view, and the Fund has exited the position.
Equity detractors were led by toy maker Mattel. Mattel struggled to clean up its inventory issues throughout the period. We believe that it has cleared out the inventory overhang in time for the fourth quarter holiday season. Meanwhile, the company’s significant dividend yield and its solid prospects for its Monster High business continue to make the stock attractive, in our view.
Finance company CIT was also an individual detractor. The company’s earnings suffered amid lower fee income and margin pressures. Moreover, while the company’s restructuring strengthened its balance sheet, it continued to face competitive pressures. The Fund has exited the position.
General Motors was an individual detractor amid concerns about costs from large, high-profile recalls and related litigation.
Meanwhile, our fixed income sleeve outperformed the Barclays U.S. Aggregate Bond Index, largely due to our overweight and security selection in corporate credit, as well as the additional income (or spread carry) that our credit holdings generated compared with those in the index. From a credit sector standpoint, top relative contributors included banking, automotives and life insurance. Credit sector detractors on a relative basis included finance companies, media cable and retailers.
Exposure to higher yielding securities, particularly those securities which are nearest to investment grade, helped make spread carry a relative contributor. We favored this “crossover” area of corporate credit during the period as we believe the valuations of select securities within it are mispriced.
Our yield curve positioning was a relative detractor within our corporate credit allocation. We were shorter duration versus the benchmark in our corporate exposure when corporate debt with longer duration performed better during the period. The sleeve’s positioning reflected our belief that there was a greater risk of rising interest rates that would create more downside risk in longer debt maturities. However, rates fell during the period.
Yield curve positioning also made Treasurys the fixed income sleeve’s largest relative detractor on a sector basis. For much of the period, we positioned our Treasury exposure along the curve in line with our belief that rates would rise. However, as stated, rates fell, so this positioning worked against the Fund.
Elsewhere, our mortgage backed securities (MBS) allocation was a relative contributor. Our shorter duration within MBS was additive in the 2013 fourth quarter when rates rose while our positioning in higher-coupon tranches in the 2014 third quarter helped amid higher rate volatility.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
As the U.S. economic trajectory stands today, we remain constructive on the equity market. Given steady but moderate U.S. growth and tame inflation, we expect the Fed to continue to stay on the sidelines at least through the middle of next year. When the Fed does begin to hike rates, we expect them to do so incrementally, with few surprises. A slow tightening should not derail positive economic fundamentals underpinning the equity market, in our view.
The equity market is not as replete with investment opportunities as it once was. Valuations overall are higher but remain reasonable overall, particularly in the case of some companies that still have room to reduce operating expenses and raise capital returns. We don’t see one sector as being especially cheap, but rather, opportunities present themselves on an individual security basis; thus, this “stock pickers” market plays to our fundamental, bottom-up approach. Moreover, the shareholder friendly activity that has increased this year, whether it be share buybacks or dividend increases, should continue, in our view.
The shareholder friendly activity which may benefit equity holders could require increasing balance sheet leverage, which is not beneficial to bondholders. Given the downside risks that shareholder friendly activity may
2 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
present to bondholders, we continue to believe that what we don’t own in fixed income may be just as important to returns as what we do.
That said, many companies remain focused on improving their balance sheets and maintaining steady free cash flows. We believe this has yet to be fully recognized in both the investment grade and high-yield debt of select companies. Given the strength of balance sheets and the historical performance of corporate bonds over Treasurys in rising rate environments, some of the best risk-adjusted opportunities remain in corporate credit, in our view. While we are watching U.S. growth carefully, we are maintaining our overweight in corporates.
While we remain underweight in Treasurys, we lengthened our duration for the fixed income sleeve. This reflects our view that Treasury rates, especially on the long end, could be range bound through the end of the year. A rise in Treasury rates that may follow a strong U.S. economic report has tended to fade as Treasurys are purchased by foreign investors. In particular, European sovereign yields have fallen to record lows and rate differentials with Treasurys have widened. ECB is becoming increasingly aggressive about monetary stimulus to head off eurozone deflation and a faltering recovery. Any rise in U.S. Treasury yields makes them all the more attractive to foreign buyers, especially those whose local currency is depreciating against the U.S. dollar.
In summary, we still see exciting investment opportunities in fixed income and equities as the U.S. defies a slowing global growth trend and the rest of the world repairs itself. But, we intend to take advantage of them strictly within the confines of our key tenets of seeking risk-adjusted returns and capital preservation.
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 | ||||
| LyondellBasell Industries NV – Class A | 1.72% | |||
| Apple, Inc. | 1.47% | |||
| Allergan, Inc. | 1.45% | |||
| Shire PLC (ADR) | 1.38% | |||
| Union Pacific Corp. | 1.05% | |||
5 Bottom Performers – Equity Holdings
| Contribution | ||||
| Mattel, Inc. | –0.53% | |||
| CIT Group, Inc. | –0.24% | |||
| General Motors Co. | –0.23% | |||
| Las Vegas Sands Corp. | –0.18% | |||
| Viacom, Inc. – Class B | –0.10% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Health Care | 1.78% | 18.13% | 13.33% | |||||||||
| Materials | 1.11% | 7.49% | 3.50% | |||||||||
| Energy | 0.65% | 5.45% | 10.37% | |||||||||
| Industrials | 0.51% | 12.30% | 10.66% | |||||||||
| Telecommunication Services | 0.26% | 1.09% | 2.40% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Consumer Discretionary | –1.91% | 18.63% | 12.16% | |||||||||
| Other** | –0.56% | 2.30% | 0.00% | |||||||||
| Consumer Staples | –0.50% | 6.94% | 9.71% | |||||||||
| Information Technology | –0.40% | 15.31% | 18.66% | |||||||||
| Financials | –0.32% | 12.36% | 16.18% | |||||||||
| 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 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| LyondellBasell Industries NV – Class A Chemicals | 2.5% | |||
| EI du Pont de Nemours & Co. Chemicals | 2.1% | |||
| Apple, Inc. Technology Hardware, Storage & Peripherals | 2.1% | |||
| NIKE, Inc. – Class B Textiles, Apparel & Luxury Goods | 1.9% | |||
| Aetna, Inc. Health Care Providers & Services | 1.8% | |||
| 10.4% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Growth & Core Funds | 5
Table of Contents
Janus Balanced Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Balanced Fund – Class A Shares | |||||||||||
| NAV | 11.62% | 9.81% | 8.48% | 10.01% | 0.94% | ||||||
| MOP | 5.19% | 8.52% | 7.84% | 9.71% | |||||||
| Janus Balanced Fund – Class C Shares | |||||||||||
| NAV | 10.78% | 9.00% | 7.68% | 9.34% | 1.70% | ||||||
| CDSC | 9.78% | 9.00% | 7.68% | 9.34% | |||||||
| Janus Balanced Fund – Class D Shares(1) | 11.86% | 10.03% | 8.62% | 10.07% | 0.73% | ||||||
| Janus Balanced Fund – Class I Shares | 11.99% | 10.12% | 8.57% | 10.05% | 0.69% | ||||||
| Janus Balanced Fund – Class N Shares | 12.03% | 9.93% | 8.57% | 10.05% | 0.58% | ||||||
| Janus Balanced Fund – Class R Shares | 11.20% | 9.37% | 8.01% | 9.63% | 1.33% | ||||||
| Janus Balanced Fund – Class S Shares | 11.49% | 9.66% | 8.28% | 9.85% | 1.08% | ||||||
| Janus Balanced Fund – Class T Shares | 11.77% | 9.93% | 8.57% | 10.05% | 0.83% | ||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 9.46% | |||||||
| Barclays U.S. Aggregate Bond Index | 3.96% | 4.12% | 4.62% | 5.88% | |||||||
| Balanced Index | 12.48% | 10.62% | 6.76% | 8.14% | |||||||
| Morningstar Quartile – Class T Shares | 2nd | 2nd | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Moderate Allocation Funds | 240/875 | 333/726 | 29/597 | 16/228 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
6 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Fixed income securities are subject to interest rate, inflation, credit and default risk. The bond market is volatile. As interest rates rise, bond prices usually fall, and vice versa. The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens.
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 of 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,036.60 | $ | 4.75 | $ | 1,000.00 | $ | 1,020.41 | $ | 4.71 | 0.93% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,032.40 | $ | 8.46 | $ | 1,000.00 | $ | 1,016.75 | $ | 8.39 | 1.66% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,037.50 | $ | 3.68 | $ | 1,000.00 | $ | 1,021.46 | $ | 3.65 | 0.72% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,037.80 | $ | 3.27 | $ | 1,000.00 | $ | 1,021.86 | $ | 3.24 | 0.64% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,038.20 | $ | 2.91 | $ | 1,000.00 | $ | 1,022.21 | $ | 2.89 | 0.57% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,034.40 | $ | 6.73 | $ | 1,000.00 | $ | 1,018.45 | $ | 6.68 | 1.32% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,035.70 | $ | 5.46 | $ | 1,000.00 | $ | 1,019.70 | $ | 5.42 | 1.07% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,037.10 | $ | 4.19 | $ | 1,000.00 | $ | 1,020.96 | $ | 4.15 | 0.82% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 | SEPTEMBER 30, 2014
Table of Contents
Janus Balanced Fund
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Asset-Backed/Commercial Mortgage-Backed Securities – 2.1% | ||||||||||
| $10,393,000 | AmeriCredit Automobile Receivables Trust 2012-4 2.6800%, 10/9/18 | $ | 10,515,637 | |||||||
| 3,385,000 | AmeriCredit Automobile Receivables Trust 2013-4 3.3100%, 10/8/19 | 3,456,315 | ||||||||
| 48,078,000 | Applebee’s/IHOP Funding LLC 4.2770%, 9/5/21 (144A) | 47,620,874 | ||||||||
| 8,062,000 | Aventura Mall Trust 2013-AVM 3.8674%, 12/5/20 (144A),‡ | 7,771,486 | ||||||||
| 5,530,000 | Boca Hotel Portfolio Trust 2013-BOCA 3.2036%, 8/15/26 (144A),‡ | 5,534,380 | ||||||||
| 23,236,152 | CKE Restaurant Holdings, Inc. 4.4740%, 3/20/43 (144A) | 23,451,552 | ||||||||
| 5,970,753 | COMM 2007-C9 Mortgage Trust 5.6500%, 12/10/49 | 6,402,313 | ||||||||
| 18,183,000 | Commercial Mortgage Trust 2007-GG11 5.8670%, 12/10/49‡ | 19,851,890 | ||||||||
| 11,060,664 | Domino’s Pizza Master Issuer LLC 5.2160%, 1/25/42 (144A) | 11,681,808 | ||||||||
| 12,858,680 | FREMF 2010 K-SCT Mortgage Trust 2.0000%, 1/25/20 (144A),§ | 11,115,622 | ||||||||
| 9,893,000 | GS Mortgage Securities Corp. II 3.5495%, 12/10/27 (144A),‡ | 9,297,669 | ||||||||
| 4,056,000 | GS Mortgage Securities Corp. Trust 2013-NYC5 3.7706%, 1/10/18 (144A),‡ | 4,079,306 | ||||||||
| 4,368,000 | Hilton USA Trust 2013-HLT 4.4065%, 11/5/30 (144A) | 4,453,246 | ||||||||
| 3,257,000 | Hilton USA Trust 2013-HLT 5.6086%, 11/5/30 (144A),‡ | 3,307,497 | ||||||||
| 6,993,000 | JP Morgan Chase Commercial Mortgage Securities Trust 2013-JWRZ 3.1436%, 4/15/30 (144A),‡ | 7,011,587 | ||||||||
| 3,123,000 | JP Morgan Chase Commercial Mortgage Securities Trust 2013-JWRZ 3.8936%, 4/15/30 (144A),‡ | 3,134,227 | ||||||||
| 7,393,000 | JP Morgan Chase Commercial Mortgage Securities Trust 2013-WT 2.8044%, 2/16/25 (144A) | 7,510,327 | ||||||||
| 6,350,000 | JP Morgan Chase Commercial Mortgage Securities Trust 2013-WT 4.8447%, 2/16/25 (144A) | 6,542,240 | ||||||||
| 2,881,000 | JP Morgan Chase Commercial Mortgage Securities Trust 2014-FBLU 3.6540%, 12/15/28 (144A),‡ | 2,883,394 | ||||||||
| 12,352,000 | LB-UBS Commercial Mortgage Trust 2007-C2 5.4930%, 2/15/40‡ | 13,132,436 | ||||||||
| 3,952,000 | Santander Drive Auto Receivables Trust 2.5200%, 9/17/18 | 4,010,743 | ||||||||
| 4,254,000 | Santander Drive Auto Receivables Trust 2012-5 3.3000%, 9/17/18 | 4,389,515 | ||||||||
| 15,074,000 | Wachovia Bank Commercial Mortgage Trust Series 2007-C30 5.3830%, 12/15/43 | 16,130,024 | ||||||||
| 4,626,000 | Wachovia Bank Commercial Mortgage Trust Series 2007-C31 5.5910%, 4/15/47‡ | 5,026,982 | ||||||||
| 4,888,774 | Wachovia Bank Commercial Mortgage Trust Series 2007-C33 5.9413%, 2/15/51‡ | 5,102,003 | ||||||||
| 3,227,000 | Wells Fargo Commercial Mortgage Trust 2014-TISH 2.9036%, 1/15/27 (144A),‡ | 3,226,997 | ||||||||
| 1,545,000 | Wells Fargo Commercial Mortgage Trust 2014-TISH 2.4036%, 2/15/27 (144A),‡ | 1,544,998 | ||||||||
| 1,620,000 | Wells Fargo Commercial Mortgage Trust 2014-TISH 3.4036%, 2/15/27 (144A),‡ | 1,618,894 | ||||||||
| Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $250,147,913) | 249,803,962 | |||||||||
| Bank Loans and Mezzanine Loans – 0.8% | ||||||||||
| Basic Industry – 0.1% | ||||||||||
| 8,547,709 | FMG Resources August 2006 Pty, Ltd. 3.7500%, 6/30/19‡ | 8,359,403 | ||||||||
| Communications – 0.1% | ||||||||||
| 9,950,529 | Tribune Media Co. 4.0000%, 12/27/20‡ | 9,810,625 | ||||||||
| Consumer Cyclical – 0.1% | ||||||||||
| 13,327,613 | MGM Resorts International 3.5000%, 12/20/19‡ | 13,077,720 | ||||||||
| Consumer Non-Cyclical – 0.1% | ||||||||||
| 2,514,003 | CHS/Community Health Systems, Inc. 4.2500%, 1/27/21‡ | 2,504,801 | ||||||||
| 11,053,455 | IMS Health, Inc. 3.5000%, 3/17/21‡ | 10,818,569 | ||||||||
| 6,626,860 | Quintiles Transnational Corp. 3.7500%, 6/8/18‡ | 6,519,174 | ||||||||
| | ||||||||||
| 19,842,544 | ||||||||||
| Technology – 0.4% | ||||||||||
| 44,857,575 | Avago Technologies Cayman, Ltd. 3.7500%, 5/6/21‡ | 44,414,831 | ||||||||
| Total Bank Loans and Mezzanine Loans (cost $96,742,604) | 95,505,123 | |||||||||
| Common Stock – 55.8% | ||||||||||
| Aerospace & Defense – 3.8% | ||||||||||
| 1,634,137 | Boeing Co. | 208,156,371 | ||||||||
| 1,149,823 | Honeywell International, Inc. | 107,071,518 | ||||||||
| 601,156 | Precision Castparts Corp. | 142,401,833 | ||||||||
| | ||||||||||
| 457,629,722 | ||||||||||
| Airlines – 0.8% | ||||||||||
| 2,038,297 | United Continental Holdings, Inc.* | 95,371,917 | ||||||||
| Automobiles – 0.9% | ||||||||||
| 3,343,415 | General Motors Co. | 106,788,675 | ||||||||
| Beverages – 0.4% | ||||||||||
| 1,825,723 | Diageo PLC | 52,780,867 | ||||||||
| Capital Markets – 1.8% | ||||||||||
| 6,614,106 | Blackstone Group LP | 208,212,057 | ||||||||
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
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Chemicals – 4.6% | ||||||||||
| 3,536,354 | EI du Pont de Nemours & Co. | $ | 253,768,763 | |||||||
| 2,706,386 | LyondellBasell Industries NV – Class A | 294,075,903 | ||||||||
| | ||||||||||
| 547,844,666 | ||||||||||
| Commercial Banks – 2.6% | ||||||||||
| 1,773,227 | JPMorgan Chase & Co. | 106,819,195 | ||||||||
| 4,844,510 | U.S. Bancorp | 202,645,853 | ||||||||
| | ||||||||||
| 309,465,048 | ||||||||||
| Consumer Finance – 0.6% | ||||||||||
| 819,442 | American Express Co. | 71,733,953 | ||||||||
| Diversified Financial Services – 0.4% | ||||||||||
| 644,982 | CME Group, Inc. | 51,569,536 | ||||||||
| Diversified Telecommunication Services – 0.2% | ||||||||||
| 455,483 | Verizon Communications, Inc. | 22,769,595 | ||||||||
| Electronic Equipment, Instruments & Components – 1.8% | ||||||||||
| 372,905 | Amphenol Corp. – Class A | 37,238,293 | ||||||||
| 3,281,223 | TE Connectivity, Ltd. (U.S. Shares) | 181,418,820 | ||||||||
| | ||||||||||
| 218,657,113 | ||||||||||
| Food Products – 1.0% | ||||||||||
| 564,918 | Hershey Co. | 53,910,125 | ||||||||
| 1,542,503 | Unilever PLC | 64,375,793 | ||||||||
| | ||||||||||
| 118,285,918 | ||||||||||
| Health Care Equipment & Supplies – 0.8% | ||||||||||
| 2,234,809 | Abbott Laboratories | 92,945,706 | ||||||||
| Health Care Providers & Services – 3.3% | ||||||||||
| 2,621,271 | Aetna, Inc. | 212,322,951 | ||||||||
| 1,142,573 | AmerisourceBergen Corp. | 88,320,893 | ||||||||
| 1,266,365 | Express Scripts Holding Co.* | 89,443,360 | ||||||||
| | ||||||||||
| 390,087,204 | ||||||||||
| Hotels, Restaurants & Leisure – 2.0% | ||||||||||
| 2,341,931 | Las Vegas Sands Corp. | 145,691,528 | ||||||||
| 903,654 | Six Flags Entertainment Corp. | 31,076,661 | ||||||||
| 798,964 | Starwood Hotels & Resorts Worldwide, Inc. | 66,481,794 | ||||||||
| | ||||||||||
| 243,249,983 | ||||||||||
| Industrial Conglomerates – 0.7% | ||||||||||
| 553,652 | 3M Co. | 78,441,415 | ||||||||
| Information Technology Services – 2.0% | ||||||||||
| 451,447 | Automatic Data Processing, Inc. | 37,506,217 | ||||||||
| 2,785,546 | MasterCard, Inc. – Class A | 205,907,560 | ||||||||
| | ||||||||||
| 243,413,777 | ||||||||||
| Insurance – 0.7% | ||||||||||
| 3,605,611 | Prudential PLC | 80,071,281 | ||||||||
| Internet & Catalog Retail – 1.3% | ||||||||||
| 575,994 | Alibaba Group Holding, Ltd. (ADR)* | 51,177,067 | ||||||||
| 90,934 | Priceline Group, Inc.* | 105,354,314 | ||||||||
| | ||||||||||
| 156,531,381 | ||||||||||
| Internet Software & Services – 1.1% | ||||||||||
| 224,789 | Google, Inc. – Class C* | 129,784,177 | ||||||||
| Leisure Products – 0.8% | ||||||||||
| 3,094,283 | Mattel, Inc. | 94,839,774 | ||||||||
| Machinery – 0.3% | ||||||||||
| 455,494 | Dover Corp. | 36,589,833 | ||||||||
| Media – 3.0% | ||||||||||
| 3,274,714 | CBS Corp. – Class B | 175,197,199 | ||||||||
| 566,513 | CBS Outdoor Americas, Inc. | 16,961,399 | ||||||||
| 525,432 | Time Warner Cable, Inc. | 75,394,238 | ||||||||
| 1,092,624 | Viacom, Inc. – Class B | 84,066,490 | ||||||||
| | ||||||||||
| 351,619,326 | ||||||||||
| Oil, Gas & Consumable Fuels – 3.2% | ||||||||||
| 1,448,549 | Chevron Corp. | 172,840,867 | ||||||||
| 5,050,958 | Enterprise Products Partners LP | 203,553,607 | ||||||||
| | ||||||||||
| 376,394,474 | ||||||||||
| Pharmaceuticals – 5.2% | ||||||||||
| 3,564,096 | AbbVie, Inc. | 205,862,185 | ||||||||
| 1,762,382 | Bristol-Myers Squibb Co. | 90,198,711 | ||||||||
| 979,683 | Eli Lilly & Co. | 63,532,442 | ||||||||
| 438,492 | Endo International PLC* | 29,966,543 | ||||||||
| 1,350,622 | Johnson & Johnson | 143,962,799 | ||||||||
| 1,974,840 | Mylan, Inc.* | 89,835,472 | ||||||||
| | ||||||||||
| 623,358,152 | ||||||||||
| Professional Services – 0.2% | ||||||||||
| 216,120 | Towers Watson & Co. – Class A | 21,503,940 | ||||||||
| Real Estate Investment Trusts (REITs) – 0.5% | ||||||||||
| 878,256 | Ventas, Inc. | 54,407,959 | ||||||||
| Real Estate Management & Development – 0.6% | ||||||||||
| 61,628,705 | Colony American Homes Holdings III LP – Private Placement*,§ | 68,407,863 | ||||||||
| Road & Rail – 2.6% | ||||||||||
| 471,978 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 97,921,276 | ||||||||
| 1,902,837 | Union Pacific Corp. | 206,305,587 | ||||||||
| | ||||||||||
| 304,226,863 | ||||||||||
| Software – 1.3% | ||||||||||
| 3,394,952 | Microsoft Corp. | 157,389,975 | ||||||||
| Specialty Retail – 0.9% | ||||||||||
| 76,899 | AutoZone, Inc.* | 39,192,344 | ||||||||
| 710,273 | Home Depot, Inc. | 65,160,445 | ||||||||
| | ||||||||||
| 104,352,789 | ||||||||||
| Technology Hardware, Storage & Peripherals – 2.1% | ||||||||||
| 2,450,200 | Apple, Inc. | 246,857,650 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.9% | ||||||||||
| 2,533,786 | NIKE, Inc. – Class B | 226,013,711 | ||||||||
| Tobacco – 2.4% | ||||||||||
| 2,265,072 | Altria Group, Inc. | 104,057,407 | ||||||||
| 2,216,232 | Philip Morris International, Inc.† | 184,833,749 | ||||||||
| | ||||||||||
| 288,891,156 | ||||||||||
| Total Common Stock (cost $4,389,692,093) | 6,630,487,456 | |||||||||
| Corporate Bonds – 22.4% | ||||||||||
| Asset-Backed Securities – 0.1% | ||||||||||
| $11,889,000 | American Tower Trust I 1.5510%, 3/15/18 (144A) | 11,694,520 | ||||||||
| Banking – 4.4% | ||||||||||
| 21,654,000 | Abbey National Treasury Services PLC 4.0000%, 3/13/24 | 21,946,827 | ||||||||
| 13,363,000 | American Express Co. 6.8000%, 9/1/66‡ | 14,265,003 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Banking – (continued) | ||||||||||
| $6,540,000 | American Express Credit Corp. 1.7500%, 6/12/15 | $ | 6,598,618 | |||||||
| 22,533,000 | American Express Credit Corp. 2.1250%, 3/18/19 | 22,440,727 | ||||||||
| 5,106,000 | Bank of America Corp. 1.5000%, 10/9/15 | 5,144,550 | ||||||||
| 28,036,000 | Bank of America Corp. 2.6500%, 4/1/19 | 27,950,070 | ||||||||
| 15,255,000 | Bank of America Corp. 4.2000%, 8/26/24 | 15,123,090 | ||||||||
| 11,343,000 | Bank of America Corp. 8.0000%µ | 12,229,229 | ||||||||
| 13,005,000 | Citigroup, Inc. 5.9000%, 12/29/49 | 12,647,363 | ||||||||
| 6,488,000 | Credit Suisse, New York 5.4000%, 1/14/20 | 7,236,884 | ||||||||
| 19,962,000 | Credit Suisse, New York 3.6250%, 9/9/24 | 19,694,669 | ||||||||
| 21,101,000 | Goldman Sachs Capital I 6.3450%, 2/15/34 | 23,986,857 | ||||||||
| 4,588,000 | Goldman Sachs Group, Inc. 5.6250%, 1/15/17 | 4,982,618 | ||||||||
| 16,035,000 | Goldman Sachs Group, Inc. 2.3750%, 1/22/18 | 16,201,459 | ||||||||
| 11,250,000 | Goldman Sachs Group, Inc. 5.7000%µ | 11,413,125 | ||||||||
| 7,426,000 | HBOS PLC 6.7500%, 5/21/18 (144A) | 8,399,950 | ||||||||
| 3,215,000 | HSBC Bank USA NA 4.8750%, 8/24/20 | 3,552,671 | ||||||||
| 11,937,000 | Intesa Sanpaolo SpA 5.0170%, 6/26/24 (144A) | 11,630,649 | ||||||||
| 2,510,000 | JPMorgan Chase & Co. 7.9000%µ | 2,717,075 | ||||||||
| 7,104,000 | Lloyds Bank PLC 6.5000%, 9/14/20 (144A) | 8,259,594 | ||||||||
| 4,148,000 | Morgan Stanley 4.7500%, 3/22/17 | 4,457,486 | ||||||||
| 9,191,000 | Morgan Stanley 2.5000%, 1/24/19 | 9,191,616 | ||||||||
| 31,310,000 | Morgan Stanley 2.3750%, 7/23/19 | 30,814,926 | ||||||||
| 14,417,000 | Morgan Stanley 5.0000%, 11/24/25 | 15,077,443 | ||||||||
| 24,008,000 | Morgan Stanley 4.3500%, 9/8/26 | 23,595,471 | ||||||||
| 2,912,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15 | 2,955,182 | ||||||||
| 21,395,000 | Royal Bank of Scotland Group PLC 6.1000%, 6/10/23 | 22,590,852 | ||||||||
| 22,059,000 | Royal Bank of Scotland Group PLC 6.0000%, 12/19/23 | 23,125,310 | ||||||||
| 38,768,000 | Royal Bank of Scotland Group PLC 5.1250%, 5/28/24 | 38,091,925 | ||||||||
| 10,653,000 | Santander UK PLC 5.0000%, 11/7/23 (144A) | 11,176,659 | ||||||||
| 12,357,000 | SVB Financial Group 5.3750%, 9/15/20 | 13,823,059 | ||||||||
| 13,813,000 | Synchrony Financial 3.0000%, 8/15/19 | 13,850,861 | ||||||||
| 34,993,000 | Synchrony Financial 4.2500%, 8/15/24 | 34,997,409 | ||||||||
| 18,653,000 | Zions Bancorporation 5.8000%µ | 17,813,615 | ||||||||
| | ||||||||||
| 517,982,842 | ||||||||||
| Basic Industry – 0.7% | ||||||||||
| 5,418,000 | Alcoa, Inc. 5.1250%, 10/1/24 | 5,425,038 | ||||||||
| 6,603,000 | Ashland, Inc. 3.8750%, 4/15/18 | 6,619,508 | ||||||||
| 8,522,000 | Ashland, Inc. 6.8750%, 5/15/43 | 8,884,185 | ||||||||
| 9,372,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 9,688,305 | ||||||||
| 3,178,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 3,480,291 | ||||||||
| 1,248,000 | Plains Exploration & Production Co. 6.6250%, 5/1/21 | 1,366,560 | ||||||||
| 3,296,000 | Plains Exploration & Production Co. 6.7500%, 2/1/22 | 3,650,320 | ||||||||
| 13,732,000 | Plains Exploration & Production Co. 6.8750%, 2/15/23 | 15,585,820 | ||||||||
| 4,655,000 | Reliance Steel & Aluminum Co. 4.5000%, 4/15/23 | 4,785,517 | ||||||||
| 9,413,000 | Sherwin-Williams Co. 3.1250%, 12/15/14 | 9,466,607 | ||||||||
| 5,209,000 | Steel Dynamics, Inc. 5.1250%, 10/1/21 (144A) | 5,287,135 | ||||||||
| 2,604,000 | Steel Dynamics, Inc. 5.5000%, 10/1/24 (144A) | 2,617,020 | ||||||||
| 7,816,000 | WR Grace & Co. 5.1250%, 10/1/21 (144A) | 7,943,010 | ||||||||
| 4,429,000 | WR Grace & Co. 5.6250%, 10/1/24 (144A) | 4,539,725 | ||||||||
| | ||||||||||
| 89,339,041 | ||||||||||
| Brokerage – 1.6% | ||||||||||
| 15,838,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 17,263,420 | ||||||||
| 7,135,000 | Carlyle Holdings Finance LLC 3.8750%, 2/1/23 (144A) | 7,322,529 | ||||||||
| 10,895,000 | Charles Schwab Corp. 7.0000%µ | 12,699,539 | ||||||||
| 6,706,000 | E*TRADE Financial Corp. 6.7500%, 6/1/16 | 7,058,065 | ||||||||
| 5,183,000 | E*TRADE Financial Corp. 6.0000%, 11/15/17 | 5,338,490 | ||||||||
| 14,695,000 | E*TRADE Financial Corp. 6.3750%, 11/15/19 | 15,429,750 | ||||||||
| 3,300,000 | Lazard Group LLC 6.8500%, 6/15/17 | 3,718,153 | ||||||||
| 13,707,000 | Lazard Group LLC 4.2500%, 11/14/20 | 14,329,558 | ||||||||
| 21,063,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 21,905,520 | ||||||||
| 12,030,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 12,781,875 | ||||||||
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
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Brokerage – (continued) | ||||||||||
| $16,215,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | $ | 16,992,007 | |||||||
| 30,458,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 34,316,054 | ||||||||
| 9,302,000 | Stifel Financial Corp. 4.2500%, 7/18/24 | 9,355,040 | ||||||||
| 9,134,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 9,191,078 | ||||||||
| | ||||||||||
| 187,701,078 | ||||||||||
| Capital Goods – 0.6% | ||||||||||
| 7,020,000 | CNH Industrial Capital LLC 3.6250%, 4/15/18 | 6,862,050 | ||||||||
| 9,752,000 | Exelis, Inc. 4.2500%, 10/1/16 | 10,260,869 | ||||||||
| 4,406,000 | Exelis, Inc. 5.5500%, 10/1/21 | 4,689,725 | ||||||||
| 12,140,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 12,687,283 | ||||||||
| 11,264,000 | Hanson, Ltd. 6.1250%, 8/15/16 | 12,052,480 | ||||||||
| 8,143,000 | Ingersoll-Rand Global Holding Co., Ltd. 4.2500%, 6/15/23 | 8,539,458 | ||||||||
| 6,620,000 | Interface, Inc. 7.6250%, 12/1/18 | 6,884,800 | ||||||||
| 9,175,000 | Martin Marietta Materials, Inc. 4.2500%, 7/2/24 (144A) | 9,305,459 | ||||||||
| 2,097,000 | Vulcan Materials Co. 7.0000%, 6/15/18 | 2,327,670 | ||||||||
| | ||||||||||
| 73,609,794 | ||||||||||
| Communications – 0.8% | ||||||||||
| 5,307,000 | Nielsen Finance LLC / Nielsen Finance Co. 4.5000%, 10/1/20 | 5,134,522 | ||||||||
| 5,610,000 | Nielsen Finance LLC / Nielsen Finance Co. 5.0000%, 4/15/22 (144A) | 5,483,775 | ||||||||
| 6,620,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 6,713,210 | ||||||||
| 9,995,000 | Sprint Corp. 7.2500%, 9/15/21 (144A) | 10,407,294 | ||||||||
| 12,996,000 | UBM PLC 5.7500%, 11/3/20 (144A) | 14,051,626 | ||||||||
| 11,088,000 | Verizon Communications, Inc. 2.6250%, 2/21/20 (144A) | 10,948,901 | ||||||||
| 10,123,000 | Verizon Communications, Inc. 5.1500%, 9/15/23 | 11,209,896 | ||||||||
| 9,448,000 | Verizon Communications, Inc. 6.4000%, 9/15/33 | 11,509,724 | ||||||||
| 5,002,000 | Viacom, Inc. 3.8750%, 4/1/24 | 4,981,232 | ||||||||
| 12,799,000 | Viacom, Inc. 4.3750%, 3/15/43 | 11,784,078 | ||||||||
| | ||||||||||
| 92,224,258 | ||||||||||
| Consumer Cyclical – 1.9% | ||||||||||
| 19,034,000 | Brinker International, Inc. 3.8750%, 5/15/23 | 18,687,410 | ||||||||
| 2,737,000 | Continental Rubber of America Corp. 4.5000%, 9/15/19 (144A) | 2,871,584 | ||||||||
| 4,238,000 | DR Horton, Inc. 4.7500%, 5/15/17 | 4,396,925 | ||||||||
| 9,162,000 | DR Horton, Inc. 3.7500%, 3/1/19 | 8,910,045 | ||||||||
| 9,773,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 11,237,230 | ||||||||
| 31,820,000 | General Motors Co. 3.5000%, 10/2/18 | 32,337,075 | ||||||||
| 69,966,000 | General Motors Co. 4.8750%, 10/2/23 | 73,989,045 | ||||||||
| 14,281,000 | General Motors Co. 6.2500%, 10/2/43 | 16,708,770 | ||||||||
| 4,904,000 | General Motors Financial Co., Inc. 3.2500%, 5/15/18 | 4,928,520 | ||||||||
| 2,545,000 | General Motors Financial Co., Inc. 4.2500%, 5/15/23 | 2,554,544 | ||||||||
| 6,236,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 6,856,501 | ||||||||
| 10,458,000 | MDC Holdings, Inc. 5.5000%, 1/15/24 | 10,302,082 | ||||||||
| 5,133,000 | MGM Resorts International 8.6250%, 2/1/19 | 5,787,971 | ||||||||
| 9,050,000 | Schaeffler Finance BV 4.2500%, 5/15/21 (144A) | 8,710,625 | ||||||||
| 3,100,000 | Tiffany & Co. 3.8000%, 10/1/24 (144A) | 3,097,966 | ||||||||
| 5,223,000 | Tiffany & Co. 4.9000%, 10/1/44 (144A) | 5,215,411 | ||||||||
| 3,802,000 | Toll Brothers Finance Corp. 4.0000%, 12/31/18 | 3,797,247 | ||||||||
| 3,468,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 3,684,750 | ||||||||
| 1,941,000 | Toll Brothers Finance Corp. 4.3750%, 4/15/23 | 1,848,803 | ||||||||
| 6,061,000 | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. 4.2500%, 5/30/23 (144A) | 5,742,797 | ||||||||
| | ||||||||||
| 231,665,301 | ||||||||||
| Consumer Non-Cyclical – 1.4% | ||||||||||
| 19,295,000 | Forest Laboratories, Inc. 4.3750%, 2/1/19 (144A) | 20,309,165 | ||||||||
| 16,070,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.8750%, 1/31/22 (144A) | 17,034,200 | ||||||||
| 6,646,000 | HCA, Inc. 3.7500%, 3/15/19 | 6,496,465 | ||||||||
| 14,197,000 | Life Technologies Corp. 6.0000%, 3/1/20 | 16,387,569 | ||||||||
| 2,944,000 | Life Technologies Corp. 5.0000%, 1/15/21 | 3,277,384 | ||||||||
| 10,387,000 | SABMiller Holdings, Inc. 2.2000%, 8/1/18 (144A) | 10,364,928 | ||||||||
| 7,831,000 | Safeway, Inc. 4.7500%, 12/1/21 | 7,897,814 | ||||||||
| 3,050,000 | Smithfield Foods, Inc. 5.2500%, 8/1/18 (144A) | 3,057,625 | ||||||||
| 4,996,000 | Sysco Corp. 3.0000%, 10/2/21 | 5,005,407 | ||||||||
| 6,245,000 | Sysco Corp. 3.5000%, 10/2/24 | 6,262,149 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
12 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Consumer Non-Cyclical – (continued) | ||||||||||
| $11,723,000 | Sysco Corp. 4.5000%, 10/2/44 | $ | 11,808,648 | |||||||
| 9,770,000 | Tenet Healthcare Corp. 8.1250%, 4/1/22 | 10,722,575 | ||||||||
| 8,898,000 | Tyson Foods, Inc. 6.6000%, 4/1/16 | 9,627,556 | ||||||||
| 20,407,000 | Wm Wrigley Jr Co. 2.4000%, 10/21/18 (144A) | 20,552,216 | ||||||||
| 20,390,000 | Wm Wrigley Jr Co. 3.3750%, 10/21/20 (144A) | 20,693,668 | ||||||||
| | ||||||||||
| 169,497,369 | ||||||||||
| Electric – 0.3% | ||||||||||
| 12,099,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 12,501,243 | ||||||||
| 6,174,000 | IPALCO Enterprises, Inc. 5.0000%, 5/1/18 | 6,505,852 | ||||||||
| 8,067,000 | PPL WEM Holdings, Ltd. 3.9000%, 5/1/16 (144A) | 8,395,892 | ||||||||
| 9,437,000 | PPL WEM Holdings, Ltd. 5.3750%, 5/1/21 (144A) | 10,593,344 | ||||||||
| | ||||||||||
| 37,996,331 | ||||||||||
| Energy – 4.7% | ||||||||||
| 19,974,000 | Anadarko Petroleum Corp. 3.4500%, 7/15/24 | 19,618,183 | ||||||||
| 14,811,000 | Anadarko Petroleum Corp. 4.5000%, 7/15/44 | 14,270,547 | ||||||||
| 42,657,000 | California Resources Corp. 5.5000%, 9/15/21 (144A) | 43,296,855 | ||||||||
| 37,452,000 | California Resources Corp. 6.0000%, 11/15/24 (144A) | 38,481,930 | ||||||||
| 33,189,000 | Chesapeake Energy Corp. 5.3750%, 6/15/21 | 33,977,239 | ||||||||
| 54,289,000 | Chesapeake Energy Corp. 4.8750%, 4/15/22 | 54,560,445 | ||||||||
| 19,540,000 | Chesapeake Energy Corp. 5.7500%, 3/15/23 | 20,810,100 | ||||||||
| 21,864,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 23,503,800 | ||||||||
| 18,162,000 | Cimarex Energy Co. 4.3750%, 6/1/24 | 18,298,215 | ||||||||
| 1,300,000 | Continental Resources, Inc. 7.1250%, 4/1/21 | 1,441,375 | ||||||||
| 21,861,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 23,063,355 | ||||||||
| 10,296,000 | Continental Resources, Inc. 3.8000%, 6/1/24 | 10,085,097 | ||||||||
| 5,235,000 | Continental Resources, Inc. 4.9000%, 6/1/44 | 5,103,382 | ||||||||
| 16,998,000 | DCP Midstream Operating LP 4.9500%, 4/1/22 | 18,496,153 | ||||||||
| 8,927,000 | DCP Midstream Operating LP 3.8750%, 3/15/23 | 8,937,846 | ||||||||
| 7,956,000 | DCP Midstream Operating LP 5.6000%, 4/1/44 | 8,748,243 | ||||||||
| 10,153,000 | Devon Energy Corp. 2.2500%, 12/15/18 | 10,129,861 | ||||||||
| 5,825,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 6,267,187 | ||||||||
| 6,116,000 | El Paso Pipeline Partners Operating Co. LLC 4.3000%, 5/1/24 | 6,075,940 | ||||||||
| 6,287,000 | Energy Transfer Partners LP 4.1500%, 10/1/20 | 6,528,547 | ||||||||
| 18,243,000 | EnLink Midstream Partners LP 4.4000%, 4/1/24 | 18,934,756 | ||||||||
| 14,468,000 | EnLink Midstream Partners LP 5.6000%, 4/1/44 | 15,826,704 | ||||||||
| 4,715,000 | Ensco PLC 4.5000%, 10/1/24 | 4,730,875 | ||||||||
| 4,911,000 | Ensco PLC 5.7500%, 10/1/44 | 4,978,546 | ||||||||
| 8,032,000 | Forum Energy Technologies, Inc. 6.2500%, 10/1/21 | 8,252,880 | ||||||||
| 2,631,000 | Frontier Oil Corp. 6.8750%, 11/15/18 | 2,732,951 | ||||||||
| 12,170,000 | Kinder Morgan Energy Partners LP 5.0000%, 3/1/43 | 11,252,005 | ||||||||
| 614,000 | Kinder Morgan, Inc. 6.5000%, 9/15/20 | 690,750 | ||||||||
| 9,580,000 | Kinder Morgan, Inc. 7.7500%, 1/15/32 | 11,759,450 | ||||||||
| 9,029,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 10,153,228 | ||||||||
| 16,615,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 18,194,073 | ||||||||
| 12,895,000 | NGL Energy Partners LP / NGL Energy Finance Corp. 5.1250%, 7/15/19 (144A) | 12,637,100 | ||||||||
| 12,156,000 | Plains All American Pipeline LP / PAA Finance Corp. 3.9500%, 9/15/15 | 12,507,163 | ||||||||
| 14,732,000 | Spectra Energy Partners LP 4.7500%, 3/15/24 | 15,801,145 | ||||||||
| 24,270,000 | Western Gas Partners LP 5.3750%, 6/1/21 | 27,121,701 | ||||||||
| 13,720,000 | Whiting Petroleum Corp. 5.0000%, 3/15/19 | 14,097,300 | ||||||||
| | ||||||||||
| 561,364,927 | ||||||||||
| Finance Companies – 0.9% | ||||||||||
| 26,039,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 26,299,390 | ||||||||
| 3,661,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 3,926,422 | ||||||||
| 18,447,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 19,300,174 | ||||||||
| 7,272,000 | CIT Group, Inc. 3.8750%, 2/19/19 | 7,144,740 | ||||||||
| 10,650,000 | CIT Group, Inc. 5.0000%, 8/1/23 | 10,570,125 | ||||||||
| 4,891,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 5,282,280 | ||||||||
| 1,108,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 1,199,410 | ||||||||
| 17,100,000 | General Electric Capital Corp. 6.2500%µ | 18,425,250 | ||||||||
| 12,100,000 | General Electric Capital Corp. 7.1250%µ | 14,005,750 | ||||||||
| | ||||||||||
| 106,153,541 | ||||||||||
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
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Financial – 0.3% | ||||||||||
| $13,741,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | $ | 14,036,418 | |||||||
| 24,338,000 | LeasePlan Corp. NV 2.5000%, 5/16/18 (144A) | 24,411,671 | ||||||||
| | ||||||||||
| 38,448,089 | ||||||||||
| Industrial – 0.1% | ||||||||||
| 4,369,000 | CBRE Services, Inc. 6.6250%, 10/15/20 | 4,593,566 | ||||||||
| 5,582,000 | Cintas Corp. No 2 2.8500%, 6/1/16 | 5,747,339 | ||||||||
| 5,845,000 | Cintas Corp. No 2 4.3000%, 6/1/21 | 6,338,055 | ||||||||
| | ||||||||||
| 16,678,960 | ||||||||||
| Insurance – 0.3% | ||||||||||
| 3,552,000 | American International Group, Inc. 5.6000%, 10/18/16 | 3,867,027 | ||||||||
| 20,767,000 | Primerica, Inc. 4.7500%, 7/15/22 | 22,509,787 | ||||||||
| 8,452,000 | Voya Financial, Inc. 5.6500%, 5/15/53‡ | 8,494,260 | ||||||||
| | ||||||||||
| 34,871,074 | ||||||||||
| Owned No Guarantee – 0.1% | ||||||||||
| 6,626,000 | CNOOC Nexen Finance 2014 ULC 4.2500%, 4/30/24 | 6,715,531 | ||||||||
| Real Estate Investment Trusts (REITs) – 1.1% | ||||||||||
| 9,695,000 | Alexandria Real Estate Equities, Inc. 2.7500%, 1/15/20 | 9,606,233 | ||||||||
| 17,006,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 17,852,644 | ||||||||
| 9,497,000 | Alexandria Real Estate Equities, Inc. 4.5000%, 7/30/29 | 9,498,520 | ||||||||
| 9,793,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | 11,363,503 | ||||||||
| 22,192,000 | Kennedy-Wilson, Inc. 8.7500%, 4/1/19 | 23,579,000 | ||||||||
| 7,909,000 | Post Apartment Homes LP 4.7500%, 10/15/17 | 8,589,538 | ||||||||
| 4,441,000 | Reckson Operating Partnership LP 6.0000%, 3/31/16 | 4,728,630 | ||||||||
| 2,545,000 | Retail Opportunity Investments Partnership LP 5.0000%, 12/15/23 | 2,709,659 | ||||||||
| 3,890,000 | Senior Housing Properties Trust 6.7500%, 4/15/20 | 4,426,349 | ||||||||
| 4,295,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 4,956,185 | ||||||||
| 9,439,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 10,170,862 | ||||||||
| 18,217,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 7.7500%, 3/15/20 | 21,659,430 | ||||||||
| | ||||||||||
| 129,140,553 | ||||||||||
| Technology – 2.4% | ||||||||||
| 18,785,000 | Amphenol Corp. 4.7500%, 11/15/14 | 18,878,042 | ||||||||
| 7,877,000 | Amphenol Corp. 3.1250%, 9/15/21 | 7,859,001 | ||||||||
| 7,664,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 7,557,739 | ||||||||
| 2,732,000 | Fidelity National Information Services, Inc. 5.0000%, 3/15/22 | 2,878,968 | ||||||||
| 8,061,000 | Fidelity National Information Services, Inc. 3.8750%, 6/5/24 | 8,052,407 | ||||||||
| 8,041,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 8,220,459 | ||||||||
| 24,209,000 | Motorola Solutions, Inc. 4.0000%, 9/1/24 | 23,630,841 | ||||||||
| 12,901,000 | National Semiconductor Corp. 3.9500%, 4/15/15 | 13,148,596 | ||||||||
| 12,179,000 | National Semiconductor Corp. 6.6000%, 6/15/17 | 13,890,259 | ||||||||
| 29,074,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 29,160,146 | ||||||||
| 4,454,000 | Seagate HDD Cayman 4.7500%, 6/1/23 | 4,487,405 | ||||||||
| 42,600,000 | Seagate HDD Cayman 4.7500%, 1/1/25 (144A) | 42,387,000 | ||||||||
| 32,964,000 | TSMC Global, Ltd. 1.6250%, 4/3/18 (144A) | 32,550,467 | ||||||||
| 7,827,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 8,438,351 | ||||||||
| 37,675,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 42,424,687 | ||||||||
| 12,074,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 12,434,336 | ||||||||
| 4,941,000 | Xilinx, Inc. 2.1250%, 3/15/19 | 4,910,425 | ||||||||
| 6,384,000 | Xilinx, Inc. 3.0000%, 3/15/21 | 6,388,482 | ||||||||
| | ||||||||||
| 287,297,611 | ||||||||||
| Transportation – 0.5% | ||||||||||
| 2,208,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 2,248,698 | ||||||||
| 12,243,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 12,553,752 | ||||||||
| 1,536,000 | Penske Truck Leasing Co. LP / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 1,567,230 | ||||||||
| 12,857,000 | Penske Truck Leasing Co. LP / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 13,395,502 | ||||||||
| 8,593,000 | Penske Truck Leasing Co. LP / PTL Finance Corp. 2.5000%, 6/15/19 (144A) | 8,544,544 | ||||||||
| 1,308,000 | Penske Truck Leasing Co. LP / PTL Finance Corp. 4.8750%, 7/11/22 (144A) | 1,405,633 | ||||||||
| 7,049,000 | Penske Truck Leasing Co. LP / PTL Finance Corp. 4.2500%, 1/17/23 (144A) | 7,248,247 | ||||||||
| 8,348,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 9,010,222 | ||||||||
| | ||||||||||
| 55,973,828 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
14 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Utility – 0.2% | ||||||||||
| $6,289,000 | American Water Capital Corp. 3.4000%, 3/1/25 | $ | 6,262,624 | |||||||
| 15,733,000 | American Water Capital Corp. 4.3000%, 12/1/42 | 15,619,958 | ||||||||
| | ||||||||||
| 21,882,582 | ||||||||||
| Total Corporate Bonds (cost $2,608,161,120) | 2,670,237,230 | |||||||||
| Mortgage-Backed Securities – 8.7% | ||||||||||
| Fannie Mae Pool: | ||||||||||
| 2,386,038 | 5.5000%, 1/1/25 | 2,623,584 | ||||||||
| 6,056,560 | 5.0000%, 9/1/29 | 6,708,788 | ||||||||
| 2,400,613 | 5.0000%, 1/1/30 | 2,656,908 | ||||||||
| 1,617,611 | 5.5000%, 1/1/33 | 1,817,408 | ||||||||
| 6,800,240 | 6.0000%, 10/1/35 | 7,734,693 | ||||||||
| 7,368,925 | 6.0000%, 12/1/35 | 8,382,524 | ||||||||
| 1,199,136 | 6.0000%, 2/1/37 | 1,388,353 | ||||||||
| 6,882,780 | 6.0000%, 9/1/37 | 7,542,208 | ||||||||
| 5,717,346 | 6.0000%, 10/1/38 | 6,671,364 | ||||||||
| 2,001,930 | 7.0000%, 2/1/39 | 2,164,126 | ||||||||
| 7,269,940 | 5.5000%, 3/1/40 | 8,239,925 | ||||||||
| 22,016,815 | 5.5000%, 4/1/40 | 24,683,933 | ||||||||
| 2,097,095 | 4.5000%, 10/1/40 | 2,287,018 | ||||||||
| 16,888,554 | 5.0000%, 2/1/41 | 18,717,801 | ||||||||
| 3,863,387 | 5.5000%, 2/1/41 | 4,378,897 | ||||||||
| 2,989,723 | 4.5000%, 4/1/41 | 3,237,044 | ||||||||
| 5,267,637 | 4.5000%, 4/1/41 | 5,724,187 | ||||||||
| 3,854,489 | 5.0000%, 4/1/41 | 4,270,188 | ||||||||
| 5,494,119 | 4.5000%, 5/1/41 | 5,951,003 | ||||||||
| 9,736,845 | 5.0000%, 5/1/41 | 10,789,099 | ||||||||
| 7,381,215 | 5.5000%, 5/1/41 | 8,222,849 | ||||||||
| 8,324,834 | 5.5000%, 6/1/41 | 9,304,102 | ||||||||
| 8,496,835 | 5.0000%, 7/1/41 | 9,417,550 | ||||||||
| 7,401,777 | 4.5000%, 8/1/41 | 8,047,665 | ||||||||
| 10,423,013 | 4.0000%, 6/1/42 | 11,019,029 | ||||||||
| 4,847,368 | 4.0000%, 8/1/42 | 5,124,528 | ||||||||
| 5,916,875 | 4.0000%, 9/1/42 | 6,255,230 | ||||||||
| 6,178,413 | 4.0000%, 9/1/42 | 6,531,673 | ||||||||
| 39,327,021 | 4.5000%, 9/1/42 | 42,601,011 | ||||||||
| 7,194,113 | 4.0000%, 11/1/42 | 7,605,484 | ||||||||
| 9,853,752 | 4.5000%, 11/1/42 | 10,661,139 | ||||||||
| 25,457,699 | 4.5000%, 2/1/43 | 27,581,719 | ||||||||
| 36,691,253 | 4.5000%, 2/1/43 | 40,026,779 | ||||||||
| 16,922,397 | 4.0000%, 5/1/43 | 17,888,943 | ||||||||
| 15,453,630 | 4.0000%, 7/1/43 | 16,336,290 | ||||||||
| 17,441,808 | 4.0000%, 8/1/43 | 18,438,037 | ||||||||
| 4,433,171 | 4.0000%, 9/1/43 | 4,686,389 | ||||||||
| 14,855,225 | 4.0000%, 9/1/43 | 15,704,124 | ||||||||
| 9,784,866 | 3.5000%, 1/1/44 | 10,062,870 | ||||||||
| 22,088,436 | 3.5000%, 1/1/44 | 22,716,061 | ||||||||
| 11,649,023 | 4.0000%, 2/1/44 | 12,314,764 | ||||||||
| 11,490,042 | 3.5000%, 4/1/44 | 11,798,734 | ||||||||
| 33,433,159 | 3.5000%, 5/1/44 | 34,383,129 | ||||||||
| 28,459,981 | 4.0000%, 7/1/44 | 30,227,311 | ||||||||
| 6,782,780 | 4.0000%, 8/1/44 | 7,203,983 | ||||||||
| 18,044,910 | 4.0000%, 8/1/44 | 19,046,900 | ||||||||
| 35,543,223 | 4.0000%, 8/1/44 | 37,878,626 | ||||||||
| 44,994,270 | 4.0000%, 8/1/44 | 47,594,609 | ||||||||
| 10,827,014 | 4.0000%, 9/1/44 | 11,437,431 | ||||||||
| Freddie Mac Gold Pool: | ||||||||||
| 1,735,757 | 5.0000%, 1/1/19 | 1,832,909 | ||||||||
| 1,391,216 | 5.0000%, 2/1/19 | 1,482,582 | ||||||||
| 1,747,064 | 5.5000%, 8/1/19 | 1,851,873 | ||||||||
| 2,503,987 | 5.0000%, 6/1/20 | 2,679,076 | ||||||||
| 5,568,224 | 5.5000%, 12/1/28 | 6,222,754 | ||||||||
| 6,825,504 | 3.5000%, 2/1/29 | 7,169,785 | ||||||||
| 4,652,046 | 5.5000%, 10/1/36 | 5,246,768 | ||||||||
| 20,981,665 | 6.0000%, 4/1/40 | 24,247,303 | ||||||||
| 5,088,276 | 4.5000%, 1/1/41 | 5,541,947 | ||||||||
| 10,898,274 | 5.0000%, 5/1/41 | 12,129,733 | ||||||||
| 7,070,295 | 5.5000%, 5/1/41 | 7,868,664 | ||||||||
| 89,000,000 | 4.5000%, 9/1/44 | 97,385,823 | ||||||||
| Ginnie Mae I Pool: | ||||||||||
| 6,660,585 | 5.1000%, 1/15/32 | 7,553,366 | ||||||||
| 7,222,684 | 4.9000%, 10/15/34 | 7,909,130 | ||||||||
| 880,817 | 5.5000%, 9/15/35 | 1,002,967 | ||||||||
| 4,362,669 | 5.5000%, 3/15/36 | 4,899,769 | ||||||||
| 5,686,827 | 5.5000%, 8/15/39 | 6,720,132 | ||||||||
| 17,448,206 | 5.5000%, 8/15/39 | 20,048,507 | ||||||||
| 4,129,579 | 5.0000%, 10/15/39 | 4,570,152 | ||||||||
| 6,441,938 | 5.5000%, 10/15/39 | 7,289,446 | ||||||||
| 6,440,442 | 5.0000%, 11/15/39 | 7,120,335 | ||||||||
| 2,048,181 | 5.0000%, 1/15/40 | 2,263,014 | ||||||||
| 1,654,446 | 5.0000%, 4/15/40 | 1,829,486 | ||||||||
| 658,946 | 5.0000%, 5/15/40 | 733,940 | ||||||||
| 2,255,490 | 5.0000%, 5/15/40 | 2,501,612 | ||||||||
| 1,820,411 | 5.0000%, 7/15/40 | 2,012,725 | ||||||||
| 6,764,277 | 5.0000%, 7/15/40 | 7,479,550 | ||||||||
| 6,987,310 | 5.0000%, 2/15/41 | 7,765,105 | ||||||||
| 2,753,179 | 5.0000%, 4/15/41 | 3,052,689 | ||||||||
| 3,042,799 | 5.0000%, 5/15/41 | 3,437,032 | ||||||||
| 1,925,467 | 4.5000%, 7/15/41 | 2,103,858 | ||||||||
| 6,572,090 | 4.5000%, 7/15/41 | 7,152,702 | ||||||||
| 14,782,320 | 4.5000%, 8/15/41 | 16,369,837 | ||||||||
| 1,754,565 | 5.0000%, 9/15/41 | 1,958,025 | ||||||||
| Ginnie Mae II Pool: | ||||||||||
| 3,842,133 | 6.0000%, 11/20/34 | 4,411,022 | ||||||||
| 4,704,200 | 5.5000%, 11/20/37 | 5,257,057 | ||||||||
| 1,950,635 | 6.0000%, 1/20/39 | 2,197,761 | ||||||||
| 1,085,808 | 7.0000%, 5/20/39 | 1,265,881 | ||||||||
| 758,894 | 5.5000%, 9/20/41 | 853,270 | ||||||||
| 10,152,292 | 4.5000%, 10/20/41 | 11,055,329 | ||||||||
| 806,571 | 6.0000%, 10/20/41 | 922,596 | ||||||||
| 2,172,767 | 6.0000%, 12/20/41 | 2,476,846 | ||||||||
| 4,825,912 | 5.5000%, 1/20/42 | 5,476,020 | ||||||||
| 2,377,128 | 6.0000%, 1/20/42 | 2,715,454 | ||||||||
| 2,041,412 | 6.0000%, 2/20/42 | 2,332,382 | ||||||||
| 1,967,620 | 6.0000%, 3/20/42 | 2,247,019 | ||||||||
| 7,378,029 | 6.0000%, 4/20/42 | 8,431,525 | ||||||||
| 3,156,550 | 3.5000%, 5/20/42 | 3,282,551 | ||||||||
| 5,784,786 | 5.5000%, 5/20/42 | 6,563,965 | ||||||||
| 2,863,175 | 6.0000%, 5/20/42 | 3,218,923 | ||||||||
| 8,838,834 | 5.5000%, 7/20/42 | 9,909,576 | ||||||||
| 1,955,902 | 6.0000%, 7/20/42 | 2,233,044 | ||||||||
| 2,100,001 | 6.0000%, 8/20/42 | 2,399,634 | ||||||||
| 4,784,551 | 6.0000%, 9/20/42 | 5,468,935 | ||||||||
| 1,941,431 | 6.0000%, 11/20/42 | 2,210,628 | ||||||||
| 2,669,326 | 6.0000%, 2/20/43 | 3,049,528 | ||||||||
| Total Mortgage-Backed Securities (cost $1,027,767,087) | 1,033,497,552 | |||||||||
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
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Preferred Stock – 0.8% | ||||||||||
| Capital Markets – 0.3% | ||||||||||
| 460,800 | Morgan Stanley, 6.8750% | $ | 12,040,704 | |||||||
| 586,810 | Morgan Stanley, 7.1250% | 15,791,057 | ||||||||
| 277,200 | State Street Corp., 5.9000% | 7,110,180 | ||||||||
| | ||||||||||
| 34,941,941 | ||||||||||
| Commercial Banks – 0.2% | ||||||||||
| 958,525 | Wells Fargo & Co., 6.6250% | 26,503,216 | ||||||||
| Construction & Engineering – 0.1% | ||||||||||
| 294,200 | Citigroup Capital XIII, 7.8750% | 7,919,864 | ||||||||
| Consumer Finance – 0.2% | ||||||||||
| 13,492 | Ally Financial, Inc., 7.0000% (144A) | 13,504,649 | ||||||||
| 601,750 | Discover Financial Services, 6.5000% | 15,170,118 | ||||||||
| | ||||||||||
| 28,674,767 | ||||||||||
| Total Preferred Stock (cost $93,861,423) | 98,039,788 | |||||||||
| U.S. Treasury Notes/Bonds – 8.0% | ||||||||||
| $8,269,000 | 0.8750%, 1/31/17 | 8,284,504 | ||||||||
| 2,448,000 | 0.8750%, 2/28/17 | 2,450,487 | ||||||||
| 4,390,000 | 0.8750%, 7/15/17 | 4,374,907 | ||||||||
| 6,045,000 | 0.7500%, 10/31/17 | 5,968,494 | ||||||||
| 8,890,000 | 0.7500%, 12/31/17 | 8,748,311 | ||||||||
| 3,565,000 | 0.8750%, 1/31/18 | 3,517,931 | ||||||||
| 14,380,000 | 0.7500%, 3/31/18 | 14,083,413 | ||||||||
| 82,954,000 | 1.3750%, 7/31/18 | 82,617,041 | ||||||||
| 84,828,000 | 1.5000%, 8/31/18 | 84,788,216 | ||||||||
| 283,226,000 | 1.3750%, 9/30/18† | 281,455,838 | ||||||||
| 55,868,000 | 1.2500%, 10/31/18 | 55,169,650 | ||||||||
| 48,166,000 | 1.6250%, 7/31/19 | 47,864,963 | ||||||||
| 14,839,000 | 1.7500%, 5/15/23 | 14,064,582 | ||||||||
| 54,623,000 | 2.5000%, 8/15/23 | 54,947,351 | ||||||||
| 99,589,000 | 2.7500%, 11/15/23 | 102,078,725 | ||||||||
| 39,540,000 | 2.5000%, 5/15/24 | 39,564,713 | ||||||||
| 2,000,000 | 2.3750%, 8/15/24 | 1,976,876 | ||||||||
| 70,349,000 | 3.7500%, 11/15/43 | 77,757,594 | ||||||||
| 11,346,000 | 3.6250%, 2/15/44 | 12,260,771 | ||||||||
| 48,712,000 | 3.3750%, 5/15/44 | 50,295,140 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $939,117,658) | 952,269,507 | |||||||||
| Money Market – 1.7% | ||||||||||
| 196,331,633 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $196,331,633) | 196,331,633 | ||||||||
| Total Investments (total cost $9,601,821,531) – 100.3% | 11,926,172,251 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.3)% | (35,376,906) | |||||||||
| Net Assets – 100% | $ | 11,890,795,345 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 11,170,739,468 | 93 | .7% | ||||
| United Kingdom | 370,243,274 | 3 | .1 | |||||
| Canada | 97,921,276 | 0 | .8 | |||||
| China | 57,892,598 | 0 | .5 | |||||
| Singapore | 44,414,831 | 0 | .4 | |||||
| Taiwan | 32,550,467 | 0 | .3 | |||||
| Australia | 31,659,909 | 0 | .3 | |||||
| South Korea | 29,160,146 | 0 | .2 | |||||
| Germany | 28,616,409 | 0 | .2 | |||||
| Switzerland | 26,931,553 | 0 | .2 | |||||
| Netherlands | 24,411,671 | 0 | .2 | |||||
| Italy | 11,630,649 | 0 | .1 | |||||
| Total | $ | 11,926,172,251 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 1.6%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Counterparty/Currency | Currency | Currency | Appreciation/ | |||||||||
| and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Bank of America: British Pound 11/6/14 | 3,300,000 | $ | 5,347,204 | $ | 13,745 | |||||||
| Credit Suisse International: British Pound 10/23/14 | 10,810,000 | 17,518,343 | 166,817 | |||||||||
| HSBC Securities (USA), Inc.: British Pound 10/9/14 | 19,775,000 | 32,051,152 | 704,059 | |||||||||
| JPMorgan Chase & Co.: British Pound 10/16/14 | 14,100,000 | 22,851,587 | 37,324 | |||||||||
| RBC Capital Markets Corp.: British Pound 10/16/14 | 12,900,000 | 20,906,771 | 133,129 | |||||||||
| Total | $ | 98,675,057 | $ | 1,055,074 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
16 | SEPTEMBER 30, 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
Janus Contrarian Fund’s Class T Shares returned 25.17% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the S&P 500 Index, returned 19.73%, and its secondary benchmark, the MSCI All Country World Index, returned 11.32% during the period.
INVESTMENT ENVIRONMENT
U.S. equities performed well in the past 12 months. While markets climbed significantly higher early in the period, first quarter gains slowed due to a colder-than-normal winter that negatively affected a number of macroeconomic data points, as well as speculation around how and when the Federal Reserve (Fed) would begin raising interest rates. Tensions between Ukraine and Russia also caused bouts of volatility. Increasing confirmation signals that the U.S. economy was on stable footing, coupled with the European Central Bank’s interest rate cut and other measures to stimulate eurozone growth, boosted markets broadly through the spring. The third quarter saw further gains on modestly improving data as investors largely shrugged off mounting geopolitical unrest. However, growing investor uncertainty also resulted in summer pullbacks and the beginnings of a sharp sell-off in the last weeks of September. Despite this volatility, the period ended with generally positive corporate earnings reports, strong gross domestic product (GDP) growth and lower unemployment rates, all providing more evidence of a strengthening U.S. economy. In addition, the Fed indicated its intent to keep interest rates low for “a considerable time.”
PERFORMANCE DISCUSSION
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. Outperformance was led by our health care, industrials and energy holdings.
Our top three holdings were also the three largest individual contributors to returns. Mallinckrodt, a pharmaceutical company, was the most additive. The stock has performed very well in recent quarters, and we continue to see positive changes for the company. Mallinckrodt was spun out from Covidien a year ago. In our view, Mallinckrodt was never a primary focus of Covidien’s business, but now that it is operating independently, the management team has more flexibility to dictate the strategy and incentive structure at the company. Since that time, costs have been trimmed, resources have been allocated more productively and the culture of the company has been energized. Better operating results have followed. The company has re-examined its pricing policy, improving revenues for important drugs in its pipeline. The stock has risen after the company closed its acquisition of Questcor Pharmaceuticals, and earnings estimates have moved higher as a result of the deal.
Endo International, another health care holding and our largest position, was the second top individual contributor. The company’s new CEO comes from one of the most successful specialty pharmaceutical companies of the past 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, and the stock’s performance has provided more confirmation about his ability to help turn
Janus Growth & Core Funds | 17
Table of Contents
Janus Contrarian Fund (unaudited)
around the company. It was up considerably as the market responded positively to an announcement that Endo would buy specialty drug maker Paladin Labs. Quarterly revenue and earnings that exceeded consensus expectations also helped lift the stock.
United Continental was the third most additive to returns. Our general view is that United is poised to benefit from consolidation in the airline industry. Consolidation leads to reduced capacity. With less capacity, large airlines are getting pricing power for the first time in decades, which allows them to pass on higher fuel costs when oil prices rise. The companies can also reduce flights when the economy softens. Specific to United, the market has received more confirmation in recent months that operations have turned around since its merger with Continental, and the stock has risen as improved operations have translated into better earnings by the company.
While generally pleased with the performance of the portfolio during the period, we did have some stocks that negatively affected performance. Our information technology, consumer discretionary and financials holdings were the biggest detractors from returns.
Knowles was the largest individual detractor. While the stock fell in September, we continue to like the company. Knowles was spun out of Dover. We believe the market has failed to appreciate the growth potential of the company’s business manufacturing microphones for mobile devices.
Post Holdings was another large individual detractor. The stock fell after the company missed earnings in the third quarter, which has caused some to question the company’s acquisition strategy. However, we continue to like the turnaround taking place at Post. The company was spun out of Ralcorp, and we think the spin-off is giving the company more control over its own destiny. Since that time, management has been making a series of acquisitions that transition the company from being focused primarily on cereal to a heavier focus on more healthy lifestyle foods. While earnings may have been short of expectations this quarter, we think the focus on healthy lifestyle foods is a positive transition for the company.
UGL, an Australian engineering and property services company, also weighed on performance. The company’s mining business has been weak, and this has negatively affected the stock. Our position in UGL was sold during the period.
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). We also use call options to attempt to improve the payoff profile of individual long ideas on a selective basis. The purpose of the options 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 beta of the Fund. The purpose of our forwards strategy is to reduce the overall volatility in the Fund. 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
After considerable gains in late 2013 and early 2014, we believe equities are now more fairly valued. Given a more fairly valued market, we are surprised by the risk/reward opportunities our analysts continue to uncover. One area where we are seeing an increase in contrarian investment ideas is in the number of spin-offs taking place in the market. Due in part to a slower growth economy over the past few years, companies are taking a harder look at what they do and shedding more noncore businesses. In many cases these spin-offs are giving management teams of the business that has been spun off better control of its own destiny and the freedom to make substantial improvements to the underlying company. When our research team has familiarity with the management team that will control the spun-off corporation, we think it gives us a good understanding of the team’s ability to affect positive change.
Thank you for your investment in Janus Contrarian Fund.
18 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Contrarian Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Mallinckrodt PLC | 3.91% | |||
| Endo International PLC | 3.75% | |||
| United Continental Holdings, Inc. | 2.80% | |||
| Canadian Pacific Railway, Ltd. (U.S. Shares) | 1.95% | |||
| Forest Laboratories, Inc. | 1.86% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Knowles Corp. | –0.54% | |||
| Post Holdings, Inc. | –0.53% | |||
| UGL, Ltd. | –0.50% | |||
| United Continental Holdings, Inc. – Call expired September 2014 exercise price $50.00 | –0.45% | |||
| Rayonier Advanced Materials, Inc. | –0.44% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Health Care | 6.99% | 21.00% | 13.33% | |||||||||
| Industrials | 3.91% | 28.34% | 10.66% | |||||||||
| Energy | 1.96% | 9.50% | 10.37% | |||||||||
| Other** | 0.21% | –0.58% | 0.00% | |||||||||
| Telecommunication Services | 0.16% | –0.13% | 2.40% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Information Technology | –2.94% | 12.39% | 18.66% | |||||||||
| Consumer Discretionary | –1.29% | 10.83% | 12.16% | |||||||||
| Financials | –1.18% | 12.46% | 16.18% | |||||||||
| Materials | –0.37% | 4.86% | 3.50% | |||||||||
| Consumer Staples | –0.22% | 1.10% | 9.71% | |||||||||
| 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 September 30, 2014
| Endo International PLC Pharmaceuticals | 7.0% | |||
| Mallinckrodt PLC Pharmaceuticals | 6.6% | |||
| United Continental Holdings, Inc. Airlines | 5.9% | |||
| Dresser-Rand Group, Inc. Energy Equipment & Services | 5.2% | |||
| St Joe Co. Real Estate Management & Development | 4.8% | |||
| 29.5% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
* Includes Common Stock Sold Short of (0.3)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
20 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Contrarian Fund – Class A Shares | |||||||||||
| NAV | 25.01% | 13.16% | 10.00% | 7.72% | 0.85% | ||||||
| MOP | 17.81% | 11.82% | 9.35% | 7.29% | |||||||
| Janus Contrarian Fund – Class C Shares | |||||||||||
| NAV | 24.10% | 12.27% | 9.15% | 6.91% | 1.70% | ||||||
| CDSC | 23.10% | 12.27% | 9.15% | 6.91% | |||||||
| Janus Contrarian Fund – Class D Shares(1) | 25.27% | 13.39% | 10.20% | 7.90% | 0.68% | ||||||
| Janus Contrarian Fund – Class I Shares | 25.40% | 13.49% | 10.16% | 7.87% | 0.52% | ||||||
| Janus Contrarian Fund – Class R Shares | 24.58% | 12.72% | 9.53% | 7.26% | 1.26% | ||||||
| Janus Contrarian Fund – Class S Shares | 24.88% | 13.01% | 9.81% | 7.53% | 1.00% | ||||||
| Janus Contrarian Fund – Class T Shares | 25.17% | 13.30% | 10.16% | 7.87% | 0.76% | ||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 4.53% | |||||||
| MSCI All Country World IndexSM | 11.32% | 10.07% | 7.28% | 3.70% | |||||||
| Morningstar Quartile – Class T Shares | 1st | 3rd | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Large Blend Funds | 9/1,622 | 972/1,383 | 30/1,147 | 67/880 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Growth & Core Funds | 21
Table of Contents
Janus Contrarian Fund (unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,052.40 | $ | 5.40 | $ | 1,000.00 | $ | 1,019.80 | $ | 5.32 | 1.05% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,048.30 | $ | 9.35 | $ | 1,000.00 | $ | 1,015.94 | $ | 9.20 | 1.82% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,053.60 | $ | 4.32 | $ | 1,000.00 | $ | 1,020.86 | $ | 4.26 | 0.84% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,054.10 | $ | 3.97 | $ | 1,000.00 | $ | 1,021.21 | $ | 3.90 | 0.77% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,050.20 | $ | 7.45 | $ | 1,000.00 | $ | 1,017.80 | $ | 7.33 | 1.45% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,051.50 | $ | 6.17 | $ | 1,000.00 | $ | 1,019.05 | $ | 6.07 | 1.20% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,052.80 | $ | 4.89 | $ | 1,000.00 | $ | 1,020.31 | $ | 4.81 | 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 183/365 (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
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 95.7% | ||||||||||
| Air Freight & Logistics – 2.2% | ||||||||||
| 576,901 | FedEx Corp. | $ | 93,140,666 | |||||||
| Airlines – 5.9% | ||||||||||
| 5,256,388 | United Continental Holdings, Inc.*,† | 245,946,395 | ||||||||
| Beverages – 2.1% | ||||||||||
| 924,860 | PepsiCo, Inc. | 86,095,217 | ||||||||
| Capital Markets – 1.5% | ||||||||||
| 2,737,835 | E*TRADE Financial Corp.* | 61,847,693 | ||||||||
| Chemicals – 7.1% | ||||||||||
| 1,252,373 | Air Products & Chemicals, Inc. | 163,033,917 | ||||||||
| 9,216,501 | Alent PLC | 48,982,952 | ||||||||
| 2,513,326 | Rayonier Advanced Materials, Inc.#,£ | 82,713,559 | ||||||||
| | ||||||||||
| 294,730,428 | ||||||||||
| Commercial Banks – 3.5% | ||||||||||
| 2,783,058 | Citigroup, Inc. | 144,218,066 | ||||||||
| Communications Equipment – 5.4% | ||||||||||
| 2,667,707 | Motorola Solutions, Inc.† | 168,812,499 | ||||||||
| 4,559,414 | Telefonaktiebolaget LM Ericsson (ADR)# | 57,403,022 | ||||||||
| | ||||||||||
| 226,215,521 | ||||||||||
| Containers & Packaging – 1.9% | ||||||||||
| 1,662,473 | Amcor, Ltd. | 16,500,390 | ||||||||
| 1,000,969 | Ball Corp.† | 63,331,309 | ||||||||
| | ||||||||||
| 79,831,699 | ||||||||||
| Diversified Financial Services – 2.1% | ||||||||||
| 1,093,076 | CME Group, Inc. | 87,396,892 | ||||||||
| Electric Utilities – 0.1% | ||||||||||
| 64,405 | Brookfield Infrastructure Partners LP | 2,447,390 | ||||||||
| Electrical Equipment – 0.9% | ||||||||||
| 1,003,306 | OSRAM Licht AG | 37,326,260 | ||||||||
| Electronic Equipment, Instruments & Components – 2.9% | ||||||||||
| 4,595,571 | Knowles Corp.*,£ | 121,782,631 | ||||||||
| Energy Equipment & Services – 5.2% | ||||||||||
| 2,656,822 | Dresser-Rand Group, Inc.* | 218,550,178 | ||||||||
| Food Products – 0.9% | ||||||||||
| 1,139,989 | Post Holdings, Inc.# | 37,824,835 | ||||||||
| Health Care Equipment & Supplies – 1.0% | ||||||||||
| 1,000,535 | Abbott Laboratories | 41,612,251 | ||||||||
| Health Care Providers & Services – 1.0% | ||||||||||
| 664,268 | Omnicare, Inc. | 41,357,326 | ||||||||
| Hotels, Restaurants & Leisure – 1.4% | ||||||||||
| 7,067,573 | Wendy’s Co.# | 58,378,153 | ||||||||
| Household Products – 0.4% | ||||||||||
| 202,593 | Spectrum Brands Holdings, Inc. | 18,340,744 | ||||||||
| Information Technology Services – 3.4% | ||||||||||
| 1,506,703 | Amdocs, Ltd. (U.S. Shares) | 69,127,534 | ||||||||
| 167,970 | Blackhawk Network Holdings, Inc.*,#,£ | 5,442,228 | ||||||||
| 2,015,852 | Blackhawk Network Holdings, Inc. – Class B*,£ | 65,112,019 | ||||||||
| | ||||||||||
| 139,681,781 | ||||||||||
| Internet & Catalog Retail – 3.0% | ||||||||||
| 3,012,307 | Lands’ End, Inc.*,#,£ | 123,866,064 | ||||||||
| Machinery – 0.8% | ||||||||||
| 569,260 | Colfax Corp.* | 32,430,742 | ||||||||
| Media – 4.1% | ||||||||||
| 780,801 | Comcast Corp. – Class A | 41,991,478 | ||||||||
| 1,958,737 | News Corp. – Class A* | 32,025,350 | ||||||||
| 1,463,669 | Tribune Media Co. – Class A* | 96,309,420 | ||||||||
| | ||||||||||
| 170,326,248 | ||||||||||
| Multiline Retail – 0.5% | ||||||||||
| 346,894 | Target Corp. | 21,743,316 | ||||||||
| Oil, Gas & Consumable Fuels – 5.7% | ||||||||||
| 675,608 | Anadarko Petroleum Corp. | 68,533,675 | ||||||||
| 471,234 | Apache Corp. | 44,234,736 | ||||||||
| 622,505 | MarkWest Energy Partners LP# | 47,820,834 | ||||||||
| 935,304 | Phillips 66 | 76,049,568 | ||||||||
| | ||||||||||
| 236,638,813 | ||||||||||
| Pharmaceuticals – 15.2% | ||||||||||
| 4,248,376 | Endo International PLC*,† | 290,334,016 | ||||||||
| 2,131,249 | Ipca Laboratories, Ltd. | 27,201,010 | ||||||||
| 3,026,961 | Mallinckrodt PLC* | 272,880,534 | ||||||||
| 760,651 | Teva Pharmaceutical Industries, Ltd. (ADR) | 40,884,991 | ||||||||
| | ||||||||||
| 631,300,551 | ||||||||||
| Real Estate Management & Development – 5.2% | ||||||||||
| 13,771,577 | Colony American Homes Holdings III LP – Private Placement*,§ | 15,286,450 | ||||||||
| 10,027,714 | St Joe Co.*,†,#,£ | 199,852,340 | ||||||||
| | ||||||||||
| 215,138,790 | ||||||||||
| Road & Rail – 1.9% | ||||||||||
| 3,142,827 | Hertz Global Holdings, Inc.* | 79,796,378 | ||||||||
| Software – 3.9% | ||||||||||
| 3,510,731 | Microsoft Corp.† | 162,757,489 | ||||||||
| Specialty Retail – 1.0% | ||||||||||
| 796,548 | Murphy USA, Inc. | 42,264,837 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.7% | ||||||||||
| 2,882,821 | Wolverine World Wide, Inc. | 72,243,494 | ||||||||
| Tobacco – 0.9% | ||||||||||
| 5,924,150 | ITC, Ltd. | 35,523,649 | ||||||||
| Trading Companies & Distributors – 2.9% | ||||||||||
| 4,012,970 | NOW, Inc.# | 122,034,418 | ||||||||
| Total Common Stock (cost $3,310,603,235) | 3,982,788,915 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
24 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Options – Calls – 1.3% | ||||||||||
| Credit Suisse International: | ||||||||||
| United Continental Holdings, Inc.* expires December 2014 8,400 contracts exercise price $52.50 | $ | 1,454,933 | ||||||||
| United Continental Holdings, Inc.* expires December 2014 37,466 contracts exercise price $49.00 | 10,605,459 | |||||||||
| Goldman Sachs & Co.: | ||||||||||
| United Continental Holdings, Inc.* expires December 2014 9,035 contracts exercise price $55.00 | 1,097,890 | |||||||||
| United Continental Holdings, Inc.* expires December 2014 17,855 contracts exercise price $50.00 | 4,397,494 | |||||||||
| United Continental Holdings, Inc.* expires December 2014 31,734 contracts exercise price $52.50 | 5,496,529 | |||||||||
| UBS AG: | ||||||||||
| Canadian Pacific Railway, Ltd. (U.S. Shares)* expires December 2014 12,330 contracts exercise price $185.00 | 31,175,352 | |||||||||
| United Continental Holdings, Inc.* expires December 2014 8,355 contracts exercise price $49.00 | 2,365,040 | |||||||||
| Total OTC Purchased Options – Calls (premiums paid $48,953,691) | 56,592,697 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Options – Puts – 0.8% | ||||||||||
Goldman Sachs & Co.: SPDR S&P 500® Trust (ETF)* expires November 2014 35,260 contracts exercise price $195.00 | 12,079,276 | |||||||||
Morgan Stanley & Co. International PLC: SPDR S&P 500® Trust (ETF)* expires November 2014 57,630 contracts exercise price $195.00 | 19,742,730 | |||||||||
| Total OTC Purchased Options – Puts (premiums paid $24,972,030) | 31,822,006 | |||||||||
| Money Market – 1.3% | ||||||||||
| 54,149,470 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $54,149,470) | 54,149,470 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 8.1% | ||||||||||
| 335,527,059 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $335,527,059) | 335,527,059 | ||||||||
| Total Investments (total cost $3,774,205,485) – 107.2% | 4,460,880,147 | |||||||||
| Common Stock Sold Short – (0.3)% | ||||||||||
| Software – (0.3)% | ||||||||||
| 164,809 | Tableau Software, Inc. – Class A* (proceeds $13,929,815) | (11,973,374) | ||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (6.9)% | (288,875,531) | |||||||||
| Net Assets – 100% | $ | 4,160,031,242 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 4,197,057,873 | 94 | .1% | ||||
| India | 62,724,659 | 1 | .4 | |||||
| Sweden | 57,403,022 | 1 | .3 | |||||
| United Kingdom | 48,982,952 | 1 | .1 | |||||
| Israel | 40,884,991 | 0 | .9 | |||||
| Germany | 37,326,260 | 0 | .8 | |||||
| Australia | 16,500,390 | 0 | .4 | |||||
| Total | $ | 4,460,880,147 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 8.7%. |
Summary of Investments by Country – (Short Positions) (unaudited)
| % of Securities | ||||||||
| Country | Value | Sold Short | ||||||
| United States | $ | (11,973,374) | 100 | .0% | ||||
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Counterparty/Currency | Currency | Currency | Appreciation/ | |||||||||
| and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: British Pound 10/23/14 | 4,800,000 | $ | 7,778,728 | $ | 74,072 | |||||||
| JPMorgan Chase & Co.: British Pound 10/16/14 | 4,200,000 | 6,806,855 | 11,118 | |||||||||
| Total | $ | 14,585,583 | $ | 85,190 | ||||||||
Schedule of Financial Future – Short
| Unrealized | ||||
| Appreciation/ | ||||
| Description | (Depreciation) | |||
S&P 500® E-mini expires December 2014 3,425 contracts principal amount $340,295,379 value $336,591,875 | $ | 3,703,504 | ||
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 12.33% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the Russell Midcap Growth Index, returned 14.43%.
INVESTMENT ENVIRONMENT
Mid-cap equities performed well in the past 12 months. Markets rallied early in the period fueled by growing signs of economic recovery in the U.S. and Europe, despite bouts of volatility sparked by concerns the Federal Reserve (Fed) might taper its quantitative easing program. Upward momentum generally continued into the first quarter, driven by stocks tied to hyper-growth industries, many of which had unproven business models and negative earnings. These stocks generally outperformed stocks of companies with more stable earnings growth, a trend that began to reverse itself in March and April but rebounded through the remainder of spring. However, markets grew choppy in the third quarter as investors pondered when the Fed would start raising interest rates and whether Europe would further loosen monetary policies to avoid potential deflation. Despite this volatility, the period ended with generally positive corporate earnings reports, strong gross domestic product (GDP) growth and lower unemployment rates, all providing more evidence of a strengthening U.S. economy. In addition, the Fed indicated its intent to keep interest rates low for “a considerable time.”
PERFORMANCE DISCUSSION
Our investment process focuses on finding companies 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 us outperform our benchmark over full market cycles, but we would expect much of that relative outperformance to come when the economy is weak and macroeconomic sentiment is more negative, as the durable growth characteristics we seek in companies are more appreciated in such markets. Given our investment style, we were not surprised to be trailing the benchmark over the past year, but the Fund tended to gain ground during periods of volatility.
Most of the relative underperformance came from industrials and health care holdings. The Fund’s cash position was also a top detractor from returns, although it is not used as a strategy but only a necessary component of day-to-day portfolio management.
Teradata Corp. was the largest individual detractor. A weak IT capital-spending environment led to disappointing earnings results. We believe concerns about security amid the National Security Agency’s spying scandal have also been headwinds for U.S.-based companies such as Teradata that sell their data center products globally. Finally, concern about competition from other analytics companies has also weighed on the stock. However, we believe perceived secular threats from competition are overstated. In our view, Teradata has a competitive advantage because we believe it has the ability to mine deeper analytical insights from data than other analytics companies, and we believe the company is well positioned to benefit from ongoing trends associated with enterprises needing more insight from the vast amounts of data being created.
Masimo Corp. was another top individual detractor. The stock has been down due to weaker revenues reported during the year, but our long-term outlook on the company remains the same. The medical technology company focuses on patient monitoring. We think Masimo has differentiated product technology that will continue to grow market share in the coming years.
Verisk Analytics also weighed on performance. The stock fell after the company announced revenue 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
26 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
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.
While the aforementioned companies were notable detractors from performance, we were also pleased by the results from many other companies in our portfolio. Energy, financials and information technology holdings were the most additive to returns.
Within energy, we have avoided many of the exploration and production companies held by the index, which fell due to a drop in oil prices. We have typically avoided such stocks because we believe it is difficult for these companies to sustain a competitive advantage. Their performance is also tied closely to a commodity price. Our limited exposure to the energy sector is with service companies whose revenue is less subject to commodity prices or exploration risk. One of our service companies, Dresser-Rand, was a top 5 holding and the largest individual contributor to performance. The stock rose after it was announced it would be acquired by Siemens. We were not surprised to see the company acquired, as we have long believed it was an attractive business. The bulk of the company’s revenues come from its aftermarket business, which provides a more stable and predictable revenue source for drilling services companies than original equipment manufacturing. Further, the company’s aftermarket business focuses on servicing compression equipment, which is vital to both offshore and horizontal drilling.
KLA-Tencor Corp. was another large individual contributor. The company provides tools that inspect semiconductor wafers for defects and we believe demand for its process control tools will only increase. The stock has been driven up in recent months after the company’s new CFO announced a stock buyback plan, and as the market has begun to recognize KLA as a quality franchise. In our view, KLA has a good combination of a strong balance sheet, virtually unassailable competitive positioning, and a management team with the confidence and inclination to do what it can to reward its shareholders.
Athenahealth was also additive to performance. 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.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We are concerned about the narrow set of leaders that has played a large role advancing the index over the past year. Many of these stocks were driven by momentum more than fundamentals. We see some exciting potential among biotech companies with revolutionary treatments, but we think many other companies in these momentum-driven pockets of the market will fail to create enough earnings growth to justify their valuations.
We also believe rising interest rates will be a headwind for some mid-cap companies that have benefited from having access to cheap debt. Equity value for these companies is at risk if economic growth slows or interest rates start rising. While this is a concern for select mid-cap companies, we think it favors our investment process. We have tended to avoid highly levered companies and emphasize companies with high returns on investment capital. Those companies are in a good position to continue carrying out their long-term growth initiatives and business plans, regardless of changes in interest rates, in our view.
Despite these concerns, we continue to find sensibly valued stocks offering growth potential. In particular, we are finding more opportunities with companies making smart capital allocation decisions. With a lot of cash on corporate balance sheets and a stable, but slow-growing, economy, more companies are buying their growth through acquisitions. In an active merger and acquisition market, companies with management teams that have had a history of making value accretive acquisitions, companies in industries that are poised to consolidate or companies with a valuable underlying asset that could benefit from improved management create exciting investment opportunities.
Thank you for your continued 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 | ||||
| Dresser-Rand Group, Inc. | 0.81% | |||
| KLA-Tencor Corp. | 0.62% | |||
| athenahealth, Inc. | 0.61% | |||
| Amphenol Corp. – Class A | 0.61% | |||
| TransDigm Group, Inc. | 0.59% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Teradata Corp. | –0.25% | |||
| Masimo Corp. | –0.22% | |||
| Verisk Analytics, Inc. – Class A | –0.19% | |||
| Edenred | –0.15% | |||
| Wolverine World Wide, Inc. | –0.14% | |||
5 Top Performers – Sectors*
| Russell Midcap® | ||||||||||||
| Fund Weighting | Growth Index | |||||||||||
| Fund Contribution | (Average % of Equity) | Weighting | ||||||||||
| Energy | 1.09% | 3.49% | 6.52% | |||||||||
| Financials | 0.62% | 7.84% | 8.63% | |||||||||
| Information Technology | 0.28% | 32.43% | 16.64% | |||||||||
| Materials | 0.08% | 1.48% | 5.61% | |||||||||
| Consumer Staples | –0.13% | 0.77% | 7.97% | |||||||||
5 Bottom Performers – Sectors*
| Russell Midcap® | ||||||||||||
| Fund Weighting | Growth Index | |||||||||||
| Fund Contribution | (Average % of Equity) | Weighting | ||||||||||
| Industrials | –1.18% | 22.22% | 15.47% | |||||||||
| Health Care | –0.77% | 18.01% | 13.24% | |||||||||
| Other** | –0.52% | 3.65% | 0.00% | |||||||||
| Telecommunication Services | –0.32% | 0.89% | 1.15% | |||||||||
| Consumer Discretionary | –0.27% | 9.05% | 24.31% | |||||||||
| 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. |
28 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Crown Castle International Corp. Real Estate Investment Trusts (REITs) | 3.3% | |||
| Sensata Technologies Holding NV Electrical Equipment | 3.2% | |||
| Dresser-Rand Group, Inc. Energy Equipment & Services | 2.7% | |||
| Verisk Analytics, Inc. – Class A Professional Services | 2.5% | |||
| Varian Medical Systems, Inc. Health Care Equipment & Supplies | 2.5% | |||
| 14.2% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Growth & Core Funds | 29
Table of Contents
Janus Enterprise Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Enterprise Fund – Class A Shares | |||||||||||
| NAV | 12.07% | 15.84% | 10.82% | 10.50% | 1.12% | ||||||
| MOP | 5.64% | 14.48% | 10.16% | 10.21% | |||||||
| Janus Enterprise Fund – Class C Shares | |||||||||||
| NAV | 11.34% | 15.00% | 9.95% | 9.71% | 1.86% | ||||||
| CDSC | 10.34% | 15.00% | 9.95% | 9.71% | |||||||
| Janus Enterprise Fund – Class D Shares(1) | 12.43% | 16.15% | 10.99% | 10.60% | 0.86% | ||||||
| Janus Enterprise Fund – Class I Shares | 12.47% | 16.27% | 10.95% | 10.59% | 0.74% | ||||||
| Janus Enterprise Fund – Class N Shares | 12.62% | 16.07% | 10.95% | 10.59% | 0.68% | ||||||
| Janus Enterprise Fund – Class R Shares | 11.78% | 15.47% | 10.38% | 10.10% | 1.43% | ||||||
| Janus Enterprise Fund – Class S Shares | 12.07% | 15.76% | 10.67% | 10.36% | 1.18% | ||||||
| Janus Enterprise Fund – Class T Shares | 12.33% | 16.07% | 10.95% | 10.59% | 0.93% | ||||||
| Russell Midcap® Growth Index | 14.43% | 17.12% | 10.24% | 10.10% | |||||||
| Morningstar Quartile – Class T Shares | 2nd | 2nd | 1st | 2nd | |||||||
| Morningstar Ranking – based on total return for Mid-Cap Growth Funds | 229/767 | 192/688 | 81/615 | 83/208 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
30 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 of 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,016.60 | $ | 5.86 | $ | 1,000.00 | $ | 1,019.25 | $ | 5.87 | 1.16% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,013.50 | $ | 8.98 | $ | 1,000.00 | $ | 1,016.14 | $ | 9.00 | 1.78% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,018.30 | $ | 4.15 | $ | 1,000.00 | $ | 1,020.96 | $ | 4.15 | 0.82% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,018.70 | $ | 3.69 | $ | 1,000.00 | $ | 1,021.41 | $ | 3.70 | 0.73% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,019.00 | $ | 3.39 | $ | 1,000.00 | $ | 1,021.71 | $ | 3.40 | 0.67% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,015.30 | $ | 7.17 | $ | 1,000.00 | $ | 1,017.95 | $ | 7.18 | 1.42% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,016.50 | $ | 5.91 | $ | 1,000.00 | $ | 1,019.20 | $ | 5.92 | 1.17% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,017.80 | $ | 4.65 | $ | 1,000.00 | $ | 1,020.46 | $ | 4.66 | 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 183/365 (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 | SEPTEMBER 30, 2014
Table of Contents
Janus Enterprise Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 96.6% | ||||||||||
| Aerospace & Defense – 2.9% | ||||||||||
| 443,781 | HEICO Corp. – Class A | $ | 17,884,374 | |||||||
| 204,004 | Precision Castparts Corp. | 48,324,468 | ||||||||
| 180,783 | TransDigm Group, Inc. | 33,323,730 | ||||||||
| | ||||||||||
| 99,532,572 | ||||||||||
| Air Freight & Logistics – 1.2% | ||||||||||
| 1,027,684 | Expeditors International of Washington, Inc. | 41,703,417 | ||||||||
| Airlines – 1.6% | ||||||||||
| 969,965 | Ryanair Holdings PLC (ADR) | 54,735,125 | ||||||||
| Biotechnology – 4.9% | ||||||||||
| 859,976 | Celgene Corp.*,† | 81,508,525 | ||||||||
| 350,550 | Incyte Corp.* | 17,194,478 | ||||||||
| 386,376 | Medivation, Inc.* | 38,200,995 | ||||||||
| 599,038 | NPS Pharmaceuticals, Inc.* | 15,574,988 | ||||||||
| 153,191 | Pharmacyclics, Inc.*,# | 17,989,219 | ||||||||
| | ||||||||||
| 170,468,205 | ||||||||||
| Capital Markets – 2.7% | ||||||||||
| 1,427,329 | LPL Financial Holdings, Inc. | 65,728,501 | ||||||||
| 341,354 | T Rowe Price Group, Inc. | 26,762,154 | ||||||||
| | ||||||||||
| 92,490,655 | ||||||||||
| Chemicals – 1.7% | ||||||||||
| 184,993 | Air Products & Chemicals, Inc. | 24,082,389 | ||||||||
| 1,019,015 | Potash Corp. of Saskatchewan, Inc. (U.S. Shares)# | 35,217,158 | ||||||||
| | ||||||||||
| 59,299,547 | ||||||||||
| Commercial Services & Supplies – 1.4% | ||||||||||
| 1,045,024 | Edenred | 25,747,261 | ||||||||
| 958,399 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares)# | 21,458,554 | ||||||||
| | ||||||||||
| 47,205,815 | ||||||||||
| Communications Equipment – 0.8% | ||||||||||
| 460,930 | Motorola Solutions, Inc. | 29,167,650 | ||||||||
| Diversified Financial Services – 1.7% | ||||||||||
| 1,272,909 | MSCI, Inc. | 59,852,181 | ||||||||
| Electrical Equipment – 3.9% | ||||||||||
| 512,826 | AMETEK, Inc. | 25,748,994 | ||||||||
| 2,472,529 | Sensata Technologies Holding NV* | 110,101,716 | ||||||||
| | ||||||||||
| 135,850,710 | ||||||||||
| Electronic Equipment, Instruments & Components – 5.6% | ||||||||||
| 639,818 | Amphenol Corp. – Class A | 63,892,226 | ||||||||
| 2,691,481 | Flextronics International, Ltd.* | 27,776,084 | ||||||||
| 596,013 | National Instruments Corp. | 18,434,682 | ||||||||
| 1,503,736 | TE Connectivity, Ltd. (U.S. Shares) | 83,141,563 | ||||||||
| | ||||||||||
| 193,244,555 | ||||||||||
| Energy Equipment & Services – 2.7% | ||||||||||
| 1,163,040 | Dresser-Rand Group, Inc.* | 95,671,670 | ||||||||
| Food Products – 0.9% | ||||||||||
| 331,179 | Mead Johnson Nutrition Co. | 31,866,043 | ||||||||
| Health Care Equipment & Supplies – 4.0% | ||||||||||
| 222,848 | IDEXX Laboratories, Inc.* | 26,258,180 | ||||||||
| 1,274,076 | Masimo Corp. | 27,112,337 | ||||||||
| 1,066,227 | Varian Medical Systems, Inc.* | 85,426,107 | ||||||||
| | ||||||||||
| 138,796,624 | ||||||||||
| Health Care Providers & Services – 2.3% | ||||||||||
| 550,809 | Henry Schein, Inc.* | 64,152,724 | ||||||||
| 497,422 | Premier, Inc. – Class A | 16,345,287 | ||||||||
| | ||||||||||
| 80,498,011 | ||||||||||
| Health Care Technology – 1.9% | ||||||||||
| 489,434 | athenahealth, Inc.*,# | 64,453,564 | ||||||||
| Hotels, Restaurants & Leisure – 0.6% | ||||||||||
| 494,704 | Dunkin’ Brands Group, Inc. | 22,172,633 | ||||||||
| Industrial Conglomerates – 1.2% | ||||||||||
| 276,183 | Roper Industries, Inc. | 40,402,811 | ||||||||
| Information Technology Services – 7.6% | ||||||||||
| 1,747,641 | Amdocs, Ltd. (U.S. Shares) | 80,181,769 | ||||||||
| 769,249 | Fidelity National Information Services, Inc. | 43,308,719 | ||||||||
| 651,350 | Gartner, Inc.* | 47,854,684 | ||||||||
| 689,994 | Jack Henry & Associates, Inc. | 38,405,066 | ||||||||
| 782,978 | Teradata Corp.*,# | 32,822,438 | ||||||||
| 200,394 | WEX, Inc.* | 22,107,466 | ||||||||
| | ||||||||||
| 264,680,142 | ||||||||||
| Insurance – 1.9% | ||||||||||
| 746,042 | Aon PLC | 65,405,502 | ||||||||
| Internet Software & Services – 2.7% | ||||||||||
| 88,872 | CoStar Group, Inc.* | 13,823,151 | ||||||||
| 1,344,778 | Vistaprint NV*,# | 73,680,386 | ||||||||
| 347,878 | Youku Tudou, Inc. (ADR)*,# | 6,233,974 | ||||||||
| | ||||||||||
| 93,737,511 | ||||||||||
| Life Sciences Tools & Services – 3.3% | ||||||||||
| 102,643 | Mettler-Toledo International, Inc.* | 26,289,952 | ||||||||
| 600,936 | PerkinElmer, Inc. | 26,200,810 | ||||||||
| 321,902 | Techne Corp. | 30,113,932 | ||||||||
| 311,260 | Waters Corp.* | 30,852,091 | ||||||||
| | ||||||||||
| 113,456,785 | ||||||||||
| Machinery – 3.4% | ||||||||||
| 575,079 | Colfax Corp.* | 32,762,251 | ||||||||
| 1,777,189 | Rexnord Corp. | 50,561,027 | ||||||||
| 441,409 | Wabtec Corp. | 35,771,785 | ||||||||
| | ||||||||||
| 119,095,063 | ||||||||||
| Media – 5.0% | ||||||||||
| 1,950,522 | Aimia, Inc.# | 29,594,007 | ||||||||
| 614,730 | Discovery Communications, Inc. – Class C* | 22,917,134 | ||||||||
| 1,380,994 | Lamar Advertising Co. – Class A | 68,013,955 | ||||||||
| 789,335 | Markit, Ltd.* | 18,430,972 | ||||||||
| 517,200 | Omnicom Group, Inc. | 35,614,392 | ||||||||
| | ||||||||||
| 174,570,460 | ||||||||||
| Oil, Gas & Consumable Fuels – 0.9% | ||||||||||
| 787,004 | World Fuel Services Corp. | 31,417,200 | ||||||||
| Pharmaceuticals – 0.5% | ||||||||||
| 243,132 | Endo International PLC* | 16,615,641 | ||||||||
| Professional Services – 2.5% | ||||||||||
| 1,443,994 | Verisk Analytics, Inc. – Class A* | 87,924,795 | ||||||||
| Real Estate Investment Trusts (REITs) – 3.3% | ||||||||||
| 1,424,331 | Crown Castle International Corp. | 114,701,375 | ||||||||
| Road & Rail – 1.2% | ||||||||||
| 205,720 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 42,680,728 | ||||||||
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
As of September 30, 2014
| Shares | Value | |||||||||
| Semiconductor & Semiconductor Equipment – 6.7% | ||||||||||
| 6,783,344 | Atmel Corp.* | $ | 54,809,420 | |||||||
| 961,872 | KLA-Tencor Corp. | 75,776,276 | ||||||||
| 5,594,936 | ON Semiconductor Corp.* | 50,018,728 | ||||||||
| 1,204,044 | Xilinx, Inc. | 50,991,263 | ||||||||
| | ||||||||||
| 231,595,687 | ||||||||||
| Software – 8.6% | ||||||||||
| 181,903 | Apptio, Inc. – Private Placement§ | 4,128,216 | ||||||||
| 3,553,119 | Cadence Design Systems, Inc.*,# | 61,149,178 | ||||||||
| 172,635 | FactSet Research Systems, Inc.# | 20,980,331 | ||||||||
| 627,738 | Intuit, Inc. | 55,021,236 | ||||||||
| 807,670 | NICE Systems, Ltd. (ADR) | 32,944,859 | ||||||||
| 1,464,571 | Solera Holdings, Inc.† | 82,543,222 | ||||||||
| 983,894 | SS&C Technologies Holdings, Inc.* | 43,183,108 | ||||||||
| | ||||||||||
| 299,950,150 | ||||||||||
| Textiles, Apparel & Luxury Goods – 4.4% | ||||||||||
| 304,028 | Carter’s, Inc. | 23,568,251 | ||||||||
| 1,153,451 | Gildan Activewear, Inc. | 63,116,839 | ||||||||
| 31,869,390 | Li & Fung, Ltd.# | 36,147,175 | ||||||||
| 1,265,621 | Wolverine World Wide, Inc. | 31,716,462 | ||||||||
| | ||||||||||
| 154,548,727 | ||||||||||
| Trading Companies & Distributors – 2.6% | ||||||||||
| 384,377 | Fastenal Co.# | 17,258,527 | ||||||||
| 437,427 | MSC Industrial Direct Co., Inc. – Class A | 37,382,511 | ||||||||
| 147,033 | WW Grainger, Inc. | 37,000,855 | ||||||||
| | ||||||||||
| 91,641,893 | ||||||||||
| Total Common Stock (cost $2,134,905,457) | 3,359,433,447 | |||||||||
| Money Market – 3.4% | ||||||||||
| 116,738,743 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $116,738,743) | 116,738,743 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 5.4% | ||||||||||
| 190,422,903 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $190,422,903) | 190,422,903 | ||||||||
| Total Investments (total cost $2,442,067,103) – 105.4% | 3,666,595,093 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (5.4)% | (189,179,637) | |||||||||
| Net Assets – 100% | $ | 3,477,415,456 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 3,318,719,413 | 90 | .5% | ||||
| Canada | 192,067,286 | 5 | .2 | |||||
| Ireland | 54,735,125 | 1 | .5 | |||||
| Hong Kong | 36,147,175 | 1 | .0 | |||||
| Israel | 32,944,859 | 0 | .9 | |||||
| France | 25,747,261 | 0 | .7 | |||||
| China | 6,233,974 | 0 | .2 | |||||
| Total | $ | 3,666,595,093 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 8.4%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Counterparty/Currency | Currency | Currency | Appreciation/ | |||||||||
| and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Bank of America: Euro 11/6/14 | 4,000,000 | $ | 5,052,848 | $ | 28,292 | |||||||
| Credit Suisse International: | ||||||||||||
| Canadian Dollar 10/23/14 | 25,100,000 | 22,401,816 | 605,655 | |||||||||
| Euro 10/23/14 | 14,700,000 | 18,567,405 | 352,083 | |||||||||
| 40,969,221 | 957,738 | |||||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| Canadian Dollar 10/9/14 | 27,200,000 | 24,285,392 | 463,156 | |||||||||
| Euro 10/9/14 | 17,200,000 | 21,722,932 | 1,054,513 | |||||||||
| 46,008,324 | 1,517,669 | |||||||||||
| JPMorgan Chase & Co.: Euro 10/16/14 | 9,150,000 | 11,556,678 | 287,869 | |||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| Canadian Dollar 10/16/14 | 22,900,000 | 20,442,233 | 580,924 | |||||||||
| Euro 10/16/14 | 14,700,000 | 18,566,467 | 499,433 | |||||||||
| 39,008,700 | 1,080,357 | |||||||||||
| Total | $ | 142,595,771 | $ | 3,871,925 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
34 | SEPTEMBER 30, 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 one-year period ended September 30, 2014, Janus Forty Fund’s Class S Shares returned 12.69% versus a return of 19.15% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 19.73% for the period.
INVESTMENT ENVIRONMENT
U.S. large-cap growth equities performed well in the past 12 months. While markets climbed significantly higher early in the period, first quarter gains slowed due to a colder-than-normal winter that negatively affected a number of macroeconomic data points, as well as speculation around how and when the Federal Reserve (Fed) would begin raising interest rates. Tensions between Ukraine and Russia also caused bouts of volatility. Increasing confirmation signals that the U.S. economy was on stable footing, coupled with the European Central Bank’s interest rate cut and other measures to stimulate eurozone growth, boosted markets broadly through the spring. The third quarter saw further gains on modestly improving data as investors largely shrugged off mounting geopolitical unrest. However, growing investor uncertainty also resulted in summer pullbacks and the beginnings of a sharp sell-off in the last weeks of September. Despite this volatility, the period ended with generally positive corporate earnings reports, strong gross domestic product (GDP) growth and lower unemployment rates, all providing more evidence of a strengthening U.S. economy. In addition, the Fed indicated its intent to keep interest rates low for “a considerable time.”
PERFORMANCE DISCUSSION
The Fund is a concentrated portfolio that focuses on companies we believe are poised to gain market share within their respective industries and that have built clear, 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 placing emphasis on such sustainable competitive advantages can be a meaningful driver of outperformance over time because the market often underestimates the duration of growth for these companies and the long-term potential return to shareholders. However, this approach may trail short-term, as it did during the period.
Prada and Pernod-Ricard were among our largest detractors. Weaker Chinese luxury spending has been a headwind for both companies, and we sold both positions during the period to pursue companies we believe present better growth opportunities.
L Brands, formerly known as Limited Brands, was another detractor. We sold the position during the period due to concerns the company was not well positioned as more shopping moves from malls to mobile and online channels.
While these stocks negatively affected relative returns, we were pleased with the results of many of our portfolio’s companies. Canadian Pacific Railway was the Fund’s largest individual contributor. The company is a good example of the types of sustainable competitive moats we look for in a business. Canadian Pacific’s railroad network across Canada is a valuable asset that would be nearly impossible for other transportation and logistics companies to replicate. The company also has a significant cost advantage over the trucking industry. In our view, Canadian Pacific still has a large opportunity to grow revenues and railroad volumes as it improves execution around its railroad network. A new CEO took over the firm in 2012 and is transforming the company by focusing on three key points: better service and reliability to customers, improved profitability through operating efficiency and new revenue opportunities. As service and reliability improve, it will likely drive more shippers to use Canadian Pacific instead of trucking services. We saw more evidence of that as the company reported strong earnings growth and improved volumes and pricing.
Janus Growth & Core Funds | 35
Table of Contents
Janus Forty Fund (unaudited)
Google, our largest position, was another top individual contributor, even though its strong relative performance failed to offset our other information technology holdings. The company was up considerably as it 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, help lock in the consumer base on the platform.
Within health care, Gilead Sciences was also additive to returns. This research-based biopharmaceutical company’s primary areas of focus include human immunodeficiency virus HIV/AIDS; liver diseases, such as hepatitis B and C; and cardiovascular/metabolic and respiratory conditions. Gilead released strong results for its hepatitis C drug, which involves a single-pill, once-a-day regimen. We consider this a groundbreaking change in a field in which less than 5% of patients are treated today because current treatments (weekly injections that cause flu-like symptoms) are so poorly tolerated. The potential market size is significant since approximately 3% of the world’s populations (170 million people) are believed to be infected, including over three million in the U.S. As treatment moves to an all-oral, well-tolerated therapy, the market may expand significantly, and we believe Gilead is poised to be a leader in the next wave of therapies. We also value the company’s dominant HIV drug franchise (85% market share), which continues to grow with high margins.
OUTLOOK
Going forward, we expect near-term volatility as the market assesses the probability and timing of the Fed increasing interest rates. Our own view is that there will not be a dramatic increase in rates any time soon. While the U.S. economy is improving at a steady pace, some deflationary pressures remain. For the average household, income has remained flat for more than a decade, and we are still not seeing signs of broad wage growth. With so much of the economy driven by consumption, and low expectations of a boost in government spending, we would expect continued modest economic growth and for the Fed to take a cautious approach to normalizing interest rates.
While economic growth may be less than optimal, we continue to be encouraged by the potential of the companies in our portfolio. We believe these companies have strong secular growth trends that should help them demonstrate above-market earnings growth over longer time periods. In an investment environment such as today, accelerated earnings growth will be critical. Much of the returns of 2013 and early 2014 were driven by expansion of price-earnings ratios. With equities now more reasonably valued, we believe companies will need to demonstrate earnings growth to achieve further stock price appreciation.
Thank you for your investment in Janus Forty Fund. We look forward to reporting results in the future.
36 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Forty Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| �� | ||||
| Canadian Pacific Railway, Ltd. (U.S. Shares) | 2.47% | |||
| Google, Inc. – Class A | 1.96% | |||
| Gilead Sciences, Inc. | 1.62% | |||
| Celgene Corp. | 1.10% | |||
| Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 0.89% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Prada SpA | –0.41% | |||
| L Brands, Inc. | –0.36% | |||
| Pernod-Ricard SA | –0.30% | |||
| Teradata Corp. | –0.27% | |||
| CoStar Group, Inc. | –0.25% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Industrials | 1.21% | 11.31% | 12.26% | |||||||||
| Energy | 0.36% | 0.00% | 5.08% | |||||||||
| Health Care | 0.35% | 20.70% | 12.63% | |||||||||
| Utilities | –0.02% | 0.00% | 0.15% | |||||||||
| Consumer Staples | –0.06% | 0.78% | 11.53% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Consumer Discretionary | –3.01% | 27.61% | 19.17% | |||||||||
| Information Technology | –2.90% | 23.50% | 27.17% | |||||||||
| Financials | –0.94% | 10.05% | 5.37% | |||||||||
| Materials | –0.32% | 3.36% | 4.46% | |||||||||
| Telecommunication Services | –0.22% | 2.06% | 2.18% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
Janus Growth & Core Funds | 37
Table of Contents
Janus Forty Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Google, Inc. – Class C Internet Software & Services | 5.6% | |||
| Precision Castparts Corp. Aerospace & Defense | 5.1% | |||
| Celgene Corp. Biotechnology | 4.6% | |||
| Canadian Pacific Railway, Ltd. (U.S. Shares) Road & Rail | 4.1% | |||
| Lowe’s Cos., Inc. Specialty Retail | 4.0% | |||
| 23.4% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
38 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectus | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Forty Fund – Class A Shares | |||||||||||
| NAV | 12.72% | 11.27% | 9.83% | 10.48% | 0.86% | ||||||
| MOP | 6.25% | 9.97% | 9.18% | 10.22% | |||||||
| Janus Forty Fund – Class C Shares | |||||||||||
| NAV | 11.89% | 10.42% | 9.00% | 9.90% | 1.65% | ||||||
| CDSC | 10.99% | 10.42% | 9.00% | 9.90% | |||||||
| Janus Forty Fund – Class I Shares | 13.11% | 11.59% | 9.63% | 10.48% | 0.55% | ||||||
| Janus Forty Fund – Class N Shares | 13.17% | 11.14% | 9.63% | 10.48% | 0.47% | ||||||
| Janus Forty Fund – Class R Shares | 12.35% | 10.83% | 9.34% | 10.23% | 1.21% | ||||||
| Janus Forty Fund – Class S Shares | 12.69% | 11.14% | 9.63% | 10.48% | 0.96% | ||||||
| Janus Forty Fund – Class T Shares | 12.90% | 11.39% | 9.63% | 10.48% | 0.71% | ||||||
| Russell 1000® Growth Index | 19.15% | 16.50% | 8.94% | 6.47% | |||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 7.28% | |||||||
| Morningstar Quartile – Class S Shares | 4th | 4th | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Large Growth Funds | 1,510/1,762 | 1,507/1,549 | 237/1,354 | 37/818 | |||||||
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.
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
See important disclosures on the next page.
Janus Growth & Core Funds | 39
Table of Contents
Janus Forty Fund (unaudited)
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 of 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.
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 |
40 | SEPTEMBER 30, 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 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,044.40 | $ | 4.51 | $ | 1,000.00 | $ | 1,020.66 | $ | 4.46 | 0.88% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,040.80 | $ | 8.24 | $ | 1,000.00 | $ | 1,017.00 | $ | 8.14 | 1.61% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,046.30 | $ | 2.82 | $ | 1,000.00 | $ | 1,022.31 | $ | 2.79 | 0.55% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,046.60 | $ | 2.51 | $ | 1,000.00 | $ | 1,022.61 | $ | 2.48 | 0.49% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,042.50 | $ | 6.35 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.28 | 1.24% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,044.10 | $ | 5.07 | $ | 1,000.00 | $ | 1,020.11 | $ | 5.01 | 0.99% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,045.00 | $ | 3.79 | $ | 1,000.00 | $ | 1,021.36 | $ | 3.75 | 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 183/365 (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
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 99.4% | ||||||||||
| Aerospace & Defense – 5.1% | ||||||||||
| 554,373 | Precision Castparts Corp. | $ | 131,319,876 | |||||||
| Auto Components – 3.1% | ||||||||||
| 1,297,669 | Delphi Automotive PLC | 79,599,017 | ||||||||
| Biotechnology – 10.4% | ||||||||||
| 193,644 | Biogen Idec, Inc.* | 64,059,372 | ||||||||
| 1,237,886 | Celgene Corp.* | 117,326,835 | ||||||||
| 459,495 | Gilead Sciences, Inc.* | 48,913,243 | ||||||||
| 320,764 | Pharmacyclics, Inc.* | 37,667,316 | ||||||||
| | ||||||||||
| 267,966,766 | ||||||||||
| Capital Markets – 1.1% | ||||||||||
| 1,230,807 | E*TRADE Financial Corp.* | 27,803,930 | ||||||||
| Chemicals – 2.0% | ||||||||||
| 460,318 | Monsanto Co. | 51,790,378 | ||||||||
| Commercial Banks – 3.1% | ||||||||||
| 1,877,083 | U.S. Bancorp | 78,518,382 | ||||||||
| Diversified Financial Services – 2.2% | ||||||||||
| 287,828 | Intercontinental Exchange, Inc. | 56,140,852 | ||||||||
| Electronic Equipment, Instruments & Components – 1.6% | ||||||||||
| 403,762 | Amphenol Corp. – Class A | 40,319,673 | ||||||||
| Health Care Technology – 1.1% | ||||||||||
| 209,351 | athenahealth, Inc.* | 27,569,433 | ||||||||
| Hotels, Restaurants & Leisure – 4.7% | ||||||||||
| 1,402,905 | MGM Resorts International* | 31,958,176 | ||||||||
| 133,972 | Panera Bread Co. – Class A* | 21,799,924 | ||||||||
| 890,134 | Starbucks Corp. | 67,169,511 | ||||||||
| | ||||||||||
| 120,927,611 | ||||||||||
| Information Technology Services – 3.3% | ||||||||||
| 1,155,450 | MasterCard, Inc. – Class A | 85,410,864 | ||||||||
| Insurance – 2.6% | ||||||||||
| 752,723 | Aon PLC | 65,991,226 | ||||||||
| Internet & Catalog Retail – 7.1% | ||||||||||
| 501,014 | Alibaba Group Holding, Ltd. (ADR)* | 44,515,094 | ||||||||
| 267,427 | Amazon.com, Inc.* | 86,229,162 | ||||||||
| 45,140 | Priceline Group, Inc.* | 52,298,301 | ||||||||
| | ||||||||||
| 183,042,557 | ||||||||||
| Internet Software & Services – 12.5% | ||||||||||
| 261,012 | CoStar Group, Inc.* | 40,597,806 | ||||||||
| 246,449 | Google, Inc. – Class C* | 142,289,795 | ||||||||
| 201,073 | LinkedIn Corp. – Class A* | 41,780,959 | ||||||||
| 3,552,100 | Tencent Holdings, Ltd. | 52,878,576 | ||||||||
| 1,037,564 | Yahoo!, Inc.* | 42,280,733 | ||||||||
| | ||||||||||
| 319,827,869 | ||||||||||
| Media – 4.1% | ||||||||||
| 1,217,183 | Comcast Corp. – Class A | 65,460,102 | ||||||||
| 1,128,109 | Twenty-First Century Fox, Inc. – Class A | 38,682,857 | ||||||||
| | ||||||||||
| 104,142,959 | ||||||||||
| Pharmaceuticals – 10.1% | ||||||||||
| 1,290,251 | Endo International PLC* | 88,175,753 | ||||||||
| 699,400 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 91,761,280 | ||||||||
| 2,126,187 | Zoetis, Inc. | 78,562,610 | ||||||||
| | ||||||||||
| 258,499,643 | ||||||||||
| Professional Services – 2.0% | ||||||||||
| 1,178,617 | Nielsen NV | 52,248,092 | ||||||||
| Real Estate Investment Trusts (REITs) – 3.2% | ||||||||||
| 1,021,842 | Crown Castle International Corp. | 82,288,936 | ||||||||
| Road & Rail – 5.8% | ||||||||||
| 513,386 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 106,512,193 | ||||||||
| 356,639 | Kansas City Southern | 43,224,647 | ||||||||
| | ||||||||||
| 149,736,840 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.5% | ||||||||||
| 1,454,562 | ARM Holdings PLC (ADR) | 63,549,814 | ||||||||
| Software – 4.6% | ||||||||||
| 227,458 | NetSuite, Inc.* | 20,366,589 | ||||||||
| 1,716,397 | Salesforce.com, Inc.* | 98,744,320 | ||||||||
| | ||||||||||
| 119,110,909 | ||||||||||
| Specialty Retail – 6.1% | ||||||||||
| 1,941,633 | Lowe’s Cos., Inc. | 102,751,218 | ||||||||
| 887,688 | TJX Cos., Inc. | 52,524,499 | ||||||||
| | ||||||||||
| 155,275,717 | ||||||||||
| Wireless Telecommunication Services – 1.1% | ||||||||||
| 986,752 | T-Mobile U.S., Inc. | 28,487,530 | ||||||||
| Total Common Stock (cost $2,035,927,414) | 2,549,568,874 | |||||||||
| Money Market – 1.2% | ||||||||||
| 29,639,000 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $29,639,000) | 29,639,000 | ||||||||
| Total Investments (total cost $2,065,566,414) – 100.6% | 2,579,207,874 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.6)% | (16,486,956) | |||||||||
| Net Assets – 100% | $ | 2,562,720,918 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 2,219,990,917 | 86 | .1% | ||||
| Canada | 198,273,473 | 7 | .7 | |||||
| China | 97,393,670 | 3 | .8 | |||||
| United Kingdom | 63,549,814 | 2 | .4 | |||||
| Total | $ | 2,579,207,874 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 1.1%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
42 | SEPTEMBER 30, 2014
Table of Contents
Janus Fund (unaudited)
FUND SNAPSHOT We believe that buying high quality growth franchises with sustainable, projected above-average earnings growth outlooks 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 REVIEW
Janus Fund’s Class T Shares returned 16.37% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 19.15% during the period, and its secondary benchmark, the S&P 500 Index, returned 19.73%. The Core Growth Index returned 19.45% during the period. While we underperformed the benchmark during the period, it has been a tough investment environment for active managers against the Russell 1000 Growth Index. We were pleased, however, to see our performance was more competitive against the rest of our peer group (51st percentile).
INVESTMENT ENVIRONMENT
U.S. large-cap growth equities performed well in the past 12 months. While markets climbed significantly higher early in the period, first quarter gains slowed due to a colder-than-normal winter that negatively affected a number of macroeconomic data points, as well as speculation around how and when the Federal Reserve (Fed) would begin raising interest rates. Tensions between Ukraine and Russia also caused bouts of volatility. Increasing confirmation signals that the U.S. economy was on stable footing, coupled with the European Central Bank’s interest rate cut and other measures to stimulate eurozone growth, boosted markets broadly through the spring. The third quarter saw further gains on modestly improving data as investors largely shrugged off mounting geopolitical unrest. However, growing investor uncertainty also resulted in summer pullbacks and the beginnings of a sharp sell-off in the last weeks of September. Despite this volatility, the period ended with generally positive corporate earnings reports, strong gross domestic product (GDP) growth and lower unemployment rates, all providing more evidence of a strengthening U.S. economy. In addition, the Fed indicated its intent to keep interest rates low for a “considerable time.”
PERFORMANCE DISCUSSION
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. For the vast majority of those companies that did fall, we continue to have high conviction in their long-term growth potential.
Most of the relative underperformance came from consumer staples, consumer discretionary and information technology holdings. The largest individual detractor was Whole Foods Market. The consumer staples stock fell after the company announced disappointing earnings results. We are currently reviewing the future growth potential for the company, which is facing a more competitive landscape from other natural and organic grocers.
Within consumer discretionary, Amazon.com was another top individual detractor. The stock fell early in the year after the company reported revenue growth below consensus expectations. We continue to like the long-term
Janus Growth & Core Funds | 43
Table of Contents
Janus Fund (unaudited)
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.
Industrials stock Colfax Corporation also weighed on performance. While the company reported weaker earnings this quarter, the reasons we own the company have not changed. The chairman of the company’s board comes from one of the most successful multi-industrial companies of the past decade. That company had a history of making shrewd acquisitions of industrial companies operating in large, growing addressable markets that were very fragmented. The company would grow earnings by consolidating these fragmented industries and also by emphasizing lean and efficient manufacturing improvements with the companies it acquired. The chairman is implementing a similar focus on industry consolidation and lean manufacturing at Colfax, which should lead to steady earnings growth over time.
While the aforementioned companies had a negative impact on relative performance this period, we were encouraged to see many other companies in the Fund put up impressive results and continue to execute on the strategies we believe set them apart from their competition. Health care, financials and energy holdings were the most additive to returns.
Apple and Google were the two top individual contributors, even though their strong relative performance failed to offset our other information technology holdings. Apple, our largest position, was up in part due to excitement about new product launches from the company. Our basic view is that Apple is a strong brand and that as consumers get more familiar with Apple products, they get more deeply entrenched in the Apple ecosystem, branching out to buy new Apple products and returning to the brand when it is time to update existing ones. We see evidence in this trend by the fact that household spending on Apple products continues to increase. We think recent innovations by Apple, including its Apple Pay mobile payment system, further entrench Apple with its customers.
Google, a top 5 holding, was up considerably 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.
Within industrials, Canadian Pacific Railway was another top individual contributor. The transformation the company has experienced since 2012 began under a new CEO that year, who focused the efforts of the company on three key points: better service and reliability to customers, improved profitability through operating efficiency and new revenue opportunities. Since then, the CEO has put in a fully capable team around him to execute on each of the above points, and success in each category continues to drive the outperformance we are seeing. Service metrics such as on-time deliveries and velocity have improved, operating margins have increased dramatically with more opportunity to expand and the company has driven new revenues from such markets as domestic Canada container traffic, grain and crude by rail. Most recently, a new CFO has joined the company and had a positive impact on driving better capital allocation decisions, including commencing a share repurchase program that further benefits shareholders.
DERIVATIVES
Derivatives, including options and forwards, are used in the portfolio to generate income and periodically to hedge market risk. The purpose of the option strategy is an attempt to generate income and reduce the risk in the portfolio. The purpose of the forwards strategy is to reduce the overall volatility of the Fund. 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 expect the U.S. economy to continue growing at a steady pace, with consumer spending remaining moderate as wage growth remains slow. Looking across large-cap equities, we believe stocks are reasonably valued, given an environment of moderate but durable growth and low inflation. While stocks are more reasonably valued than they were several quarters ago, we continue to find durable growth opportunities.
An example where we currently see opportunities is in the health care sector. The last decade has brought about
44 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
rapid changes in the way in which drugs are developed and clinical trials are conducted. This has led to more successful research and development efforts and a wave of breakthrough therapies that represent significant improvements over previous treatment options for a number of high, unmet medical needs. We believe the drugs being developed by the companies we own represent meaningful, long duration growth opportunities.
Thank you for your investment in Janus Fund.
Janus Growth & Core Funds | 45
Table of Contents
Janus Fund (unaudited)
Janus Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Apple, Inc. | 2.48% | |||
| Google, Inc. – Class A | 1.34% | |||
| Canadian Pacific Railway, Ltd. (U.S. Shares) | 1.31% | |||
| Gilead Sciences, Inc. | 0.89% | |||
| Union Pacific Corp. | 0.68% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Whole Foods Market, Inc. | –0.64% | |||
| Amazon.com, Inc. | –0.27% | |||
| Colfax Corp. | –0.24% | |||
| Teradata Corp. | –0.22% | |||
| L Brands, Inc. | –0.21% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Health Care | 0.92% | 15.23% | 12.63% | |||||||||
| Financials | 0.47% | 4.10% | 5.37% | |||||||||
| Energy | 0.33% | 4.67% | 5.08% | |||||||||
| Telecommunication Services | 0.02% | 0.59% | 2.18% | |||||||||
| Materials | –0.11% | 3.37% | 4.46% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Consumer Staples | –1.53% | 7.32% | 11.53% | |||||||||
| Consumer Discretionary | –0.75% | 17.62% | 19.17% | |||||||||
| Information Technology | –0.64% | 31.25% | 27.17% | |||||||||
| Other** | –0.21% | 0.65% | 0.00% | |||||||||
| Industrials | –0.17% | 14.30% | 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. |
46 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 6.3% | |||
| Google, Inc. – Class C Internet Software & Services | 2.9% | |||
| Comcast Corp. – Class A Media | 2.8% | |||
| Home Depot, Inc. Specialty Retail | 2.4% | |||
| ARM Holdings PLC Semiconductor & Semiconductor Equipment | 2.4% | |||
| 16.8% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Growth & Core Funds | 47
Table of Contents
Janus Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Fund – Class A Shares | |||||||||||
| NAV | 16.27% | 12.43% | 7.29% | 12.37% | 0.99% | ||||||
| MOP | 9.58% | 11.11% | 6.66% | 12.22% | |||||||
| Janus Fund – Class C Shares | |||||||||||
| NAV | 15.35% | 11.63% | 6.49% | 11.74% | 1.70% | ||||||
| CDSC | 14.35% | 11.63% | 6.49% | 11.74% | |||||||
| Janus Fund – Class D Shares(1) | 16.52% | 12.69% | 7.43% | 12.42% | 0.68% | ||||||
| Janus Fund – Class I Shares | 16.53% | 12.77% | 7.38% | 12.41% | 0.61% | ||||||
| Janus Fund – Class N Shares | 16.66% | 12.59% | 7.38% | 12.41% | 0.52% | ||||||
| Janus Fund – Class R Shares | 15.77% | 12.02% | 6.82% | 12.02% | 1.28% | ||||||
| Janus Fund – Class S Shares | 16.10% | 12.30% | 7.10% | 12.21% | 1.03% | ||||||
| Janus Fund – Class T Shares | 16.37% | 12.59% | 7.38% | 12.41% | 0.78% | ||||||
| Russell 1000® Growth Index | 19.15% | 16.50% | 8.94% | N/A** | |||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 10.61% | |||||||
| Core Growth Index | 19.45% | 16.11% | 8.54% | N/A** | |||||||
| Morningstar Quartile – Class T Shares | 3rd | 4th | 3rd | 1st | |||||||
| Morningstar Ranking – based on total return for Large Growth Funds | 895/1,762 | 1,305/1,549 | 1,000/1,354 | 8/181 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
48 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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 index return is not available for indices created subsequent to fund inception. | |
| (1) | Closed to new investors. |
Janus Growth & Core Funds | 49
Table of Contents
Janus 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,062.20 | $ | 3.57 | $ | 1,000.00 | $ | 1,021.61 | $ | 3.50 | 0.69% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,057.50 | �� | $ | 8.25 | $ | 1,000.00 | $ | 1,017.05 | $ | 8.09 | 1.60% | ||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,062.60 | $ | 3.31 | $ | 1,000.00 | $ | 1,021.86 | $ | 3.24 | 0.64% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,062.90 | $ | 3.05 | $ | 1,000.00 | $ | 1,022.11 | $ | 2.99 | 0.59% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,063.30 | $ | 2.59 | $ | 1,000.00 | $ | 1,022.56 | $ | 2.54 | 0.50% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,059.30 | $ | 6.45 | $ | 1,000.00 | $ | 1,018.80 | $ | 6.33 | 1.25% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,060.60 | $ | 5.17 | $ | 1,000.00 | $ | 1,020.06 | $ | 5.06 | 1.00% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,062.00 | $ | 3.88 | $ | 1,000.00 | $ | 1,021.31 | $ | 3.80 | 0.75% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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. |
50 | SEPTEMBER 30, 2014
Table of Contents
Janus Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 98.5% | ||||||||||
| Aerospace & Defense – 3.3% | ||||||||||
| 979,803 | Honeywell International, Inc. | $ | 91,239,255 | |||||||
| 677,045 | Precision Castparts Corp. | 160,378,420 | ||||||||
| | ||||||||||
| 251,617,675 | ||||||||||
| Beverages – 1.6% | ||||||||||
| 1,457,871 | Diageo PLC | 42,146,423 | ||||||||
| 303,072 | Pernod Ricard SA | 34,250,901 | ||||||||
| 821,131 | SABMiller PLC | 45,621,905 | ||||||||
| | ||||||||||
| 122,019,229 | ||||||||||
| Biotechnology – 6.6% | ||||||||||
| 146,362 | Alexion Pharmaceuticals, Inc.* | 24,269,747 | ||||||||
| 483,159 | Biogen Idec, Inc.* | 159,833,829 | ||||||||
| 1,638,768 | Celgene Corp.* | 155,322,431 | ||||||||
| 609,173 | Medivation, Inc.* | 60,228,934 | ||||||||
| 915,911 | Pharmacyclics, Inc.* | 107,555,429 | ||||||||
| | ||||||||||
| 507,210,370 | ||||||||||
| Capital Markets – 0.7% | ||||||||||
| 1,849,866 | Blackstone Group LP | 58,233,782 | ||||||||
| Chemicals – 4.5% | ||||||||||
| 1,197,265 | Air Products & Chemicals, Inc. | 155,859,958 | ||||||||
| 986,521 | Monsanto Co. | 110,993,478 | ||||||||
| 420,691 | PPG Industries, Inc. | 82,766,747 | ||||||||
| | ||||||||||
| 349,620,183 | ||||||||||
| Communications Equipment – 2.9% | ||||||||||
| 1,300,367 | Motorola Solutions, Inc. | 82,287,224 | ||||||||
| 1,890,936 | QUALCOMM, Inc. | 141,385,284 | ||||||||
| | ||||||||||
| 223,672,508 | ||||||||||
| Electric Utilities – 0.9% | ||||||||||
| 1,782,611 | Brookfield Infrastructure Partners LP | 67,739,218 | ||||||||
| Electrical Equipment – 1.9% | ||||||||||
| 3,217,923 | Sensata Technologies Holding NV* | 143,294,111 | ||||||||
| Electronic Equipment, Instruments & Components – 1.6% | ||||||||||
| 590,008 | Amphenol Corp. – Class A | 58,918,199 | ||||||||
| 1,161,467 | TE Connectivity, Ltd. (U.S. Shares) | 64,217,510 | ||||||||
| | ||||||||||
| 123,135,709 | ||||||||||
| Food & Staples Retailing – 2.0% | ||||||||||
| 560,688 | Kroger Co. | 29,155,776 | ||||||||
| 1,025,714 | Sysco Corp. | 38,925,846 | ||||||||
| 2,314,489 | Whole Foods Market, Inc. | 88,205,176 | ||||||||
| | ||||||||||
| 156,286,798 | ||||||||||
| Food Products – 0.7% | ||||||||||
| 565,357 | Hershey Co. | 53,952,019 | ||||||||
| Health Care Equipment & Supplies – 1.4% | ||||||||||
| 1,056,857 | Zimmer Holdings, Inc.† | 106,266,971 | ||||||||
| Health Care Providers & Services – 0.9% | ||||||||||
| 1,653,766 | Catamaran Corp. (U.S. Shares)* | 69,706,237 | ||||||||
| Health Care Technology – 1.0% | ||||||||||
| 597,931 | athenahealth, Inc.* | 78,741,533 | ||||||||
| Hotels, Restaurants & Leisure – 3.7% | ||||||||||
| 88,817 | Chipotle Mexican Grill, Inc.* | 59,204,524 | ||||||||
| 2,405,226 | Dunkin’ Brands Group, Inc. | 107,802,229 | ||||||||
| 1,557,822 | Starbucks Corp. | 117,553,248 | ||||||||
| | ||||||||||
| 284,560,001 | ||||||||||
| Household Products – 1.1% | ||||||||||
| 1,288,414 | Colgate-Palmolive Co. | 84,030,361 | ||||||||
| Information Technology Services – 3.5% | ||||||||||
| 1,917,649 | MasterCard, Inc. – Class A | 141,752,614 | ||||||||
| 584,036 | Visa, Inc. – Class A | 124,615,761 | ||||||||
| | ||||||||||
| 266,368,375 | ||||||||||
| Insurance – 1.4% | ||||||||||
| 1,195,763 | Aon PLC | 104,832,542 | ||||||||
| Internet & Catalog Retail – 2.9% | ||||||||||
| 442,565 | Alibaba Group Holding, Ltd. (ADR)* | 39,321,900 | ||||||||
| 318,458 | Amazon.com, Inc.* | 102,683,598 | ||||||||
| 480,358 | Ctrip.com International, Ltd. (ADR)* | 27,265,120 | ||||||||
| 46,208 | Priceline Group, Inc.* | 53,535,665 | ||||||||
| | ||||||||||
| 222,806,283 | ||||||||||
| Internet Software & Services – 6.8% | ||||||||||
| 290,892 | CoStar Group, Inc.* | 45,245,342 | ||||||||
| 1,040,429 | Facebook, Inc. – Class A* | 82,235,508 | ||||||||
| 257,758 | Google, Inc. – Class A*,† | 151,667,385 | ||||||||
| 382,993 | Google, Inc. – Class C*,† | 221,124,838 | ||||||||
| 110,933 | LinkedIn Corp. – Class A* | 23,050,768 | ||||||||
| | ||||||||||
| 523,323,841 | ||||||||||
| Machinery – 1.8% | ||||||||||
| 2,422,781 | Colfax Corp.* | 138,025,834 | ||||||||
| Media – 5.8% | ||||||||||
| 4,015,818 | Comcast Corp. – Class A† | 215,970,692 | ||||||||
| 4,763,863 | Twenty-First Century Fox, Inc. – Class A | 163,352,863 | ||||||||
| 726,608 | Walt Disney Co. | 64,689,910 | ||||||||
| | ||||||||||
| 444,013,465 | ||||||||||
| Oil, Gas & Consumable Fuels – 3.4% | ||||||||||
| 722,650 | Antero Resources Corp. | 39,666,258 | ||||||||
| 998,306 | Enterprise Products Partners LP | 40,231,732 | ||||||||
| 294,266 | EOG Resources, Inc. | 29,138,219 | ||||||||
| 750,697 | MarkWest Energy Partners LP | 57,668,544 | ||||||||
| 1,116,181 | Noble Energy, Inc. | 76,302,133 | ||||||||
| 482,417 | Southwestern Energy Co.* | 16,860,474 | ||||||||
| | ||||||||||
| 259,867,360 | ||||||||||
| Personal Products – 0.4% | ||||||||||
| 455,073 | Estee Lauder Cos., Inc. – Class A | 34,003,055 | ||||||||
| Pharmaceuticals – 7.1% | ||||||||||
| 2,101,314 | Bristol-Myers Squibb Co. | 107,545,251 | ||||||||
| 2,388,575 | Endo International PLC* | 163,235,215 | ||||||||
| 797,192 | Jazz Pharmaceuticals PLC* | 127,997,148 | ||||||||
| 489,868 | Mallinckrodt PLC* | 44,161,600 | ||||||||
| 330,997 | Perrigo Co. PLC | 49,712,439 | ||||||||
| 393,938 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 51,684,666 | ||||||||
| | ||||||||||
| 544,336,319 | ||||||||||
| Professional Services – 0.8% | ||||||||||
| 1,072,601 | Verisk Analytics, Inc. – Class A* | 65,310,675 | ||||||||
| Real Estate Investment Trusts (REITs) – 2.3% | ||||||||||
| 1,898,597 | American Tower Corp. | 177,765,637 | ||||||||
| Real Estate Management & Development – 1.5% | ||||||||||
| 1,440,533 | CBRE Group, Inc. – Class A* | 42,841,452 | ||||||||
| 63,440,528 | Colony American Homes Holdings III LP – Private Placement*,§ | 70,418,986 | ||||||||
| | ||||||||||
| 113,260,438 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 51
Table of Contents
Janus Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Road & Rail – 3.1% | ||||||||||
| 618,755 | Canadian Pacific Railway, Ltd. (U.S. Shares) | $ | 128,373,100 | |||||||
| 1,004,898 | Union Pacific Corp. | 108,951,041 | ||||||||
| | ||||||||||
| 237,324,141 | ||||||||||
| Semiconductor & Semiconductor Equipment – 3.8% | ||||||||||
| 12,620,385 | ARM Holdings PLC | 183,860,842 | ||||||||
| 6,029,045 | Atmel Corp.* | 48,714,683 | ||||||||
| 1,700,024 | Freescale Semiconductor, Ltd.* | 33,201,469 | ||||||||
| 7,576,814 | Taiwan Semiconductor Manufacturing Co., Ltd. | 30,162,485 | ||||||||
| | ||||||||||
| 295,939,479 | ||||||||||
| Software – 6.5% | ||||||||||
| 557,622 | ANSYS, Inc.* | 42,195,257 | ||||||||
| 10,389,421 | Cadence Design Systems, Inc.* | 178,801,935 | ||||||||
| 1,584,920 | NetSuite, Inc.* | 141,913,737 | ||||||||
| 2,378,636 | Salesforce.com, Inc.* | 136,842,929 | ||||||||
| | ||||||||||
| 499,753,858 | ||||||||||
| Specialty Retail – 5.0% | ||||||||||
| 68,155 | AutoZone, Inc.* | 34,735,877 | ||||||||
| 2,035,917 | Home Depot, Inc. | 186,775,026 | ||||||||
| 3,167,279 | Sally Beauty Holdings, Inc.* | 86,688,426 | ||||||||
| 774,818 | TJX Cos., Inc. | 45,845,981 | ||||||||
| 294,921 | Ulta Salon Cosmetics & Fragrance, Inc. | 34,850,815 | ||||||||
| | ||||||||||
| 388,896,125 | ||||||||||
| Technology Hardware, Storage & Peripherals – 6.3% | ||||||||||
| 4,830,513 | Apple, Inc.† | 486,674,185 | ||||||||
| Trading Companies & Distributors – 0.7% | ||||||||||
| 615,428 | MSC Industrial Direct Co., Inc. – Class A | 52,594,477 | ||||||||
| Wireless Telecommunication Services – 0.6% | ||||||||||
| 1,614,693 | T-Mobile U.S., Inc. | 46,616,187 | ||||||||
| Total Common Stock (cost $6,070,813,600) | 7,581,798,981 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Options – Calls – 0.1% | ||||||||||
| Credit Suisse International: Oracle Corp.* expires March 2015 23,669 contracts exercise price $42.00 | 1,665,391 | |||||||||
| Morgan Stanley & Co. International PLC: | ||||||||||
| Salesforce.com, Inc.* expires January 2015 3,025 contracts exercise price $65.00 | 442,912 | |||||||||
| Zimmer Holdings, Inc.* expires March 2015 7,553 contracts exercise price $105.00 | 2,894,811 | |||||||||
| Total OTC Purchased Options – Calls (premiums paid $10,220,573) | 5,003,114 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Option – Put – 0% | ||||||||||
Morgan Stanley & Co. International PLC: SPDR S&P 500® Trust (ETF)* expires February 2015 4,132 contracts exercise price $188.00 (premiums paid $1,623,876) | 1,954,350 | |||||||||
| Money Market – 1.3% | ||||||||||
| 97,632,403 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $97,632,403) | 97,632,403 | ||||||||
| Total Investments (total cost $6,180,290,452) – 99.9% | 7,686,388,848 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 5,645,302 | |||||||||
| Net Assets – 100% | $ | 7,692,034,150 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 7,033,995,269 | 91 | .5% | ||||
| United Kingdom | 271,629,170 | 3 | .5 | |||||
| Canada | 249,764,003 | 3 | .3 | |||||
| China | 66,587,020 | 0 | .9 | |||||
| France | 34,250,901 | 0 | .4 | |||||
| Taiwan | 30,162,485 | 0 | .4 | |||||
| Total | $ | 7,686,388,848 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 1.3%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Counterparty/Currency | Currency | Currency | Appreciation/ | |||||||||
| and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| British Pound 10/23/14 | 32,860,000 | $ | 53,251,873 | $ | 507,087 | |||||||
| Euro 10/23/14 | 4,550,000 | 5,747,054 | 108,978 | |||||||||
| 58,998,927 | 616,065 | |||||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| British Pound 10/9/14 | 34,159,000 | 55,364,618 | 1,161,694 | |||||||||
| Euro 10/9/14 | 4,360,000 | 5,506,511 | 267,307 | |||||||||
| 60,871,129 | 1,429,001 | |||||||||||
| JPMorgan Chase & Co.: | ||||||||||||
| British Pound 10/16/14 | 11,500,000 | 18,637,819 | 30,442 | |||||||||
| Euro 10/16/14 | 4,350,000 | 5,494,159 | 136,855 | |||||||||
| 24,131,978 | 167,297 | |||||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| British Pound 10/16/14 | 29,300,000 | 47,485,921 | 302,379 | |||||||||
| Euro 10/16/14 | 4,450,000 | 5,620,461 | 151,189 | |||||||||
| 53,106,382 | 453,568 | |||||||||||
| Total | $ | 197,108,416 | $ | 2,665,931 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
52 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
Schedule of OTC Written Options – Puts
| Counterparty/Reference Asset | Value | |||
| Credit Suisse International: | ||||
| Oracle Corp. expires March 2015 23,669 contracts exercise price $38.00 | $ | (5,057,961) | ||
| Zimmer Holdings, Inc. expires March 2015 5,061 contracts exercise price $100.00 | (2,801,979) | |||
| Morgan Stanley & Co. International PLC: Zimmer Holdings, Inc. expires March 2015 2,492 contracts exercise price $100.00 | (1,379,674) | |||
| Total OTC Written Options – Puts (premiums received $6,197,828) | $ | (9,239,614) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 53
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 co-portfolio manager |  Jeremiah Buckley co-portfolio manager |
PERFORMANCE
Janus Growth and Income Fund’s Class T Shares returned 16.81% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the S&P 500 Index, returned 19.73%, and its secondary benchmark, the Russell 1000 Growth Index, returned 19.15% during the period.
INVESTMENT ENVIRONMENT
U.S. stocks delivered strong returns during the past 12 months. Markets rallied early in the period, though first quarter gains slowed due to profit taking and lingering concerns around emerging market growth, particularly in China. Favorable economic signals in areas such as employment and corporate earnings drove stocks higher through the spring, even as gross domestic product (GDP) was revised sharply down, blamed primarily on difficult winter weather. The third quarter saw further gains on marginally improving data, despite disappointing August job numbers and mounting geopolitical unrest that resulted in late-summer pullbacks. Growing investor uncertainty also prompted the beginnings of a sharp selloff in the last weeks of September. Notwithstanding this volatility, the period ended with a healthy consumer environment, marked by improving employment trends, low inflation, higher borrowing and increased credit, constructive factors that have led to good retail and consumer spending data, which we expect to remain in place near term. Companies have continued to return cash to shareholders through share repurchases and dividend hikes. Importantly, the Federal Reserve (Fed) has also indicated its intent to keep interest rates low for “a considerable time” until there is obvious improvement in the economy and employment.
PERFORMANCE DISCUSSION
Our fundamental research focuses on identifying attractive large-capitalization companies with what we feel is the right balance between dividend distribution, business reinvestment and other productive uses of excess cash flow. Although the Fund lagged its benchmarks during this period, 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.
Consumer discretionary holdings weighed the most on relative performance, led lower by the Fund’s three largest individual detractors, Mattel, General Motors and Las Vegas Sands.
After three years of gaining market share in the toy industry, Mattel has struggled over the last nine months, the latest evidence being its second quarter results. The company showed weakness in market share as it continued to work down inventory build-up from the fourth quarter of 2013. We anticipated it would take some time to improve inventory, given the holiday-focus of its industry, and remain hopeful the company’s market share has stabilized, while its inventory levels are back to normal. We believe the company’s high dividend offers some downside protection and are hopeful its Barbie brand will offset saturation of its Monster High line in its core doll business. We maintained our position.
General Motors also weighed on our consumer discretionary performance. Recalls and litigation stemming from GM’s faulty ignition switches have been a headwind for the stock, as has the company’s inability to hit margin targets. However, GM still offers an attractive dividend, in our view, and despite these near-term concerns we believe the stock is undervalued at its current level.
Las Vegas Sands was among casino operators negatively affected by an ongoing slowdown in VIP business in Macau, China, due to the Chinese government’s two-year anti-corruption drive. The company has continued to grow its mass premium business in Macau, where the numbers of visitors are still increasing. We remain hopeful government pressures will ease on the VIP business or that the mass premium segment will more than offset declines in VIP. Longer term, growth trends in Macau should remain strong, in our view. We also appreciate Las Vegas Sands’ efforts to increase rooms and focus on
54 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
making more revenue off each visitor. We believe Las Vegas Sands remains well positioned to benefit from wealth creation in Asia, including prospects for gaming in Japan and Korea.
Information technology holdings were also significant detractors to relative returns. The Fund’s cash position slightly weighed on performance as well, though it is not used as a strategy but only a necessary component of day-to-day portfolio management.
Holdings within the materials, industrials and energy sectors were the most additive to relative performance. The Fund’s three largest positions were also the top individual contributors.
In materials, LyondellBasell Industries, the largest individual contributor, reported record quarterly earnings in July, with both sales and profits higher than market estimates. The chemicals provider also continued its stock buyback program. Lyondell is still benefiting from low natural gas prices, as a result of high production from North American shale development fields. The company’s expansion efforts also began adding to profitability during its most recent quarter. We feel the market is underestimating earnings and free-cash-flow growth from its expansion efforts.
Technology leader Apple also aided performance on investor anticipation and subsequent announcements of new versions of its popular iPhone, along with an Apple Watch and a mobile payments system. We felt the product announcements demonstrate the company’s continued strength in combining hardware, software and services, which serve as an important differentiator from competitors. In addition, the cross-device integration between all of Apple’s products will continue to strengthen and expand its ecosystem, in our view. Despite recent gains, we still view the stock’s risk/reward profile as attractive.
Pharmaceutical firm AbbVie also had strong gains on its attempted acquisition of Ireland-based Shire, which had rebuffed those efforts as of period end. We believe the transaction would be a positive in that it could lower AbbVie’s tax rate through a tax inversion by using lower rates in Ireland, and would help to diversify the company’s product lineup, which is dominated today by Humira. AbbVie also formally filed for approval of its hepatitis C drug, another all-oral therapy that we feel has strong revenue potential.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We are anticipating continued improvement in the U.S. economy, with potentially 3% gross domestic product growth next year. We also think the Fed will maintain low interest rates near term. Most market observers believe the central bank will begin raising rates in the middle of 2015, but we think it could be later. Even if rates increase modestly, we believe it would still be a good environment for equities since rising rates imply a better economy and a level of inflation to improve profitability. Valuations are not expensive, with the S&P 500 Index trading at 16x this year’s earnings. Corporate earnings should also remain good, in our view. While more companies are struggling to meet revenue expectations, we believe there are still many opportunities in terms of controlling expenses and productivity enhancements along with share repurchases to bolster earnings per share.
During the period, we reduced our bond holdings and invested in equities with dividend yields that were similar to the coupons on some of the bonds we sold. We would rather have the appreciation potential of equities plus their dividend yields than fixed income coupons with expectations of higher interest rates over the medium term. Among our new holdings are a hotel and resort operator, an energy master limited partnership, a semiconductor maker and a food services company. We also sold some higher-yielding equities in which growth opportunities were limited, since these can be impacted most negatively in a rising rate environment.
Thank you for your investment in Janus Growth and Income Fund.
Janus Growth & Core Funds | 55
Table of Contents
Janus Growth and Income Fund (unaudited)
Janus Growth and Income Fund At A Glance
5 Top Performers – Equity Holdings
| Contribution | ||||
| LyondellBasell Industries NV – Class A | 1.92% | |||
| Apple, Inc. | 1.54% | |||
| AbbVie, Inc. | 1.19% | |||
| Altria Group, Inc. | 1.15% | |||
| Enterprise Products Partners LP | 1.05% | |||
5 Bottom Performers – Equity Holdings
| Contribution | ||||
| Mattel, Inc. | –0.74% | |||
| General Motors Co. | –0.19% | |||
| Las Vegas Sands Corp. | –0.14% | |||
| Viacom, Inc. – Class B | –0.12% | |||
| Seadrill, Ltd. | –0.11% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Materials | 1.25% | 7.64% | 3.50% | |||||||||
| Industrials | 0.56% | 11.52% | 10.66% | |||||||||
| Energy | 0.36% | 7.31% | 10.37% | |||||||||
| Telecommunication Services | 0.12% | 1.94% | 2.40% | |||||||||
| Utilities | 0.01% | 3.35% | 3.04% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Consumer Discretionary | –1.79% | 14.75% | 12.16% | |||||||||
| Information Technology | –1.09% | 12.88% | 18.66% | |||||||||
| Other** | –0.33% | 1.05% | 0.00% | |||||||||
| Financials | –0.17% | 14.48% | 16.18% | |||||||||
| Health Care | –0.13% | 12.03% | 13.33% | |||||||||
| 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. |
56 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| LyondellBasell Industries NV – Class A Chemicals | 4.3% | |||
| AbbVie, Inc. Pharmaceuticals | 4.1% | |||
| Apple, Inc. Technology Hardware, Storage & Peripherals | 3.7% | |||
| Altria Group, Inc. Tobacco | 3.4% | |||
| Chevron Corp. Oil, Gas & Consumable Fuels | 3.3% | |||
| 18.8% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Growth & Core Funds | 57
Table of Contents
Janus Growth and Income Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Growth and Income Fund – Class A Shares | |||||||||||
| NAV | 16.69% | 13.03% | 7.55% | 10.59% | 0.97% | ||||||
| MOP | 9.98% | 11.70% | 6.92% | 10.31% | |||||||
| Janus Growth and Income Fund – Class C Shares | |||||||||||
| NAV | 15.77% | 12.15% | 6.70% | 9.84% | 1.82% | ||||||
| CDSC | 14.77% | 12.15% | 6.70% | 9.84% | |||||||
| Janus Growth and Income Fund – Class D Shares(1) | 16.89% | 13.21% | 7.69% | 10.67% | 0.80% | ||||||
| Janus Growth and Income Fund – Class I Shares | 16.96% | 13.32% | 7.64% | 10.65% | 0.73% | ||||||
| Janus Growth and Income Fund – Class R Shares | 16.22% | 12.54% | 7.06% | 10.17% | 1.39% | ||||||
| Janus Growth and Income Fund – Class S Shares | 16.50% | 12.83% | 7.34% | 10.42% | 1.14% | ||||||
| Janus Growth and Income Fund – Class T Shares | 16.81% | 13.11% | 7.64% | 10.65% | 0.89% | ||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 9.67% | |||||||
| Russell 1000® Growth Index | 19.15% | 16.50% | 8.94% | 8.85% | |||||||
| Morningstar Quartile – Class T Shares | 3rd | 3rd | 2nd | 1st | |||||||
| Morningstar Ranking – based on total return for Large Blend Funds | 881/1,622 | 1,029/1,383 | 550/1,147 | 61/370 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
58 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 of 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.”
Effective July 25, 2014, Marc Pinto and Jeremiah Buckley are Co-Portfolio Managers of the Fund.
| * | The Fund’s inception date – May 15, 1991 | |
| (1) | Closed to new investors. |
Janus Growth & Core Funds | 59
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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,050.90 | $ | 4.78 | $ | 1,000.00 | $ | 1,020.41 | $ | 4.71 | 0.93% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,046.90 | $ | 8.77 | $ | 1,000.00 | $ | 1,016.50 | $ | 8.64 | 1.71% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,051.80 | $ | 3.91 | $ | 1,000.00 | $ | 1,021.26 | $ | 3.85 | 0.76% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,052.30 | $ | 3.60 | $ | 1,000.00 | $ | 1,021.56 | $ | 3.55 | 0.70% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,048.80 | $ | 7.04 | $ | 1,000.00 | $ | 1,018.20 | $ | 6.93 | 1.37% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,049.90 | $ | 5.76 | $ | 1,000.00 | $ | 1,019.45 | $ | 5.67 | 1.12% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,051.40 | $ | 4.47 | $ | 1,000.00 | $ | 1,020.71 | $ | 4.41 | 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 183/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
60 | SEPTEMBER 30, 2014
Table of Contents
Janus Growth and Income Fund
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 96.8% | ||||||||||
| Aerospace & Defense – 4.3% | ||||||||||
| 893,035 | Boeing Co. | $ | 113,754,798 | |||||||
| 790,523 | Honeywell International, Inc. | 73,613,502 | ||||||||
| | ||||||||||
| 187,368,300 | ||||||||||
| Automobiles – 1.5% | ||||||||||
| 2,009,058 | General Motors Co. | 64,169,313 | ||||||||
| Beverages – 2.3% | ||||||||||
| 1,797,450 | Diageo PLC | 51,963,507 | ||||||||
| 527,168 | PepsiCo, Inc. | 49,074,069 | ||||||||
| | ||||||||||
| 101,037,576 | ||||||||||
| Capital Markets – 3.3% | ||||||||||
| 66,455 | BlackRock, Inc. | 21,818,506 | ||||||||
| 3,818,944 | Blackstone Group LP | 120,220,357 | ||||||||
| | ||||||||||
| 142,038,863 | ||||||||||
| Chemicals – 7.2% | ||||||||||
| 1,748,392 | EI du Pont de Nemours & Co. | 125,464,610 | ||||||||
| 1,732,158 | LyondellBasell Industries NV – Class A | 188,216,288 | ||||||||
| | ||||||||||
| 313,680,898 | ||||||||||
| Commercial Banks – 6.1% | ||||||||||
| 1,828,084 | JPMorgan Chase & Co. | 110,123,780 | ||||||||
| 771,172 | PacWest Bancorp | 31,795,422 | ||||||||
| 2,913,086 | U.S. Bancorp | 121,854,387 | ||||||||
| | ||||||||||
| 263,773,589 | ||||||||||
| Commercial Services & Supplies – 0.5% | ||||||||||
| 468,330 | Waste Management, Inc. | 22,259,725 | ||||||||
| Communications Equipment – 0.8% | ||||||||||
| 435,804 | QUALCOMM, Inc. | 32,585,065 | ||||||||
| Consumer Finance – 0.8% | ||||||||||
| 395,261 | American Express Co. | 34,601,148 | ||||||||
| Diversified Financial Services – 1.8% | ||||||||||
| 984,254 | CME Group, Inc. | 78,696,029 | ||||||||
| Diversified Telecommunication Services – 1.8% | ||||||||||
| 1,561,921 | Verizon Communications, Inc. | 78,080,431 | ||||||||
| Electric Utilities – 1.9% | ||||||||||
| 887,572 | Brookfield Infrastructure Partners LP | 33,727,736 | ||||||||
| 889,338 | Edison International | 49,731,781 | ||||||||
| | ||||||||||
| 83,459,517 | ||||||||||
| Electronic Equipment, Instruments & Components – 2.4% | ||||||||||
| 1,852,517 | TE Connectivity, Ltd. (U.S. Shares) | 102,425,665 | ||||||||
| Food & Staples Retailing – 1.6% | ||||||||||
| 691,707 | Kroger Co. | 35,968,764 | ||||||||
| 860,922 | Sysco Corp. | 32,671,990 | ||||||||
| | ||||||||||
| 68,640,754 | ||||||||||
| Food Products – 0.8% | ||||||||||
| 365,778 | Hershey Co. | 34,906,195 | ||||||||
| Health Care Equipment & Supplies – 1.3% | ||||||||||
| 1,310,356 | Abbott Laboratories | 54,497,706 | ||||||||
| Health Care Providers & Services – 2.8% | ||||||||||
| 1,482,230 | Aetna, Inc. | 120,060,630 | ||||||||
| Hotels, Restaurants & Leisure – 4.2% | ||||||||||
| 980,763 | Las Vegas Sands Corp. | 61,013,266 | ||||||||
| 1,482,230 | Six Flags Entertainment Corp. | 50,973,890 | ||||||||
| 816,852 | Starwood Hotels & Resorts Worldwide, Inc. | 67,970,255 | ||||||||
| | ||||||||||
| 179,957,411 | ||||||||||
| Household Products – 2.7% | ||||||||||
| 1,071,251 | Colgate-Palmolive Co. | 69,866,990 | ||||||||
| 420,609 | Kimberly-Clark Corp. | 45,244,910 | ||||||||
| | ||||||||||
| 115,111,900 | ||||||||||
| Industrial Conglomerates – 1.2% | ||||||||||
| 381,811 | 3M Co. | 54,094,982 | ||||||||
| Information Technology Services – 0.9% | ||||||||||
| 494,077 | Automatic Data Processing, Inc. | 41,047,917 | ||||||||
| Insurance – 1.8% | ||||||||||
| 2,440,533 | Prudential PLC | 54,197,916 | ||||||||
| 247,038 | Travelers Cos., Inc. | 23,206,750 | ||||||||
| | ||||||||||
| 77,404,666 | ||||||||||
| Leisure Products – 1.8% | ||||||||||
| 2,594,598 | Mattel, Inc. | 79,524,429 | ||||||||
| Machinery – 1.1% | ||||||||||
| 266,041 | Deere & Co. | 21,812,701 | ||||||||
| 345,854 | Dover Corp. | 27,782,452 | ||||||||
| | ||||||||||
| 49,595,153 | ||||||||||
| Media – 3.8% | ||||||||||
| 1,099,434 | CBS Corp. – Class B | 58,819,719 | ||||||||
| 606,367 | CBS Outdoor Americas, Inc. | 18,154,628 | ||||||||
| 314,617 | Omnicom Group, Inc. | 21,664,527 | ||||||||
| 840,543 | Viacom, Inc. – Class B | 64,671,378 | ||||||||
| | ||||||||||
| 163,310,252 | ||||||||||
| Multi-Utilities – 1.0% | ||||||||||
| 494,077 | Ameren Corp. | 18,937,971 | ||||||||
| 345,854 | National Grid PLC (ADR) | 24,859,986 | ||||||||
| | ||||||||||
| 43,797,957 | ||||||||||
| Oil, Gas & Consumable Fuels – 7.4% | ||||||||||
| 1,203,877 | Chevron Corp. | 143,646,604 | ||||||||
| 3,350,878 | Enterprise Products Partners LP | 135,040,383 | ||||||||
| 528,970 | MarkWest Energy Partners LP | 40,635,475 | ||||||||
| | ||||||||||
| 319,322,462 | ||||||||||
| Pharmaceuticals – 7.6% | ||||||||||
| 3,045,330 | AbbVie, Inc. | 175,898,261 | ||||||||
| 726,418 | Eli Lilly & Co. | 47,108,207 | ||||||||
| 1,005,716 | Johnson & Johnson | 107,199,269 | ||||||||
| | ||||||||||
| 330,205,737 | ||||||||||
| Real Estate Investment Trusts (REITs) – 0.4% | ||||||||||
| 305,643 | Ventas, Inc. | 18,934,584 | ||||||||
| Real Estate Management & Development – 0.6% | ||||||||||
| 24,027,576 | Colony American Homes Holdings III LP – Private Placement*,§ | 26,670,609 | ||||||||
| Road & Rail – 3.7% | ||||||||||
| 247,038 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 51,252,974 | ||||||||
| 1,021,880 | Union Pacific Corp. | 110,792,229 | ||||||||
| | ||||||||||
| 162,045,203 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 61
Table of Contents
Janus Growth and Income Fund
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Semiconductor & Semiconductor Equipment – 2.6% | ||||||||||
| 1,486,823 | Microchip Technology, Inc. | $ | 70,222,650 | |||||||
| 1,036,217 | Xilinx, Inc. | 43,883,790 | ||||||||
| | ||||||||||
| 114,106,440 | ||||||||||
| Software – 2.4% | ||||||||||
| 2,223,345 | Microsoft Corp. | 103,074,274 | ||||||||
| Specialty Retail – 1.0% | ||||||||||
| 452,332 | Home Depot, Inc. | 41,496,938 | ||||||||
| Technology Hardware, Storage & Peripherals – 3.7% | ||||||||||
| 1,603,000 | Apple, Inc.† | 161,502,250 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.9% | ||||||||||
| 919,725 | NIKE, Inc. – Class B | 82,039,470 | ||||||||
| Tobacco – 5.8% | ||||||||||
| 3,176,517 | Altria Group, Inc. | 145,929,191 | ||||||||
| 1,256,860 | Philip Morris International, Inc. | 104,822,124 | ||||||||
| | ||||||||||
| 250,751,315 | ||||||||||
| Total Common Stock (cost $2,811,295,926) | 4,196,275,353 | |||||||||
| Corporate Bonds – 1.1% | ||||||||||
| Hotels, Restaurants & Leisure – 0.4% | ||||||||||
| $12,498,000 | MGM Resorts International 4.2500%, 4/15/15 | 15,739,669 | ||||||||
| Internet & Catalog Retail – 0.3% | ||||||||||
| 10,000,000 | Priceline Group, Inc. 1.0000%, 3/15/18 | 13,456,250 | ||||||||
| Internet Software & Services – 0.2% | ||||||||||
| 10,000,000 | Yahoo!, Inc. 0%, 12/1/18 (144A) | 10,393,750 | ||||||||
| Real Estate Investment Trusts (REITs) – 0.2% | ||||||||||
| 9,985,000 | Prologis LP 3.2500%, 3/15/15 | 10,496,731 | ||||||||
| Total Corporate Bonds (cost $42,483,834) | 50,086,400 | |||||||||
| Preferred Stock – 1.5% | ||||||||||
| Aerospace & Defense – 0.4% | ||||||||||
| 264,550 | United Technologies Corp., 7.5000% | 15,579,349 | ||||||||
| Capital Markets – 0.3% | ||||||||||
| 250,000 | Morgan Stanley, 6.8750% | 6,532,500 | ||||||||
| 235,000 | Morgan Stanley, 7.1250% | 6,323,850 | ||||||||
| | ||||||||||
| 12,856,350 | ||||||||||
| Commercial Banks – 0.1% | ||||||||||
| 232,500 | Wells Fargo & Co., 6.6250% | 6,428,625 | ||||||||
| Consumer Finance – 0.3% | ||||||||||
| 500,000 | Discover Financial Services, 6.5000% | 12,605,000 | ||||||||
| Real Estate Investment Trusts (REITs) – 0.4% | ||||||||||
| 70,000 | American Tower Corp., 5.2500% | 7,595,000 | ||||||||
| 100,000 | Crown Castle International Corp., 4.5000% | 10,518,000 | ||||||||
| | ||||||||||
| 18,113,000 | ||||||||||
| Total Preferred Stock (cost $62,826,628) | 65,582,324 | |||||||||
| Money Market – 0.8% | ||||||||||
| 34,425,000 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $34,425,000) | 34,425,000 | ||||||||
| Total Investments (total cost $2,951,031,388) – 100.2% | 4,346,369,077 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | (10,533,827) | |||||||||
| Net Assets – 100% | $ | 4,335,835,250 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 4,164,094,694 | 95 | .8% | ||||
| United Kingdom | 131,021,409 | 3 | .0 | |||||
| Canada | 51,252,974 | 1 | .2 | |||||
| Total | $ | 4,346,369,077 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 0.8%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Counterparty/Currency | Currency | Currency | Appreciation/ | |||||||||
| and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: British Pound 10/23/14 | 13,550,000 | $ | 21,958,700 | $ | 209,100 | |||||||
| HSBC Securities (USA), Inc.: British Pound 10/9/14 | 8,090,000 | 13,112,204 | 288,032 | |||||||||
| JPMorgan Chase & Co.: British Pound 10/16/14 | 11,227,000 | 18,195,373 | 29,719 | |||||||||
| RBC Capital Markets Corp.: British Pound 10/16/14 | 9,100,000 | 14,748,187 | 93,913 | |||||||||
| Total | $ | 68,014,464 | $ | 620,764 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
62 | SEPTEMBER 30, 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 19.85% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 19.15%, and its secondary benchmark, the S&P 500 Index, returned 19.73% during the period.
INVESTMENT ENVIRONMENT
U.S. stocks delivered strong returns during the past 12 months. Markets rallied early in the period, though first quarter gains slowed due to profit taking and lingering concerns around emerging market growth, particularly in China. Favorable economic signals in areas such as employment and corporate earnings drove stocks higher through the spring, even as gross domestic product (GDP) was revised sharply down, blamed primarily on difficult winter weather. The third quarter saw further gains on marginally improving data, despite disappointing August job numbers and mounting geopolitical unrest that resulted in late-summer pullbacks. Growing investor uncertainty also prompted the beginnings of a sharp selloff in the last weeks of September. Notwithstanding this volatility, the period ended with a healthy consumer environment, marked by improving employment trends, low inflation, higher borrowing and increased credit, constructive factors that have led to good retail and consumer spending data, which we expect to remain in place near term. Importantly, the Federal Reserve (Fed) has also indicated its intent to keep interest rates low for “a considerable time” until there is obvious improvement in the economy and employment.
PERFORMANCE DISCUSSION
Our Fund, which represents the best ideas of our seven sector teams, focuses on companies that we believe can generate multi-year 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 positively contributed to relative returns. Outperformance was led by our industrials, health care and consumer holdings, the top contributing sectors, which more than offset modest detraction from our technology holdings. Our cash position also slightly weighed on returns, though it is not used as a strategy but only a necessary component of day-to-day portfolio management.
The top individual contributors, however, were both technology companies: Apple and Google – Class A. Apple, our largest position, aided performance on investor anticipation and subsequent announcements of new versions of its popular iPhone, along with an Apple Watch and a mobile payments system. We felt the product announcements demonstrate the company’s continued strength in combining hardware, software and services, which serve as an important differentiator from competitors. In addition, the cross-device integration between all of Apple’s products will continue to strengthen and expand its ecosystem, in our view. Despite recent gains, we still view the stock’s risk/reward profile as attractive.
Google – Class A, a top 5 holding, contributed to performance. The company’s transition from desktop to mobile search has continued to exceed market expectations, and there is greater investor appreciation for its powerful Android platform. We feel the company remains attractively valued relative to the multi-year 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.
Health care firm Gilead Sciences was also a strong contributor. An arbitration panel rejected Roche Holding’s patent infringement claims related to Gilead’s key hepatitis C drug, Sovaldi. Since its launch earlier this year, the drug has become the largest product based on sales in the history of the pharmaceutical industry. The biotechnology company, a Top 10 holding, is at the forefront of health care companies we see creating shareholder value. We think the launch of a Sovaldi combination pill in the fourth quarter could be another bellwether for the industry. This combination would provide the first true one-pill, once-a-day treatment for the majority of hepatitis C patients.
Consumer stock Whole Foods Market was the Fund’s largest individual detractor, declining on disappointing long-term guidance due to increased competitive pressures. We believe the natural and organic foods grocery operator will continue to gain market share and
Janus Growth & Core Funds | 63
Table of Contents
Janus Research Fund (unaudited)
will be aggressive in acquiring store sites and consumers from competitors to grow long term, but we recognize that effort will also lead to slower earnings growth over the short-to-intermediate term. We maintained our position, but are continuing to analyze the competitive environment to assess whether that will restrict the long-term growth we anticipate for Whole Foods.
Data warehousing provider Teradata, another top detractor, suffered due to competitive pressures, which have resulted in a significant slowing in its core market. We believe Teradata is being increasingly marginalized by Hadoop, a file system that pulls intelligence or competitive information from unstructured data. Based on IT spending trends favoring software over hardware, Teradata’s slowing growth could persist for several years, in our view. Therefore, we sold our position in the second quarter.
Back within consumer, Mattel was also a key detractor. After three years of gaining market share in the toy industry, Mattel has struggled over the last nine months, the latest evidence being its second quarter results. The company showed weakness in market share as it continued to work down inventory build-up from the fourth quarter of 2013. We anticipated it would take some time to improve inventory, given the holiday-focus of its industry, and remain hopeful the company’s market share has stabilized, while its inventory levels are back to normal. We are also hopeful its Barbie brand will offset saturation of its Monster High line in its core doll business.
OUTLOOK
With equity markets remaining fairly priced (not expensive but not cheap either), in our view, the key is to find companies that can create value beyond expectations through superior growth or improved operations. Companies that are creating value can help equity portfolios. With interest rates low and bond spreads tight to Treasurys, the relative attractiveness of equities remains interesting.
In the third quarter, we saw markets slightly improve in the U.S., where it appears that the slow but steady recovery is continuing. Earnings were generally in line or ahead of expectations and stocks responded modestly. The years when companies meeting market expectations meant beating expectations are well behind us, as markets have moderated their risk assessments. Most measures of risk suggest that investors have become complacent, but we remain watchful. The shift this spring from momentum-based stocks and their subsequent underperformance reminded us how quickly markets penalize those chasing rather than anticipating a trend.
When risk tolerance changes, it will change markets quickly and most significantly affect those companies in which risks are not appreciated. It means that earnings growth that is predictable (yet mispriced) will generate excess returns in the U.S., we believe. It means that one should favor growth but be cautious of overpaying. It is why we generally favor large caps over small, despite the lag year-to-date in small-cap companies.
Thank you for your investment in Janus Research Fund.
64 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Research Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Apple, Inc. | 2.24% | |||
| Google, Inc. – Class A | 1.10% | |||
| Gilead Sciences, Inc. | 0.92% | |||
| LyondellBasell Industries NV – Class A | 0.58% | |||
| Jazz Pharmaceuticals PLC | 0.57% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Whole Foods Market, Inc. | –0.45% | |||
| Teradata Corp. | –0.20% | |||
| Mattel, Inc. | –0.16% | |||
| eBay, Inc. | –0.15% | |||
| NPS Pharmaceuticals, Inc. | –0.14% | |||
4 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Industrials | 0.87% | 17.89% | 18.08% | |||||||||
| Health Care | 0.40% | 13.20% | 13.40% | |||||||||
| Consumer | 0.39% | 20.79% | 20.98% | |||||||||
| Financials | 0.36% | 7.53% | 7.55% | |||||||||
3 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Technology | –0.62% | 18.59% | 18.75% | |||||||||
| Communications | 0.07% | 15.96% | 16.00% | |||||||||
| Energy | 0.30% | 5.40% | 5.24% | |||||||||
| 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. | ||
| * | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
Janus Growth & Core Funds | 65
Table of Contents
Janus Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 6.2% | |||
| Google, Inc. – Class C Internet Software & Services | 2.1% | |||
| American Tower Corp. Real Estate Investment Trusts (REITs) | 1.9% | |||
| Google, Inc. – Class A Internet Software & Services | 1.9% | |||
| Comcast Corp. – Class A Media | 1.9% | |||
| 14.0% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
66 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Research Fund – Class A Shares | |||||||||||
| NAV | 19.68% | 15.58% | 9.58% | 10.93% | 0.96% | ||||||
| MOP | 12.81% | 14.22% | 8.94% | 10.62% | |||||||
| Janus Research Fund – Class C Shares | |||||||||||
| NAV | 18.78% | 14.71% | 8.77% | 10.16% | 1.72% | ||||||
| CDSC | 17.78% | 14.71% | 8.77% | 10.16% | |||||||
| Janus Research Fund – Class D Shares(1) | 19.93% | 15.80% | 9.82% | 11.17% | 0.74% | ||||||
| Janus Research Fund – Class I Shares | 19.99% | 15.90% | 9.78% | 11.15% | 0.64% | ||||||
| Janus Research Fund – Class N Shares | 20.14% | 15.71% | 9.78% | 11.15% | 0.56% | ||||||
| Janus Research Fund – Class S Shares | 19.53% | 15.39% | 9.41% | 10.78% | 1.06% | ||||||
| Janus Research Fund – Class T Shares | 19.85% | 15.71% | 9.78% | 11.15% | 0.81% | ||||||
| Russell 1000® Growth Index | 19.15% | 16.50% | 8.94% | 8.67% | |||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 9.36% | |||||||
| Morningstar Quartile – Class T Shares | 1st | 2nd | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Large Growth Funds | 240/1,762 | 441/1,549 | 212/1,354 | 43/574 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Growth & Core Funds | 67
Table of Contents
Janus Research Fund (unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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.
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 of 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. |
68 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,057.60 | $ | 4.69 | $ | 1,000.00 | $ | 1,020.51 | $ | 4.61 | 0.91% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,053.60 | $ | 8.49 | $ | 1,000.00 | $ | 1,016.80 | $ | 8.34 | 1.65% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,058.80 | $ | 3.66 | $ | 1,000.00 | $ | 1,021.51 | $ | 3.60 | 0.71% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,059.10 | $ | 3.25 | $ | 1,000.00 | $ | 1,021.91 | $ | 3.19 | 0.63% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,059.50 | $ | 2.89 | $ | 1,000.00 | $ | 1,022.26 | $ | 2.84 | 0.56% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,057.00 | $ | 5.47 | $ | 1,000.00 | $ | 1,019.75 | $ | 5.37 | 1.06% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,058.10 | $ | 4.18 | $ | 1,000.00 | $ | 1,021.01 | $ | 4.10 | 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 183/365 (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 | 69
Table of Contents
Janus Research Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 98.9% | ||||||||||
| Aerospace & Defense – 1.1% | ||||||||||
| 202,220 | Precision Castparts Corp. | $ | 47,901,874 | |||||||
| Air Freight & Logistics – 1.2% | ||||||||||
| 309,184 | FedEx Corp. | 49,917,757 | ||||||||
| Airlines – 1.0% | ||||||||||
| 883,843 | United Continental Holdings, Inc.* | 41,355,014 | ||||||||
| Beverages – 2.4% | ||||||||||
| 189,583 | Brown-Forman Corp. – Class B | 17,104,178 | ||||||||
| 165,760 | Monster Beverage Corp.* | 15,195,219 | ||||||||
| 752,222 | PepsiCo, Inc. | 70,024,346 | ||||||||
| | ||||||||||
| 102,323,743 | ||||||||||
| Biotechnology – 6.9% | ||||||||||
| 186,766 | Biogen Idec, Inc.* | 61,784,060 | ||||||||
| 604,319 | Celgene Corp.* | 57,277,355 | ||||||||
| 628,260 | Gilead Sciences, Inc.* | 66,878,277 | ||||||||
| 1,738,495 | Ironwood Pharmaceuticals, Inc.* | 22,522,203 | ||||||||
| 298,087 | Medivation, Inc.* | 29,471,862 | ||||||||
| 689,215 | NPS Pharmaceuticals, Inc.* | 17,919,590 | ||||||||
| 308,812 | Pharmacyclics, Inc.* | 36,263,793 | ||||||||
| | ||||||||||
| 292,117,140 | ||||||||||
| Capital Markets – 1.8% | ||||||||||
| 56,928 | BlackRock, Inc. | 18,690,601 | ||||||||
| 812,874 | Blackstone Group LP | 25,589,273 | ||||||||
| 727,506 | E*TRADE Financial Corp.* | 16,434,361 | ||||||||
| 360,394 | LPL Financial Holdings, Inc. | 16,596,144 | ||||||||
| | ||||||||||
| 77,310,379 | ||||||||||
| Chemicals – 4.3% | ||||||||||
| 377,146 | Air Products & Chemicals, Inc. | 49,096,866 | ||||||||
| 403,416 | LyondellBasell Industries NV – Class A | 43,835,183 | ||||||||
| 287,716 | Monsanto Co. | 32,370,927 | ||||||||
| 164,597 | PPG Industries, Inc. | 32,382,814 | ||||||||
| 311,707 | Rockwood Holdings, Inc. | 23,830,000 | ||||||||
| | ||||||||||
| 181,515,790 | ||||||||||
| Commercial Banks – 0.6% | ||||||||||
| 366,039 | PacWest Bancorp | 15,091,788 | ||||||||
| 300,111 | U.S. Bancorp | 12,553,643 | ||||||||
| | ||||||||||
| 27,645,431 | ||||||||||
| Commercial Services & Supplies – 0.7% | ||||||||||
| 684,352 | Tyco International, Ltd. (U.S. Shares) | 30,501,569 | ||||||||
| Communications Equipment – 2.5% | ||||||||||
| 1,143,912 | CommScope Holding Co., Inc.* | 27,350,936 | ||||||||
| 513,393 | Motorola Solutions, Inc. | 32,487,509 | ||||||||
| 639,768 | QUALCOMM, Inc. | 47,835,453 | ||||||||
| | ||||||||||
| 107,673,898 | ||||||||||
| Consumer Finance – 0.6% | ||||||||||
| 273,077 | American Express Co. | 23,905,161 | ||||||||
| Containers & Packaging – 0.8% | ||||||||||
| 781,632 | Crown Holdings, Inc.* | 34,798,257 | ||||||||
| Diversified Financial Services – 0.3% | ||||||||||
| 69,144 | Intercontinental Exchange, Inc. | 13,486,537 | ||||||||
| Electric Utilities – 0.5% | ||||||||||
| 563,192 | Brookfield Infrastructure Partners LP | 21,401,296 | ||||||||
| Electrical Equipment – 1.1% | ||||||||||
| 1,068,811 | Sensata Technologies Holding NV* | 47,594,154 | ||||||||
| Electronic Equipment, Instruments & Components – 3.2% | ||||||||||
| 494,365 | Amphenol Corp. – Class A | 49,367,289 | ||||||||
| 791,244 | National Instruments Corp. | 24,473,177 | ||||||||
| 1,110,491 | TE Connectivity, Ltd. (U.S. Shares) | 61,399,047 | ||||||||
| | ||||||||||
| 135,239,513 | ||||||||||
| Energy Equipment & Services – 0.7% | ||||||||||
| 154,920 | Core Laboratories NV | 22,672,542 | ||||||||
| 107,808 | National Oilwell Varco, Inc. | 8,204,189 | ||||||||
| | ||||||||||
| 30,876,731 | ||||||||||
| Food & Staples Retailing – 2.2% | ||||||||||
| 812,841 | Kroger Co. | 42,267,732 | ||||||||
| 455,728 | Sysco Corp. | 17,294,877 | ||||||||
| 848,208 | Whole Foods Market, Inc. | 32,325,207 | ||||||||
| | ||||||||||
| 91,887,816 | ||||||||||
| Food Products – 1.0% | ||||||||||
| 461,202 | Hershey Co. | 44,012,507 | ||||||||
| Health Care Equipment & Supplies – 0.8% | ||||||||||
| 338,048 | Zimmer Holdings, Inc. | 33,990,726 | ||||||||
| Health Care Providers & Services – 1.9% | ||||||||||
| 347,021 | Aetna, Inc. | 28,108,701 | ||||||||
| 361,929 | Express Scripts Holding Co.* | 25,563,045 | ||||||||
| 450,787 | Omnicare, Inc. | 28,065,999 | ||||||||
| | ||||||||||
| 81,737,745 | ||||||||||
| Health Care Technology – 0.5% | ||||||||||
| 168,416 | athenahealth, Inc.* | 22,178,703 | ||||||||
| Hotels, Restaurants & Leisure – 2.4% | ||||||||||
| 348,535 | Dunkin’ Brands Group, Inc. | 15,621,339 | ||||||||
| 329,543 | Marriott International, Inc. – Class A | 23,035,056 | ||||||||
| 625,780 | MGM Resorts International* | 14,255,268 | ||||||||
| 685,736 | Starbucks Corp. | 51,745,638 | ||||||||
| | ||||||||||
| 104,657,301 | ||||||||||
| Household Products – 1.5% | ||||||||||
| 1,000,482 | Colgate-Palmolive Co. | 65,251,436 | ||||||||
| Industrial Conglomerates – 1.3% | ||||||||||
| 347,994 | Danaher Corp. | 26,440,584 | ||||||||
| 208,430 | Roper Industries, Inc. | 30,491,225 | ||||||||
| | ||||||||||
| 56,931,809 | ||||||||||
| Information Technology Services – 3.4% | ||||||||||
| 900,941 | Amdocs, Ltd. (U.S. Shares) | 41,335,173 | ||||||||
| 725,742 | MasterCard, Inc. – Class A | 53,646,849 | ||||||||
| 244,213 | Visa, Inc. – Class A | 52,107,728 | ||||||||
| | ||||||||||
| 147,089,750 | ||||||||||
| Insurance – 0.7% | ||||||||||
| 330,633 | Aon PLC | 28,986,595 | ||||||||
| Internet & Catalog Retail – 2.5% | ||||||||||
| 180,130 | Amazon.com, Inc.* | 58,081,117 | ||||||||
| 41,413 | Priceline Group, Inc.* | 47,980,274 | ||||||||
| | ||||||||||
| 106,061,391 | ||||||||||
| Internet Software & Services – 5.4% | ||||||||||
| 584,862 | Facebook, Inc. – Class A* | 46,227,492 | ||||||||
| 136,288 | Google, Inc. – Class A* | 80,193,222 | ||||||||
| 156,671 | Google, Inc. – Class C* | 90,455,569 | ||||||||
| 246,354 | Twitter, Inc.* | 12,706,939 | ||||||||
| | ||||||||||
| 229,583,222 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
70 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Leisure Products – 0.4% | ||||||||||
| 536,196 | Mattel, Inc. | $ | 16,434,407 | |||||||
| Machinery – 1.8% | ||||||||||
| 569,578 | Colfax Corp.* | 32,448,859 | ||||||||
| 266,345 | Dover Corp. | 21,395,494 | ||||||||
| 784,918 | Rexnord Corp. | 22,330,917 | ||||||||
| | ||||||||||
| 76,175,270 | ||||||||||
| Media – 6.1% | ||||||||||
| 439,789 | CBS Corp. – Class B | 23,528,711 | ||||||||
| 311,336 | CBS Outdoor Americas, Inc. | 9,321,400 | ||||||||
| 1,483,618 | Comcast Corp. – Class A | 79,788,976 | ||||||||
| 166,569 | Time Warner Cable, Inc. | 23,900,986 | ||||||||
| 2,015,657 | Twenty-First Century Fox, Inc. – Class A | 69,116,879 | ||||||||
| 589,373 | Walt Disney Co. | 52,471,878 | ||||||||
| | ||||||||||
| 258,128,830 | ||||||||||
| Oil, Gas & Consumable Fuels – 4.5% | ||||||||||
| 315,029 | Anadarko Petroleum Corp. | 31,956,542 | ||||||||
| 967,969 | Enterprise Products Partners LP | 39,009,151 | ||||||||
| 540,358 | MarkWest Energy Partners LP | 41,510,301 | ||||||||
| 456,889 | Noble Energy, Inc. | 31,232,932 | ||||||||
| 322,016 | Phillips 66 | 26,183,121 | ||||||||
| 438,387 | Valero Energy Corp. | 20,284,166 | ||||||||
| | ||||||||||
| 190,176,213 | ||||||||||
| Personal Products – 0.6% | ||||||||||
| 362,404 | Estee Lauder Cos., Inc. – Class A | 27,078,827 | ||||||||
| Pharmaceuticals – 4.2% | ||||||||||
| 897,944 | Bristol-Myers Squibb Co. | 45,956,774 | ||||||||
| 621,205 | Endo International PLC* | 42,453,149 | ||||||||
| 251,743 | Jazz Pharmaceuticals PLC* | 40,419,856 | ||||||||
| 137,508 | Johnson & Johnson | 14,656,978 | ||||||||
| 407,394 | Mallinckrodt PLC* | 36,726,569 | ||||||||
| | ||||||||||
| 180,213,326 | ||||||||||
| Professional Services – 0.5% | ||||||||||
| 168,980 | IHS, Inc. – Class A* | 21,154,606 | ||||||||
| Real Estate Investment Trusts (REITs) – 2.5% | ||||||||||
| 880,927 | American Tower Corp. | 82,481,195 | ||||||||
| 794,634 | Lexington Realty Trust | 7,779,467 | ||||||||
| 101,970 | Simon Property Group, Inc. | 16,765,907 | ||||||||
| | ||||||||||
| 107,026,569 | ||||||||||
| Real Estate Management & Development – 0.4% | ||||||||||
| 126,959 | Jones Lang LaSalle, Inc. | 16,040,000 | ||||||||
| Road & Rail – 1.8% | ||||||||||
| 223,571 | Kansas City Southern | 27,096,805 | ||||||||
| 473,358 | Union Pacific Corp. | 51,321,475 | ||||||||
| | ||||||||||
| 78,418,280 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.0% | ||||||||||
| 3,527,581 | Atmel Corp.* | 28,502,854 | ||||||||
| 524,864 | Freescale Semiconductor, Ltd.* | 10,250,594 | ||||||||
| 249,356 | KLA-Tencor Corp. | 19,644,266 | ||||||||
| 629,095 | Xilinx, Inc. | 26,642,173 | ||||||||
| | ||||||||||
| 85,039,887 | ||||||||||
| Software – 4.1% | ||||||||||
| 338,549 | ANSYS, Inc.* | 25,618,003 | ||||||||
| 2,055,241 | Cadence Design Systems, Inc.* | 35,370,698 | ||||||||
| 1,498,063 | Microsoft Corp. | 69,450,201 | ||||||||
| 176,331 | Salesforce.com, Inc.* | 10,144,322 | ||||||||
| 429,326 | Solera Holdings, Inc. | 24,196,813 | ||||||||
| 98,447 | Tyler Technologies, Inc.* | 8,702,715 | ||||||||
| | ||||||||||
| 173,482,752 | ||||||||||
| Specialty Retail – 5.9% | ||||||||||
| 63,111 | AutoZone, Inc.* | 32,165,152 | ||||||||
| 1,206,386 | Lowe’s Cos., Inc. | 63,841,947 | ||||||||
| 300,771 | PetSmart, Inc. | 21,081,039 | ||||||||
| 230,557 | Tiffany & Co. | 22,204,945 | ||||||||
| 717,771 | TJX Cos., Inc. | 42,470,510 | ||||||||
| 454,615 | Tractor Supply Co. | 27,963,369 | ||||||||
| 180,091 | Ulta Salon Cosmetics & Fragrance, Inc. | 21,281,354 | ||||||||
| 317,684 | Williams-Sonoma, Inc. | 21,148,224 | ||||||||
| | ||||||||||
| 252,156,540 | ||||||||||
| Technology Hardware, Storage & Peripherals – 6.2% | ||||||||||
| 2,605,011 | Apple, Inc. | 262,454,858 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.7% | ||||||||||
| 300,832 | Carter’s, Inc. | 23,320,497 | ||||||||
| 549,487 | NIKE, Inc. – Class B | 49,014,240 | ||||||||
| | ||||||||||
| 72,334,737 | ||||||||||
| Tobacco – 0.9% | ||||||||||
| 848,008 | Altria Group, Inc. | 38,957,488 | ||||||||
| Trading Companies & Distributors – 1.0% | ||||||||||
| 390,942 | MSC Industrial Direct Co., Inc. – Class A | 33,409,903 | ||||||||
| 256,690 | NOW, Inc. | 7,805,943 | ||||||||
| | ||||||||||
| 41,215,846 | ||||||||||
| Wireless Telecommunication Services – 1.0% | ||||||||||
| 1,426,025 | T-Mobile U.S., Inc. | 41,169,342 | ||||||||
| Total Common Stock (cost $3,038,941,564) | 4,215,591,023 | |||||||||
| Money Market – 1.2% | ||||||||||
| 51,003,813 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $51,003,813) | 51,003,813 | ||||||||
| Total Investments (total cost $3,089,945,377) – 100.1% | 4,266,594,836 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | (6,389,510) | |||||||||
| Net Assets – 100% | $ | 4,260,205,326 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 71
Table of Contents
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 against our benchmark and peers over time. Identifying small-cap companies with the ability to hold our positions as they potentially grow into the mid-cap space allows us the flexibility to capture a longer growth period in a company’s life cycle. |  Jonathan Coleman portfolio manager |
PERFORMANCE
Janus Triton Fund’s Class T Shares returned 8.35% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the Russell 2500 Growth Index, returned 8.05% during the period. The Fund’s secondary benchmark, the Russell 2000 Growth Index, returned 3.79%.
INVESTMENT ENVIRONMENT
Small-cap growth markets moved higher over the past 12 months but with bouts of significant volatility. Stocks experienced choppy gains early in the period, a trend that continued into the first quarter with a quickly alternating “risk-on/off” environment that first pushed stocks higher, then sharply pulled back, followed by another steep rally that peaked in early March. Markets generally declined through spring as cloud computing, social media and biotech companies – many of which appeared to be trading at exceedingly high valuations, in our view, driven by market momentum rather than individual fundamentals – broadly sold off. This correction was followed by a marked rebound that lifted stocks near their peaks in the summer. Stocks then lost ground in September.
PERFORMANCE DISCUSSION
We seek to identify companies with long-duration growth potential and 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, as it did during the reporting period. Outperformance was led by our information technology, financials and energy holdings.
Puma Biotechnology was the largest individual contributor to relative results. While we have avoided some of the biotech companies in the index due to high valuations, we bought Puma when biotech stocks sold off briefly in March and April. After the selloff we thought Puma, which was developing an innovative treatment for breast cancer, offered a very attractive risk/reward profile with considerable upside if the company’s treatment passed an upcoming clinical trial. We were pleased to see the treatment pass the clinical trial, and the stock rose considerably after the news as the market reassessed the revenue opportunity for Puma.
Dresser-Rand Group was another top individual contributor. The company highlights the characteristics we typically look for in energy companies. The bulk of the company’s revenues come from its aftermarket business, which provides a more stable and predictable revenue source for drilling services companies than original equipment manufacturing. Further, the company’s aftermarket business focuses on servicing compression equipment, which is vital to both offshore and horizontal drilling, two drilling opportunities where more production growth is occurring. The stock rose after it was announced Dresser-Rand would be acquired by Siemens. We were not surprised to see the company acquired, as we have long believed it was an attractive business to larger players in the energy sector.
Mallinckrodt was also additive to performance. The stock has performed very well in recent quarters, and we continue to see positive changes for the company. Mallinckrodt was spun out from Covidien a year ago. In our view, Mallinckrodt was never a primary focus of Covidien’s business, but now that it is operating independently, the management team has more flexibility to dictate the strategy and incentive structure at the
72 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
company. Since that time, costs have been trimmed, resources have been allocated more productively and the culture of the company has been energized. Better operating results have followed. The company has re-examined its pricing policy, improving revenues for some of the biggest drugs in its portfolio. The stock has risen after the company closed its acquisition of Questcor Pharmaceuticals, and earnings estimates have moved higher as a result of the deal and the pricing power the company has demonstrated.
While generally pleased with our relative performance against the benchmark and the results of many companies in our portfolio, it was a tougher period for small-cap stocks than recent prior years, and we held some companies that disappointed. Industrials, consumer discretionary and materials holdings detracted the most from returns.
RealPage was the largest individual detractor. 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 have trimmed the stock due to concerns about executional missteps by the company. High occupancy rates at most apartment complexes in the U.S. have also been a headwind for RealPage. When landlords have an easier time finding tenants, they do not need to market vacancies as heavily and are in less need of RealPage’s solutions.
Endologix was another top detractor. The medical device company, which makes stent grafts for aortic aneurysms, suffered from reduced guidance and delays in two of its key pipeline devices. We continue to believe the long-term potential for these new technologies offer significant promise, however. We believe the company can serve a large, addressable market with existing products and products under development that treat a wider range of patients with abdominal aneurisms in a minimally invasive manner. Importantly, its next generation device has taken a dominant market share in Europe, while still being several years away from approval in the U.S.
Hibbett Sports also weighed on performance. Similar to many retail companies, the sporting goods company has experienced weak in-store sales growth and weaker in-store traffic. While the near-term results were disappointing, we believe the company is taking some steps to improve its long-term growth potential. For example, while people are shopping less in physical stores, Hibbett is making investments to improve its online offerings. Those investments are a near-term headwind to margins but should benefit the company over time. The company is also investing in a new inventory management system that should do a better job of ensuring products are properly supplied at each store, improving the in-store experience for shoppers. Despite near-term costs, we like the competitive positioning of Hibbett. By operating in smaller, more rural areas, Hibbett avoids competing with the largest sporting goods retailers, but also has considerable size and scale that allow it to bring better selection than a local retailer can offer in a small market. Going forward, we think Hibbett can continue to grow as it builds new stores in more small markets.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
After substantial returns and multiple expansion for much of 2013 and early 2014, we expect low aggregate returns and perhaps further earnings multiple consolidation among select small-cap stocks, particularly for stocks in hyper-growth industries we highlighted earlier. Many of these stocks do not produce earnings yet and instead trade at high multiples of revenue. Those stocks still remain overvalued when analyzed using discounted cash flow analysis or other common valuation metrics.
While multiple consolidations could be an issue for some small-cap stocks, we like how our portfolio is positioned for this investment environment. While we do not outright avoid stocks in industries such as cloud computing, social media and biotech, we try to take a careful approach to investing in those areas. We hold a few cloud and social media companies, but we avoid areas within those industries where momentum is a major factor of stock performance and hold only a select few companies we believe will prove disruptive to the large end markets they serve. We are also carefully monitoring our exposure to biotech companies. We own a few biotech companies that have innovative therapies with promising potential, but we take smaller positions with companies whose performance is tied to the success or failure of a clinical trial for a single drug and have larger positions with biotech companies that have already had innovative therapies approved by the FDA or have multiple products in their pipelines.
Looking at the portfolio more broadly, we believe we are well positioned for an environment where global growth has slowed. Most of the companies in our portfolio derive their revenues from the U.S. and are less reliant on economies in other parts of the world, where growth is slower. While the U.S. economy is more stable than other
Janus Growth & Core Funds | 73
Table of Contents
Janus Triton Fund (unaudited)
countries, we do not expect it to break out to a much higher growth rate. However, we believe our portfolio is positioned well for a slow-growth economy. Many of the companies we hold either have stable and resilient business models and revenue streams, or are early enough in their growth cycle that they are taking share from competition or tapping into previously unaddressed markets. We believe these companies should thrive when the economy is strong but continue to experience solid growth even when economic growth is slow. Many of these companies we view as higher-quality were also caught up in the broad small-cap selloffs, even though the stability of their business models has not wavered, in our view. We believe this has provided a more attractive entry point to add to positions of the types of companies we typically favor.
Thank you for your continued investment in Janus Triton Fund.
74 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Triton Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Puma Biotechnology, Inc. | 0.68% | |||
| Dresser-Rand Group, Inc. | 0.60% | |||
| Mallinckrodt PLC | 0.57% | |||
| TransDigm Group, Inc. | 0.53% | |||
| Measurement Specialties, Inc. | 0.53% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| RealPage, Inc. | –0.45% | |||
| Endologix, Inc. | –0.35% | |||
| Financial Engines, Inc. | –0.35% | |||
| Hibbett Sports, Inc. | –0.35% | |||
| GrafTech International, Ltd. | –0.32% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 2500tm | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Information Technology | 1.16% | 25.92% | 21.18% | |||||||||
| Financials | 0.67% | 7.15% | 8.18% | |||||||||
| Energy | 0.59% | 5.63% | 4.62% | |||||||||
| Consumer Staples | 0.44% | 1.00% | 3.69% | |||||||||
| Health Care | 0.36% | 16.73% | 17.03% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 2500tm | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Industrials | –0.69% | 22.34% | 18.08% | |||||||||
| Consumer Discretionary | –0.52% | 14.98% | 18.17% | |||||||||
| Materials | –0.52% | 3.44% | 7.51% | |||||||||
| Other** | –0.13% | 2.26% | 0.00% | |||||||||
| Telecommunication Services | –0.13% | 0.54% | 1.00% | |||||||||
| 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 | 75
Table of Contents
Janus Triton Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| SS&C Technologies Holdings, Inc. Software | 2.7% | |||
| Carter’s, Inc. Textiles, Apparel & Luxury Goods | 2.3% | |||
| Blackbaud, Inc. Software | 1.9% | |||
| Sensient Technologies Corp. Chemicals | 1.8% | |||
| Sally Beauty Holdings, Inc. Specialty Retail | 1.8% | |||
| 10.5% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
76 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||
| One | Five | Since | Total Annual Fund | ||||||
| Year | Year | Inception* | Operating Expenses | ||||||
| Janus Triton Fund – Class A Shares | |||||||||
| NAV | 8.12% | 17.63% | 12.47% | 1.11% | |||||
| MOP | 1.89% | 16.24% | 11.78% | ||||||
| Janus Triton Fund – Class C Shares | |||||||||
| NAV | 7.37% | 16.76% | 11.65% | 1.85% | |||||
| CDSC | 6.37% | 16.76% | 11.65% | ||||||
| Janus Triton Fund – Class D Shares(1) | 8.42% | 17.90% | 12.70% | 0.83% | |||||
| Janus Triton Fund – Class I Shares | 8.48% | 18.06% | 12.65% | 0.76% | |||||
| Janus Triton Fund – Class N Shares | 8.61% | 17.80% | 12.65% | 0.68% | |||||
| Janus Triton Fund – Class R Shares | 7.78% | 17.19% | 12.08% | 1.43% | |||||
| Janus Triton Fund – Class S Shares | 8.06% | 17.51% | 12.31% | 1.18% | |||||
| Janus Triton Fund – Class T Shares | 8.35% | 17.80% | 12.65% | 0.93% | |||||
| Russell 2500tm Growth Index | 8.05% | 16.85% | 9.08% | ||||||
| Russell 2000® Growth Index | 3.79% | 15.51% | 8.13% | ||||||
| Morningstar Quartile – Class T Shares | 1st | 1st | 1st | ||||||
| Morningstar Ranking – based on total return for Small Growth Funds | 85/738 | 53/672 | 5/583 | ||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Growth & Core Funds | 77
Table of Contents
Janus Triton Fund (unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 of 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. |
78 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,010.40 | $ | 5.54 | $ | 1,000.00 | $ | 1,019.55 | $ | 5.57 | 1.10% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,007.20 | $ | 9.16 | $ | 1,000.00 | $ | 1,015.94 | $ | 9.20 | 1.82% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,011.60 | $ | 4.24 | $ | 1,000.00 | $ | 1,020.86 | $ | 4.26 | 0.84% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,012.40 | $ | 3.88 | $ | 1,000.00 | $ | 1,021.21 | $ | 3.90 | 0.77% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,012.80 | $ | 3.43 | $ | 1,000.00 | $ | 1,021.66 | $ | 3.45 | 0.68% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,008.80 | $ | 7.20 | $ | 1,000.00 | $ | 1,017.90 | $ | 7.23 | 1.43% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,010.50 | $ | 5.95 | $ | 1,000.00 | $ | 1,019.15 | $ | 5.97 | 1.18% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,011.60 | $ | 4.69 | $ | 1,000.00 | $ | 1,020.41 | $ | 4.71 | 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 183/365 (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 | 79
Table of Contents
Janus Triton Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 96.2% | ||||||||||
| Aerospace & Defense – 2.5% | ||||||||||
| 2,400,090 | HEICO Corp. – Class A£ | $ | 96,723,627 | |||||||
| 226,972 | TransDigm Group, Inc. | 41,837,749 | ||||||||
| | ||||||||||
| 138,561,376 | ||||||||||
| Biotechnology – 4.6% | ||||||||||
| 1,010,393 | ACADIA Pharmaceuticals, Inc.*,# | 25,017,331 | ||||||||
| 3,030,292 | Dyax Corp.* | 30,666,555 | ||||||||
| 475,614 | Incyte Corp.* | 23,328,867 | ||||||||
| 2,488,696 | Ironwood Pharmaceuticals, Inc.* | 32,241,057 | ||||||||
| 348,154 | Medivation, Inc.* | 34,421,986 | ||||||||
| 1,067,547 | NPS Pharmaceuticals, Inc.* | 27,756,222 | ||||||||
| 240,662 | Pharmacyclics, Inc.*,# | 28,260,939 | ||||||||
| 107,150 | Puma Biotechnology, Inc.* | 25,562,775 | ||||||||
| 398,711 | Synageva BioPharma Corp.*,# | 27,423,342 | ||||||||
| | ||||||||||
| 254,679,074 | ||||||||||
| Capital Markets – 2.5% | ||||||||||
| 1,290,022 | Eaton Vance Corp. | 48,672,530 | ||||||||
| 751,124 | Financial Engines, Inc.# | 25,699,708 | ||||||||
| 1,367,766 | LPL Financial Holdings, Inc. | 62,985,624 | ||||||||
| | ||||||||||
| 137,357,862 | ||||||||||
| Chemicals – 1.8% | ||||||||||
| 1,936,205 | Sensient Technologies Corp. | 101,360,332 | ||||||||
| Commercial Banks – 1.9% | ||||||||||
| 1,069,527 | PacWest Bancorp | 44,096,598 | ||||||||
| 538,768 | SVB Financial Group* | 60,390,505 | ||||||||
| | ||||||||||
| 104,487,103 | ||||||||||
| Commercial Services & Supplies – 1.9% | ||||||||||
| 671,950 | Clean Harbors, Inc.*,# | 36,231,544 | ||||||||
| 1,425,966 | Healthcare Services Group, Inc. | 40,796,887 | ||||||||
| 925,216 | Rollins, Inc. | 27,090,325 | ||||||||
| | ||||||||||
| 104,118,756 | ||||||||||
| Containers & Packaging – 1.1% | ||||||||||
| 1,360,168 | Crown Holdings, Inc.* | 60,554,679 | ||||||||
| Diversified Consumer Services – 0.8% | ||||||||||
| 1,850,603 | ServiceMaster Global Holdings, Inc.* | 44,784,593 | ||||||||
| Diversified Financial Services – 2.0% | ||||||||||
| 782,934 | MarketAxess Holdings, Inc. | 48,432,297 | ||||||||
| 1,253,120 | MSCI, Inc. | 58,921,703 | ||||||||
| | ||||||||||
| 107,354,000 | ||||||||||
| Electrical Equipment – 3.3% | ||||||||||
| 1,157,186 | EnerSys | 67,857,387 | ||||||||
| 6,254,828 | GrafTech International, Ltd.*,#,£ | 28,647,112 | ||||||||
| 872,345 | Polypore International, Inc.*,# | 33,942,944 | ||||||||
| 1,105,871 | Sensata Technologies Holding NV* | 49,244,436 | ||||||||
| | ||||||||||
| 179,691,879 | ||||||||||
| Electronic Equipment, Instruments & Components – 3.5% | ||||||||||
| 849,843 | Belden, Inc. | 54,406,949 | ||||||||
| 557,603 | Measurement Specialties, Inc.*,£ | 47,736,393 | ||||||||
| 954,392 | National Instruments Corp. | 29,519,345 | ||||||||
| 988,588 | OSI Systems, Inc.* | 62,755,566 | ||||||||
| | ||||||||||
| 194,418,253 | ||||||||||
| Energy Equipment & Services – 1.8% | ||||||||||
| 603,997 | Dresser-Rand Group, Inc.* | 49,684,793 | ||||||||
| 522,260 | Dril-Quip, Inc.* | 46,690,044 | ||||||||
| | ||||||||||
| 96,374,837 | ||||||||||
| Food & Staples Retailing – 1.1% | ||||||||||
| 473,627 | Casey’s General Stores, Inc. | 33,959,056 | ||||||||
| 202 | Diplomat Pharmacy, Inc. – Private Placement*,§ | 28,628,678 | ||||||||
| | ||||||||||
| 62,587,734 | ||||||||||
| Food Products – 0.6% | ||||||||||
| 834,752 | WhiteWave Foods Co.* | 30,326,540 | ||||||||
| Health Care Equipment & Supplies – 3.4% | ||||||||||
| 3,570,445 | Endologix, Inc.*,£ | 37,846,717 | ||||||||
| 310,096 | IDEXX Laboratories, Inc.* | 36,538,612 | ||||||||
| 1,751,550 | Masimo Corp. | 37,272,984 | ||||||||
| 2,268,404 | Novadaq Technologies, Inc.*,# | 28,786,047 | ||||||||
| 1,649,345 | Quidel Corp.*,# | 44,317,900 | ||||||||
| | ||||||||||
| 184,762,260 | ||||||||||
| Health Care Providers & Services – 1.4% | ||||||||||
| 897,745 | Premier, Inc. – Class A | 29,499,901 | ||||||||
| 823,161 | Team Health Holdings, Inc.* | 47,735,106 | ||||||||
| | ||||||||||
| 77,235,007 | ||||||||||
| Health Care Technology – 0.9% | ||||||||||
| 392,220 | athenahealth, Inc.*,# | 51,651,452 | ||||||||
| Hotels, Restaurants & Leisure – 3.0% | ||||||||||
| 651,577 | Dunkin’ Brands Group, Inc. | 29,203,681 | ||||||||
| 641,696 | Popeyes Louisiana Kitchen, Inc.* | 25,988,688 | ||||||||
| 1,076,689 | Six Flags Entertainment Corp. | 37,027,335 | ||||||||
| 8,529,356 | Wendy’s Co.# | 70,452,480 | ||||||||
| | ||||||||||
| 162,672,184 | ||||||||||
| Household Durables – 0.5% | ||||||||||
| 364,659 | Tupperware Brands Corp.# | 25,176,057 | ||||||||
| Information Technology Services – 6.9% | ||||||||||
| 2,411,377 | Broadridge Financial Solutions, Inc. | 100,385,625 | ||||||||
| 2,072,096 | Euronet Worldwide, Inc.* | 99,025,468 | ||||||||
| 770,207 | Gartner, Inc.* | 56,587,108 | ||||||||
| 1,545,252 | Jack Henry & Associates, Inc. | 86,008,726 | ||||||||
| 857,009 | MAXIMUS, Inc. | 34,391,771 | ||||||||
| | ||||||||||
| 376,398,698 | ||||||||||
| Internet Software & Services – 2.1% | ||||||||||
| 790,958 | ChannelAdvisor Corp.* | 12,971,711 | ||||||||
| 221,317 | CoStar Group, Inc.* | 34,423,646 | ||||||||
| 571,296 | Envestnet, Inc.* | 25,708,320 | ||||||||
| 764,375 | Vistaprint NV*,# | 41,880,107 | ||||||||
| | ||||||||||
| 114,983,784 | ||||||||||
| Life Sciences Tools & Services – 2.6% | ||||||||||
| 132,827 | Mettler-Toledo International, Inc.* | 34,020,979 | ||||||||
| 1,218,636 | PerkinElmer, Inc. | 53,132,530 | ||||||||
| 569,266 | Techne Corp. | 53,254,834 | ||||||||
| | ||||||||||
| 140,408,343 | ||||||||||
| Machinery – 6.2% | ||||||||||
| 794,036 | CLARCOR, Inc. | 50,087,791 | ||||||||
| 1,975,884 | Kennametal, Inc. | 81,623,768 | ||||||||
| 798,712 | Nordson Corp. | 60,758,022 | ||||||||
| 2,367,744 | Rexnord Corp. | 67,362,317 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
80 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Machinery – (continued) | ||||||||||
| 396,613 | Tennant Co.£ | $ | 26,608,766 | |||||||
| 675,401 | Wabtec Corp. | 54,734,497 | ||||||||
| | ||||||||||
| 341,175,161 | ||||||||||
| Media – 2.6% | ||||||||||
| 1,465,608 | AMC Entertainment Holdings, Inc. – Class A£ | 33,694,328 | ||||||||
| 668,957 | Lamar Advertising Co. – Class A | 32,946,132 | ||||||||
| 1,090,655 | Markit, Ltd.* | 25,466,794 | ||||||||
| 3,597,437 | National CineMedia, Inc.£ | 52,198,811 | ||||||||
| | ||||||||||
| 144,306,065 | ||||||||||
| Metals & Mining – 0.5% | ||||||||||
| 401,524 | Reliance Steel & Aluminum Co. | 27,464,242 | ||||||||
| Oil, Gas & Consumable Fuels – 1.7% | ||||||||||
| 798,243 | DCP Midstream Partners LP# | 43,464,331 | ||||||||
| 349,773 | Targa Resources Corp. | 47,628,590 | ||||||||
| | ||||||||||
| 91,092,921 | ||||||||||
| Personal Products – 0.5% | ||||||||||
| 2,665,784 | IGI Laboratories, Inc.*,#,£ | 24,845,107 | ||||||||
| Pharmaceuticals – 3.8% | ||||||||||
| 627,225 | Akorn, Inc.*,# | 22,749,450 | ||||||||
| 778,876 | Endo International PLC* | 53,228,386 | ||||||||
| 832,373 | Mallinckrodt PLC* | 75,038,426 | ||||||||
| 473,303 | Pacira Pharmaceuticals, Inc.*,# | 45,872,527 | ||||||||
| 645,101 | Relypsa, Inc.* | 13,605,180 | ||||||||
| | ||||||||||
| 210,493,969 | ||||||||||
| Professional Services – 0.8% | ||||||||||
| 743,160 | Corporate Executive Board Co. | 44,641,621 | ||||||||
| Real Estate Management & Development – 0.9% | ||||||||||
| 380,190 | Jones Lang LaSalle, Inc. | 48,033,205 | ||||||||
| Road & Rail – 3.0% | ||||||||||
| 431,370 | Genesee & Wyoming, Inc. – Class A* | 41,113,875 | ||||||||
| 919,922 | Landstar System, Inc. | 66,409,169 | ||||||||
| 827,401 | Old Dominion Freight Line, Inc.* | 58,447,607 | ||||||||
| | ||||||||||
| 165,970,651 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.7% | ||||||||||
| 10,090,380 | Atmel Corp.* | 81,530,270 | ||||||||
| 7,714,737 | ON Semiconductor Corp.* | 68,969,749 | ||||||||
| | ||||||||||
| 150,500,019 | ||||||||||
| Software – 12.4% | ||||||||||
| 2,114,348 | ACI Worldwide, Inc.* | 39,665,168 | ||||||||
| 1,723,246 | Advent Software, Inc. | 54,385,644 | ||||||||
| 2,711,067 | Blackbaud, Inc.£ | 106,517,822 | ||||||||
| 5,721,666 | Cadence Design Systems, Inc.*,# | 98,469,872 | ||||||||
| 409,919 | FactSet Research Systems, Inc.# | 49,817,456 | ||||||||
| 821,393 | Guidewire Software, Inc. | 36,420,566 | ||||||||
| 1,007,935 | Informatica Corp.* | 34,511,694 | ||||||||
| 2,563,353 | RealPage, Inc.*,# | 39,731,972 | ||||||||
| 1,307,178 | Solera Holdings, Inc. | 73,672,552 | ||||||||
| 3,405,653 | SS&C Technologies Holdings, Inc.* | 149,474,110 | ||||||||
| | ||||||||||
| 682,666,856 | ||||||||||
| Specialty Retail – 3.4% | ||||||||||
| 1,325,312 | Hibbett Sports, Inc.*,#,£ | 56,498,051 | ||||||||
| 3,698,348 | Sally Beauty Holdings, Inc.* | 101,223,785 | ||||||||
| 234,538 | Ulta Salon Cosmetics & Fragrance, Inc. | 27,715,355 | ||||||||
| | ||||||||||
| 185,437,191 | ||||||||||
| Technology Hardware, Storage & Peripherals – 0.6% | ||||||||||
| 280,547 | Stratasys, Ltd.*,# | 33,884,467 | ||||||||
| Textiles, Apparel & Luxury Goods – 4.6% | ||||||||||
| 1,628,867 | Carter’s, Inc. | 126,269,770 | ||||||||
| 738,700 | Gildan Activewear, Inc.# | 40,421,664 | ||||||||
| 3,383,741 | Wolverine World Wide, Inc.# | 84,796,549 | ||||||||
| | ||||||||||
| 251,487,983 | ||||||||||
| Trading Companies & Distributors – 2.3% | ||||||||||
| 754,514 | MSC Industrial Direct Co., Inc. – Class A | 64,480,766 | ||||||||
| 825,519 | WESCO International, Inc.*,# | 64,605,117 | ||||||||
| | ||||||||||
| 129,085,883 | ||||||||||
| Total Common Stock (cost $4,032,040,635) | 5,281,030,144 | |||||||||
| Exchange-Traded Fund (ETF) – 1.2% | ||||||||||
| Capital Markets – 1.2% | ||||||||||
| 627,349 | iShares Russell 2000® Index Fund (cost $69,171,626) | 68,600,613 | ||||||||
| Money Market – 4.2% | ||||||||||
| 230,115,675 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $230,115,675) | 230,115,675 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 7.8% | ||||||||||
| 427,977,561 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $427,977,561) | 427,977,561 | ||||||||
| Total Investments (total cost $4,759,305,497) – 109.4% | 6,007,723,993 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (9.4)% | (516,289,800) | |||||||||
| Net Assets – 100% | $ | 5,491,434,193 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 5,938,516,282 | 98 | .8% | ||||
| Canada | 69,207,711 | 1 | .2 | |||||
| Total | $ | 6,007,723,993 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 11.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 81
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 14.63% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 19.15%, and its secondary benchmark, the S&P 500 Index, returned 19.73% during the period.
INVESTMENT ENVIRONMENT
U.S. stocks delivered strong returns during the past 12 months. Markets rallied early in the period, though first quarter gains slowed due to profit taking and lingering concerns around emerging market growth, particularly in China. Favorable economic signals in areas such as employment and corporate earnings drove stocks higher through the spring, even as gross domestic product (GDP) was revised sharply down, blamed primarily on difficult winter weather. The third quarter saw further gains on marginally improving data, despite disappointing August job numbers and mounting geopolitical unrest that resulted in late-summer pullbacks. Growing investor uncertainty also prompted the beginnings of a sharp selloff in the last weeks of September. Notwithstanding this volatility, the period ended with a healthy consumer environment, marked by improving employment trends, low inflation, higher borrowing and increased credit, constructive factors that have led to good retail and consumer spending data, which we expect to remain in place near term. Importantly, the Federal Reserve (Fed) has also indicated its intent to keep interest rates low for “a considerable time” until there is obvious improvement in the economy and employment.
PERFORMANCE DISCUSSION
The Fund is a concentrated portfolio that focuses on companies with strong global growth opportunities over multiple years. We believe our approach will generate attractive outperformance across longer time horizons, but it may trail short term, as it did during the period. Most of the relative underperformance came from holdings within the consumer discretionary, information technology and consumer staples sectors. Holdings in materials, industrials and financials provided the strongest positive contributions to returns.
Consumer staples stock Whole Foods Market was the Fund’s largest individual detractor, declining on disappointing long-term guidance due to increased competitive pressures. We believe the natural and organic foods grocery operator will continue to gain market share and will be aggressive in acquiring store sites and consumers from competitors to grow long term, but we recognize that effort will also lead to slower earnings growth over the short-to-intermediate term. While we still hold our position, we are continuing to analyze the competitive environment to assess whether that will restrict the long-term growth we anticipate for Whole Foods.
Las Vegas Sands was the top detractor within our consumer discretionary holdings. The company was among casino operators negatively affected by an ongoing slowdown in VIP business in Macau, China, due to the Chinese government’s two-year anti-corruption drive. The company has continued to grow its mass premium business in Macau, where the numbers of visitors are still increasing. We remain hopeful government pressures will ease on the VIP business or that the mass premium segment will more than offset declines in VIP. Longer term, growth trends in Macau should remain strong, in our view. We also appreciate Las Vegas Sands’ efforts to increase rooms and focus on making more revenue off each visitor. We believe Las Vegas Sands remains well positioned to benefit from wealth creation in Asia, including prospects for gaming in Japan and Korea.
General Motors also weighed on our consumer discretionary performance. Recalls and litigation stemming from GM’s faulty ignition switches have been a headwind for the stock, as has the company’s inability to hit margin targets. However, GM still offers an attractive dividend, in
82 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)(closed to new investors)
our view, and despite these near-term concerns we believe the stock is undervalued at its current level.
Health care company Gilead Sciences was the Fund’s top individual contributor. An arbitration panel rejected Roche Holding’s patent infringement claims related to Gilead’s key hepatitis C drug, Sovaldi. Since its launch earlier this year, the drug has become the largest product based on sales in the history of the pharmaceutical industry. The biotechnology company, a Top 5 holding, is at the forefront of health care companies we see creating shareholder value. We think the launch of a Sovaldi combination pill in the fourth quarter could be another bellwether for the industry. This combination would provide the first true one-pill, once-a-day treatment for the majority of hepatitis C patients.
Microsoft and Google were also top individual contributors, even though their strong relative performance failed to offset our other information technology holdings. Microsoft, another Top 5 holding, aided performance after the software giant reported adjusted earnings that beat market forecasts, driven by strong subscriptions to Office applications (Office 365) and its Azure cloud-hosting platform. As the company’s cloud-based sales grow to a higher percentage of its total revenue, investors should value the stock higher, in our view. Earlier, the company announced a restructuring plan that would eliminate up to 18,000 jobs over the next year. We believe new CEO Satya Nadella is moving the company in the right direction by de-emphasizing hardware to increase focus on productivity tools and its public and private cloud offerings, which should lead to durable recurring revenues. We also appreciate Nadella’s efforts of combining various development teams to improve efficiencies.
Google’s transition from desktop to mobile search has continued to exceed market expectations, and there is greater investor appreciation for its powerful Android 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.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We are anticipating continued improvement in the U.S. economy, with potentially 3% GDP growth next year. We also think the Fed will maintain low interest rates near term. Most market observers believe the central bank will begin raising rates in the middle of 2015, but we think it could be later. Even if rates increase modestly, we believe it would still be a good environment for equities since rising rates imply a better economy and some inflation to improve profitability. Valuations are not expensive, with the S&P 500 Index trading at 16x this year’s earnings. Corporate earnings should also remain good, in our view. While more companies are struggling to meet revenue expectations, we believe there are still many opportunities in terms of controlling expenses and productivity enhancements along with share repurchases to bolster earnings per share.
In terms of sector positioning, although we reduced our weighting in health care we continue to be overweight, primarily in biotechnology, which we think contains some of the best growth opportunities. Novel therapies for high, unmet medical needs are being approved and are having a meaningful impact in treating patients. We are underweight energy based on our belief that strong production from North American shale and traditional exploration efforts will pressure natural gas and oil prices lower over time. In consumer staples, we are significantly underweight due to lack of growth opportunities we see in that sector. Our overweight in consumer discretionary reflects our preference for premium content providers in media as well as companies that are exposed to the Asian consumer, such as gaming companies.
Thank you for your investment in Janus Twenty Fund.
Janus Growth & Core Funds | 83
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
Janus Twenty Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Gilead Sciences, Inc. | 2.34% | |||
| Microsoft Corp. | 1.89% | |||
| Google, Inc. – Class C | 1.20% | |||
| LyondellBasell Industries NV – Class A | 1.16% | |||
| AbbVie, Inc. | 1.12% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Whole Foods Market, Inc. | –0.57% | |||
| Las Vegas Sands Corp. | –0.47% | |||
| General Motors Co. | –0.28% | |||
| L Brands, Inc. | –0.26% | |||
| Diageo PLC | –0.17% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Materials | 0.89% | 5.05% | 4.46% | |||||||||
| Industrials | 0.85% | 6.84% | 12.26% | |||||||||
| Financials | 0.35% | 7.17% | 5.37% | |||||||||
| Health Care | 0.32% | 19.33% | 12.63% | |||||||||
| Telecommunication Services | 0.05% | 0.00% | 2.18% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Consumer Discretionary | –2.23% | 22.34% | 19.17% | |||||||||
| Information Technology | –1.55% | 25.72% | 27.17% | |||||||||
| Consumer Staples | –1.43% | 7.33% | 11.53% | |||||||||
| Energy | –0.53% | 4.55% | 5.08% | |||||||||
| Other** | –0.37% | 1.67% | 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. |
84 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Microsoft Corp. Software | 5.5% | |||
| Google, Inc. – Class C Internet Software & Services | 5.5% | |||
| Gilead Sciences, Inc. Biotechnology | 4.8% | |||
| Yahoo!, Inc. Internet Software & Services | 4.6% | |||
| Celgene Corp. Biotechnology | 4.6% | |||
| 25.0% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Growth & Core Funds | 85
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Twenty Fund – Class D Shares(1) | 14.74% | 11.69% | 10.00% | 12.08% | 0.67% | ||||||
| Janus Twenty Fund – Class T Shares(1) | 14.63% | 11.58% | 9.94% | 12.06% | 0.77% | ||||||
| Russell 1000® Growth Index | 19.15% | 16.50% | 8.94% | 10.52% | |||||||
| S&P 500® Index | 19.73% | 15.70% | 8.11% | 11.07% | |||||||
| Morningstar Quartile – Class T Shares | 3rd | 4th | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Large Growth Funds | 1,258/1,762 | 1,466/1,549 | 169/1,354 | 38/349 | |||||||
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 may adjust up or down based on the Fund’s 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.
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 of 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.
See important disclosures on the next page.
86 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)(closed to new investors)
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. |
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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 -9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,045.20 | $ | 3.59 | $ | 1,000.00 | $ | 1,021.56 | $ | 3.55 | 0.70% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,044.60 | $ | 4.20 | $ | 1,000.00 | $ | 1,020.96 | $ | 4.15 | 0.82% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 | 87
Table of Contents
Janus Twenty Fund
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 99.6% | ||||||||||
| Aerospace & Defense – 2.6% | ||||||||||
| 1,030,361 | Precision Castparts Corp. | $ | 244,071,914 | |||||||
| Airlines – 1.9% | ||||||||||
| 3,719,273 | United Continental Holdings, Inc.* | 174,024,784 | ||||||||
| Automobiles – 1.6% | ||||||||||
| 4,498,138 | General Motors Co. | 143,670,528 | ||||||||
| Beverages – 2.7% | ||||||||||
| 8,571,503 | Diageo PLC | 247,798,466 | ||||||||
| Biotechnology – 11.5% | ||||||||||
| 582,340 | Biogen Idec, Inc.* | 192,643,895 | ||||||||
| 4,477,234 | Celgene Corp.* | 424,352,239 | ||||||||
| 4,115,206 | Gilead Sciences, Inc.* | 438,063,679 | ||||||||
| | ||||||||||
| 1,055,059,813 | ||||||||||
| Capital Markets – 3.6% | ||||||||||
| 10,426,071 | Blackstone Group LP | 328,212,715 | ||||||||
| Chemicals – 6.1% | ||||||||||
| 3,957,311 | EI du Pont de Nemours & Co. | 283,976,637 | ||||||||
| 2,521,765 | LyondellBasell Industries NV – Class A | 274,014,985 | ||||||||
| | ||||||||||
| 557,991,622 | ||||||||||
| Communications Equipment – 3.7% | ||||||||||
| 4,570,476 | QUALCOMM, Inc. | 341,734,490 | ||||||||
| Consumer Finance – 3.2% | ||||||||||
| 3,365,211 | American Express Co. | 294,590,571 | ||||||||
| Electronic Equipment, Instruments & Components – 2.3% | ||||||||||
| 3,831,852 | TE Connectivity, Ltd. (U.S. Shares) | 211,863,097 | ||||||||
| Food & Staples Retailing – 1.4% | ||||||||||
| 3,315,658 | Whole Foods Market, Inc. | 126,359,726 | ||||||||
| Health Care Providers & Services – 1.6% | ||||||||||
| 2,065,590 | Express Scripts Holding Co.* | 145,892,622 | ||||||||
| Hotels, Restaurants & Leisure – 5.8% | ||||||||||
| 4,847,197 | Las Vegas Sands Corp. | 301,544,125 | ||||||||
| 3,127,423 | Starbucks Corp. | 235,995,340 | ||||||||
| | ||||||||||
| 537,539,465 | ||||||||||
| Household Products – 2.3% | ||||||||||
| 3,274,752 | Colgate-Palmolive Co. | 213,579,325 | ||||||||
| Information Technology Services – 4.5% | ||||||||||
| 5,556,547 | MasterCard, Inc. – Class A | 410,739,954 | ||||||||
| Internet & Catalog Retail – 5.5% | ||||||||||
| 507,057 | Amazon.com, Inc.* | 163,495,459 | ||||||||
| 292,116 | Priceline Group, Inc.* | 338,439,755 | ||||||||
| | ||||||||||
| 501,935,214 | ||||||||||
| Internet Software & Services – 10.1% | ||||||||||
| 866,063 | Google, Inc. – Class C*,† | 500,030,134 | ||||||||
| 10,415,182 | Yahoo!, Inc.* | 424,418,666 | ||||||||
| | ||||||||||
| 924,448,800 | ||||||||||
| Media – 7.6% | ||||||||||
| 2,935,393 | CBS Corp. – Class B | 157,043,526 | ||||||||
| 3,470,089 | Comcast Corp. – Class A | 186,621,386 | ||||||||
| 10,225,542 | Twenty-First Century Fox, Inc. – Class A | 350,633,835 | ||||||||
| | ||||||||||
| 694,298,747 | ||||||||||
| Oil, Gas & Consumable Fuels – 2.8% | ||||||||||
| 2,196,786 | Chevron Corp. | 262,120,506 | ||||||||
| Pharmaceuticals – 4.2% | ||||||||||
| 6,638,436 | AbbVie, Inc. | 383,436,063 | ||||||||
| Road & Rail – 3.1% | ||||||||||
| 2,591,817 | Union Pacific Corp. | 281,004,799 | ||||||||
| Semiconductor & Semiconductor Equipment – 2.3% | ||||||||||
| 14,782,746 | ARM Holdings PLC | 215,363,329 | ||||||||
| Software – 5.5% | ||||||||||
| 10,883,358 | Microsoft Corp. | 504,552,477 | ||||||||
| Textiles, Apparel & Luxury Goods – 3.7% | ||||||||||
| 3,830,809 | NIKE, Inc. – Class B | 341,708,163 | ||||||||
| Total Common Stock (cost $7,066,377,248) | 9,141,997,190 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Option – Call – 0.1% | ||||||||||
| Goldman Sachs International: Yahoo!, Inc. expires January 2015 44,000 contracts exercise price $45.00 (premiums paid $13,640,000) | 6,738,200 | |||||||||
| Total Investments (total cost $7,080,017,248) – 99.7% | 9,148,735,390 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.3% | 29,413,216 | |||||||||
| Net Assets – 100% | $ | 9,178,148,606 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United States | $ | 8,685,573,595 | 94 | .9% | ||||
| United Kingdom | 463,161,795 | 5 | .1 | |||||
| Total | $ | 9,148,735,390 | 100 | .0% | ||||
Schedule of OTC Written Option – Put
| Counterparty/Reference Asset | Value | |||
| Goldman Sachs International: Yahoo!, Inc. expires October 2014 44,000 contracts exercise price $40.00 (premiums received $5,535,200) | $ | (3,323,910) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
88 | SEPTEMBER 30, 2014
Table of Contents
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 6.31% over the one-year period ended September 30, 2014. The Fund’s primary benchmark, the Russell 2000 Growth Index, returned 3.79%, and its secondary benchmark, the Russell 2000 Index, returned 3.93% during the period.
INVESTMENT ENVIRONMENT
Small-cap growth markets moved higher over the past 12 months but with bouts of significant volatility. Stocks experienced choppy gains early in the period, a trend that continued into the first quarter with a quickly alternating “risk-on/off” environment that first pushed stocks higher, then sharply pulled back, followed by another steep rally that peaked in early March. Markets generally declined through spring as cloud computing, social media and biotech companies – many of which appeared to be trading at exceedingly high valuations, in our view, driven by market momentum rather than individual fundamentals – broadly sold off. This correction was followed by a marked rebound that lifted stocks near their peaks in the summer. Stocks then lost ground in September.
PERFORMANCE DISCUSSION
We seek to identify companies with long-duration growth potential and 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, as it did during the reporting period. Outperformance was led by our information technology, energy and financials holdings.
We believe that many of the characteristics that we find attractive in small-cap companies also make them appealing to potential acquirers; although this is notoriously hard to predict, we benefited from acquisitions of several positions during the period. Measurement Specialties was the largest individual contributor to relative results. This technology 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 percentage of the total bill of goods of the products they are used in. This gives the sensor manufacturer a more stable source of revenue once the sensor is designed into a product and also limits the pricing pressure from its customers. Measurement Specialties stock performed well as it was announced TE Connectivity Ltd. would acquire the company.
Dresser-Rand Group was also additive to performance. The company highlights the characteristics we typically look for in energy companies. The bulk of the company’s revenues come from its aftermarket business, which provides a more stable and predictable revenue source for drilling services companies than original equipment manufacturing. Further, the company’s aftermarket business focuses on servicing compression equipment, which is vital to both offshore and horizontal drilling, two drilling opportunities where more production growth is occurring. The stock rose after it was announced Dresser-Rand would be acquired by Siemens. We were not surprised to see the company acquired, as we have long believed it was an attractive business.
Puma Biotechnology was another top individual contributor. While we have avoided some of the biotech
Janus Growth & Core Funds | 89
Table of Contents
Janus Venture Fund (unaudited)
companies in the index due to high valuations, we bought Puma when biotech stocks sold off briefly in March and April. After the sell-off we thought Puma, which was developing an innovative treatment for breast cancer, offered a very attractive risk/reward profile with considerable upside if the company’s treatment passed an upcoming clinical trial. We were pleased to see the treatment pass the clinical trial, and the stock rose considerably after the news as the market reassessed the future revenue opportunity for Puma.
While generally pleased with our relative performance against the benchmark and the results of many companies in our portfolio, it was a tougher period for small-cap stocks than recent prior years, and we held some companies that disappointed. Holdings in the consumer discretionary and telecommunication services sectors detracted the most from returns, as did the Fund’s cash position, although it is not used as a strategy but only a necessary component of day-to-day portfolio management.
RealPage was the largest individual detractor. 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 have trimmed the stock due to concerns about executional missteps by the company. High occupancy rates at most apartment complexes in the U.S. have also been a headwind for RealPage. When landlords have an easier time finding tenants, they do not need to market vacancies as heavily and are in less need of RealPage’s solutions.
SodaStream International was another top individual detractor. The company creates products that allow consumers to make their own carbonated beverages at home. U.S. growth has been slower than expected, which has negatively affected the stock. We grew cautious about an increasingly competitive landscape for the company and sold the position during the period.
SP Plus, which was formerly called Standard Parking Corporation, also weighed on performance. The company manages, operates and maintains parking facilities for real estate owners and managers. We like that the company has an asset-light business model that is less economically sensitive, in our view. The fixed contracts associated with its services should also provide a relatively steady revenue source. However, we are currently reviewing the stock after poor execution by the company.
OUTLOOK
After substantial returns and multiple expansion for much of 2013 and early 2014, we expect low aggregate returns and perhaps further earnings multiple consolidation among select small-cap stocks, particularly for stocks in hyper-growth industries we highlighted earlier. Many of these stocks do not produce earnings yet and instead trade at high multiples of revenue. We believe those stocks still remain overvalued when analyzed using discounted cash flow analysis or other common valuation metrics.
While multiple consolidation could be an issue for some small-cap stocks, we like how our portfolio is positioned for this investment environment. While we do not outright avoid stocks in industries such as cloud computing, social media and biotech, we try to take a careful approach to investing in those areas. We hold a few cloud and social media companies, but we avoid areas within those industries where momentum is a major factor of stock performance and hold only a select few companies we believe will prove disruptive to the large end markets they serve. We are also carefully monitoring our exposure to biotech companies. We own a few biotech companies that have innovative therapies with promising potential, but we take smaller positions with companies whose performance is tied to the success or failure of a clinical trial for a single drug and have larger positions with biotech companies that have already had innovative therapies approved by the FDA or have multiple products in their pipelines.
Looking at the portfolio more broadly, we believe we are well positioned for an environment where global growth has slowed. Most of the companies in our portfolio derive their revenues from the U.S. and are less reliant on economies in other parts of the world, where growth is slower. While the U.S. economy is more stable than other countries, we do not expect it to break out to a much higher growth rate. However, we believe our portfolio is positioned well for a slow-growth economy. Many of the companies we hold either have stable and resilient business models and revenue streams, or are early enough in their growth cycle that they are taking share from competition or tapping into previously unaddressed markets. We believe these companies should thrive when the economy is strong but continue to experience solid growth even when economic growth is slow. Many of these companies we view as higher-quality were also caught up in the broad small-cap sell-offs, even though the stability of their business models has not wavered, in our view. We believe this has provided a more attractive entry point to add to positions of the types of companies we typically favor.
Thank you for your continued investment in Janus Venture Fund.
90 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Venture Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Measurement Specialties, Inc. | 0.94% | |||
| Puma Biotechnology, Inc. | 0.64% | |||
| Dresser-Rand Group, Inc. | 0.49% | |||
| SS&C Technologies Holdings, Inc. | 0.48% | |||
| Westinghouse Air Brake Technologies Corp. | 0.48% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| RealPage, Inc. | –0.59% | |||
| SodaStream International, Ltd. | –0.51% | |||
| SP Plus Corp. | –0.46% | |||
| Endologix, Inc. | –0.44% | |||
| Hibbett Sports, Inc. | –0.38% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 2000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Information Technology | 1.21% | 30.03% | 24.82% | |||||||||
| Energy | 1.02% | 5.71% | 4.22% | |||||||||
| Financials | 0.81% | 7.41% | 7.39% | |||||||||
| Health Care | 0.70% | 16.35% | 21.62% | |||||||||
| Consumer Staples | 0.18% | 1.47% | 4.61% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 2000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Consumer Discretionary | –0.44% | 13.82% | 15.87% | |||||||||
| Other** | –0.16% | 3.63% | 0.00% | |||||||||
| Telecommunication Services | –0.11% | 0.30% | 0.85% | |||||||||
| Utilities | 0.02% | 0.00% | 0.14% | |||||||||
| Industrials | 0.04% | 19.72% | 15.29% | |||||||||
| 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 | 91
Table of Contents
Janus Venture Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| SS&C Technologies Holdings, Inc. Software | 2.5% | |||
| Sally Beauty Holdings, Inc. Specialty Retail | 2.3% | |||
| Solera Holdings, Inc. Software | 1.9% | |||
| HEICO Corp. – Class A Aerospace & Defense | 1.8% | |||
| Carter’s, Inc. Textiles, Apparel & Luxury Goods | 1.7% | |||
| 10.2% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
92 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Venture Fund – Class A Shares | |||||||||||
| NAV | 6.05% | 17.23% | 10.40% | 12.05% | 1.14% | ||||||
| MOP | –0.05% | 15.85% | 9.74% | 11.83% | |||||||
| Janus Venture Fund – Class C Shares | |||||||||||
| NAV | 5.37% | 15.93% | 9.47% | 11.31% | 1.80% | ||||||
| CDSC | 4.48% | 15.93% | 9.47% | 11.31% | |||||||
| Janus Venture Fund – Class D Shares(1) | 6.40% | 17.67% | 10.71% | 12.26% | 0.84% | ||||||
| Janus Venture Fund – Class I Shares | 6.49% | 17.55% | 10.66% | 12.24% | 0.75% | ||||||
| Janus Venture Fund – Class N Shares | 6.55% | 17.55% | 10.66% | 12.24% | 0.69% | ||||||
| Janus Venture Fund – Class S Shares | 6.03% | 17.06% | 10.25% | 11.93% | 1.21% | ||||||
| Janus Venture Fund – Class T Shares | 6.31% | 17.55% | 10.66% | 12.24% | 0.94% | ||||||
| Russell 2000® Growth Index | 3.79% | 15.51% | 9.03% | 7.95% | |||||||
| Russell 2000® Index | 3.93% | 14.29% | 8.19% | 9.69% | |||||||
| Morningstar Quartile – Class T Shares | 1st | 1st | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Small Growth Funds | 144/738 | 73/672 | 44/560 | 4/46 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Growth & Core Funds | 93
Table of Contents
Janus Venture Fund (unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 of 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. |
94 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,005.50 | $ | 5.68 | $ | 1,000.00 | $ | 1,019.40 | $ | 5.72 | 1.13% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,002.30 | $ | 9.04 | $ | 1,000.00 | $ | 1,016.04 | $ | 9.10 | 1.80% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,007.20 | $ | 4.08 | $ | 1,000.00 | $ | 1,021.01 | $ | 4.10 | 0.81% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,007.60 | $ | 3.62 | $ | 1,000.00 | $ | 1,021.46 | $ | 3.65 | 0.72% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,007.90 | $ | 3.37 | $ | 1,000.00 | $ | 1,021.71 | $ | 3.40 | 0.67% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,005.40 | $ | 5.88 | $ | 1,000.00 | $ | 1,019.20 | $ | 5.92 | 1.17% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,006.70 | $ | 4.63 | $ | 1,000.00 | $ | 1,020.46 | $ | 4.66 | 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 183/365 (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
As of September 30, 2014
| Shares | Value | |||||||||
| Common Stock – 96.2% | ||||||||||
| Aerospace & Defense – 2.1% | ||||||||||
| 1,015,625 | HEICO Corp. – Class A | $ | 40,929,688 | |||||||
| 332,468 | Sparton Corp.* | 8,195,336 | ||||||||
| | ||||||||||
| 49,125,024 | ||||||||||
| Air Freight & Logistics – 1.2% | ||||||||||
| 687,942 | Hub Group, Inc. – Class A* | 27,882,289 | ||||||||
| Biotechnology – 5.0% | ||||||||||
| 443,497 | ACADIA Pharmaceuticals, Inc.*,# | 10,980,986 | ||||||||
| 628,771 | Chimerix, Inc.* | 17,366,655 | ||||||||
| 1,384,436 | Dyax Corp.* | 14,010,492 | ||||||||
| 411,793 | Insys Therapeutics, Inc.*,# | 15,969,333 | ||||||||
| 1,228,173 | Ironwood Pharmaceuticals, Inc.* | 15,910,981 | ||||||||
| 96,558 | Medivation, Inc.* | 9,546,690 | ||||||||
| 336,026 | NPS Pharmaceuticals, Inc.* | 8,736,676 | ||||||||
| 44,362 | Puma Biotechnology, Inc.* | 10,583,442 | ||||||||
| 290,658 | Swedish Orphan Biovitrum AB* | 3,098,743 | ||||||||
| 137,671 | Synageva BioPharma Corp.*,# | 9,469,011 | ||||||||
| | ||||||||||
| 115,673,009 | ||||||||||
| Capital Markets – 3.3% | ||||||||||
| 171,278 | Artisan Partners Asset Management, Inc. – Class A | 8,915,020 | ||||||||
| 198,838 | Financial Engines, Inc.# | 6,803,242 | ||||||||
| 907,603 | FXCM, Inc. – Class A# | 14,385,508 | ||||||||
| 738,322 | LPL Financial Holdings, Inc. | 33,999,728 | ||||||||
| 1,126,451 | WisdomTree Investments, Inc.*,# | 12,819,012 | ||||||||
| | ||||||||||
| 76,922,510 | ||||||||||
| Chemicals – 2.6% | ||||||||||
| 666,651 | Sensient Technologies Corp. | 34,899,180 | ||||||||
| 997,700 | Taminco Corp.* | 26,039,970 | ||||||||
| | ||||||||||
| 60,939,150 | ||||||||||
| Commercial Banks – 0.5% | ||||||||||
| 360,760 | Bank of the Ozarks, Inc. | 11,371,155 | ||||||||
| Commercial Services & Supplies – 1.6% | ||||||||||
| 1,109,835 | Heritage-Crystal Clean, Inc.*,£ | 16,492,148 | ||||||||
| 1,048,149 | SP Plus Corp.*,£ | 19,872,905 | ||||||||
| | ||||||||||
| 36,365,053 | ||||||||||
| Diversified Consumer Services – 1.3% | ||||||||||
| 166,018 | Ascent Capital Group, Inc. – Class A* | 9,994,284 | ||||||||
| 805,400 | ServiceMaster Global Holdings, Inc.* | 19,490,680 | ||||||||
| | ||||||||||
| 29,484,964 | ||||||||||
| Diversified Financial Services – 1.4% | ||||||||||
| 136,911 | MarketAxess Holdings, Inc. | 8,469,314 | ||||||||
| 500,426 | MSCI, Inc. | 23,530,031 | ||||||||
| | ||||||||||
| 31,999,345 | ||||||||||
| Electrical Equipment – 2.6% | ||||||||||
| 567,852 | EnerSys | 33,298,841 | ||||||||
| 2,505,638 | GrafTech International, Ltd.*,# | 11,475,822 | ||||||||
| 377,759 | Polypore International, Inc.*,# | 14,698,603 | ||||||||
| | ||||||||||
| 59,473,266 | ||||||||||
| Electronic Equipment, Instruments & Components – 4.2% | ||||||||||
| 413,772 | Belden, Inc. | 26,489,684 | ||||||||
| 1,323,634 | CTS Corp. | 21,032,544 | ||||||||
| 196,687 | Measurement Specialties, Inc.* | 16,838,374 | ||||||||
| 530,969 | National Instruments Corp. | 16,422,871 | ||||||||
| 250,187 | OSI Systems, Inc.* | 15,881,871 | ||||||||
| | ||||||||||
| 96,665,344 | ||||||||||
| Energy Equipment & Services – 2.4% | ||||||||||
| 423,872 | Dresser-Rand Group, Inc.* | 34,867,711 | ||||||||
| 227,338 | Dril-Quip, Inc.* | 20,324,017 | ||||||||
| | ||||||||||
| 55,191,728 | ||||||||||
| Food & Staples Retailing – 1.3% | ||||||||||
| 256,414 | Casey’s General Stores, Inc. | 18,384,883 | ||||||||
| 81 | Diplomat Pharmacy, Inc. – Private Placement*,§ | 11,529,002 | ||||||||
| | ||||||||||
| 29,913,885 | ||||||||||
| Food Products – 0.4% | ||||||||||
| 268,405 | WhiteWave Foods Co.* | 9,751,154 | ||||||||
| Health Care Equipment & Supplies – 4.4% | ||||||||||
| 1,893,319 | Endologix, Inc.* | 20,069,182 | ||||||||
| 110,941 | HeartWare International, Inc.* | 8,612,350 | ||||||||
| 275,587 | LDR Holding Corp.* | 8,579,023 | ||||||||
| 949,592 | Masimo Corp. | 20,207,318 | ||||||||
| 1,470,999 | Novadaq Technologies, Inc.* | 18,666,977 | ||||||||
| 914,159 | Quidel Corp.* | 24,563,452 | ||||||||
| | ||||||||||
| 100,698,302 | ||||||||||
| Health Care Providers & Services – 1.0% | ||||||||||
| 543,546 | Capital Senior Living Corp.* | 11,539,482 | ||||||||
| 367,188 | ExamWorks Group, Inc.* | 12,025,407 | ||||||||
| | ||||||||||
| 23,564,889 | ||||||||||
| Health Care Technology – 1.2% | ||||||||||
| 159,632 | athenahealth, Inc.*,# | 21,021,938 | ||||||||
| 392,011 | HMS Holdings Corp.* | 7,389,407 | ||||||||
| | ||||||||||
| 28,411,345 | ||||||||||
| Hotels, Restaurants & Leisure – 4.0% | ||||||||||
| 87,100 | Biglari Holdings, Inc.*,# | 29,593,096 | ||||||||
| 1,223,683 | Diamond Resorts International, Inc. | 27,851,025 | ||||||||
| 1,248,126 | Domino’s Pizza Group PLC | 11,443,586 | ||||||||
| 603,352 | Popeyes Louisiana Kitchen, Inc.* | 24,435,756 | ||||||||
| | ||||||||||
| 93,323,463 | ||||||||||
| Information Technology Services – 5.2% | ||||||||||
| 839,698 | Broadridge Financial Solutions, Inc. | 34,956,628 | ||||||||
| 709,338 | Euronet Worldwide, Inc.* | 33,899,263 | ||||||||
| 695,573 | MAXIMUS, Inc. | 27,913,344 | ||||||||
| 222,578 | WEX, Inc.* | 24,554,805 | ||||||||
| | ||||||||||
| 121,324,040 | ||||||||||
| Internet & Catalog Retail – 0.1% | ||||||||||
| 260,918 | Coupons.com, Inc.*,# | 3,120,579 | ||||||||
| Internet Software & Services – 5.0% | ||||||||||
| 1,056,285 | ChannelAdvisor Corp.*,# | 17,323,074 | ||||||||
| 205,383 | Cornerstone OnDemand, Inc.*,# | 7,067,229 | ||||||||
| 92,601 | CoStar Group, Inc.* | 14,403,159 | ||||||||
| 416,440 | Envestnet, Inc.* | 18,739,800 | ||||||||
| 412,236 | j2 Global, Inc.# | 20,347,969 | ||||||||
| 229,660 | Textura Corp.*,# | 6,063,024 | ||||||||
| 411,721 | Vistaprint NV*,# | 22,558,194 | ||||||||
| 71,271 | Zillow, Inc. – Class A*,# | 8,266,723 | ||||||||
| | ||||||||||
| 114,769,172 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
96 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares | Value | |||||||||
| Life Sciences Tools & Services – 0.9% | ||||||||||
| 214,622 | Techne Corp. | $ | 20,077,888 | |||||||
| Machinery – 4.7% | ||||||||||
| 930,574 | Kennametal, Inc. | 38,442,012 | ||||||||
| 280,850 | Nordson Corp. | 21,364,259 | ||||||||
| 500,013 | Rexnord Corp. | 14,225,370 | ||||||||
| 425,242 | Wabtec Corp. | 34,461,612 | ||||||||
| | ||||||||||
| 108,493,253 | ||||||||||
| Media – 2.0% | ||||||||||
| 457,388 | Manchester United PLC – Class A# | 7,537,754 | ||||||||
| 2,277,237 | National CineMedia, Inc. | 33,042,709 | ||||||||
| 1,002,327 | SFX Entertainment, Inc.# | 5,031,682 | ||||||||
| | ||||||||||
| 45,612,145 | ||||||||||
| Oil, Gas & Consumable Fuels – 2.0% | ||||||||||
| 89,591 | Cone Midstream Partners LP* | 2,517,507 | ||||||||
| 663,534 | DCP Midstream Partners LP# | 36,129,427 | ||||||||
| 62,819 | Targa Resources Corp. | 8,554,063 | ||||||||
| | ||||||||||
| 47,200,997 | ||||||||||
| Personal Products – 1.1% | ||||||||||
| 1,409,619 | IGI Laboratories, Inc.* | 13,137,649 | ||||||||
| 467,589 | Ontex Group NV* | 11,598,166 | ||||||||
| | ||||||||||
| 24,735,815 | ||||||||||
| Pharmaceuticals – 4.8% | ||||||||||
| 567,767 | Catalent, Inc.* | 14,211,208 | ||||||||
| 415,397 | Concordia Healthcare Corp. | 13,695,711 | ||||||||
| 49,732 | GW Pharmaceuticals PLC (ADR)# | 4,020,832 | ||||||||
| 261,702 | Mallinckrodt PLC* | 23,592,435 | ||||||||
| 146,902 | Pacira Pharmaceuticals, Inc.* | 14,237,742 | ||||||||
| 1,928,653 | Pernix Therapeutics Holdings*,£ | 14,812,055 | ||||||||
| 537,667 | Prestige Brands Holdings, Inc.* | 17,404,281 | ||||||||
| 425,823 | Relypsa, Inc.* | 8,980,607 | ||||||||
| | ||||||||||
| 110,954,871 | ||||||||||
| Professional Services – 0.7% | ||||||||||
| 269,144 | Corporate Executive Board Co. | 16,167,480 | ||||||||
| Real Estate Management & Development – 2.0% | ||||||||||
| 179,187 | Jones Lang LaSalle, Inc. | 22,638,485 | ||||||||
| 286,164 | RE/MAX Holdings, Inc. – Class A | 8,507,656 | ||||||||
| 758,925 | St Joe Co.*,# | 15,125,375 | ||||||||
| | ||||||||||
| 46,271,516 | ||||||||||
| Road & Rail – 2.6% | ||||||||||
| 336,051 | Landstar System, Inc. | 24,259,522 | ||||||||
| 264,802 | Old Dominion Freight Line, Inc.* | 18,705,613 | ||||||||
| 326,965 | Saia, Inc.* | 16,204,385 | ||||||||
| | ||||||||||
| 59,169,520 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.3% | ||||||||||
| 3,291,246 | Atmel Corp.* | 26,593,268 | ||||||||
| 2,998,381 | ON Semiconductor Corp.* | 26,805,526 | ||||||||
| | ||||||||||
| 53,398,794 | ||||||||||
| Software – 12.7% | ||||||||||
| 390,471 | ACI Worldwide, Inc.* | 7,325,236 | ||||||||
| 702,039 | Advent Software, Inc. | 22,156,351 | ||||||||
| 939,757 | Blackbaud, Inc. | 36,923,052 | ||||||||
| 2,186,120 | Cadence Design Systems, Inc.* | 37,623,125 | ||||||||
| 448,484 | FleetMatics Group PLC# | 13,678,762 | ||||||||
| 260,052 | Guidewire Software, Inc. | 11,530,706 | ||||||||
| 657,113 | NICE Systems, Ltd. (ADR) | 26,803,639 | ||||||||
| 1,386,634 | RealPage, Inc.* | 21,492,827 | ||||||||
| 798,531 | Solera Holdings, Inc. | 45,005,207 | ||||||||
| 1,333,913 | SS&C Technologies Holdings, Inc.* | 58,545,442 | ||||||||
| 144,459 | Tyler Technologies, Inc.* | 12,770,176 | ||||||||
| | ||||||||||
| 293,854,523 | ||||||||||
| Specialty Retail – 4.2% | ||||||||||
| 700,417 | Hibbett Sports, Inc.*,# | 29,858,777 | ||||||||
| 272,785 | Monro Muffler Brake, Inc. | 13,238,256 | ||||||||
| 2,001,336 | Sally Beauty Holdings, Inc.* | 54,776,566 | ||||||||
| | ||||||||||
| 97,873,599 | ||||||||||
| Technology Hardware, Storage & Peripherals – 0.4% | ||||||||||
| 73,904 | Stratasys, Ltd.*,# | 8,926,125 | ||||||||
| Textiles, Apparel & Luxury Goods – 3.2% | ||||||||||
| 503,053 | Carter’s, Inc. | 38,996,669 | ||||||||
| 1,416,734 | Wolverine World Wide, Inc.# | 35,503,354 | ||||||||
| | ||||||||||
| 74,500,023 | ||||||||||
| Trading Companies & Distributors – 1.6% | ||||||||||
| 474,838 | WESCO International, Inc.*,# | 37,160,822 | ||||||||
| Wireless Telecommunication Services – 0.2% | ||||||||||
| 445,275 | RingCentral, Inc. – Class A# | 5,659,445 | ||||||||
| Total Common Stock (cost $1,850,672,306) | 2,226,026,482 | |||||||||
| Exchange-Traded Fund (ETF) – 0.6% | ||||||||||
| Capital Markets – 0.6% | ||||||||||
| 98,842 | iShares Russell 2000® Growth Index Fund# (cost $12,837,105) | 12,818,819 | ||||||||
| Money Market – 2.9% | ||||||||||
| 66,748,956 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $66,748,956) | 66,748,956 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 9.3% | ||||||||||
| 217,514,548 | Janus Cash Collateral Fund LLC, 0.0650%°°,£ (cost $217,514,548) | 217,514,548 | ||||||||
| Total Investments (total cost $2,147,772,915) – 109.0% | 2,523,108,805 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (9.0)% | (209,197,635) | |||||||||
| Net Assets – 100% | $ | 2,313,911,170 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 2,426,243,397 | 96 | .2% | ||||
| Canada | 32,362,688 | 1 | .3 | |||||
| Israel | 26,803,639 | 1 | .1 | |||||
| United Kingdom | 23,002,172 | 0 | .9 | |||||
| Belgium | 11,598,166 | 0 | .4 | |||||
| Sweden | 3,098,743 | 0 | .1 | |||||
| Total | $ | 2,523,108,805 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 11.3%. |
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
| 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 July 1, 2009, 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 | |
| LP | Limited Partnership | |
| LLC | Limited Liability Company | |
| OTC | Over-the-Counter | |
| PLC | Public Limited Company | |
| SPDR | Standard & Poor’s Depositary Receipt | |
| ULC | Unlimited Liability 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 year ended September 30, 2014 is indicated in the table below: |
| Value as a % | ||||||||||
| Fund | Value | of Net Assets | ||||||||
| Janus Balanced Fund | $ | 794,165,280 | 6.7 | % | ||||||
| Janus Growth and Income Fund | 10,393,750 | 0.2 | ||||||||
| * | Non-income producing security. |
98 | SEPTEMBER 30, 2014
Table of Contents
| † | 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 September 30, 2014, is noted below. |
| Fund | Aggregate Value | ||||
| Janus Balanced Fund | $ | 162,900,000 | |||
| Janus Contrarian Fund | 438,387,381 | ||||
| Janus Enterprise Fund | 72,303,500 | ||||
| Janus Fund | 258,124,500 | ||||
| Janus Growth and Income Fund | 50,375,000 | ||||
| Janus Twenty Fund | 187,642,000 | ||||
| ‡ | 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 year end. | |
°° | Rate shown is the 7-day yield as of September 30, 2014. | |
| # | Loaned security; a portion of the security is on loan at September 30, 2014. | |
| µ | This variable rate security is a perpetual bond. Perpetual bonds have no contractual maturity date, are not redeemable, and pay an indefinite stream of interest. The coupon rate shown represents the current interest rate. |
| § | Schedule of Restricted and Illiquid Securities (as of September 30, 2014) |
| Acquisition | Acquisition | Value as a | ||||||||||||
| Date | Cost | Value | % of Net Assets | |||||||||||
Janus Balanced Fund | ||||||||||||||
| Colony American Homes Holdings III LP – Private Placement | 1/30/13 | $ | 61,705,954 | $ | 68,407,863 | 0.6 | % | |||||||
| FREMF 2010 K-SCT Mortgage Trust, 2.0000%, 1/25/20 | 4/29/13 | 10,914,809 | 11,115,622 | 0.1 | ||||||||||
| Total | $ | 72,620,763 | $ | 79,523,485 | 0.7 | % | ||||||||
Janus Contrarian Fund | ||||||||||||||
| Colony American Homes Holdings III LP – Private Placement | 1/30/13 | $ | 13,788,838 | $ | 15,286,450 | 0.4 | % | |||||||
Janus Enterprise Fund | ||||||||||||||
| Apptio, Inc. – Private Placement | 5/2/13 | $ | 4,182,216 | $ | 4,182,216 | 0.1 | % | |||||||
Janus Fund | ||||||||||||||
| Colony American Homes Holdings III LP – Private Placement | 1/30/13 | $ | 63,520,047 | $ | 70,418,986 | 0.9 | % | |||||||
Janus Growth and Income Fund | ||||||||||||||
| Colony American Homes Holdings III LP – Private Placement | 1/30/13 | $ | 24,057,693 | $ | 26,670,609 | 0.6 | % | |||||||
Janus Triton Fund | ||||||||||||||
| Diplomat Pharmacy, Inc. – Private Placement | 3/31/14 | $ | 28,628,678 | $ | 28,628,678 | 0.5 | % | |||||||
Janus Venture Fund | ||||||||||||||
| Diplomat Pharmacy, Inc. – Private Placement | 3/31/14 | $ | 11,529,002 | $ | 11,529,002 | 0.5 | % | |||||||
The Funds have registration rights for certain restricted securities held as of September 30, 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 year ended September 30, 2014. Unless otherwise indicated, all information in the table is for the year ended September 30, 2014. |
| Share | Share | �� | |||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 9/30/14 | Gain/(Loss) | Income | at 9/30/14 | |||||||||||||||
Janus Balanced Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 64,079,394 | 4,654,512,239 | (4,522,260,000) | 196,331,633 | $ | – | $ | 117,808 | $ | 196,331,633 | |||||||||||
Janus Growth & Core Funds | 99
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 9/30/14 | Gain/(Loss) | Income | at 9/30/14 | |||||||||||||||
Janus Contrarian Fund | |||||||||||||||||||||
| Blackhawk Network Holdings, Inc. | – | 420,546 | (252,576) | 167,970 | $ | 758,486 | $ | – | $ | 5,442,228 | |||||||||||
| Blackhawk Network Holdings, Inc. – Class B | – | 2,015,852 | – | 2,015,852 | – | – | 65,112,019 | ||||||||||||||
| Janus Cash Collateral Fund LLC | – | 1,363,034,743 | (1,027,507,684) | 335,527,059 | – | 1,701,157(1) | 335,527,059 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 1,002,000 | 1,510,476,078 | (1,457,328,608) | 54,149,470 | – | 50,701 | 54,149,470 | ||||||||||||||
| Knowles Corp. | – | 4,595,571 | – | 4,595,571 | – | – | 121,782,631 | ||||||||||||||
| Lands’ End, Inc. | – | 3,012,307 | – | 3,012,307 | – | – | 123,866,064 | ||||||||||||||
| Rayonier Advanced Materials, Inc. | – | 2,513,326 | – | 2,513,326 | – | 175,933 | 82,713,559 | ||||||||||||||
| St Joe Co. | 9,446,797 | 580,917 | – | 10,027,714 | – | – | 199,852,340 | ||||||||||||||
| Total | $ | 758,486 | $ | 1,927,791 | $ | 988,445,370 | |||||||||||||||
Janus Enterprise Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 870,039,550 | (679,616,647) | 190,422,903 | $ | – | $ | 342,192(1) | $ | 190,422,903 | |||||||||||
| Janus Cash Liquidity Fund LLC | 179,659,452 | 367,587,291 | (430,508,000) | 116,738,743 | – | 83,718 | 116,738,743 | ||||||||||||||
| Total | $ | – | $ | 425,910 | $ | 307,161,646 | |||||||||||||||
Janus Forty Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 67,587,000 | 731,772,032 | (769,720,032) | 29,639,000 | $ | – | $ | 8,674 | $ | 29,639,000 | |||||||||||
Janus Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 89,219,676 | 1,547,092,908 | (1,538,680,181) | 97,632,403 | $ | – | $ | 32,340 | $ | 97,632,403 | |||||||||||
Janus Growth and Income Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 100,537,119 | 545,587,118 | (611,699,237) | 34,425,000 | $ | – | $ | 30,330 | $ | 34,425,000 | |||||||||||
Janus Research Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 46,326,000 | 608,228,330 | (603,550,517) | 51,003,813 | $ | – | $ | 17,416 | $ | 51,003,813 | |||||||||||
Janus Triton Fund | |||||||||||||||||||||
| AMC Entertainment Holdings, Inc. – Class A | – | 1,465,608 | – | 1,465,608 | $ | – | $ | 435,436 | $ | 33,694,328 | |||||||||||
| Blackbaud, Inc. | 3,127,672 | 76,619 | (493,224) | 2,711,067 | 1,101,435 | 1,442,096 | 106,517,822 | ||||||||||||||
| DTS, Inc. | 1,209,858 | – | (1,209,858) | – | (17,196,095) | – | – | ||||||||||||||
| Endologix, Inc. | 3,200,987 | 369,458 | – | 3,570,445 | – | – | 37,846,717 | ||||||||||||||
GrafTech International, Ltd.(2) | 9,232,506 | 627,688 | (3,605,366) | 6,254,828 | (7,057,341) | – | N/A | ||||||||||||||
HEICO Corp. – Class A(3) | 2,025,351 | 506,337 | (131,598) | 2,400,090 | 1,936,631 | 1,181,997 | 96,723,627 | ||||||||||||||
| Hibbett Sports, Inc. | 1,371,373 | – | (46,061) | 1,325,312 | (149,752) | – | 56,498,051 | ||||||||||||||
| IGI Laboratories, Inc. | – | 2,665,784 | – | 2,665,784 | – | – | 24,845,107 | ||||||||||||||
| Janus Cash Collateral Fund LLC | – | 1,363,745,644 | (935,768,083) | 427,977,561 | – | 1,576,729(1) | 427,977,561 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 236,294,499 | 953,635,037 | (959,813,861) | 230,115,675 | – | 84,243 | 230,115,675 | ||||||||||||||
Measurement Specialties, Inc.(2) | 899,535 | – | (341,932) | 557,603 | 17,546,451 | – | N/A | ||||||||||||||
| National CineMedia, Inc. | 3,887,562 | – | (290,125) | 3,597,437 | (781,653) | 5,237,181 | 52,198,811 | ||||||||||||||
Tennant Co.(2) | 957,940 | – | (561,327) | 396,613 | 11,957,339 | 552,415 | N/A | ||||||||||||||
| Total | $ | 7,357,015 | $ | 10,510,097 | $ | 1,066,417,699 | |||||||||||||||
Janus Twenty Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 174,225,700 | 1,771,378,094 | (1,945,603,794) | – | $ | – | $ | 102,117 | $ | – | |||||||||||
Janus Venture Fund | |||||||||||||||||||||
| Heritage-Crystal Clean, Inc. | 1,110,167 | – | (332) | 1,109,835 | $ | (1,719) | $ | – | $ | 16,492,148 | |||||||||||
| Janus Cash Collateral Fund LLC | – | 916,317,787 | (698,803,239) | 217,514,548 | – | 2,052,987(1) | 217,514,548 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 133,297,661 | 491,079,295 | (557,628,000) | 66,748,956 | – | 57,662 | 66,748,956 | ||||||||||||||
| Pernix Therapeutics Holdings | – | 1,928,653 | – | 1,928,653 | – | – | 14,812,055 | ||||||||||||||
SP Plus Corp.(2)(4) | 1,616,886 | – | (568,737) | 1,048,149 | 2,084,530 | – | N/A | ||||||||||||||
| Total | $ | 2,082,811 | $ | 2,110,649 | $ | 315,567,707 | |||||||||||||||
| (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 September 30, 2014. | |
| (3) | Shares were adjusted to reflect a 5 for 4 stock split on October 23, 2013. | |
| (4) | Formerly named Standard Parking Corp. |
100 | SEPTEMBER 30, 2014
Table of Contents
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of September 30, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Balanced Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 249,803,962 | $ | – | |||||
Bank Loans and Mezzanine Loans | – | 95,505,123 | – | ||||||||
Common Stock | |||||||||||
| Beverages | – | 52,780,867 | – | ||||||||
| Food Products | 53,910,125 | 64,375,793 | – | ||||||||
| Insurance | – | 80,071,281 | – | ||||||||
| Real Estate Management & Development | – | – | 68,407,863 | ||||||||
| All Other | 6,310,941,527 | ||||||||||
Corporate Bonds | – | 2,670,237,230 | – | ||||||||
Mortgage-Backed Securities | – | 1,033,497,552 | – | ||||||||
Preferred Stock | – | 98,039,788 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 952,269,507 | – | ||||||||
Money Market | – | 196,331,633 | – | ||||||||
| Total Investments in Securities | $ | 6,364,851,652 | $ | 5,492,912,736 | $ | 68,407,863 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 1,055,074 | $ | – | |||||
Total Assets | $ | 6,364,851,652 | $ | 5,493,967,810 | $ | 68,407,863 | |||||
| Janus Contrarian Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Chemicals | $ | 245,747,476 | $ | 48,982,952 | $ | – | |||||
| Containers & Packaging | 63,331,309 | 16,500,390 | – | ||||||||
| Electrical Equipment | – | 37,326,260 | – | ||||||||
| Pharmaceuticals | 604,099,541 | 27,201,010 | – | ||||||||
| Real Estate Management & Development | 199,852,340 | – | 15,286,450 | ||||||||
| Tobacco | – | 35,523,649 | – | ||||||||
| All Other | 2,688,937,538 | – | – | ||||||||
OTC Purchased Options – Calls | – | 56,592,697 | – | ||||||||
OTC Purchased Options – Puts | – | 31,822,006 | – | ||||||||
Money Market | – | 54,149,470 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 335,527,059 | – | ||||||||
| Total Investments in Securities | $ | 3,801,968,204 | $ | 643,625,493 | $ | 15,286,450 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 85,190 | $ | – | |||||
Variation Margin Receivable | 685,000 | – | – | ||||||||
Total Assets | $ | 3,802,653,204 | $ | 643,710,683 | $ | 15,286,450 | |||||
Liabilities | |||||||||||
Investments in Securities Sold Short: | |||||||||||
Common Stock | $ | 11,973,374 | $ | – | $ | – | |||||
Janus Growth & Core Funds | 101
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Enterprise Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Commercial Services & Supplies | $ | 21,458,554 | $ | 25,747,261 | $ | – | |||||
| Software | 295,821,934 | – | 4,128,216 | ||||||||
| Textiles, Apparel & Luxury Goods | 118,401,552 | 36,147,175 | – | ||||||||
| All Other | 2,857,728,755 | – | – | ||||||||
Money Market | – | 116,738,743 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 190,422,903 | – | ||||||||
| Total Investments in Securities | $ | 3,293,410,795 | $ | 369,056,082 | $ | 4,128,216 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 3,871,925 | $ | – | |||||
Total Assets | $ | 3,293,410,795 | $ | 372,928,007 | $ | 4,128,216 | |||||
| Janus Forty Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Internet Software & Services | $ | 266,949,293 | $ | 52,878,576 | $ | – | |||||
| All Other | 2,229,741,005 | – | – | ||||||||
Money Market | – | 29,639,000 | – | ||||||||
Total Assets | $ | 2,496,690,298 | $ | 82,517,576 | $ | – | |||||
| Janus Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Beverages | $ | – | $ | 122,019,229 | $ | – | |||||
| Real Estate Management & Development | 42,841,452 | – | 70,418,986 | ||||||||
| Semiconductor & Semiconductor Equipment | 81,916,152 | 214,023,327 | – | ||||||||
| All Other | 7,050,579,835 | – | – | ||||||||
OTC Purchased Options – Calls | – | 5,003,114 | – | ||||||||
OTC Purchased Option – Put | – | 1,954,350 | – | ||||||||
Money Market | – | 97,632,403 | – | ||||||||
| Total Investments in Securities | $ | 7,175,337,439 | $ | 440,632,423 | $ | 70,418,986 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 2,665,931 | $ | – | |||||
Total Assets | $ | 7,175,337,439 | $ | 443,298,354 | $ | 70,418,986 | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
Options Written, at Value | $ | – | $ | 9,239,614 | $ | – | |||||
102 | SEPTEMBER 30, 2014
Table of Contents
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Growth and Income Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Beverages | $ | 49,074,069 | $ | 51,963,507 | $ | – | |||||
| Insurance | 23,206,750 | 54,197,916 | – | ||||||||
| Real Estate Management & Development | – | – | 26,670,609 | ||||||||
| All Other | 3,991,162,502 | – | – | ||||||||
Corporate Bonds | – | 50,086,400 | – | ||||||||
Preferred Stock | – | 65,582,324 | – | ||||||||
Money Market | – | 34,425,000 | – | ||||||||
| Total Investments in Securities | $ | 4,063,443,321 | $ | 256,255,147 | $ | 26,670,609 | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 620,764 | $ | – | |||||
Total Assets | $ | 4,063,443,321 | $ | 256,875,911 | $ | 26,670,609 | |||||
| Janus Research Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | $ | 4,215,591,023 | $ | – | $ | – | |||||
Money Market | – | 51,003,813 | – | ||||||||
Total Assets | $ | 4,215,591,023 | $ | 51,003,813 | $ | – | |||||
| Janus Triton Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Food & Staples Retailing | $ | 33,959,056 | $ | – | $ | 28,628,678 | |||||
| All Other | 5,218,442,410 | – | – | ||||||||
Exchange-Traded Fund (ETF) | 68,600,613 | – | – | ||||||||
Money Market | – | 230,115,675 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 427,977,561 | – | ||||||||
Total Assets | $ | 5,321,002,079 | $ | 658,093,236 | $ | 28,628,678 | |||||
| Janus Twenty Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Beverages | $ | – | $ | 247,798,466 | $ | – | |||||
| Semiconductor & Semiconductor Equipment | – | 215,363,329 | – | ||||||||
| All Other | 8,678,835,395 | – | – | ||||||||
OTC Purchased Option – Call | – | 6,738,200 | – | ||||||||
Total Assets | $ | 8,678,835,395 | $ | 469,899,995 | $ | – | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
Options Written, at Value | $ | – | $ | 3,323,910 | $ | – | |||||
Janus Growth & Core Funds | 103
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Venture Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Biotechnology | $ | 112,574,266 | $ | 3,098,743 | $ | – | |||||
| Food & Staples Retailing | 18,384,883 | – | 11,529,002 | ||||||||
| Hotels, Restaurants & Leisure | 81,879,877 | 11,443,586 | – | ||||||||
| Personal Products | 13,137,649 | 11,598,166 | – | ||||||||
| All Other | 1,962,380,310 | – | – | ||||||||
Exchange-Traded Fund (ETF) | 12,818,819 | – | – | ||||||||
Money Market | – | 66,748,956 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 217,514,548 | – | ||||||||
Total Assets | $ | 2,201,175,804 | $ | 310,403,999 | $ | 11,529,002 | |||||
| (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 the Fund at that date. Options are reported at their market value at measurement date. |
104 | SEPTEMBER 30, 2014
Table of Contents
[This page intentionally left blank.]
Janus Growth & Core Funds | 105
Table of Contents
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 September 30, 2014 | Fund | Fund | Fund | Forty Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||||
| Investments at cost | $ | 9,601,821,531 | $ | 3,774,205,485 | $ | 2,442,067,103 | $ | 2,065,566,414 | $ | 6,180,290,452 | $ | 2,951,031,388 | $ | 3,089,945,377 | $ | 4,759,305,497 | $ | 7,080,017,248 | $ | 2,147,772,915 | ||||||||||||||||||||
Unaffiliated investments at value(1) | $ | 11,729,840,618 | $ | 3,472,434,777 | $ | 3,359,433,447 | $ | 2,549,568,874 | $ | 7,588,756,445 | $ | 4,311,944,077 | $ | 4,215,591,023 | $ | 4,941,306,294 | $ | 9,148,735,390 | $ | 2,207,541,098 | ||||||||||||||||||||
Affiliated investments at value(1) | 196,331,633 | 988,445,370 | 307,161,646 | 29,639,000 | 97,632,403 | 34,425,000 | 51,003,813 | 1,066,417,699 | – | 315,567,707 | ||||||||||||||||||||||||||||||
| Cash | 10,297,110 | 21,088,152 | – | – | – | 559,911 | 1,582 | – | – | 1,994,782 | ||||||||||||||||||||||||||||||
Cash denominated in foreign currency(2) | – | 342,004 | 174,185 | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Restricted cash (Note 1) | – | – | – | – | 5,500,000 | – | – | – | 4,970,000 | – | ||||||||||||||||||||||||||||||
| Deposits with broker for short sales | – | 13,929,815 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Forward currency contracts | 1,055,074 | 85,190 | 3,871,925 | – | 2,665,931 | 620,764 | – | – | – | – | ||||||||||||||||||||||||||||||
| Closed foreign currency contracts | 37,948 | 3,524 | 185,348 | – | 15,189 | 454,716 | – | – | – | – | ||||||||||||||||||||||||||||||
| Variation margin receivable | – | 685,000 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation | 246,395 | 86,134 | 71,966 | 53,478 | 159,170 | 89,740 | 88,145 | 113,724 | 189,966 | 47,892 | ||||||||||||||||||||||||||||||
| Receivables: | ||||||||||||||||||||||||||||||||||||||||
| Investments sold | 58,276,500 | 34,571,658 | – | 12,874,553 | 51,238,886 | 7,115,425 | 4,420,890 | 71,120,173 | 115,029,103 | 14,724,049 | ||||||||||||||||||||||||||||||
| Fund shares sold | 13,318,422 | 2,716,385 | 2,311,805 | 730,436 | 3,399,154 | 707,821 | 1,510,801 | 3,699,984 | 828,626 | 1,359,586 | ||||||||||||||||||||||||||||||
| Dividends | 8,482,609 | 5,214,407 | 1,481,427 | 1,441,028 | 6,155,293 | 7,010,175 | 3,222,528 | 1,403,301 | 10,756,841 | 543,008 | ||||||||||||||||||||||||||||||
| Dividends from affiliates | 12,567 | 181,078 | 6,397 | 402 | 6,537 | 1,987 | 2,952 | 8,744 | 56 | 3,424 | ||||||||||||||||||||||||||||||
| Foreign dividend tax reclaim | 318,901 | 547,925 | – | 411,236 | 131,903 | 87,947 | – | – | 372,248 | – | ||||||||||||||||||||||||||||||
| Interest | 40,955,399 | – | – | – | – | 263,793 | – | – | – | – | ||||||||||||||||||||||||||||||
| Other assets | 220,243 | 99,396 | 65,184 | 50,415 | 145,741 | 81,107 | 80,107 | 105,439 | 174,265 | 160,113 | ||||||||||||||||||||||||||||||
| Total Assets | 12,059,393,419 | 4,540,430,815 | 3,674,763,330 | 2,594,769,422 | 7,755,806,652 | 4,363,362,463 | 4,275,921,841 | 6,084,175,358 | 9,281,056,495 | 2,541,941,659 | ||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||
| Due to custodian | – | – | 1,127 | 6,631 | 10,039,876 | – | – | 5,311 | 25,179,085 | – | ||||||||||||||||||||||||||||||
| Collateral for securities loaned (Note 3) | – | 335,527,059 | 190,422,903 | – | – | – | – | 427,977,561 | – | 217,514,548 | ||||||||||||||||||||||||||||||
Short sales, at value(3) | – | 11,973,374 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Closed foreign currency contracts | – | – | 1,278 | – | 49,867 | – | – | – | – | – | ||||||||||||||||||||||||||||||
Options written, at value(4) | – | – | – | – | 9,239,614 | – | – | – | 3,323,910 | – | ||||||||||||||||||||||||||||||
| Payables: | ||||||||||||||||||||||||||||||||||||||||
| Investments purchased | 126,767,531 | 24,679,186 | 1,748,027 | 6,021,907 | 36,344,159 | 21,791,297 | 11,459,106 | 152,634,681 | 64,705,936 | 6,848,784 | ||||||||||||||||||||||||||||||
| Fund shares repurchased | 30,041,495 | 4,568,612 | 2,298,893 | 23,740,771 | 3,177,553 | 1,942,007 | 1,035,993 | 7,159,075 | 3,273,362 | 1,744,971 | ||||||||||||||||||||||||||||||
| Dividends | 2,538,777 | – | – | – | – | 426,624 | – | – | – | – | ||||||||||||||||||||||||||||||
| Advisory fees | 5,416,815 | 2,592,287 | 1,857,964 | 954,516 | 3,131,791 | 2,168,382 | 2,139,752 | 2,968,602 | 4,270,563 | 1,246,150 | ||||||||||||||||||||||||||||||
| Fund administration fees | 98,488 | 34,641 | 29,030 | 21,682 | 64,142 | 36,140 | 35,538 | 46,384 | 76,707 | 19,471 | ||||||||||||||||||||||||||||||
| Internal servicing cost | 23,879 | 2,228 | 3,239 | 9,610 | 728 | 619 | 768 | 10,776 | – | 871 | ||||||||||||||||||||||||||||||
| Administrative services fees | 1,322,055 | 515,179 | 434,633 | 180,610 | 920,747 | 594,734 | 561,673 | 635,823 | 1,269,275 | 290,344 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees | 1,297,639 | 61,621 | 132,485 | 508,310 | 15,370 | 27,702 | 6,790 | 412,495 | – | 11,436 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees | 398,178 | 40,870 | 87,007 | 283,428 | 25,440 | 18,165 | 26,945 | 333,811 | – | 77,711 | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 78,805 | 26,982 | 23,383 | 19,420 | 52,114 | 29,464 | 28,279 | 39,911 | 64,912 | 16,285 | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation fees | 246,395 | 86,134 | 71,966 | 53,478 | 159,170 | 89,740 | 88,145 | 113,724 | 189,966 | 47,892 | ||||||||||||||||||||||||||||||
| Accrued expenses and other payables | 368,017 | 291,400 | 235,939 | 248,141 | 551,931 | 402,339 | 333,526 | 403,011 | 554,173 | 212,026 | ||||||||||||||||||||||||||||||
| Total Liabilities | 168,598,074 | 380,399,573 | 197,347,874 | 32,048,504 | 63,772,502 | 27,527,213 | 15,716,515 | 592,741,165 | 102,907,889 | 228,030,489 | ||||||||||||||||||||||||||||||
| Net Assets | $ | 11,890,795,345 | $ | 4,160,031,242 | $ | 3,477,415,456 | $ | 2,562,720,918 | $ | 7,692,034,150 | $ | 4,335,835,250 | $ | 4,260,205,326 | $ | 5,491,434,193 | $ | 9,178,148,606 | $ | 2,313,911,170 | ||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
106 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
107
Table of Contents
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 September 30, 2014 | Fund | Fund | Fund | Forty Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Net Assets Consist of: | ||||||||||||||||||||||||||||||||||||||||
| Capital (par value and paid-in surplus)* | $ | 9,088,733,957 | $ | 3,152,633,227 | $ | 2,075,779,681 | $ | 1,287,394,679 | $ | 4,570,939,855 | $ | 2,981,137,452 | $ | 2,588,411,824 | $ | 3,743,055,133 | $ | 5,968,512,277 | $ | 1,732,128,714 | ||||||||||||||||||||
| Undistributed net investment income/(loss)* | 18,255,049 | 2,654,949 | 981,974 | (53,478) | 8,764,696 | 12,245,213 | 14,047,012 | (113,724) | 35,603,152 | (47,892) | ||||||||||||||||||||||||||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 458,389,560 | 312,318,410 | 172,245,020 | 761,736,757 | 1,606,626,562 | (53,428,936) | 481,081,434 | 500,054,165 | 1,103,248,508 | 206,485,982 | ||||||||||||||||||||||||||||||
| Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 2,325,416,779 | 692,424,656 | 1,228,408,781 | 513,642,960 | 1,505,703,037 | 1,395,881,521 | 1,176,665,056 | 1,248,438,619 | 2,070,784,669 | 375,344,366 | ||||||||||||||||||||||||||||||
| Total Net Assets | $ | 11,890,795,345 | $ | 4,160,031,242 | $ | 3,477,415,456 | $ | 2,562,720,918 | $ | 7,692,034,150 | $ | 4,335,835,250 | $ | 4,260,205,326 | $ | 5,491,434,193 | $ | 9,178,148,606 | $ | 2,313,911,170 | ||||||||||||||||||||
| Net Assets - Class A Shares | $ | 835,680,986 | $ | 75,648,566 | $ | 104,169,457 | $ | 251,008,836 | $ | 14,674,568 | $ | 26,418,054 | $ | 15,851,148 | $ | 487,357,786 | N/A | $ | 16,621,349 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 26,874,507 | 3,273,424 | 1,240,576 | 5,991,694 | 339,774 | 561,680 | 341,031 | 20,896,142 | N/A | 260,579 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share(5) | $ | 31.10 | $ | 23.11 | $ | 83.97 | $ | 41.89 | $ | 43.19 | $ | 47.03 | $ | 46.48 | $ | 23.32 | N/A | $ | 63.79 | |||||||||||||||||||||
Maximum Offering Price Per Share(6) | $ | 33.00 | $ | 24.52 | $ | 89.09 | $ | 44.45 | $ | 45.82 | $ | 49.90 | $ | 49.32 | $ | 24.74 | N/A | $ | 67.68 | |||||||||||||||||||||
| Net Assets - Class C Shares | $ | 996,497,582 | $ | 56,097,635 | $ | 47,481,426 | $ | 297,563,809 | $ | 5,349,180 | $ | 16,454,228 | $ | 3,508,735 | $ | 208,869,258 | N/A | $ | 7,925,896 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 32,212,767 | 2,510,616 | 589,411 | 7,630,456 | 126,381 | 352,540 | 77,265 | 9,293,918 | N/A | 128,155 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share(5) | $ | 30.93 | $ | 22.34 | $ | 80.56 | $ | 39.00 | $ | 42.33 | $ | 46.67 | $ | 45.41 | $ | 22.47 | N/A | $ | 61.85 | |||||||||||||||||||||
| Net Assets - Class D Shares | $ | 1,414,363,794 | $ | 2,382,591,597 | $ | 1,178,379,421 | N/A | $ | 5,736,396,498 | $ | 2,663,379,837 | $ | 2,469,613,839 | $ | 830,606,530 | $ | 5,969,947,927 | $ | 1,340,281,227 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 45,418,511 | 102,800,363 | 13,848,738 | N/A | 132,067,449 | 56,592,961 | 52,748,244 | 35,239,980 | 91,316,020 | 20,723,560 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 31.14 | $ | 23.18 | $ | 85.09 | N/A | $ | 43.44 | $ | 47.06 | $ | 46.82 | $ | 23.57 | $ | 65.38 | $ | 64.67 | |||||||||||||||||||||
| Net Assets - Class I Shares | $ | 1,306,391,173 | $ | 329,244,959 | $ | 547,203,973 | $ | 1,095,563,757 | $ | 265,667,386 | $ | 54,747,559 | $ | 196,908,013 | $ | 1,130,108,561 | N/A | $ | 206,130,195 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 41,941,607 | 14,193,582 | 6,399,338 | 25,913,557 | 6,112,311 | 1,162,952 | 4,207,089 | 47,733,404 | N/A | 3,182,995 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 31.15 | $ | 23.20 | $ | 85.51 | $ | 42.28 | $ | 43.46 | $ | 47.08 | $ | 46.80 | $ | 23.68 | N/A | $ | 64.76 | |||||||||||||||||||||
| Net Assets - Class N Shares | $ | 1,648,664,707 | N/A | $ | 81,346,170 | $ | 68,809,820 | $ | 18,842,908 | N/A | $ | 66,011,386 | $ | 217,788,930 | N/A | $ | 6,486,153 | |||||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 52,987,964 | N/A | 949,975 | 1,628,129 | 433,079 | N/A | 1,409,948 | 9,186,791 | N/A | 99,982 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 31.11 | N/A | $ | 85.63 | $ | 42.26 | $ | 43.51 | N/A | $ | 46.82 | $ | 23.71 | N/A | $ | 64.87 | |||||||||||||||||||||||
| Net Assets - Class R Shares | $ | 309,886,894 | $ | 1,993,657 | $ | 70,573,203 | $ | 136,575,425 | $ | 2,786,784 | $ | 3,225,336 | N/A | $ | 144,014,450 | N/A | N/A | |||||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 9,999,170 | 87,406 | 855,857 | 3,398,365 | 64,954 | 68,831 | N/A | 6,253,696 | N/A | N/A | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 30.99 | $ | 22.81 | $ | 82.46 | $ | 40.19 | $ | 42.90 | $ | 46.86 | N/A | $ | 23.03 | N/A | N/A | |||||||||||||||||||||||
| Net Assets - Class S Shares | $ | 837,505,138 | $ | 6,345,666 | $ | 199,830,939 | $ | 687,468,623 | $ | 30,752,387 | $ | 33,405,350 | $ | 3,058,866 | $ | 336,291,823 | N/A | $ | 6,792,011 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 26,937,955 | 274,867 | 2,388,908 | 16,682,760 | 708,092 | 710,570 | 66,226 | 14,500,720 | N/A | 106,737 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 31.09 | $ | 23.09 | $ | 83.65 | $ | 41.21 | $ | 43.43 | $ | 47.01 | $ | 46.19 | $ | 23.19 | N/A | $ | 63.63 | |||||||||||||||||||||
| Net Assets - Class T Shares | $ | 4,541,805,071 | $ | 1,308,109,162 | $ | 1,248,430,867 | $ | 25,730,648 | $ | 1,617,564,439 | $ | 1,538,204,886 | $ | 1,505,253,339 | $ | 2,136,396,855 | $ | 3,208,200,679 | $ | 729,674,339 | ||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 145,965,525 | 56,513,295 | 14,725,035 | 622,370 | 37,183,512 | 32,701,258 | 32,165,911 | 91,013,679 | 49,107,816 | 11,357,633 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 31.12 | $ | 23.15 | $ | 84.78 | $ | 41.34 | $ | 43.50 | $ | 47.04 | $ | 46.80 | $ | 23.47 | $ | 65.33 | $ | 64.25 | ||||||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Unaffiliated/Affiliated investments at value includes $326,728,847, $186,029,846, $418,278,770 and $212,334,558 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 $342,004 and $174,185 for Janus Contrarian Fund and Janus Enterprise Fund, respectively. | |
| (3) | Proceeds $13,929,815 for Janus Contrarian Fund. | |
| (4) | Premiums received $6,197,828 and $5,535,200 for Janus Fund and Janus Twenty Fund, 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. | |
See Notes to Financial Statements.
108 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
109
Table of Contents
Statements of Operations
| Janus | Janus | Janus | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||
| Balanced | Contrarian | Enterprise | Janus | Janus | Growth and | Research | Triton | Twenty | Venture | |||||||||||||||||||||||||||||||
| For the year ended September 30, 2014 | Fund | Fund | Fund | Forty Fund | Fund | Income Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Investment Income: | ||||||||||||||||||||||||||||||||||||||||
| Interest | $ | 154,651,587 | $ | – | $ | – | $ | – | $ | – | $ | 7,707,257 | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||||||
| Affiliated securities lending income, net | – | 1,701,157 | 342,192 | – | – | – | – | 1,576,729 | – | 2,052,987 | ||||||||||||||||||||||||||||||
| Dividends | 133,361,916 | 38,213,835 | 30,989,486 | 18,621,736 | 77,938,993 | 114,636,641 | 48,442,002 | 31,785,804 | 146,206,992 | 13,586,213 | ||||||||||||||||||||||||||||||
| Dividends from affiliates | 117,808 | 226,634 | 83,718 | 8,674 | 32,340 | 30,330 | 17,416 | 8,933,368 | 102,117 | 57,662 | ||||||||||||||||||||||||||||||
| Other income | 1,285,111 | 2,791 | – | 12,309 | 18,084 | 697,759 | – | 67 | 184 | – | ||||||||||||||||||||||||||||||
| Foreign tax withheld | (85,653) | (709,950) | (805,967) | (425,238) | (913,716) | (84,327) | (29,099) | (322,236) | – | (135,175) | ||||||||||||||||||||||||||||||
| Total Investment Income | 289,330,769 | 39,434,467 | 30,609,429 | 18,217,481 | 77,075,701 | 122,987,660 | 48,430,319 | 41,973,732 | 146,309,293 | 15,561,687 | ||||||||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||||||||||
| Advisory fees | 62,221,197 | 22,957,809 | 21,562,310 | 13,842,186 | 36,382,403 | 25,367,292 | 21,366,450 | 37,029,774 | 51,096,303 | 14,804,546 | ||||||||||||||||||||||||||||||
| Internal servicing expense - Class A Shares | 87,418 | 4,730 | 10,358 | 37,378 | – | 2,860 | 1,910 | 60,327 | N/A | 13,041 | ||||||||||||||||||||||||||||||
| Internal servicing expense - Class C Shares | 141,397 | 5,323 | 6,649 | 55,565 | 896 | 2,579 | 492 | 36,213 | N/A | 928 | ||||||||||||||||||||||||||||||
| Internal servicing expense - Class I Shares | 47,443 | 7,644 | 24,100 | 39,299 | 6,733 | 1,874 | 6,646 | 57,317 | N/A | 6,338 | ||||||||||||||||||||||||||||||
| Shareholder reports expense | 617,688 | 433,620 | 368,090 | 282,009 | 739,514 | 423,117 | 537,296 | 784,844 | 749,760 | 322,683 | ||||||||||||||||||||||||||||||
| Transfer agent fees and expenses | 378,952 | 660,931 | 450,168 | 43,923 | 1,234,759 | 717,074 | 825,549 | 299,630 | 1,058,222 | 256,610 | ||||||||||||||||||||||||||||||
| Registration fees | 364,143 | 213,255 | 197,625 | 189,461 | 169,316 | 149,363 | 151,218 | 293,431 | 77,225 | 153,245 | ||||||||||||||||||||||||||||||
| Custodian fees | 65,808 | 58,204 | 47,469 | 31,915 | 90,365 | 30,667 | 20,276 | 33,932 | 59,023 | 19,516 | ||||||||||||||||||||||||||||||
| Professional fees | 162,771 | 82,179 | 75,794 | 72,051 | 133,040 | 94,185 | 125,687 | 97,595 | 128,988 | 68,794 | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 316,982 | 106,594 | 92,693 | 75,023 | 198,049 | 118,635 | 114,632 | 157,397 | 263,229 | 63,648 | ||||||||||||||||||||||||||||||
| Short sales interest expense | – | 4,969 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Stock loan fees | – | 27,797 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Fund administration fees | 1,035,653 | 347,358 | 308,166 | 260,091 | 684,824 | 386,266 | 372,930 | 528,350 | 866,155 | 211,202 | ||||||||||||||||||||||||||||||
| Administrative services fees - Class D Shares | 1,660,095 | 2,710,144 | 1,411,063 | N/A | 6,729,490 | 3,113,278 | 2,860,712 | 1,049,440 | 7,135,128 | 1,651,067 | ||||||||||||||||||||||||||||||
| Administrative services fees - Class R Shares | 740,869 | 4,776 | 166,919 | 377,052 | 8,168 | 7,329 | N/A | 359,687 | N/A | N/A | ||||||||||||||||||||||||||||||
| Administrative services fees - Class S Shares | 2,111,900 | 12,826 | 570,932 | 3,039,499 | 94,970 | 92,977 | 6,483 | 819,594 | N/A | 15,969 | ||||||||||||||||||||||||||||||
| Administrative services fees - Class T Shares | 10,938,015 | 3,096,662 | 2,949,323 | 76,451 | 4,223,708 | 3,759,634 | 3,665,705 | 5,601,733 | 8,954,614 | 1,811,832 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 2,098,400 | 115,749 | 254,167 | 884,724 | 36,071 | 70,409 | 46,216 | 1,447,494 | N/A | 114,650 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 8,741,361 | 341,895 | 404,632 | 3,204,626 | 52,450 | 153,685 | 30,907 | 2,109,763 | N/A | 65,479 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class R Shares | 1,478,767 | 9,408 | 333,838 | 753,607 | 16,337 | 14,658 | N/A | 719,373 | N/A | N/A | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 2,111,900 | 12,826 | 570,932 | 3,039,499 | 94,970 | 92,977 | 6,483 | 819,594 | N/A | 15,969 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class A Shares | 918,576 | 44,129 | 228,262 | 512,508 | 24,700 | 19,322 | 21,438 | 1,202,621 | N/A | 97,247 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class C Shares | 775,151 | 42,614 | 51,732 | 433,342 | 6,496 | 16,979 | 3,150 | 344,131 | N/A | 7,996 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class I Shares | 727,891 | 109,635 | 393,650 | 657,215 | 159,738 | 46,605 | 136,432 | 1,354,634 | N/A | 98,863 | ||||||||||||||||||||||||||||||
| Other expenses | 636,624 | 210,465 | 181,041 | 178,931 | 422,750 | 231,927 | 219,033 | 335,805 | 510,871 | 140,805 | ||||||||||||||||||||||||||||||
| Total Expenses | 98,379,001 | 31,621,542 | 30,659,913 | 28,086,355 | 51,509,747 | 34,913,692 | 30,519,645 | 55,542,679 | 70,899,518 | 19,940,428 | ||||||||||||||||||||||||||||||
| Less: Expense and Fee Offset | (2,609) | (1,656) | (1,371) | (952) | (2,632) | (1,810) | (2,032) | (2,190) | (2,307) | (881) | ||||||||||||||||||||||||||||||
| Less: Excess Expense Reimbursement | (163,365) | (91,469) | (73,809) | (655,846) | (216,802) | (113,051) | (116,629) | (92,282) | (294,083) | (52,061) | ||||||||||||||||||||||||||||||
| Net Expenses | 98,213,027 | 31,528,417 | 30,584,733 | 27,429,557 | 51,290,313 | 34,798,831 | 30,400,984 | 55,448,207 | 70,603,128 | 19,887,486 | ||||||||||||||||||||||||||||||
| Net Investment Income/(Loss) | 191,117,742 | 7,906,050 | 24,696 | (9,212,076) | 25,785,388 | 88,188,829 | 18,029,335 | (13,474,475) | 75,706,165 | (4,325,799) | ||||||||||||||||||||||||||||||
| Net Realized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||||||||||
| Investments and foreign currency transactions | 489,458,718 | 653,332,136 | 235,047,187 | 782,228,804 | 1,590,326,386 | 194,416,720 | 525,310,072 | 529,279,529 | 1,353,376,092 | 246,273,414 | ||||||||||||||||||||||||||||||
| Investments in affiliates | – | 758,486 | – | – | – | – | – | 7,357,015 | – | 2,082,811 | ||||||||||||||||||||||||||||||
| Futures contracts | – | (19,361,353) | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Short sales | – | 3,660,398 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Swap contracts | – | – | – | – | – | – | – | 8,478,717 | – | – | ||||||||||||||||||||||||||||||
| Written options contracts | – | 4,702,013 | – | – | 6,205,919 | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Total Net Realized Gain/(Loss) on Investments | 489,458,718 | 643,091,680 | 235,047,187 | 782,228,804 | 1,596,532,305 | 194,416,720 | 525,310,072 | 545,115,261 | 1,353,376,092 | 248,356,225 | ||||||||||||||||||||||||||||||
See Notes to Financial Statements.
110 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
111
Table of Contents
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 year ended September 30, 2014 | Fund | Fund | Fund | Forty Fund | Fund | Income Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Change in Unrealized Net Appreciation/Depreciation: | ||||||||||||||||||||||||||||||||||||||||
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | $ | 538,347,032 | $ | 145,018,290 | $ | 145,606,344 | $ | (413,512,874) | $ | (482,430,903) | $ | 367,046,598 | $ | 179,970,407 | $ | (69,861,799) | $ | (135,578,104) | $ | (106,994,436) | ||||||||||||||||||||
| Futures contracts | – | (2,654,258) | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Short sales | – | 2,193,353 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Swap contracts | – | – | – | – | – | – | – | (807,662) | – | – | ||||||||||||||||||||||||||||||
| Written options contracts | – | 1,057,752 | – | – | (2,775,135) | – | – | – | 2,211,290 | – | ||||||||||||||||||||||||||||||
| Total Change in Unrealized Net Appreciation/Depreciation | 538,347,032 | 145,615,137 | 145,606,344 | (413,512,874) | (485,206,038) | 367,046,598 | 179,970,407 | (70,669,461) | (133,366,814) | (106,994,436) | ||||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 1,218,923,492 | $ | 796,612,867 | $ | 380,678,227 | $ | 359,503,854 | $ | 1,137,111,655 | $ | 649,652,147 | $ | 723,309,814 | $ | 460,971,325 | $ | 1,295,715,443 | $ | 137,035,990 | ||||||||||||||||||||
See Notes to Financial Statements.
112 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
113
Table of Contents
Statements of Changes in Net Assets
| Janus | Janus | Janus | Janus | Janus Growth and | ||||||||||||||||||||||||||||||||||||||||||||
| Balanced Fund | Contrarian Fund | Enterprise Fund | Forty Fund | Janus Fund | Income Fund | |||||||||||||||||||||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 191,117,742 | $ | 163,769,209 | $ | 7,906,050 | $ | 10,702,940 | $ | 24,696 | $ | 9,639,277 | $ | (9,212,076) | $ | 24,328,134 | $ | 25,785,388 | $ | 64,448,645 | $ | 88,188,829 | $ | 81,062,531 | ||||||||||||||||||||||||
| Net realized gain/(loss) on investments | 489,458,718 | 361,410,777 | 643,091,680 | 325,064,498 | 235,047,187 | 194,780,715 | 782,228,804 | 975,806,934 | 1,596,532,305 | 1,215,864,162 | 194,416,720 | 365,655,927 | ||||||||||||||||||||||||||||||||||||
| Change in unrealized net appreciation/depreciation | 538,347,032 | 651,980,124 | 145,615,137 | 470,376,091 | 145,606,344 | 449,463,660 | (413,512,874) | (376,581,910) | (485,206,038) | 111,395,256 | 367,046,598 | 278,606,431 | ||||||||||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 1,218,923,492 | 1,177,160,110 | 796,612,867 | 806,143,529 | 380,678,227 | 653,883,652 | 359,503,854 | 623,553,158 | 1,137,111,655 | 1,391,708,063 | 649,652,147 | 725,324,889 | ||||||||||||||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | (12,901,179) | (12,406,992) | (4,939) | (143,477) | – | – | (3,139,527) | (1,600,821) | – | (7,648,093) | (454,067) | (366,867) | ||||||||||||||||||||||||||||||||||||
| Class C Shares | (8,130,273) | (6,806,049) | – | – | – | – | (474,345) | – | – | – | (146,669) | (129,668) | ||||||||||||||||||||||||||||||||||||
| Class D Shares | (24,016,718) | (23,882,399) | (4,076,137) | (16,879,992) | (1,574,457) | – | N/A | N/A | (19,624,172) | (40,321,129) | (46,552,060) | (40,875,829) | ||||||||||||||||||||||||||||||||||||
| Class I Shares | (21,537,975) | (26,922,708) | (312,235) | (477,663) | (1,226,479) | – | (8,593,212) | (6,548,757) | (593,856) | (1,229,099) | (888,710) | (484,472) | ||||||||||||||||||||||||||||||||||||
| Class N Shares | (29,097,852) | (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 | (3,579,618) | (3,723,025) | – | (701) | – | – | (753,082) | – | (2,106) | (1,568) | (38,958) | (33,541) | ||||||||||||||||||||||||||||||||||||
| Class S Shares | (12,040,711) | (13,449,433) | – | (3,223) | – | – | (10,406,759) | (4,196,193) | (64,152) | (106,093) | (558,599) | (584,103) | ||||||||||||||||||||||||||||||||||||
| Class T Shares | (72,575,574) | (70,255,325) | (1,515,990) | (6,903,335) | (1,154,367) | – | (330,275) | (300,941) | (5,280,453) | (9,186,893) | (25,868,230) | (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 | (487,620,275) | (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) | (74,507,293) | (66,132,204) | ||||||||||||||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
114 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
115
Table of Contents
Statements of Changes in Net Assets (continued)
| Janus | Janus | Janus | Janus | Janus Growth and | ||||||||||||||||||||||||||||||||||||||||||||
| Balanced Fund | Contrarian Fund | Enterprise Fund | Forty Fund | Janus Fund | Income Fund | |||||||||||||||||||||||||||||||||||||||||||
| For each year ended September 30 | 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 | 287,423,878 | 225,563,454 | 57,257,857 | 6,010,762 | 39,659,375 | 31,633,141 | 67,703,786 | 80,736,003 | 2,766,428 | 367,888,361 | 4,755,508 | 7,192,358 | ||||||||||||||||||||||||||||||||||||
| Class C Shares | 326,767,890 | 204,183,748 | 33,365,683 | 1,732,347 | 15,508,422 | 10,176,699 | 44,493,349 | 28,172,896 | 678,833 | 897,655 | 2,127,955 | 2,612,102 | ||||||||||||||||||||||||||||||||||||
| Class D Shares | 115,719,488 | 127,491,518 | 116,394,836 | 86,293,261 | 52,943,933 | 71,738,767 | N/A | N/A | 92,655,179 | 94,589,634 | 80,905,688 | 89,286,885 | ||||||||||||||||||||||||||||||||||||
| Class I Shares | 578,836,306 | 417,555,819 | 265,244,632 | 40,689,995 | 158,713,996 | 114,344,632 | 679,790,681 | 239,233,134 | 135,042,753 | 16,624,007 | 27,389,044 | 8,775,252 | ||||||||||||||||||||||||||||||||||||
| Class N Shares | 285,323,466 | 1,453,464,096 | N/A | N/A | 71,727,680 | 11,614,972 | 58,465,490 | 49,389,734 | 1,370,479 | 313,210,011 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Class R Shares | 87,834,648 | 92,653,636 | 955,570 | 292,318 | 24,688,812 | 22,165,017 | 24,717,937 | 24,884,525 | 1,077,684 | 955,228 | 861,956 | 542,620 | ||||||||||||||||||||||||||||||||||||
| Class S Shares | 162,185,684 | 195,308,338 | 4,268,514 | 396,154 | 54,616,007 | 71,086,213 | 98,214,598 | 149,362,311 | 7,703,346 | 6,390,052 | 4,313,084 | 7,119,756 | ||||||||||||||||||||||||||||||||||||
| Class T Shares | 873,364,234 | 756,498,391 | 403,549,761 | 198,043,513 | 264,734,719 | 199,197,891 | 12,469,867 | 23,576,515 | 142,408,479 | 127,801,367 | 173,999,616 | 128,531,737 | ||||||||||||||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | 29,489,372 | 26,542,829 | 4,784 | 127,027 | 3,951,671 | 1,979,101 | 60,863,618 | 1,280,471 | 81,516 | 7,638,073 | 440,574 | 355,710 | ||||||||||||||||||||||||||||||||||||
| Class C Shares | 23,545,164 | 17,673,632 | – | – | 1,622,727 | 669,316 | 37,966,676 | – | 14,468 | – | 130,017 | 113,047 | ||||||||||||||||||||||||||||||||||||
| Class D Shares | 60,650,327 | 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 | 45,452,587 | 39,901,176 | ||||||||||||||||||||||||||||||||||||
| Class I Shares | 39,867,474 | 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 | 778,248 | 415,790 | ||||||||||||||||||||||||||||||||||||
| Class N Shares | 71,147,110 | 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 | 10,716,613 | 10,096,107 | – | 701 | 2,997,804 | 1,483,720 | 26,232,840 | – | 18,271 | 1,421 | 38,805 | 33,210 | ||||||||||||||||||||||||||||||||||||
| Class S Shares | 35,861,404 | 36,621,281 | – | 3,223 | 13,900,200 | 6,757,295 | 268,748,610 | 4,169,789 | 262,629 | 105,470 | 556,882 | 581,850 | ||||||||||||||||||||||||||||||||||||
| Class T Shares | 187,912,147 | 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 | 25,101,134 | 22,952,445 | ||||||||||||||||||||||||||||||||||||
| Shares Repurchased | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | (302,150,859) | (196,667,787) | (14,819,124) | (11,457,608) | (39,580,205) | (27,000,851) | (239,032,377) | (188,056,597) | (8,236,474) | (1,655,852,851) | (8,396,886) | (11,236,570) | ||||||||||||||||||||||||||||||||||||
| Class C Shares | (116,261,652) | (97,840,380) | (4,487,427) | (5,357,740) | (7,370,486) | (6,209,005) | (83,826,728) | (98,161,617) | (1,058,385) | (2,169,093) | (1,813,256) | (2,782,713) | ||||||||||||||||||||||||||||||||||||
| Class D Shares | (141,381,145) | (147,127,134) | (203,304,825) | (228,433,931) | (114,963,599) | (119,807,782) | N/A | N/A | (461,797,495) | (479,064,733) | (230,126,416) | (241,879,119) | ||||||||||||||||||||||||||||||||||||
| Class I Shares | (350,958,703) | (1,548,424,019) | (52,213,653) | (19,247,566) | (152,122,917) | (83,972,264) | (459,897,811) | (637,725,733) | (30,705,982) | (43,029,319) | (10,104,944) | (6,547,724) | ||||||||||||||||||||||||||||||||||||
| Class N Shares | (239,719,640) | (188,838,992) | N/A | N/A | (4,825,429) | (3,998,658) | (16,874,469) | (32,563,965) | (12,004,931) | (361,892,699) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Class R Shares | (87,775,026) | (78,412,160) | (1,000,626) | (1,027,767) | (21,107,531) | (22,165,001) | (63,704,485) | (72,775,272) | (2,020,220) | (600,912) | (739,266) | (711,573) | ||||||||||||||||||||||||||||||||||||
| Class S Shares | (254,321,039) | (246,372,959) | (911,966) | (1,478,408) | (133,240,178) | (65,874,855) | (981,297,271) | (692,732,168) | (23,746,270) | (16,335,984) | (15,273,822) | (13,856,368) | ||||||||||||||||||||||||||||||||||||
| Class T Shares | (783,459,489) | (787,470,776) | (339,376,709) | (235,300,452) | (215,142,082) | (181,014,245) | (27,914,031) | (49,551,455) | (420,047,436) | (737,601,328) | (264,072,315) | (323,812,325) | ||||||||||||||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 900,617,652 | 600,115,744 | 270,706,282 | (144,957,333) | 152,494,674 | 98,192,581 | (368,793,635) | (1,165,037,064) | (516,163,924) | (2,307,797,939) | (163,675,807) | (292,412,454) | ||||||||||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 1,631,920,869 | 1,335,784,590 | 1,061,409,848 | 636,777,805 | 358,210,082 | 667,812,173 | (612,034,846) | (554,328,445) | 559,280,829 | (978,170,912) | 411,469,047 | 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 | $ | 11,890,795,345 | $ | 10,258,874,476 | $ | 4,160,031,242 | $ | 3,098,621,394 | $ | 3,477,415,456 | $ | 3,119,205,374 | $ | 2,562,720,918 | $ | 3,174,755,764 | $ | 7,692,034,150 | $ | 7,132,753,321 | $ | 4,335,835,250 | $ | 3,924,366,203 | ||||||||||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 18,255,049 | $ | 11,006,186 | $ | 2,654,949 | $ | 445,332 | $ | 981,974 | $ | 3,933,868 | $ | (53,478) | $ | 24,146,349 | $ | 8,764,696 | $ | 25,496,070 | $ | 12,245,213 | $ | 8,635,846 | ||||||||||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. | |
See Notes to Financial Statements.
116 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
117
Table of Contents
Statements of Changes in Net Assets (continued)
| Janus Research | Janus Triton | Janus Twenty | Janus Venture | |||||||||||||||||||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 18,029,335 | $ | 29,219,156 | $ | (13,474,475) | $ | 12,975,074 | $ | 75,706,165 | $ | 65,109,178 | $ | (4,325,799) | $ | 5,332,886 | ||||||||||||||||
| Net realized gain/(loss) on investments | 525,310,072 | 331,566,465 | 545,115,261 | 239,006,998 | 1,353,376,092 | 2,084,767,034 | 248,356,225 | 323,538,490 | ||||||||||||||||||||||||
| Change in unrealized net appreciation/depreciation | 179,970,407 | 371,073,743 | (70,669,461) | 1,002,057,353 | (133,366,814) | (604,714,929) | (106,994,436) | 269,341,187 | ||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 723,309,814 | 731,859,364 | 460,971,325 | 1,254,039,425 | 1,295,715,443 | 1,545,161,283 | 137,035,990 | 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.
118 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
119
Table of Contents
Statements of Changes in Net Assets (continued)
| Janus Research | Janus Triton | Janus Twenty | Janus Venture | |||||||||||||||||||||||||||||
| Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||
| Class A Shares | 6,129,084 | 4,801,162 | 155,390,489 | 320,926,194 | N/A | N/A | 17,515,218 | 97,239,431 | ||||||||||||||||||||||||
| Class C Shares | 1,069,754 | 724,114 | 49,929,035 | 84,782,272 | N/A | N/A | 4,888,512 | 3,680,688 | ||||||||||||||||||||||||
| Class D Shares | 79,624,238 | 65,474,984 | 120,176,729 | 184,312,754 | 98,659,130 | 100,175,892 | 79,819,813 | 76,444,819 | ||||||||||||||||||||||||
| Class I Shares | 79,836,942 | 52,078,884 | 399,048,228 | 729,080,202 | N/A | N/A | 121,173,390 | 93,670,253 | ||||||||||||||||||||||||
| Class N Shares | 19,379,191 | 33,284,846 | 116,153,071 | 81,767,226 | N/A | N/A | 2,576,291 | 2,028,621 | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | 57,284,565 | 81,499,651 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | 2,438,281 | 213,041 | 120,837,446 | 192,671,092 | N/A | N/A | 3,802,604 | 6,869,130 | ||||||||||||||||||||||||
| Class T Shares | 163,714,344 | 130,454,612 | 509,504,846 | 846,757,462 | 228,774,147 | 284,062,696 | 288,964,867 | 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 | (9,658,008) | (4,556,258) | (293,298,517) | (201,368,386) | N/A | N/A | (47,925,485) | (326,913,645) | ||||||||||||||||||||||||
| Class C Shares | (557,693) | (670,025) | (56,781,025) | (40,277,453) | N/A | N/A | (1,653,918) | (160,758) | ||||||||||||||||||||||||
| Class D Shares | (192,308,302) | (201,894,196) | (186,476,796) | (157,283,305) | (500,086,439) | (513,618,848) | (149,372,724) | (119,507,340) | ||||||||||||||||||||||||
| Class I Shares | (49,255,036) | (41,638,224) | (680,766,283) | (520,411,588) | N/A | N/A | (50,539,751) | (20,026,093) | ||||||||||||||||||||||||
| Class N Shares | (6,862,325) | (42,572,886) | (30,988,627) | (41,550,908) | N/A | N/A | (3,228,340) | (775,389) | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | (48,497,683) | (20,247,791) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | (610,899) | (64,101) | (103,030,506) | (72,560,868) | N/A | N/A | (3,405,974) | (1,600,066) | ||||||||||||||||||||||||
| Class T Shares | (254,417,616) | (417,054,943) | (687,252,941) | (571,739,113) | (1,089,275,564) | (760,926,697) | (243,759,158) | (355,098,654) | ||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | (132,694,276) | (397,344,528) | (351,661,083) | 1,057,963,627 | 926,503,069 | (826,982,650) | 345,933,777 | (22,404,097) | ||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 561,170,077 | 309,918,421 | (111,367,720) | 2,132,704,690 | (16,602,759) | 653,359,962 | 145,130,211 | 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 | $ | 4,260,205,326 | $ | 3,699,035,249 | $ | 5,491,434,193 | $ | 5,602,801,913 | $ | 9,178,148,606 | $ | 9,194,751,365 | $ | 2,313,911,170 | $ | 2,168,780,959 | ||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 14,047,012 | $ | 17,331,828 | $ | (113,724) | $ | (10,815,011) | $ | 35,603,152 | $ | 31,785,588 | $ | (47,892) | $ | (41,512) | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. | |
See Notes to Financial Statements.
120 | SEPTEMBER 30, 2014
Table of Contents
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
121
Table of Contents
Financial Highlights
Class A Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.49(3) | 0.51 | 0.50 | 0.51 | 0.56 | (0.05) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.83 | 2.90 | 4.22 | (1.14) | 1.60 | 2.28 | ||||||||||||||||||||
| Total from Investment Operations | 3.32 | 3.41 | 4.72 | (0.63) | 2.16 | 2.23 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.47) | (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 | – | – | – | – | – | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (1.33) | (1.31) | (0.90) | (1.28) | (0.49) | (0.11) | ||||||||||||||||||||
| Net Asset Value, End of Period | $31.10 | $29.11 | $27.01 | $23.19 | $25.10 | $23.43 | ||||||||||||||||||||
| Total Return** | 11.65% | 13.12% | 20.70% | (2.85)% | 9.30% | 10.43% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $835,681 | $765,049 | $656,171 | $526,178 | $513,494 | $314,935 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $839,360 | $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*** | 0.95% | 0.94% | 0.98% | 0.91% | 0.93% | 0.89% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.94% | 0.98% | 0.91% | 0.93% | 0.89% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.61% | 1.66% | 1.87% | 2.03% | 2.37% | 2.35% | ||||||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during each year or period ended | Janus Contrarian Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.02(3) | 0.01 | 0.04 | (0.06) | 0.01 | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.61 | 4.65 | 2.58 | (2.60) | 2.28 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 4.63 | 4.66 | 2.62 | (2.66) | 2.29 | 1.26 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | –(4) | (0.09) | – | (0.02) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | (0.09) | – | (0.02) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.11 | $18.48 | $13.91 | $11.29 | $13.97 | $11.68 | ||||||||||||||||||||
| Total Return** | 25.08% | 33.67% | 23.21% | (19.09)% | 19.61% | 12.09% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $75,649 | $25,397 | $23,930 | $33,491 | $73,013 | $68,166 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $46,300 | $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*** | 1.02% | 0.85% | 0.91% | 0.90% | 1.06% | 1.43% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 0.85% | 0.91% | 0.90% | 1.06% | 1.34% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.10% | 0.22% | 0.50% | 0.30% | 0.11% | (0.36)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 61% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
122 | SEPTEMBER 30, 2014
Table of Contents
Class A Shares
| For a share outstanding during 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 | $79.08 | $64.53 | $52.43 | $52.14 | $42.46 | $36.63 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.21)(3) | 0.12 | (0.27) | (0.12) | (0.11) | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.44 | 16.70 | 12.37 | 0.41 | 9.79 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 9.23 | 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 | $83.97 | $79.08 | $64.53 | $52.43 | $52.14 | $42.46 | ||||||||||||||||||||
| Total Return** | 12.07% | 26.78% | 23.08% | 0.56% | 22.80% | 15.92% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $104,169 | $93,983 | $70,811 | $61,773 | $75,980 | $74,709 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $101,667 | $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*** | (0.25)% | 0.18% | (0.39)% | (0.45)% | (0.41)% | (0.23)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 17% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class A Shares
| Janus Forty Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $45.79 | $38.43 | $29.11 | $31.00 | $30.52 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.13)(3) | 0.53 | 0.35 | 0.34 | 0.12 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.38 | 6.98 | 9.12 | (2.23) | 0.36 | |||||||||||||||||
| Total from Investment Operations | 5.25 | 7.51 | 9.47 | (1.89) | 0.48 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.39) | (0.15) | (0.15) | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | |||||||||||||||||
| Total Distributions | (9.15) | (0.15) | (0.15) | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $41.89 | $45.79 | $38.43 | $29.11 | $31.00 | |||||||||||||||||
| Total Return | 12.72% | 19.61% | 32.66% | (6.10)% | 1.57% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $251,009 | $390,945 | $425,598 | $452,606 | $854,798 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $353,889 | $409,492 | $437,738 | $741,870 | $956,800 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 0.92% | 0.86% | 1.00% | 0.97% | 1.09% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 0.92% | 0.84% | 0.88% | 0.97% | 1.03% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | (0.30)% | 0.71% | 0.41% | 0.35% | (0.17)% | |||||||||||||||||
| Portfolio Turnover Rate | 51% | 43% | 9% | 51% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 123
Table of Contents
Financial Highlights (continued)
Class A Shares
| For a share outstanding during 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 | $37.33 | $31.74 | $25.33 | $26.81 | $23.96 | $20.86 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.06(3) | (7.61) | 0.11 | 0.11 | 0.05 | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.99 | 13.41 | 6.44 | (1.45) | 2.83 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 6.05 | 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 | $43.19 | $37.33 | $31.74 | $25.33 | $26.81 | $23.96 | ||||||||||||||||||||
| Total Return** | 16.27% | 18.39% | 25.96% | (5.08)% | 12.03% | 14.86% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $14,675 | $17,579 | $1,117,172 | $851,546 | $383,332 | $4,237 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $16,911 | $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*** | 0.86% | 0.99% | 1.02% | 1.07% | 1.22% | 1.07% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 0.95% | 0.89% | 0.98% | 1.06% | 1.03% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.16% | 0.65% | 0.48% | 0.41% | 0.42% | 0.09% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class A Shares
| Janus Growth and | ||||||||||||||||||||||||||
| For a share outstanding during each year or period ended | Income Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.88(3) | 0.70 | 0.34 | 0.27 | 0.25 | 0.03 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.92 | 6.62 | 8.04 | (2.25) | 2.03 | 3.23 | ||||||||||||||||||||
| Total from Investment Operations | 6.80 | 7.32 | 8.38 | (1.98) | 2.28 | 3.26 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.74) | (0.63) | (0.35) | (0.27) | (0.25) | (0.03) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.74) | (0.63) | (0.35) | (0.27) | (0.25) | (0.03) | ||||||||||||||||||||
| Net Asset Value, End of Period | $47.03 | $40.97 | $34.28 | $26.25 | $28.50 | $26.47 | ||||||||||||||||||||
| Total Return** | 16.69% | 21.56% | 32.02% | (7.08)% | 8.68% | 14.02% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $26,418 | $25,749 | $25,678 | $20,936 | $18,894 | $19,157 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $28,164 | $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*** | 0.96% | 0.97% | 1.00% | 0.96% | 1.04% | 1.16% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96% | 0.96% | 0.97% | 0.94% | 1.00% | 0.98% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.96% | 2.08% | 1.24% | 0.92% | 0.99% | 0.31% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
124 | SEPTEMBER 30, 2014
Table of Contents
Class A Shares
| For a share outstanding during each year or period ended | Janus Research Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.11(3) | 0.19 | 0.10 | 0.19 | 0.09 | 0.02 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.55 | 7.09 | 6.22 | (0.47) | 3.80 | 3.06 | ||||||||||||||||||||
| Total from Investment Operations | 7.66 | 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 | $46.48 | $39.09 | $31.97 | $25.85 | $26.30 | $22.49 | ||||||||||||||||||||
| Total Return** | 19.68% | 22.86% | 24.59% | (1.14)% | 17.31% | 15.87% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $15,851 | $16,229 | $13,144 | $10,941 | $1,805 | $88 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $18,486 | $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*** | 0.93% | 0.96% | 1.09% | 0.90% | 1.06% | 1.24% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.96% | 1.09% | 0.90% | 1.06% | 1.17% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.25% | 0.62% | 0.35% | 0.49% | 0.35% | 0.02% | ||||||||||||||||||||
| Portfolio Turnover Rate | 44% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during 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 | $22.43 | $18.03 | $14.84 | $14.67 | $11.60 | $10.26 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.10)(3) | 0.02 | (0.06) | (0.01) | (0.01) | 0.03 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.88 | 5.24 | 3.85 | 0.49 | 3.10 | 1.31 | ||||||||||||||||||||
| Total from Investment Operations | 1.78 | 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 | $23.32 | $22.43 | $18.03 | $14.84 | $14.67 | $11.60 | ||||||||||||||||||||
| Total Return** | 8.07% | 30.43% | 26.04% | 3.05% | 26.64% | 13.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $487,358 | $581,387 | $334,176 | $151,623 | $40,333 | $13,610 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $578,998 | $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*** | 1.15% | 1.11% | 1.13% | 1.01% | 1.07% | 1.43% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.15% | 1.11% | 1.13% | 1.01% | 1.07% | 1.33% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.42)% | 0.09% | (0.31)% | (0.26)% | (0.32)% | 0.99% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 125
Table of Contents
Financial Highlights (continued)
Class A Shares
| Janus Venture Fund | ||||||||||||||||||
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.34)(2) | (0.42) | (0.11) | 0.04 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.36 | 17.45 | 14.32 | (10.50) | ||||||||||||||
| Total from Investment Operations | 4.02 | 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 | $63.79 | $70.71 | $60.33 | $50.20 | ||||||||||||||
| Total Return** | 6.05% | 31.76% | 29.59% | (17.24)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $16,621 | $44,205 | $209,254 | $349 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $45,860 | $243,045 | $31,344 | $217 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.17% | 1.14% | 1.08% | 1.03% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17% | 1.14% | 1.08% | 1.03% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.51)% | (0.04)% | (0.48)% | (0.23)% | ||||||||||||||
| Portfolio Turnover Rate | 47% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
126 | SEPTEMBER 30, 2014
Table of Contents
Class C Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.27(3) | 0.32 | 0.31 | 0.33 | 0.39 | (0.09) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.80 | 2.88 | 4.22 | (1.15) | 1.61 | 2.25 | ||||||||||||||||||||
| Total from Investment Operations | 3.07 | 3.20 | 4.53 | (0.82) | 2.00 | 2.16 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.28) | (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 | – | – | – | – | – | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (1.14) | (1.13) | (0.75) | (1.11) | (0.32) | (0.07) | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.93 | $29.00 | $26.93 | $23.15 | $25.08 | $23.40 | ||||||||||||||||||||
| Total Return** | 10.78% | 12.30% | 19.84% | (3.57)% | 8.58% | 10.13% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $996,498 | $708,673 | $538,591 | $435,691 | $412,414 | $248,071 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $874,136 | $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*** | 1.68% | 1.70% | 1.72% | 1.65% | 1.64% | 1.70% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.68% | 1.70% | 1.72% | 1.65% | 1.63% | 1.69% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.88% | 0.90% | 1.13% | 1.29% | 1.66% | 1.54% | ||||||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during each year or period ended | Janus Contrarian Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.15)(3) | (0.28) | (0.36) | (0.34) | (0.10) | (0.05) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.48 | 4.70 | 2.83 | (2.38) | 2.29 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 4.33 | 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 | $22.34 | $18.01 | $13.59 | $11.12 | $13.84 | $11.65 | ||||||||||||||||||||
| Total Return** | 24.04% | 32.52% | 22.21% | (19.65)% | 18.80% | 11.80% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $56,098 | $21,162 | $19,148 | $26,153 | $63,203 | $64,036 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $34,189 | $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*** | 1.80% | 1.70% | 1.75% | 1.62% | 1.85% | 2.37% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.80% | 1.70% | 1.70% | 1.62% | 1.85% | 2.09% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.69)% | (0.62)% | (0.29)% | (0.43)% | (0.69)% | (1.12)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 61% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 127
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during 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 | $76.52 | $62.98 | $51.56 | $51.65 | $42.36 | $36.63 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.71)(3) | (0.14) | (0.73) | (0.61) | (0.48) | (0.10) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.09 | 15.95 | 12.15 | 0.52 | 9.77 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 8.38 | 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 | $80.56 | $76.52 | $62.98 | $51.56 | $51.65 | $42.36 | ||||||||||||||||||||
| Total Return** | 11.34% | 25.81% | 22.15% | (0.17)% | 21.93% | 15.64% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $47,481 | $35,702 | $25,271 | $21,194 | $23,449 | $21,706 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $40,463 | $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*** | 1.82% | 1.86% | 1.96% | 1.77% | 1.96% | 2.39% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.82% | 1.85% | 1.92% | 1.77% | 1.93% | 1.94% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.90)% | (0.59)% | (1.13)% | (1.18)% | (1.18)% | (0.98)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 17% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class C Shares
| Janus Forty Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $43.19 | $36.40 | $27.65 | $29.69 | $29.44 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.41)(3) | (0.36) | (0.46) | (0.46) | (0.16) | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.04 | 7.15 | 9.21 | (1.58) | 0.41 | |||||||||||||||||
| Total from Investment Operations | 4.63 | 6.79 | 8.75 | (2.04) | 0.25 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | – | – | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | |||||||||||||||||
| Total Distributions | (8.82) | – | – | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $39.00 | $43.19 | $36.40 | $27.65 | $29.69 | |||||||||||||||||
| Total Return | 11.89% | 18.65% | 31.65% | (6.87)% | 0.85% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $297,564 | $327,004 | $341,806 | $354,291 | $612,674 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $320,463 | $324,884 | $354,737 | $548,885 | $613,080 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.67% | 1.65% | 1.71% | 1.77% | 1.85% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.67% | 1.63% | 1.62% | 1.77% | 1.78% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | (1.04)% | (0.07)% | (0.34)% | (0.44)% | (1.00)% | |||||||||||||||||
| Portfolio Turnover Rate | 51% | 43% | 9% | 51% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
128 | SEPTEMBER 30, 2014
Table of Contents
Class C Shares
| For a share outstanding during 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 | $36.88 | $31.32 | $25.06 | $26.59 | $23.90 | $20.86 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.25)(3) | (0.24) | (0.14) | (0.14) | (0.13) | (0.05) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.89 | 5.80 | 6.40 | (1.39) | 2.82 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 5.64 | 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 | $42.33 | $36.88 | $31.32 | $25.06 | $26.59 | $23.90 | ||||||||||||||||||||
| Total Return** | 15.35% | 17.75% | 24.98% | (5.75)% | 11.26% | 14.57% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,349 | $4,998 | $5,498 | $4,599 | $5,687 | $5,443 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,245 | $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*** | 1.65% | 1.67% | 1.69% | 1.70% | 1.96% | 1.89% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.65% | 1.63% | 1.64% | 1.70% | 1.78% | 1.78% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.63)% | (0.09)% | (0.29)% | (0.32)% | (0.48)% | (0.69)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class C Shares
| Janus Growth and | ||||||||||||||||||||||||||
| For a share outstanding during each year or period ended | Income Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.52(3) | 0.36 | 0.11 | 0.07 | 0.06 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.88 | 6.60 | 8.00 | (2.28) | 2.05 | 3.21 | ||||||||||||||||||||
| Total from Investment Operations | 6.40 | 6.96 | 8.11 | (2.21) | 2.11 | 3.18 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.43) | (0.39) | (0.14) | (0.06) | (0.10) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.43) | (0.39) | (0.14) | (0.06) | (0.10) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $46.67 | $40.70 | $34.13 | $26.16 | $28.43 | $26.42 | ||||||||||||||||||||
| Total Return** | 15.77% | 20.53% | 31.03% | (7.80)% | 8.00% | 13.68% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $16,454 | $13,964 | $11,850 | $10,060 | $4,824 | $4,760 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $15,369 | $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*** | 1.76% | 1.82% | 1.85% | 1.70% | 1.82% | 2.08% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.76% | 1.80% | 1.72% | 1.70% | 1.74% | 1.73% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.16% | 1.23% | 0.50% | 0.17% | 0.28% | (0.43)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 129
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during each year or period ended | Janus Research Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.21)(3) | (0.07) | (0.06) | 0.09 | (0.03) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.40 | 6.97 | 6.08 | (0.57) | 3.73 | 3.02 | ||||||||||||||||||||
| Total from Investment Operations | 7.19 | 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 | $45.41 | $38.35 | $31.45 | $25.49 | $26.08 | $22.44 | ||||||||||||||||||||
| Total Return** | 18.78% | 21.94% | 23.64% | (1.89)% | 16.50% | 15.61% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,509 | $2,498 | $2,028 | $1,127 | $176 | $69 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,091 | $2,130 | $1,635 | $820 | $133 | $25 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.67% | 1.72% | 1.82% | 1.67% | 1.81% | 1.94% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.67% | 1.72% | 1.82% | 1.67% | 1.81% | 1.89% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.48)% | (0.14)% | (0.38)% | (0.28)% | (0.26)% | (0.47)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 44% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during 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 | $21.79 | $17.65 | $14.64 | $14.60 | $11.60 | $10.26 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.25)(3) | (0.06) | (0.13) | (0.06) | (0.06) | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.82 | 5.05 | 3.74 | 0.41 | 3.06 | 1.34 | ||||||||||||||||||||
| Total from Investment Operations | 1.57 | 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 | $22.47 | $21.79 | $17.65 | $14.64 | $14.60 | $11.60 | ||||||||||||||||||||
| Total Return** | 7.32% | 29.48% | 25.14% | 2.16% | 25.86% | 13.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $208,869 | $202,466 | $117,035 | $61,322 | $15,778 | $6,018 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $215,905 | $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*** | 1.83% | 1.85% | 1.94% | 1.80% | 1.79% | 2.19% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.83% | 1.85% | 1.94% | 1.80% | 1.79% | 2.07% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.11)% | (0.64)% | (1.12)% | (1.05)% | (1.03)% | (0.02)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
130 | SEPTEMBER 30, 2014
Table of Contents
Class C Shares
| Janus Venture Fund | ||||||||||||||||||
| For a share outstanding during each 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.72)(2) | 0.07 | (0.14) | (0.08) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.24 | 16.28 | 13.82 | (10.61) | ||||||||||||||
| Total from Investment Operations | 3.52 | 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 | $61.85 | $69.27 | $59.57 | $49.97 | ||||||||||||||
| Total Return** | 5.37% | 30.95% | 28.62% | (17.62)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $7,926 | $4,469 | $413 | $36 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,549 | $1,655 | $108 | $15 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.82% | 1.80% | 1.75% | 3.04% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.82% | 1.80% | 1.75% | 2.11% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.14)% | (0.51)% | (1.11)% | (1.47)% | ||||||||||||||
| Portfolio Turnover Rate | 47% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 131
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during each year or period ended | Janus Balanced Fund | |||||||||||||||||||||
| 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.56(2) | 0.56 | 0.56 | 0.56 | 0.41 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.82 | 2.92 | 4.23 | (1.15) | 1.03 | |||||||||||||||||
| Total from Investment Operations | 3.38 | 3.48 | 4.79 | (0.59) | 1.44 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.53) | (0.55) | (0.54) | (0.54) | (0.43) | |||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | |||||||||||||||||
| Total Distributions | (1.39) | (1.36) | (0.95) | (1.32) | (0.43) | |||||||||||||||||
| Net Asset Value, End of Period | $31.14 | $29.15 | $27.03 | $23.19 | $25.10 | |||||||||||||||||
| Total Return** | 11.86% | 13.40% | 21.03% | (2.69)% | 6.04% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,414,364 | $1,288,565 | $1,157,251 | $962,089 | $983,757 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,383,412 | $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*** | 0.73% | 0.73% | 0.72% | 0.72% | 0.73% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.73% | 0.72% | 0.72% | 0.73% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.83% | 1.87% | 2.13% | 2.22% | 2.72% | |||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 94% | 76% | |||||||||||||||||
Class D Shares
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.05(2) | 0.07 | 0.12 | 0.01 | 0.05 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.64 | 4.63 | 2.54 | (2.66) | 1.00 | |||||||||||||||||
| Total from Investment Operations | 4.69 | 4.70 | 2.66 | (2.65) | 1.05 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.04) | (0.15) | –(3) | (0.04) | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.04) | (0.15) | – | (0.04) | – | |||||||||||||||||
| Net Asset Value, End of Period | $23.18 | $18.53 | $13.98 | $11.32 | $14.01 | |||||||||||||||||
| Total Return** | 25.33% | 33.88% | 23.51% | (18.96)% | 8.10% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,382,592 | $1,977,490 | $1,599,671 | $1,476,010 | $2,134,011 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,258,453 | $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*** | 0.80% | 0.68% | 0.66% | 0.69% | 0.80% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.68% | 0.66% | 0.69% | 0.80% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.24% | 0.41% | 0.75% | 0.55% | 0.52% | |||||||||||||||||
| Portfolio Turnover Rate | 61% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
132 | SEPTEMBER 30, 2014
Table of Contents
Class D Shares
| For a share outstanding during each year or period ended | Janus Enterprise Fund | |||||||||||||||||||||
| 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.05(2) | 0.25 | (0.05) | 0.05 | 0.06 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.55 | 16.90 | 12.41 | 0.36 | 6.34 | |||||||||||||||||
| Total from Investment Operations | 9.60 | 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 | $85.09 | $79.95 | $65.07 | $52.71 | $52.30 | |||||||||||||||||
| Total Return** | 12.43% | 27.07% | 23.45% | 0.78% | 13.94% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,178,379 | $1,105,852 | $914,181 | $788,063 | $814,176 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,175,886 | $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*** | 0.84% | 0.86% | 0.86% | 0.83% | 0.88% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.86% | 0.86% | 0.83% | 0.88% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.06% | 0.41% | (0.08)% | (0.23)% | (0.08)% | |||||||||||||||||
| Portfolio Turnover Rate | 17% | 17% | 14% | 19% | 22% | |||||||||||||||||
Class D Shares
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.15(2) | 0.22 | 0.18 | 0.17 | 0.10 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.02 | 5.76 | 6.45 | (1.46) | 1.49 | |||||||||||||||||
| Total from Investment Operations | 6.17 | 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 | $43.44 | $37.60 | $31.89 | $25.43 | $26.83 | |||||||||||||||||
| Total Return** | 16.52% | 18.92% | 26.18% | (4.86)% | 6.30% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,736,396 | $5,260,579 | $4,785,902 | $4,119,798 | $4,706,894 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,607,909 | $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*** | 0.66% | 0.68% | 0.68% | 0.77% | 0.93% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.66% | 0.68% | 0.68% | 0.77% | 0.93% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.36% | 0.85% | 0.69% | 0.60% | 0.61% | |||||||||||||||||
| Portfolio Turnover Rate | 62% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 133
Table of Contents
Financial Highlights (continued)
Class D Shares
| Janus Growth and | ||||||||||||||||||||||
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.96(2) | 0.75 | 0.41 | 0.31 | 0.27 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.92 | 6.63 | 8.02 | (2.24) | 1.11 | |||||||||||||||||
| Total from Investment Operations | 6.88 | 7.38 | 8.43 | (1.93) | 1.38 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.81) | (0.68) | (0.39) | (0.32) | (0.25) | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.81) | (0.68) | (0.39) | (0.32) | (0.25) | |||||||||||||||||
| Net Asset Value, End of Period | $47.06 | $40.99 | $34.29 | $26.25 | $28.50 | |||||||||||||||||
| Total Return** | 16.89% | 21.76% | 32.23% | (6.93)% | 5.09% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,663,380 | $2,414,285 | $2,125,471 | $1,757,879 | $1,783,138 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,594,398 | $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*** | 0.79% | 0.80% | 0.80% | 0.80% | 0.83% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.80% | 0.80% | 0.80% | 0.83% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.12% | 2.23% | 1.42% | 1.06% | 1.56% | |||||||||||||||||
| Portfolio Turnover Rate | 23% | 33% | 45% | 65% | 43% | |||||||||||||||||
Class D Shares
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.21(2) | 0.27 | 0.17 | 0.18 | 0.13 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.59 | 7.13 | 6.25 | (0.41) | 2.48 | |||||||||||||||||
| Total from Investment Operations | 7.80 | 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 | $46.82 | $39.34 | $32.19 | $25.97 | $26.35 | |||||||||||||||||
| Total Return** | 19.93% | 23.16% | 24.83% | (0.95)% | 10.99% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,469,614 | $2,159,347 | $1,878,272 | $1,616,618 | $1,753,887 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,383,927 | $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*** | 0.72% | 0.74% | 0.86% | 0.77% | 0.90% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.72% | 0.74% | 0.86% | 0.76% | 0.89% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.47% | 0.85% | 0.58% | 0.58% | 0.83% | |||||||||||||||||
| Portfolio Turnover Rate | 44% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
134 | SEPTEMBER 30, 2014
Table of Contents
Class D Shares
| For a share outstanding during each year or period ended | Janus Triton Fund | |||||||||||||||||||||
| 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.03)(2) | 0.06 | (0.03) | 0.01 | 0.01 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.90 | 5.29 | 3.89 | 0.49 | 2.30 | |||||||||||||||||
| Total from Investment Operations | 1.87 | 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 | $23.57 | $22.59 | $18.14 | $14.88 | $14.69 | |||||||||||||||||
| Total Return** | 8.42% | 30.79% | 26.45% | 3.19% | 18.66% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $830,607 | $827,017 | $608,824 | $454,229 | $226,862 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $874,533 | $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*** | (0.11)% | 0.42% | (0.01)% | (0.06)% | (0.19)% | |||||||||||||||||
| Portfolio Turnover Rate | 30% | 39% | 35% | 42% | 32% | |||||||||||||||||
Class D Shares
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.55(2) | 0.53 | 0.29 | 0.27 | 0.12 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.05 | 11.56 | 15.77 | (4.56) | 1.20 | |||||||||||||||||
| Total from Investment Operations | 9.60 | 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 | $65.38 | $74.21 | $62.64 | $55.85 | $60.37 | |||||||||||||||||
| Total Return** | 14.74% | 19.46% | 32.63% | (7.16)%(3) | 2.24% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,969,948 | $5,600,776 | $5,080,754 | $4,132,242 | $4,904,660 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,945,940 | $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*** | 0.70% | 0.67% | 0.70% | 0.81% | 0.87% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.70% | 0.67% | 0.70% | 0.81% | 0.86% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.83% | 0.79% | 0.50% | 0.45% | 0.31% | |||||||||||||||||
| Portfolio Turnover Rate | 36% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Total return reflects a non-recurring litigation settlement from Enron Corp. This resulted in an increase to the total return of 0.29% for the year ended September 30, 2011. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 135
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during each year or period ended | Janus Venture Fund | |||||||||||||||||||||
| 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.10)(2) | 0.23 | (0.20) | (0.01) | 0.03 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.38 | 17.12 | 14.61 | 3.19 | 5.48 | |||||||||||||||||
| Total from Investment Operations | 4.28 | 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 | $64.67 | $71.33 | $60.63 | $50.30 | $47.12 | |||||||||||||||||
| Total Return** | 6.40% | 32.16% | 29.95% | 6.75% | 13.24% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,340,281 | $1,332,186 | $1,052,828 | $846,012 | $842,433 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,375,889 | $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*** | 0.82% | 0.84% | 0.83% | 0.85% | 0.87% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.82% | 0.84% | 0.83% | 0.85% | 0.87% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.15)% | 0.35% | (0.11)% | (0.20)% | (0.39)% | |||||||||||||||||
| Portfolio Turnover Rate | 47% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
136 | SEPTEMBER 30, 2014
Table of Contents
Class I Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.59(3) | 0.45 | 0.57 | 0.53 | 0.62 | 0.04 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.83 | 3.05 | 4.22 | (1.09) | 1.60 | 2.20 | ||||||||||||||||||||
| Total from Investment Operations | 3.42 | 3.50 | 4.79 | (0.56) | 2.22 | 2.24 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.56) | (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 | – | – | – | – | – | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (1.42) | (1.37) | (0.96) | (1.34) | (0.56) | (0.12) | ||||||||||||||||||||
| Net Asset Value, End of Period | $31.15 | $29.15 | $27.02 | $23.19 | $25.09 | $23.43 | ||||||||||||||||||||
| Total Return** | 11.99% | 13.47% | 21.02% | (2.56)% | 9.57% | 10.50% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,306,391 | $966,885 | $1,990,129 | $1,631,889 | $304,168 | $104,063 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,167,616 | $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*** | 0.64% | 0.69% | 0.69% | 0.62% | 0.65% | 0.63% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.64% | 0.69% | 0.69% | 0.62% | 0.65% | 0.62% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.92% | 2.02% | 2.16% | 2.32% | 2.67% | 2.57% | ||||||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during each year or period ended | Janus Contrarian Fund | |||||||||||||||||||||||||
| September 30 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.09(3) | 0.11 | 0.12 | (0.01) | 0.05 | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.63 | 4.62 | 2.53 | (2.61) | 2.28 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 4.72 | 4.73 | 2.65 | (2.62) | 2.33 | 1.28 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.07) | (0.16) | –(4) | (0.06) | (0.02) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.07) | (0.16) | – | (0.06) | (0.02) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.20 | $18.55 | $13.98 | $11.33 | $14.01 | $11.70 | ||||||||||||||||||||
| Total Return** | 25.47% | 34.09% | 23.39% | (18.80)% | 19.90% | 12.28% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $329,245 | $85,000 | $44,907 | $58,036 | $126,187 | $57,734 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $184,931 | $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*** | 0.74% | 0.52% | 0.62% | 0.65% | 0.74% | 0.94% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.74% | 0.52% | 0.62% | 0.65% | 0.74% | 0.90% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.40% | 0.59% | 0.80% | 0.54% | 0.42% | (0.13)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 61% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 137
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.13(3) | 0.29 | 0.05 | 0.16 | 0.11 | 0.05 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.55 | 17.03 | 12.41 | 0.31 | 9.77 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 9.68 | 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 | $85.51 | $80.37 | $65.32 | $52.86 | $52.39 | $42.51 | ||||||||||||||||||||
| Total Return** | 12.47% | 27.23% | 23.57% | 0.90% | 23.24% | 16.05% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $547,204 | $490,913 | $367,419 | $344,500 | $417,965 | $416,272 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $545,347 | $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*** | 0.75% | 0.74% | 0.75% | 0.72% | 0.81% | 0.82% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.74% | 0.75% | 0.72% | 0.74% | 0.81% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.16% | 0.53% | 0.01% | (0.13)% | (0.01)% | 0.16% | ||||||||||||||||||||
| Portfolio Turnover Rate | 17% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class I Shares
| Janus Forty Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $46.14 | $38.72 | $29.35 | $31.19 | $30.61 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.02(3) | 0.79 | 0.36 | 0.41 | –(4) | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.42 | 6.88 | 9.26 | (2.25) | 0.58 | |||||||||||||||||
| Total from Investment Operations | 5.44 | 7.67 | 9.62 | (1.84) | 0.58 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.54) | (0.25) | (0.25) | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | |||||||||||||||||
| Total Distributions | (9.30) | (0.25) | (0.25) | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $42.28 | $46.14 | $38.72 | $29.35 | $31.19 | |||||||||||||||||
| Total Return | 13.11% | 19.94% | 33.00% | (5.90)% | 1.89% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,095,564 | $811,918 | $1,033,018 | $951,430 | $1,891,800 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $773,534 | $984,309 | $989,708 | $1,591,680 | $1,607,834 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 0.60% | 0.55% | 0.60% | 0.74% | 0.77% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 0.60% | 0.55% | 0.60% | 0.74% | 0.77% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | 0.05% | 1.02% | 0.70% | 0.57% | (0.03)% | |||||||||||||||||
| Portfolio Turnover Rate | 51% | 43% | 9% | 51% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
138 | SEPTEMBER 30, 2014
Table of Contents
Class I Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.17(3) | 0.25 | 0.21 | 0.17 | 0.12 | 0.02 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.01 | 5.76 | 6.45 | (1.45) | 2.82 | 3.08 | ||||||||||||||||||||
| Total from Investment Operations | 6.18 | 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 | $43.46 | $37.63 | $31.91 | $25.44 | $26.87 | $23.96 | ||||||||||||||||||||
| Total Return** | 16.53% | 18.98% | 26.30% | (4.83)% | 12.28% | 14.86% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $265,667 | $140,367 | $143,353 | $147,597 | $135,877 | $25,857 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $158,634 | $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*** | 0.61% | 0.61% | 0.63% | 0.72% | 0.86% | 0.73% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.61% | 0.61% | 0.63% | 0.72% | 0.80% | 0.71% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.41% | 0.94% | 0.73% | 0.67% | 0.67% | 0.31% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class I Shares
| Janus Growth and | ||||||||||||||||||||||||||
| For a share outstanding during each year or period ended | Income Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.99(3) | 0.77 | 0.46 | 0.35 | 0.36 | 0.04 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.92 | 6.65 | 7.99 | (2.26) | 2.01 | 3.24 | ||||||||||||||||||||
| Total from Investment Operations | 6.91 | 7.42 | 8.45 | (1.91) | 2.37 | 3.28 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.83) | (0.71) | (0.41) | (0.34) | (0.35) | (0.04) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.83) | (0.71) | (0.41) | (0.34) | (0.35) | (0.04) | ||||||||||||||||||||
| Net Asset Value, End of Period | $47.08 | $41.00 | $34.29 | $26.25 | $28.50 | $26.48 | ||||||||||||||||||||
| Total Return** | 16.96% | 21.88% | 32.31% | (6.85)% | 9.00% | 14.12% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $54,748 | $31,066 | $23,999 | $23,016 | $65,031 | $6,761 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $45,976 | $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*** | 0.73% | 0.73% | 0.76% | 0.71% | 0.72% | 0.73% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.71% | 0.72% | 0.70% | 0.72% | 0.67% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.19% | 2.33% | 1.48% | 1.18% | 1.49% | 0.42% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 139
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during each year or period ended | Janus Research Fund | |||||||||||||||||||||||||
| September 30 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.24(3) | 0.30 | 0.21 | 0.19 | 0.18 | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.58 | 7.13 | 6.23 | (0.41) | 3.78 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 7.82 | 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 | $46.80 | $39.33 | $32.18 | $25.97 | $26.38 | $22.50 | ||||||||||||||||||||
| Total Return** | 19.99% | 23.28% | 24.95% | (0.92)% | 17.63% | 15.92% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $196,908 | $139,452 | $101,806 | $91,170 | $72,225 | $6,821 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $149,173 | $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*** | 0.65% | 0.64% | 0.78% | 0.67% | 0.79% | 1.02% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.65% | 0.64% | 0.78% | 0.67% | 0.78% | 0.85% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.54% | 0.91% | 0.67% | 0.69% | 0.86% | (0.57)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 44% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.02)(3) | 0.07 | (0.03) | 0.01 | 0.04 | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.91 | 5.32 | 3.91 | 0.51 | 3.09 | 1.36 | ||||||||||||||||||||
| Total from Investment Operations | 1.89 | 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 | $23.68 | $22.68 | $18.21 | $14.93 | $14.72 | $11.63 | ||||||||||||||||||||
| Total Return** | 8.48% | 30.91% | 26.50% | 3.32% | 26.96% | 13.35% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,130,109 | $1,312,895 | $807,407 | $299,600 | $74,640 | $4,377 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,239,318 | $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*** | 0.79% | 0.76% | 0.79% | 0.75% | 0.71% | 1.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.76% | 0.79% | 0.75% | 0.71% | 0.97% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.07)% | 0.45% | 0.04% | 0.01% | 0.01% | 0.73% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
140 | SEPTEMBER 30, 2014
Table of Contents
Class I Shares
| Janus Venture Fund | ||||||||||||||||||
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.04)(2) | 0.24 | (0.14) | 0.02 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.37 | 17.17 | 14.58 | (10.43) | ||||||||||||||
| Total from Investment Operations | 4.33 | 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 | $64.76 | $71.37 | $60.61 | $50.25 | ||||||||||||||
| Total Return** | 6.48% | 32.28% | 30.04% | (17.16)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $206,130 | $128,788 | $29,810 | $1,557 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $147,267 | $77,403 | $21,852 | $388 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.75% | 0.72% | 0.81% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.75% | 0.72% | 0.81% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.06)% | 0.35% | (0.03)% | (0.08)% | ||||||||||||||
| Portfolio Turnover Rate | 47% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 141
Table of Contents
Financial Highlights (continued)
Class N Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.60(3) | 0.77 | 0.17 | 0.30(3) | 0.29 | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.83 | 2.74 | 1.67 | 9.49 | 17.07 | 3.44 | ||||||||||||||||||||
| Total from Investment Operations | 3.43 | 3.51 | 1.84 | 9.79 | 17.36 | 3.45 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.58) | (0.59) | (0.29) | (0.23) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | – | (4.34) | (2.27) | – | ||||||||||||||||||||
| Total Distributions | (1.44) | (1.40) | (0.29) | (4.57) | (2.27) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $31.11 | $29.12 | $27.01 | $85.63 | $80.41 | $65.32 | ||||||||||||||||||||
| Total Return** | 12.03% | 13.52% | 7.25% | 12.62% | 27.30% | 5.58% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,648,665 | $1,432,413 | $7,610 | $81,346 | $12,196 | $2,354 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,532,107 | $1,029,152 | $483 | $30,878 | $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% | 0.68% | 0.68% | 0.95% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.58% | 0.58% | 0.77% | 0.68% | 0.68% | 0.92% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.98% | 1.89% | 2.98% | 0.36% | 0.57% | 0.37% | ||||||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 17% | 17% | 14% | ||||||||||||||||||||
Class N Shares
| For a share outstanding during each year or period ended | Janus Forty Fund | Janus Fund | ||||||||||||||||||||||||
| 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.06(3) | 0.28 | 0.02 | 0.21(3) | (1.56) | 0.04 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.40 | 7.43 | 3.45 | 6.02 | 7.59 | 2.34 | ||||||||||||||||||||
| Total from Investment Operations | 5.46 | 7.71 | 3.47 | 6.23 | 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 | $42.26 | $46.15 | $38.73 | $43.51 | $37.61 | $31.92 | ||||||||||||||||||||
| Total Return** | 13.17% | 20.03% | 9.84% | 16.66% | 19.08% | 8.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $68,810 | $23,029 | $1,347 | $18,843 | $26,202 | $24,587 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $54,492 | $23,323 | $176 | $20,018 | $202,860 | $17,258 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.52% | 0.47% | 0.52% | 0.51% | 0.52% | 0.55% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.52% | 0.47% | 0.52% | 0.51% | 0.52% | 0.55% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.15% | 0.89% | 1.43% | 0.51% | 1.33% | 0.91% | ||||||||||||||||||||
| Portfolio Turnover Rate | 51% | 43% | 9% | 62% | 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. | |
| (3) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
142 | SEPTEMBER 30, 2014
Table of Contents
Class N Shares
| For a share outstanding during each year or period ended | Janus Research Fund | Janus Triton Fund | ||||||||||||||||||||||||
| 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.28(2) | 0.34 | 0.06 | 0.01(2) | 0.10 | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.59 | 7.12 | 2.30 | 1.91 | 5.29 | 0.82 | ||||||||||||||||||||
| Total from Investment Operations | 7.87 | 7.46 | 2.36 | 1.92 | 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 | $46.82 | $39.32 | $32.19 | $23.71 | $22.68 | $18.22 | ||||||||||||||||||||
| Total Return** | 20.14% | 23.37% | 7.91% | 8.61% | 30.95% | 4.59% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $66,011 | $44,056 | $43,412 | $217,789 | $120,673 | $54,877 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $57,271 | $47,040 | $33,804 | $164,744 | $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*** | 0.63% | 1.03% | 0.81% | 0.06% | 0.47% | (0.09)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 44% | 45% | 64% | 30% | 39% | 35% | ||||||||||||||||||||
Class N Shares
| Janus Venture Fund | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $71.43 | $60.62 | $56.72 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.01)(2) | 0.29 | (0.02) | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.39 | 17.17 | 3.92 | |||||||||||
| Total from Investment Operations | 4.38 | 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 | $64.87 | $71.43 | $60.62 | |||||||||||
| Total Return** | 6.55% | 32.37% | 6.88% | |||||||||||
| Net Assets, End of Period (in thousands) | $6,486 | $6,736 | $3,807 | |||||||||||
| Average Net Assets for the Period (in thousands) | $6,525 | $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*** | (0.01)% | 0.48% | (0.58)% | |||||||||||
| Portfolio Turnover Rate | 47% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 143
Table of Contents
Financial Highlights (continued)
Class R Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.37(3) | 0.40 | 0.41 | 0.41 | 0.47 | (0.06) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.82 | 2.89 | 4.22 | (1.15) | 1.60 | 2.24 | ||||||||||||||||||||
| Total from Investment Operations | 3.19 | 3.29 | 4.63 | (0.74) | 2.07 | 2.18 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.37) | (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 | – | – | – | – | – | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (1.23) | (1.21) | (0.83) | (1.19) | (0.40) | (0.08) | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.99 | $29.03 | $26.95 | $23.15 | $25.08 | $23.41 | ||||||||||||||||||||
| Total Return** | 11.20% | 12.68% | 20.32% | (3.28)% | 8.90% | 10.25% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $309,887 | $279,905 | $235,356 | $156,098 | $120,585 | $49,678 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $296,348 | $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/(Loss) to Average Net Assets*** | 1.23% | 1.27% | 1.51% | 1.62% | 1.96% | 1.88% | ||||||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class R Shares
| For a share outstanding during each year or period ended | Janus Contrarian Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.07)(3) | (0.16) | (0.07) | (0.11) | (0.02) | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.57 | 4.72 | 2.62 | (2.59) | 2.26 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 4.50 | 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 | $22.81 | $18.31 | $13.76 | $11.21 | $13.91 | $11.67 | ||||||||||||||||||||
| Total Return** | 24.58% | 33.12% | 22.75% | (19.41)% | 19.19% | 12.00% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,994 | $1,634 | $1,877 | $2,506 | $3,905 | $2,549 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,910 | $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*** | 1.38% | 1.25% | 1.24% | 1.30% | 1.43% | 1.67% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.38% | 1.25% | 1.24% | 1.30% | 1.43% | 1.65% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.35)% | (0.18)% | 0.15% | (0.07)% | (0.30)% | (0.68)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 61% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
144 | SEPTEMBER 30, 2014
Table of Contents
Class R Shares
| For a share outstanding during 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 | $77.93 | $63.83 | $52.01 | $51.93 | $42.41 | $36.63 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.42)(3) | (0.12) | (0.65) | (0.34) | (0.24) | (0.05) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.29 | 16.49 | 12.47 | 0.42 | 9.76 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 8.87 | 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 | $82.46 | $77.93 | $63.83 | $52.01 | $51.93 | $42.41 | ||||||||||||||||||||
| Total Return** | 11.78% | 26.36% | 22.73% | 0.15% | 22.45% | 15.78% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $70,573 | $60,299 | $48,109 | $49,505 | $51,998 | $43,798 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $66,768 | $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*** | 1.42% | 1.43% | 1.44% | 1.43% | 1.47% | 1.57% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.42% | 1.43% | 1.44% | 1.43% | 1.47% | 1.55% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.51)% | (0.16)% | (0.67)% | (0.83)% | (0.72)% | (0.58)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 17% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class R Shares
| Janus Forty Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $44.25 | $37.14 | $28.14 | $30.11 | $29.76 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.26)(3) | 0.05 | (0.08) | (0.06) | (0.04) | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.18 | 7.06 | 9.11 | (1.91) | 0.39 | |||||||||||||||||
| Total from Investment Operations | 4.92 | 7.11 | 9.03 | (1.97) | 0.35 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | – | (0.03) | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | |||||||||||||||||
| Total Distributions | (8.98) | – | (0.03) | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $40.19 | $44.25 | $37.14 | $28.14 | $30.11 | |||||||||||||||||
| Total Return | 12.35% | 19.14% | 32.12% | (6.54)% | 1.18% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $136,575 | $161,383 | $181,124 | $188,830 | $241,690 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $150,821 | $164,019 | $189,329 | $247,138 | $203,710 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.27% | 1.21% | 1.27% | 1.42% | 1.46% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 1.27% | 1.21% | 1.27% | 1.42% | 1.46% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | (0.64)% | 0.35% | 0.01% | (0.09)% | (0.66)% | |||||||||||||||||
| Portfolio Turnover Rate | 51% | 43% | 9% | 51% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 145
Table of Contents
Financial Highlights (continued)
Class R Shares
| For a share outstanding during 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 | $37.26 | $31.54 | $25.22 | $26.68 | $23.91 | $20.86 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.10)(3) | 0.03 | (0.04) | 0.01 | (0.02) | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.95 | 5.71 | 6.44 | (1.47) | 2.79 | 3.07 | ||||||||||||||||||||
| Total from Investment Operations | 5.85 | 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 | $42.90 | $37.26 | $31.54 | $25.22 | $26.68 | $23.91 | ||||||||||||||||||||
| Total Return** | 15.77% | 18.21% | 25.44% | (5.47)% | 11.59% | 14.62% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,787 | $3,259 | $2,427 | $2,175 | $1,299 | $781 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,267 | $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*** | 1.26% | 1.28% | 1.29% | 1.37% | 1.47% | 1.45% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.28% | 1.29% | 1.37% | 1.47% | 1.44% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.24)% | 0.23% | 0.07% | 0.00%(4) | (0.10)% | (0.34)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class R Shares
| Janus Growth and | ||||||||||||||||||||||||||
| For a share outstanding during each year or period ended | Income Fund | |||||||||||||||||||||||||
| September 30 and the period 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.68(3) | 0.52 | 0.22 | 0.12 | 0.15 | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.92 | 6.61 | 8.00 | (2.23) | 2.03 | 3.23 | ||||||||||||||||||||
| Total from Investment Operations | 6.60 | 7.13 | 8.22 | (2.11) | 2.18 | 3.22 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.59) | (0.50) | (0.22) | (0.15) | (0.15) | (0.01) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.59) | (0.50) | (0.22) | (0.15) | (0.15) | (0.01) | ||||||||||||||||||||
| Net Asset Value, End of Period | $46.86 | $40.85 | $34.22 | $26.22 | $28.48 | $26.45 | ||||||||||||||||||||
| Total Return** | 16.22% | 21.02% | 31.42% | (7.49)% | 8.27% | 13.83% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,225 | $2,685 | $2,382 | $1,931 | $2,000 | $1,789 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,932 | $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*** | 1.38% | 1.39% | 1.40% | 1.39% | 1.44% | 1.45% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.38% | 1.39% | 1.40% | 1.39% | 1.43% | 1.44% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.52% | 1.64% | 0.82% | 0.46% | 0.58% | (0.14)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than 0.005%. |
See Notes to Financial Statements.
146 | SEPTEMBER 30, 2014
Table of Contents
Class R Shares
| For a share outstanding during 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 | $22.22 | $17.91 | $14.78 | $14.68 | $11.64 | $10.26 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.16)(3) | 0.01 | (0.05) | (0.04) | (0.04) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.86 | 5.15 | 3.78 | 0.45 | 3.08 | 1.37 | ||||||||||||||||||||
| Total from Investment Operations | 1.70 | 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 | $23.03 | $22.22 | $17.91 | $14.78 | $14.68 | $11.64 | ||||||||||||||||||||
| Total Return** | 7.78% | 30.02% | 25.73% | 2.57% | 26.12% | 13.45% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $144,014 | $125,829 | $43,169 | $16,032 | $4,373 | $1,167 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $143,875 | $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*** | (0.70)% | (0.27)% | (0.62)% | (0.69)% | (0.72)% | 0.21% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 147
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.45(3) | 0.47 | 0.47 | 0.47 | 0.51 | (0.06) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.83 | 2.90 | 4.23 | (1.15) | 1.62 | 2.26 | ||||||||||||||||||||
| Total from Investment Operations | 3.28 | 3.37 | 4.70 | (0.68) | 2.13 | 2.20 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.44) | (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 | – | – | – | – | – | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (1.30) | (1.27) | (0.88) | (1.24) | (0.44) | (0.09) | ||||||||||||||||||||
| Net Asset Value, End of Period | $31.09 | $29.11 | $27.01 | $23.19 | $25.11 | $23.42 | ||||||||||||||||||||
| Total Return** | 11.49% | 12.97% | 20.60% | (3.03)% | 9.17% | 10.33% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $837,505 | $837,535 | $789,572 | $614,608 | $618,469 | $502,602 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $844,760 | $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/(Loss) to Average Net Assets*** | 1.47% | 1.52% | 1.77% | 1.86% | 2.20% | 2.15% | ||||||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during each year or period ended | Janus Contrarian Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.01)(3) | (0.05) | 0.04 | (0.11) | 0.01 | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.62 | 4.69 | 2.56 | (2.58) | 2.27 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 4.61 | 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 | $23.09 | $18.48 | $13.87 | $11.27 | $13.96 | $11.68 | ||||||||||||||||||||
| Total Return** | 24.95% | 33.50% | 23.07% | (19.27)% | 19.52% | 12.09% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $6,346 | $2,022 | $2,598 | $2,662 | $7,021 | $4,493 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,130 | $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*** | 1.16% | 1.00% | 1.00% | 1.06% | 1.18% | 1.42% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.15% | 0.99% | 0.99% | 1.06% | 1.18% | 1.40% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.05)% | 0.07% | 0.42% | 0.11% | (0.02)% | (0.46)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 61% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
148 | SEPTEMBER 30, 2014
Table of Contents
Class S Shares
| For a share outstanding during 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.23)(3) | 0.06 | (0.33) | (0.20) | (0.15) | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.42 | 16.65 | 12.38 | 0.42 | 9.79 | 5.84 | ||||||||||||||||||||
| Total from Investment Operations | 9.19 | 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 | $83.65 | $78.80 | $64.36 | $52.31 | $52.09 | $42.45 | ||||||||||||||||||||
| Total Return** | 12.07% | 26.68% | 23.04% | 0.42% | 22.71% | 15.89% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $199,831 | $252,212 | $196,402 | $186,891 | $213,550 | $218,354 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $228,373 | $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*** | 1.17% | 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*** | (0.29)% | 0.09% | (0.41)% | (0.58)% | (0.48)% | (0.34)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 17% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class S Shares
| Janus Forty Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $45.16 | $37.89 | $28.68 | $30.60 | $30.17 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.15)(3) | 0.30 | 0.09 | 0.06 | (0.02) | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.31 | 7.07 | 9.20 | (1.98) | 0.45 | |||||||||||||||||
| Total from Investment Operations | 5.16 | 7.37 | 9.29 | (1.92) | 0.43 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.35) | (0.10) | (0.08) | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | |||||||||||||||||
| Total Distributions | (9.11) | (0.10) | (0.08) | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $41.21 | $45.16 | $37.89 | $28.68 | $30.60 | |||||||||||||||||
| Total Return | 12.69% | 19.49% | 32.47% | (6.27)% | 1.43% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $687,469 | $1,423,516 | $1,692,436 | $1,904,767 | $2,994,743 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,215,799 | $1,581,421 | $1,831,407 | $2,870,863 | $2,964,526 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 1.02% | 0.96% | 1.02% | 1.17% | 1.20% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 0.97% | 0.91% | 1.00% | 1.17% | 1.20% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | (0.35)% | 0.66% | 0.28% | 0.16% | (0.42)% | |||||||||||||||||
| Portfolio Turnover Rate | 51% | 43% | 9% | 51% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 149
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during 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 | $37.65 | $31.84 | $25.35 | $26.77 | $23.95 | $20.86 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.01(3) | 0.14 | 0.09 | 0.06 | 0.01 | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.02 | 5.75 | 6.44 | (1.46) | 2.81 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 6.03 | 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 | $43.43 | $37.65 | $31.84 | $25.35 | $26.77 | $23.95 | ||||||||||||||||||||
| Total Return** | 16.10% | 18.55% | 25.79% | (5.25)% | 11.77% | 14.81% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $30,752 | $41,000 | $43,993 | $60,817 | $76,034 | $84,350 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $37,988 | $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*** | 1.01% | 1.02% | 1.03% | 1.14% | 1.25% | 1.20% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.98% | 0.99% | 1.02% | 1.14% | 1.25% | 1.19% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.04% | 0.55% | 0.32% | 0.23% | 0.04% | (0.08)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class S Shares
| Janus Growth and | ||||||||||||||||||||||||||
| For a share outstanding during each year or period ended | Income Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.79(3) | 0.63 | 0.32 | 0.21 | 0.22 | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.94 | 6.62 | 8.00 | (2.25) | 2.03 | 3.23 | ||||||||||||||||||||
| Total from Investment Operations | 6.73 | 7.25 | 8.32 | (2.04) | 2.25 | 3.24 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.68) | (0.58) | (0.29) | (0.21) | (0.20) | (0.02) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.68) | (0.58) | (0.29) | (0.21) | (0.20) | (0.02) | ||||||||||||||||||||
| Net Asset Value, End of Period | $47.01 | $40.96 | $34.29 | $26.26 | $28.51 | $26.46 | ||||||||||||||||||||
| Total Return** | 16.50% | 21.33% | 31.76% | (7.26)% | 8.52% | 13.94% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $33,405 | $38,526 | $37,945 | $46,970 | $58,402 | $66,211 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $37,191 | $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*** | 1.13% | 1.14% | 1.13% | 1.15% | 1.18% | 1.20% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.12% | 1.14% | 1.13% | 1.15% | 1.18% | 1.19% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.77% | 1.89% | 1.06% | 0.71% | 0.81% | 0.10% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
150 | SEPTEMBER 30, 2014
Table of Contents
Class S Shares
| For a share outstanding during each year or period ended | Janus Research Fund | |||||||||||||||||||||||||
| September 30 and the period 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.05(3) | 0.18 | 0.06 | 0.02 | 0.13 | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.52 | 7.05 | 6.21 | (0.36) | 3.70 | 3.05 | ||||||||||||||||||||
| Total from Investment Operations | 7.57 | 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 | $46.19 | $38.96 | $31.88 | $25.82 | $26.21 | $22.46 | ||||||||||||||||||||
| Total Return** | 19.53% | 22.77% | 24.41% | (1.32)% | 17.06% | 15.71% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,059 | $839 | $538 | $416 | $13 | $11 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,593 | $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*** | 0.12% | 0.49% | 0.24% | 0.31% | 0.38% | (0.24)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 44% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during 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 | $22.32 | $17.96 | $14.79 | $14.65 | $11.60 | $10.26 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.10)(3) | 0.03 | (0.04) | –(4) | (0.03) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.86 | 5.20 | 3.81 | 0.45 | 3.10 | 1.33 | ||||||||||||||||||||
| Total from Investment Operations | 1.76 | 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 | $23.19 | $22.32 | $17.96 | $14.79 | $14.65 | $11.60 | ||||||||||||||||||||
| Total Return** | 8.02% | 30.37% | 25.99% | 2.85% | 26.45% | 13.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $336,292 | $294,312 | $115,486 | $30,983 | $6,444 | $3,845 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $327,838 | $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*** | (0.45)% | 0.01% | (0.37)% | (0.43)% | (0.48)% | 0.70% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 151
Table of Contents
Financial Highlights (continued)
Class S Shares
| Janus Venture Fund | ||||||||||||||||||
| For a share outstanding during each 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/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.32)(2) | 0.09 | (0.08) | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.32 | 16.87 | 14.26 | (10.49) | ||||||||||||||
| Total from Investment Operations | 4.00 | 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 | $63.63 | $70.57 | $60.26 | $50.16 | ||||||||||||||
| Total Return** | 6.03% | 31.67% | 29.55% | (17.31)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $6,792 | $6,069 | $189 | $8 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,387 | $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*** | (0.49)% | 0.01% | (0.53)% | (0.59)% | ||||||||||||||
| Portfolio Turnover Rate | 47% | 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. | |
| (2) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
152 | SEPTEMBER 30, 2014
Table of Contents
Class T Shares
| For a share outstanding during each year or | ||||||||||||||||||||||||||
| period ended September 30 and the year ended | Janus Balanced Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.13 | $27.02 | $23.19 | $25.10 | $23.42 | $20.58 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.53(2) | 0.53 | 0.54 | 0.51 | 0.58 | 0.36 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.83 | 2.92 | 4.22 | (1.13) | 1.61 | 3.80 | ||||||||||||||||||||
| Total from Investment Operations | 3.36 | 3.45 | 4.76 | (0.62) | 2.19 | 4.16 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.51) | (0.53) | (0.52) | (0.51) | (0.51) | (0.74) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | (0.58) | ||||||||||||||||||||
| Return of capital | – | – | – | – | – | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (1.37) | (1.34) | (0.93) | (1.29) | (0.51) | (1.32) | ||||||||||||||||||||
| Net Asset Value, End of Period | $31.12 | $29.13 | $27.02 | $23.19 | $25.10 | $23.42 | ||||||||||||||||||||
| Total Return** | 11.77% | 13.27% | 20.88% | (2.78)% | 9.43% | 21.56% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $4,541,805 | $3,979,849 | $3,548,410 | $3,066,279 | $2,957,642 | $3,438,753 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $4,375,206 | $3,721,640 | $3,387,942 | $3,227,273 | $3,136,111 | $2,749,762 | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.82% | 0.83% | 0.83% | 0.83% | 0.82% | 0.82% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.73% | 1.77% | 2.02% | 2.11% | 2.43% | 2.72% | ||||||||||||||||||||
| Portfolio Turnover Rate | 72% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each year or period | ||||||||||||||||||||||||||
| ended September 30 and the year ended | Janus Contrarian Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $18.51 | $13.96 | $11.31 | $14.00 | $11.69 | $10.90 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.03(2) | 0.05 | 0.09 | (0.04) | –(3) | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.64 | 4.63 | 2.56 | (2.62) | 2.32 | 1.22 | ||||||||||||||||||||
| Total from Investment Operations | 4.67 | 4.68 | 2.65 | (2.66) | 2.32 | 1.22 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.03) | (0.13) | – | (0.03) | (0.01) | (0.05) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | (0.37) | ||||||||||||||||||||
| Return of capital | – | – | – | – | – | (0.01) | ||||||||||||||||||||
| Total Distributions and Other | (0.03) | (0.13) | – | (0.03) | (0.01) | (0.43) | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.15 | $18.51 | $13.96 | $11.31 | $14.00 | $11.69 | ||||||||||||||||||||
| Total Return** | 25.24% | 33.76% | 23.43% | (19.04)% | 19.81% | 12.35% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,308,109 | $985,916 | $769,713 | $849,035 | $1,701,378 | $3,655,102 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,238,665 | $894,444 | $838,592 | $1,474,114 | $2,454,799 | $3,398,196 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.89% | 0.76% | 0.75% | 0.81% | 0.91% | 1.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.89% | 0.75% | 0.74% | 0.81% | 0.91% | 1.00% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.16% | 0.34% | 0.67% | 0.40% | 0.16% | 0.02% | ||||||||||||||||||||
| Portfolio Turnover Rate | 61% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 153
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during each year or period | ||||||||||||||||||||||||||
| ended September 30 and the year ended | Janus Enterprise Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $79.71 | $64.92 | $52.63 | $52.27 | $42.50 | $35.71 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.01)(2) | 0.21 | (0.12) | (0.03) | (0.04) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.50 | 16.85 | 12.41 | 0.39 | 9.81 | 6.80 | ||||||||||||||||||||
| Total from Investment Operations | 9.49 | 17.06 | 12.29 | 0.36 | 9.77 | 6.79 | ||||||||||||||||||||
| 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 | $84.78 | $79.71 | $64.92 | $52.63 | $52.27 | $42.50 | ||||||||||||||||||||
| Total Return** | 12.33% | 27.00% | 23.35% | 0.69% | 22.99% | 19.01% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,248,431 | $1,068,048 | $826,846 | $723,261 | $816,087 | $1,521,578 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,179,729 | $938,951 | $814,223 | $900,476 | $1,074,011 | $1,335,838 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.92% | 0.93% | 0.94% | 0.93% | 0.95% | 0.99% | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.01)% | 0.34% | (0.16)% | (0.34)% | (0.23)% | (0.09)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 17% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class T Shares
| Janus Forty Fund | ||||||||||||||||||||||
| For a share outstanding during each year ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||
| Net Asset Value, Beginning of Period | $45.27 | $38.02 | $28.83 | $30.69 | $30.18 | |||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.06)(2) | 0.48 | 0.17 | 0.15 | 0.02 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.31 | 6.99 | 9.23 | (2.01) | 0.49 | |||||||||||||||||
| Total from Investment Operations | 5.25 | 7.47 | 9.40 | (1.86) | 0.51 | |||||||||||||||||
| 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 | $41.34 | $45.27 | $38.02 | $28.83 | $30.69 | |||||||||||||||||
| Total Return | 12.90% | 19.74% | 32.79% | (6.06)% | 1.69% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $25,731 | $36,961 | $53,755 | $31,178 | $29,048 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $30,580 | $52,021 | $41,299 | $38,574 | $10,232 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets | 0.77% | 0.71% | 0.76% | 0.92% | 1.02% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets | 0.76% | 0.71% | 0.75% | 0.92% | 1.02% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets | (0.13)% | 0.84% | 0.54% | 0.40% | (0.11)% | |||||||||||||||||
| Portfolio Turnover Rate | 51% | 43% | 9% | 51% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
154 | SEPTEMBER 30, 2014
Table of Contents
Class T Shares
| For a share outstanding during each year or | ||||||||||||||||||||||||||
| period ended September 30 and the year ended | Janus Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $37.68 | $31.90 | $25.42 | $26.82 | $23.95 | $20.35 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.11(2) | 0.28 | 0.18 | 0.16 | 0.09 | 0.11 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.02 | 5.69 | 6.43 | (1.50) | 2.80 | 3.76 | ||||||||||||||||||||
| Total from Investment Operations | 6.13 | 5.97 | 6.61 | (1.34) | 2.89 | 3.87 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.19) | (0.13) | (0.06) | (0.02) | (0.27) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.31) | (0.19) | (0.13) | (0.06) | (0.02) | (0.27) | ||||||||||||||||||||
| Net Asset Value, End of Period | $43.50 | $37.68 | $31.90 | $25.42 | $26.82 | $23.95 | ||||||||||||||||||||
| Total Return** | 16.37% | 18.83% | 26.07% | (5.01)% | 12.06% | 19.35% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,617,564 | $1,638,769 | $1,987,992 | $2,032,008 | $2,800,369 | $8,100,358 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,689,483 | $1,591,600 | $2,149,222 | $2,583,683 | $5,138,181 | $7,312,389 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.76% | 0.78% | 0.78% | 0.89% | 0.94% | 0.89% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.76% | 0.78% | 0.89% | 0.94% | 0.88% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.27% | 0.75% | 0.58% | 0.48% | 0.21% | 0.49% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each year or | Janus Growth and | |||||||||||||||||||||||||
| period ended September 30 and the year ended | Income Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $40.97 | $34.28 | $26.25 | $28.50 | $26.47 | $21.90 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.92(2) | 0.72 | 0.38 | 0.28 | 0.28 | 0.28 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.93 | 6.63 | 8.01 | (2.25) | 2.03 | 4.56 | ||||||||||||||||||||
| Total from Investment Operations | 6.85 | 7.35 | 8.39 | (1.97) | 2.31 | 4.84 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.78) | (0.66) | (0.36) | (0.28) | (0.28) | (0.27) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.78) | (0.66) | (0.36) | (0.28) | (0.28) | (0.27) | ||||||||||||||||||||
| Net Asset Value, End of Period | $47.04 | $40.97 | $34.28 | $26.25 | $28.50 | $26.47 | ||||||||||||||||||||
| Total Return** | 16.81% | 21.66% | 32.07% | (7.03)% | 8.79% | 22.32% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,538,205 | $1,398,091 | $1,330,261 | $1,253,824 | $1,615,457 | $3,622,998 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,503,853 | $1,347,857 | $1,352,274 | $1,639,387 | $2,383,198 | $3,231,514 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.88% | 0.89% | 0.90% | 0.90% | 0.90% | 0.90% | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.04% | 2.15% | 1.31% | 0.96% | 0.90% | 1.22% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 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) | Per share amounts are calculated based on average shares outstanding during the year. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 155
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during each year or | ||||||||||||||||||||||||||
| period ended September 30 and the year ended | Janus Research Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $39.33 | $32.17 | $25.94 | $26.33 | $22.49 | $18.25 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.17(2) | 0.28 | 0.16 | 0.16 | 0.15 | 0.17 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.60 | 7.10 | 6.23 | (0.42) | 3.75 | 4.23 | ||||||||||||||||||||
| Total from Investment Operations | 7.77 | 7.38 | 6.39 | (0.26) | 3.90 | 4.40 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.17) | (0.22) | (0.16) | (0.13) | (0.06) | (0.16) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.30) | (0.22) | (0.16) | (0.13) | (0.06) | (0.16) | ||||||||||||||||||||
| Net Asset Value, End of Period | $46.80 | $39.33 | $32.17 | $25.94 | $26.33 | $22.49 | ||||||||||||||||||||
| Total Return** | 19.85% | 23.06% | 24.74% | (1.04)% | 17.36% | 24.29% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,505,253 | $1,336,614 | $1,349,917 | $1,213,477 | $1,354,695 | $2,890,078 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,466,282 | $1,323,849 | $1,339,538 | $1,465,454 | $1,881,088 | $2,505,457 | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.95% | 0.87% | 1.02% | 1.01% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.39% | 0.80% | 0.49% | 0.48% | 0.44% | 0.59% | ||||||||||||||||||||
| Portfolio Turnover Rate | 44% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each year or period | Janus Triton Fund | |||||||||||||||||||||||||
| ended September 30 and the year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.52 | $18.09 | $14.85 | $14.68 | $11.60 | $8.89 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.05)(2) | 0.05 | (0.04) | –(3) | 0.01 | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.89 | 5.27 | 3.88 | 0.48 | 3.09 | 2.70 | ||||||||||||||||||||
| Total from Investment Operations | 1.84 | 5.32 | 3.84 | 0.48 | 3.10 | 2.71 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.04) | – | – | (0.02) | –(3) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Total Distributions | (0.89) | (0.89) | (0.60) | (0.31) | (0.02) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.47 | $22.52 | $18.09 | $14.85 | $14.68 | $11.60 | ||||||||||||||||||||
| Total Return** | 8.31% | 30.66% | 26.37% | 3.05% | 26.74% | 30.55% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,136,397 | $2,138,223 | $1,389,123 | $830,444 | $431,352 | $315,350 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,240,693 | $1,744,940 | $1,179,102 | $846,328 | $313,740 | $193,298 | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.20)% | 0.31% | (0.11)% | (0.17)% | (0.14)% | 0.06% | ||||||||||||||||||||
| Portfolio Turnover Rate | 30% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
156 | SEPTEMBER 30, 2014
Table of Contents
Class T Shares
| For a share outstanding during each year or | ||||||||||||||||||||||||||
| period ended September 30 and the year ended | Janus Twenty Fund | |||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $74.16 | $62.57 | $55.81 | $60.33 | $57.00 | $46.29 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.48(2) | 0.45 | 0.24 | 0.16 | (0.12) | 0.06 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 9.05 | 11.57 | 15.72 | (4.53) | 3.45 | 10.66 | ||||||||||||||||||||
| Total from Investment Operations | 9.53 | 12.02 | 15.96 | (4.37) | 3.33 | 10.72 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.41) | (0.43) | (0.04) | (0.15) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (17.95) | – | (9.16) | – | – | – | ||||||||||||||||||||
| Return of capital | – | – | – | – | – | (0.01) | ||||||||||||||||||||
| Total Distributions and Other | (18.36) | (0.43) | (9.20) | (0.15) | – | (0.01) | ||||||||||||||||||||
| Net Asset Value, End of Period | $65.33 | $74.16 | $62.57 | $55.81 | $60.33 | $57.00 | ||||||||||||||||||||
| Total Return** | 14.63% | 19.35% | 32.43% | (7.28)%(3) | 5.84% | 23.16% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,208,201 | $3,593,975 | $3,460,637 | $2,985,145 | $3,850,699 | $9,016,257 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,581,846 | $3,430,478 | $3,326,880 | $3,792,727 | $5,792,097 | $7,846,950 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.81% | 0.77% | 0.81% | 0.93% | 0.91% | 0.86% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.76% | 0.81% | 0.93% | 0.91% | 0.86% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.73% | 0.70% | 0.39% | 0.33% | (0.14)% | (0.10)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 36% | 71% | 12% | 56% | 35% | 32% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each year or period ended | Janus Venture Fund | |||||||||||||||||||||||||
| September 30 and the year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $70.99 | $60.43 | $50.21 | $47.08 | $38.68 | $29.82 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.16)(2) | 0.15 | (0.11) | (0.06) | (0.13) | –(4) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.36 | 17.06 | 14.41 | 3.19 | 8.53 | 8.86 | ||||||||||||||||||||
| Total from Investment Operations | 4.20 | 17.21 | 14.30 | 3.13 | 8.40 | 8.86 | ||||||||||||||||||||
| 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 | $64.25 | $70.99 | $60.43 | $50.21 | $47.08 | $38.68 | ||||||||||||||||||||
| Total Return** | 6.31% | 32.03% | 29.77% | 6.65% | 21.72% | 29.71% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $729,674 | $646,328 | $498,625 | $219,453 | $206,712 | $921,384 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $724,733 | $618,311 | $345,919 | $239,806 | $458,457 | $776,334 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.94% | 0.95% | 0.96% | 0.92% | 0.93% | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.25)% | 0.18% | (0.23)% | (0.31)% | (0.47)% | (0.48)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 47% | 92% | 51% | 54% | 58% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | 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. | |
| (4) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 157
Table of Contents
Notes to Financial Statements
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 year ended September 30, 2014. The Trust offers forty-six 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. Class D 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 no 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”).
158 | SEPTEMBER 30, 2014
Table of Contents
Each Fund will determine the market value of individual securities held by it by using prices provided by one or more professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Certain 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.
Indemnifications
In the normal course of business, the Funds may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. A Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against a Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
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.
Janus Growth & Core Funds | 159
Table of Contents
Notes to Financial Statements (continued)
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 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 September 30, 2014, Janus Fund and Janus Twenty Fund had restricted cash in the amounts of $5,500,000 and $4,970,000, respectively. 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 may be 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, swaps, investments in unregistered investment companies, 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.
160 | SEPTEMBER 30, 2014
Table of Contents
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 September 30, 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.
The Funds did not hold a significant amount of Level 3 securities as of September 30, 2014.
The following table shows the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the year. The Funds recognize transfers between the levels as of the beginning of the fiscal year.
| Transfers Out | Transfers Out | |||||||||
| of Level 1 | of Level 2 | |||||||||
| Fund | to Level 2 | to Level 1 | ||||||||
| Janus Balanced Fund | $ | 144,968,930 | $ | – | ||||||
| Janus Contrarian Fund | 102,539,650 | 106,245,147 | ||||||||
| Janus Enterprise Fund | 46,351,293 | 72,167,860 | ||||||||
| Janus Fund | 427,226,782 | – | ||||||||
| Janus Growth and Income Fund | 78,883,439 | 20,667,500 | ||||||||
| Janus Twenty Fund | 302,235,191 | – | ||||||||
| Janus Venture Fund | 6,790,651 | 23,543,253 | ||||||||
Financial assets were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current fiscal year and no factor was applied at the end of the prior fiscal year.
Financial assets were transferred out of Level 2 to Level 1 as the current market for the securities with quoted prices are considered active.
| 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 year ended September 30, 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 purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative (to earn income and 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. |
Janus Growth & Core Funds | 161
Table of Contents
Notes to Financial Statements (continued)
| • | 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 net asset value (“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 investments and foreign currency transactions” on the Statements of Operations (if applicable).
During the year, Janus Balanced Fund, Janus Contrarian Fund, Janus Enterprise Fund, Janus Fund, and Janus Growth and Income Fund entered into forward contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by each Fund.
The following table provides average ending monthly currency units on sold forward contracts during the year ended September 30, 2014.
| Fund | Sold | |||||
| Janus Balanced Fund | 85,523,462 | |||||
| Janus Contrarian Fund | 1,968,407,692 | |||||
| Janus Enterprise Fund | 106,526,923 | |||||
| Janus Fund | 3,873,848,231 | |||||
| Janus Growth and Income Fund | 59,024,692 | |||||
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
162 | SEPTEMBER 30, 2014
Table of Contents
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.
During the year, Janus Contrarian Fund sold futures on equity indices to decrease exposure to equity risk.
The following table provides average ending monthly market value amounts on sold futures contracts during the year ended September 30, 2014.
| Fund | Sold | |||||
| Janus Contrarian Fund | $ | 196,999,468 | ||||
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
Janus Growth & Core Funds | 163
Table of Contents
Notes to Financial Statements (continued)
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.
During the year, Janus Contrarian Fund, Janus Fund, and Janus Twenty Fund purchased call options on various equity securities for the purpose of increasing exposure to individual equity risk.
During the year, Janus Contrarian Fund and Janus Fund purchased put options on various equity securities for the purpose of decreasing exposure to individual equity risk.
The following table provides average ending monthly market value amounts on purchased call and put options during the year ended September 30, 2014.
| Purchased | Purchased | |||||||||
| Fund | Call Options | Put Options | ||||||||
| Janus Contrarian Fund | $ | 32,687,192 | $ | 5,871,595 | ||||||
| Janus Fund | 5,425,966 | 439,379 | ||||||||
| Janus Twenty Fund | 518,323 | – | ||||||||
During the year, Janus Contrarian Fund wrote call options on various equity securities for the purpose of decreasing exposure to individual equity risk and/or generating income.
During the year, Janus Fund and Janus Twenty Fund wrote put options on various equity securities for the purpose of increasing exposure to individual equity risk and/or generating income.
The following table provides average ending monthly market value amounts on written call and put options during the year ended September 30, 2014.
| Written | Written | |||||||||
| Fund | Call Options | Put Options | ||||||||
| Janus Contrarian Fund | $ | 1,177,919 | $ | – | ||||||
| Janus Fund | – | 2,197,234 | ||||||||
| Janus Twenty Fund | – | 255,685 | ||||||||
Written option activity for the year ended September 30, 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 September 30, 2014 | – | $ | – | |||||
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
Janus Fund | ||||||||
| Options outstanding at September 30, 2013 | 34,677 | $ | 3,122,805 | |||||
| Options written | 55,570 | 11,048,644 | ||||||
| Options closed | (59,025) | (7,973,621) | ||||||
| Options expired | – | – | ||||||
| Options exercised | – | – | ||||||
| Options outstanding at September 30, 2014 | 31,222 | $ | 6,197,828 | |||||
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
Janus Twenty Fund | ||||||||
| Options outstanding at September 30, 2013 | – | $ | – | |||||
| Options written | 44,000 | 5,535,200 | ||||||
| Options closed | – | – | ||||||
| Options expired | – | – | ||||||
| Options exercised | – | – | ||||||
| Options outstanding at September 30, 2014 | 44,000 | $ | 5,535,200 | |||||
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 are typically 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. Swaps that are required to be cleared are required to post initial and variation margins in accordance with the exchange requirements. 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,
164 | SEPTEMBER 30, 2014
Table of Contents
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.
During the year, Janus Triton Fund entered into total return swaps on equity securities or indices to increase exposure to equity risk. These total return swaps require the Fund to pay a floating reference interest rate, and an amount equal to the negative price movement of securities or an index multiplied by the notional amount of the contract. The Fund will receive payments equal to the positive price movement of the same securities or index multiplied by the notional amount of the contract and, in some cases, dividends paid on the securities.
The following table provides average ending monthly notional amount on total return swaps which are long the reference asset during the year ended September 30, 2014.
| Fund | Long | |||||
| Janus Triton Fund | $ | 40,356,242 | ||||
The following tables, grouped by derivative type, provides information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of September 30, 2014.
Fair Value of Derivative Instruments as of September 30, 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 | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 1,055,074 | |||||||||
Janus Contrarian Fund | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 85,190 | |||||||||
| Equity Contracts | Unaffiliated investments at value | 88,414,703* | ||||||||||
| Equity Contracts | Variation margin receivable | 685,000 | ||||||||||
| Total | $ | 89,184,893 | ||||||||||
Janus Enterprise Fund | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 3,871,925 | |||||||||
Janus Fund | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 2,665,931 | |||||||||
| Equity Contracts | Unaffiliated investments at value | 6,957,464* | Options written, at value | $ | 9,239,614 | |||||||
| Total | $ | 9,623,395 | $ | 9,239,614 | ||||||||
Janus Growth and Income Fund | ||||||||||||
| Currency Contracts | Forward currency contracts | $ | 620,764 | |||||||||
Janus Twenty Fund | ||||||||||||
| Equity Contracts | Unaffiliated investments at value | $ | 6,738,200* | Options written, at value | $ | 3,323,910 | ||||||
| * | 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 year ended September 30, 2014.
The effect of Derivative Instruments on the Statements of Operations for the year ended September 30, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||
| Derivatives not accounted for as | Investments and foreign | |||||||||||||||||||||||
| hedging instruments | currency transactions | Futures contracts | Swap contracts | Written options contracts | Total | |||||||||||||||||||
Janus Balanced Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | (9,433,932 | ) | $ | – | $ | – | $ | – | $ | (9,433,932 | ) | ||||||||||||
Janus Contrarian Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | 1,162,050 | $ | – | $ | – | $ | – | $ | 1,162,050 | ||||||||||||||
| Equity Contracts | 40,811,609* | (19,361,353 | ) | – | 4,702,013 | 26,152,269 | ||||||||||||||||||
| Total | $ | 41,973,659 | $ | (19,361,353 | ) | $ | – | $ | 4,702,013 | $ | 27,314,319 | |||||||||||||
Janus Enterprise Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | 3,174,721 | $ | – | $ | – | $ | – | $ | 3,174,721 | ||||||||||||||
Janus Growth & Core Funds | 165
Table of Contents
Notes to Financial Statements (continued)
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||
| Derivatives not accounted for as | Investments and foreign | |||||||||||||||||||||||
| hedging instruments | currency transactions | Futures contracts | Swap contracts | Written options contracts | Total | |||||||||||||||||||
Janus Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | (14,670,354 | ) | $ | – | $ | – | $ | – | $ | (14,670,354 | ) | ||||||||||||
| Equity Contracts | 6,534,471* | – | – | 6,205,919 | 12,740,390 | |||||||||||||||||||
| Total | $ | (8,135,883 | ) | $ | – | $ | – | $ | 6,205,919 | $ | (1,929,964 | ) | ||||||||||||
Janus Growth and Income Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | (4,660,729 | ) | $ | – | $ | – | $ | – | $ | (4,660,729 | ) | ||||||||||||
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 | ||||||||||||||||||||||||
| Currency Contracts | $ | 4,970,192 | $ | – | $ | – | $ | – | $ | 4,970,192 | ||||||||||||||
Janus Contrarian Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | 730,749 | $ | – | $ | – | $ | – | $ | 730,749 | ||||||||||||||
| Equity Contracts | 24,784,795* | (2,654,258 | ) | – | 1,057,752 | 23,188,289 | ||||||||||||||||||
| Total | $ | 25,515,544 | $ | (2,654,258 | ) | $ | – | $ | 1,057,752 | $ | 23,919,038 | |||||||||||||
Janus Enterprise Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | 5,147,415 | $ | – | $ | – | $ | – | $ | 5,147,415 | ||||||||||||||
Janus Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | 12,054,304 | $ | – | $ | – | $ | – | $ | 12,054,304 | ||||||||||||||
| Equity Contracts | (4,534,265 | )* | – | – | (2,775,135 | ) | (7,309,400 | ) | ||||||||||||||||
| Total | $ | 7,520,039 | $ | – | $ | – | $ | (2,775,135 | ) | $ | 4,744,904 | |||||||||||||
Janus Growth and Income Fund | ||||||||||||||||||||||||
| Currency Contracts | $ | 3,355,984 | $ | – | $ | – | $ | – | $ | 3,355,984 | ||||||||||||||
Janus Triton Fund | ||||||||||||||||||||||||
| Equity Contracts | $ | – | $ | – | $ | (807,662 | ) | $ | – | $ | (807,662 | ) | ||||||||||||
Janus Twenty Fund | ||||||||||||||||||||||||
| Equity Contracts | $ | (6,901,800 | )* | $ | – | $ | – | $ | 2,211,290 | $ | (4,690,510 | ) | ||||||||||||
| * | Amounts relate to purchased options. |
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
| 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 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 took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient each could 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 continue to impact 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. As a result, 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 provided for widespread regulation of financial institutions,
166 | SEPTEMBER 30, 2014
Table of Contents
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 remain pending and 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 increased 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 restructurings 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 with respect to financial assets and liabilities approximates its carrying value. See the “Offsetting Assets and Liabilities” section of this Note for further details.
A Fund may be exposed to counterparty risk through participation in various programs including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby a Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. A Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that a Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Exchange-Traded Funds
The Funds may invest in exchange-traded funds 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 September 30, 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 |
Janus Growth & Core Funds | 167
Table of Contents
Notes to Financial Statements (continued)
| 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 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
168 | SEPTEMBER 30, 2014
Table of Contents
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 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 instruments’ 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 instruments’ 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). For corresponding information grouped by type of instrument, see either the “Fair Value of Derivative Instruments as of September 30, 2014” table located in Note 2 of these Notes to Financial Statements and/or the applicable Fund’s Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets
Janus Balanced Fund
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Bank of America | $ | 13,745 | $ | – | $ | – | $ | 13,745 | ||||||||||
| Credit Suisse International | 166,817 | – | – | 166,817 | ||||||||||||||
| HSBC Securities (USA), Inc. | 704,059 | – | – | 704,059 | ||||||||||||||
| JPMorgan Chase & Co. | 37,324 | – | – | 37,324 | ||||||||||||||
| RBC Capital Markets Corp. | 133,129 | – | – | 133,129 | ||||||||||||||
| Total | $ | 1,055,074 | $ | – | $ | – | $ | 1,055,074 | ||||||||||
Janus Contrarian Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 12,134,464 | $ | – | $ | (12,134,464) | $ | – | ||||||||||
| Deutsche Bank AG | 326,728,847 | – | (326,728,847) | – | ||||||||||||||
| Goldman Sachs & Co. | 23,071,189 | (11,973,374) | (11,097,815) | – | ||||||||||||||
| JPMorgan Chase & Co. | 11,118 | – | – | 11,118 | ||||||||||||||
| Morgan Stanley & Co. International PLC | 19,742,730 | – | (17,041,530) | 2,701,200 | ||||||||||||||
| UBS AG | 33,540,392 | (29,999,343) | 3,541,049 | |||||||||||||||
| Total | $ | 415,228,740 | $ | (11,973,374) | $ | (397,001,999) | $ | 6,253,367 | ||||||||||
Janus Enterprise Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Bank of America | $ | 28,292 | $ | – | $ | – | $ | 28,292 | ||||||||||
| Credit Suisse International | 957,738 | – | – | 957,738 | ||||||||||||||
| Deutsche Bank AG | 186,029,846 | – | (186,029,846) | – | ||||||||||||||
| HSBC Securities (USA), Inc. | 1,517,669 | – | – | 1,517,669 | ||||||||||||||
| JPMorgan Chase & Co. | 287,869 | – | – | 287,869 | ||||||||||||||
| RBC Capital Markets Corp. | 1,080,357 | – | – | 1,080,357 | ||||||||||||||
| Total | $ | 189,901,771 | $ | – | $ | (186,029,846) | $ | 3,871,925 | ||||||||||
Janus Growth & Core Funds | 169
Table of Contents
Notes to Financial Statements (continued)
Janus Fund |
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 2,281,456 | $ | (2,281,456) | $ | – | $ | – | ||||||||||
| HSBC Securities (USA), Inc. | 1,429,001 | – | – | 1,429,001 | ||||||||||||||
| JPMorgan Chase & Co. | 167,297 | – | – | 167,297 | ||||||||||||||
| Morgan Stanley & Co. International PLC | 5,292,073 | (1,379,674) | (3,912,399) | – | ||||||||||||||
| RBC Capital Markets Corp. | 453,568 | – | – | 453,568 | ||||||||||||||
| Total | $ | 9,623,395 | $ | (3,661,130) | $ | (3,912,399) | $ | 2,049,866 | ||||||||||
Janus Growth and Income Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 209,100 | $ | – | $ | – | $ | 209,100 | ||||||||||
| HSBC Securities (USA), Inc. | 288,032 | – | – | 288,032 | ||||||||||||||
| JPMorgan Chase & Co. | 29,719 | – | – | 29,719 | ||||||||||||||
| RBC Capital Markets Corp. | 93,913 | – | – | 93,913 | ||||||||||||||
| Total | $ | 620,764 | $ | – | $ | – | $ | 620,764 | ||||||||||
Janus Triton Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Deutsche Bank AG | $ | 418,278,770 | $ | – | $ | (418,278,770) | $ | – | ||||||||||
Janus Twenty Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Goldman Sachs International | $ | 6,738,200 | $ | (3,323,910) | $ | 4,970,000(c) | $ | 8,384,290 | ||||||||||
Janus Venture Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Deutsche Bank AG | $ | 212,334,558 | $ | – | $ | (212,334,558) | $ | – | ||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | ||||||||||||||||||
Janus Contrarian Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Liabilities | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Goldman Sachs & Co. | $ | 11,973,374 | $ | (11,973,374) | $ | – | $ | – | ||||||||||
Janus Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Liabilities | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 7,859,940 | $ | (2,281,456) | $ | (5,500,000) | $ | 78,484 | ||||||||||
| Morgan Stanley & Co. International PLC | 1,379,674 | (1,379,674) | – | – | ||||||||||||||
| Total | $ | 9,239,614 | $ | (3,661,130) | $ | (5,500,000) | $ | 78,484 | ||||||||||
Janus Twenty Fund | ||||||||||||||||||
| Gross Amounts of | ||||||||||||||||||
| Counterparty | Recognized Liabilities | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Goldman Sachs International | $ | 3,323,910 | $ | (3,323,910) | $ | – | $ | – | ||||||||||
| (a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statements of Assets and Liabilities. | |
| (b) | 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. | |
| (c) | Janus Twenty Fund pledged $4,970,000 for certain transactions. This amount is included in “Restricted cash” on the Statements of Assets and Liabilities. |
170 | SEPTEMBER 30, 2014
Table of Contents
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 exchange collateral on its forward currency contracts with its counterparties; however, a Fund will segregate cash or high-grade securities in an amount at all times equal to or greater than a Fund’s commitment with respect to these contracts. Such segregated assets, if with the Fund’s custodian, 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 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
Janus Growth & Core Funds | 171
Table of Contents
Notes to Financial Statements (continued)
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.
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
172 | SEPTEMBER 30, 2014
Table of Contents
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 and Delayed Delivery Securities
Janus Balanced Fund may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which the Fund may invest include U.S. Treasury Securities, municipal bonds, bank loans, and other similar instruments. The price of the underlying securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Fund may hold liquid assets as collateral with the Fund’s custodian sufficient to cover the purchase price.
| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
| Contractual | ||||||||||
| Average Daily | Investment | |||||||||
| Net Assets | Advisory Fee/ | |||||||||
| Fund | of the Fund | Base Fee (%) | ||||||||
| 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 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. The performance adjusted investment advisory fee rates
Janus Growth & Core Funds | 173
Table of Contents
Notes to Financial Statements (continued)
before any waivers and/or reimbursements of expenses for the year ended September 30, 2014 are below:
| Performance Adjusted | ||||||
| Investment Advisory | ||||||
| Fund | Fee Rate (%) | |||||
| Janus Contrarian Fund | 0.61 | |||||
| Janus Forty Fund | 0.48 | |||||
| Janus Fund | 0.48 | |||||
| Janus Research Fund | 0.52 | |||||
| Janus Twenty Fund | 0.54 | |||||
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.
Under separate distribution and shareholder servicing plans (each, a “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Funds may pay the Trust’s distributor, Janus Distributors LLC, a wholly-owned subsidiary of Janus Capital, a fee at an annual rate 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. Under the terms of each Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Funds. Payments under each 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 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 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,
174 | SEPTEMBER 30, 2014
Table of Contents
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 September 30, 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 year ended September 30, 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 $283,000 were paid by the Trust to a Trustee under the Deferred Plan during the year ended September 30, 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 $522,703 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 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 year ended September 30, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | ||||||
| Fund (Class A Shares) | Sales Charge | |||||
| Janus Balanced Fund | $ | 342,811 | ||||
| Janus Contrarian Fund | 69,569 | |||||
| Janus Enterprise Fund | 13,134 | |||||
| Janus Forty Fund | 28,042 | |||||
| Janus Fund | 6,919 | |||||
| Janus Growth and Income Fund | 4,299 | |||||
| Janus Research Fund | 5,793 | |||||
| Janus Triton Fund | 78,194 | |||||
| Janus Venture Fund | 17,052 | |||||
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 year ended September 30, 2014, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
| Fund (Class A Shares) | CDSC | |||||
| Janus Balanced Fund | $ | 4,185 | ||||
| Janus Forty Fund | 1,890 | |||||
| Janus Research Fund | 6,481 | |||||
| Janus Triton Fund | 6,583 | |||||
| Janus Venture Fund | 7,043 | |||||
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 year ended September 30, 2014,
Janus Growth & Core Funds | 175
Table of Contents
Notes to Financial Statements (continued)
redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | |||||
| Janus Balanced Fund | $ | 85,235 | ||||
| Janus Contrarian Fund | 1,982 | |||||
| Janus Enterprise Fund | 2,149 | |||||
| Janus Forty Fund | 14,289 | |||||
| Janus Fund | 39 | |||||
| Janus Growth and Income Fund | 424 | |||||
| Janus Research Fund | 220 | |||||
| Janus Triton Fund | 47,062 | |||||
| Janus Venture Fund | 2,705 | |||||
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 year ended September 30, 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 September 30, 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 Forty Fund - Class A Shares | – | % | – | % | ||||||
| Janus Forty Fund - Class C Shares | – | – | ||||||||
| Janus Forty Fund - Class I Shares | – | – | ||||||||
| Janus Forty Fund - Class N Shares | 20 | 1 | ||||||||
| Janus Forty Fund - Class R Shares | – | – | ||||||||
| Janus Forty Fund - Class S Shares | – | – | ||||||||
| Janus Forty Fund - Class T Shares | – | – | ||||||||
| 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 | – | – | ||||||||
176 | SEPTEMBER 30, 2014
Table of Contents
| 5. | Federal Income Tax |
The tax components of capital shown in the table below represent: (1) distribution requirements the Funds must satisfy under the income tax regulations; (2) losses or deductions the Funds may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes (reduced by foreign tax liability).
Other book to tax differences primarily consist of deferred compensation, derivatives and foreign currency contract adjustments. 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.
| Undistributed | Undistributed | Loss Deferrals | Other Book | ||||||||||||||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year | Post-October | to Tax | Net Tax | |||||||||||||||||||||||||
| Fund | Income | Gains | Capital Losses | Ordinary Loss | Capital Loss | Differences | Appreciation | ||||||||||||||||||||||||
| Janus Balanced Fund | $ | 38,210,886 | $ | 427,078,773 | $ | – | $ | – | $ | – | $ | (235,407) | $ | 2,337,007,136 | |||||||||||||||||
| Janus Contrarian Fund | 2,741,882 | 355,937,215 | (26,964,997) | – | – | (72,371) | 675,756,286 | ||||||||||||||||||||||||
| Janus Enterprise Fund | 1,055,141 | 209,964,780 | (33,811,386) | – | – | (63,099) | 1,224,490,339 | ||||||||||||||||||||||||
| Janus Forty Fund | 43,294,605 | 720,747,185 | – | – | – | (51,979) | 511,336,427 | ||||||||||||||||||||||||
| Janus Fund | 128,770,437 | 1,459,979,542 | (9,444,811) | – | – | (3,220,461) | 1,545,009,587 | ||||||||||||||||||||||||
| Janus Growth and Income Fund | 12,460,535 | – | (66,855,671) | – | – | (166,673) | 1,409,259,606 | ||||||||||||||||||||||||
| Janus Research Fund | 34,224,253 | 459,052,792 | – | – | – | (72,548) | 1,178,589,004 | ||||||||||||||||||||||||
| Janus Triton Fund | 21,479,848 | 484,312,072 | – | – | – | (93,600) | 1,242,680,740 | ||||||||||||||||||||||||
| Janus Twenty Fund | 111,078,441 | 1,017,367,870 | – | – | – | 1,876,561 | 2,079,313,457 | ||||||||||||||||||||||||
| Janus Venture Fund | 43,334,882 | 162,014,072 | – | – | – | (39,416) | 376,472,918 | ||||||||||||||||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2014, 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, 2014
| 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 Contrarian Fund(1) | $ | – | $ | (14,397,922) | $ | (8,936,372) | $ | (2,708,558) | $ | (922,145) | $ | – | $ | – | $ | (26,964,997) | |||||||||||||
Janus Enterprise Fund(2) | – | (33,811,386) | – | – | – | – | – | (33,811,386) | |||||||||||||||||||||
Janus Fund(3) | – | (9,444,811) | – | – | – | – | – | (9,444,811) | |||||||||||||||||||||
Janus Growth and Income Fund(4) | (1,281,001) | (7,963,315) | (57,148,505) | (462,850) | – | – | – | (66,855,671) | |||||||||||||||||||||
| (1) | Capital loss carryovers subject to annual limitations, $(7,198,961) 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, $(62,874,013) should be available in the next fiscal year. |
Janus Growth & Core Funds | 177
Table of Contents
Notes to Financial Statements (continued)
During the year ended September 30, 2014, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| Capital Loss | ||||||
| Carryover | ||||||
| Fund | Utilized | |||||
| Janus Contrarian Fund | $ | 283,224,377 | ||||
| Janus Enterprise Fund | 29,275,428 | |||||
| Janus Fund | 4,722,405 | |||||
| Janus Growth and Income Fund | 203,902,338 | |||||
| Janus Research Fund | 25,718,890 | |||||
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 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.
| Federal Tax | Unrealized | Unrealized | ||||||||||||
| Fund | Cost | Appreciation | (Depreciation) | |||||||||||
| Janus Balanced Fund | $ | 9,589,165,115 | $ | 2,361,746,237 | $ | (24,739,101) | ||||||||
| Janus Contrarian Fund | 3,787,080,302 | 879,534,506 | (205,734,661) | |||||||||||
| Janus Enterprise Fund | 2,442,104,754 | 1,267,862,953 | (43,372,614) | |||||||||||
| Janus Forty Fund | 2,067,871,447 | 529,576,554 | (18,240,127) | |||||||||||
| Janus Fund | 6,141,379,261 | 1,606,366,517 | (61,356,930) | |||||||||||
| Janus Growth and Income Fund | 2,937,109,471 | 1,423,436,481 | (14,176,875) | |||||||||||
| Janus Research Fund | 3,088,005,832 | 1,193,733,974 | (15,144,970) | |||||||||||
| Janus Triton Fund | 4,765,043,253 | 1,349,868,032 | (107,187,292) | |||||||||||
| Janus Twenty Fund | 7,069,421,933 | 2,193,707,200 | (114,393,743) | |||||||||||
| Janus Venture Fund | 2,146,635,887 | 451,344,705 | (74,871,787) | |||||||||||
| Information on the tax components of securities sold short as of September 30, 2014 is as follows: | ||||||||||||||
| Federal Tax | Unrealized | Unrealized | ||||||||||||
| Fund | Cost | (Appreciation) | Depreciation | |||||||||||
| Janus Contrarian Fund | $ | (13,929,815) | $ | – | $ | 1,956,441 | ||||||||
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. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
For the year ended September 30, 2014
| Distributions | ||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||
| Janus Balanced Fund | $ | 183,879,900 | $ | 303,740,375 | $ | – | $ | – | ||||||||||||||
| Janus Contrarian Fund | 5,909,301 | – | – | – | ||||||||||||||||||
| Janus Enterprise Fund | 3,993,699 | 170,969,120 | – | – | ||||||||||||||||||
| Janus Forty Fund | 24,206,810 | 578,538,255 | – | – | ||||||||||||||||||
| Janus Fund | 25,631,395 | 36,035,507 | – | – | ||||||||||||||||||
| Janus Growth and Income Fund | 74,507,293 | – | – | – | ||||||||||||||||||
| Janus Research Fund | 17,402,321 | 12,043,140 | – | – | ||||||||||||||||||
| Janus Triton Fund | 10,181,716 | 210,496,246 | – | – | ||||||||||||||||||
| Janus Twenty Fund | 66,183,850 | 2,172,637,421 | – | – | ||||||||||||||||||
| Janus Venture Fund | 48,418,893 | 289,420,663 | – | – | ||||||||||||||||||
178 | SEPTEMBER 30, 2014
Table of Contents
For the year ended September 30, 2013
| Distributions | ||||||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||||||
| Janus Balanced Fund | $ | 190,338,688 | $ | 251,152,575 | $ | – | $ | – | ||||||||||||||||||
| Janus Contrarian Fund | 24,408,390 | – | – | – | ||||||||||||||||||||||
| Janus Enterprise Fund | – | 84,264,060 | – | – | ||||||||||||||||||||||
| Janus Forty Fund | 12,844,539 | – | – | – | ||||||||||||||||||||||
| Janus Fund | 62,081,035 | – | – | – | ||||||||||||||||||||||
| Janus Growth and Income Fund | 66,132,205 | – | – | – | ||||||||||||||||||||||
| Janus Research Fund | 24,596,415 | – | – | – | ||||||||||||||||||||||
| Janus Triton Fund | 48,128,979 | 131,169,383 | – | – | ||||||||||||||||||||||
| Janus Twenty Fund | 64,818,671 | – | – | – | ||||||||||||||||||||||
| Janus Venture Fund | 39,245,356 | 162,708,406 | – | – | ||||||||||||||||||||||
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Funds:
| Increase/(Decrease) | Increase/(Decrease) | |||||||||||||
| Increase/(Decrease) | to Undistributed Net | to Undistributed Net | ||||||||||||
| Fund | to Capital | Investment Income/Loss | Realized Gain/Loss | |||||||||||
| Janus Balanced Fund | $ | – | $ | 11,021 | $ | (11,021) | ||||||||
| Janus Contrarian Fund | – | 212,868 | (212,868) | |||||||||||
| Janus Enterprise Fund | – | 1,017,109 | (1,017,109) | |||||||||||
| Janus Forty Fund | – | 9,219,059 | (9,219,059) | |||||||||||
| Janus Fund | – | (16,885,367) | 16,885,367 | |||||||||||
| Janus Growth and Income Fund | – | (10,072,169) | 10,072,169 | |||||||||||
| Janus Research Fund | – | (3,911,830) | 3,911,830 | |||||||||||
| Janus Triton Fund | – | 24,175,762 | (24,175,762) | |||||||||||
| Janus Twenty Fund | – | (16,367,596) | 16,367,596 | |||||||||||
| Janus Venture Fund | – | 4,319,419 | (4,319,419) | |||||||||||
Janus Growth & Core Funds | 179
Table of Contents
Notes to Financial Statements (continued)
| 6. | Capital Share Transactions |
| Janus | Janus | Janus | ||||||||||||||||||||||||
| Balanced Fund | Contrarian Fund | Enterprise Fund | ||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Shares sold | 9,469,276 | 8,089,581 | 2,566,477 | 364,760 | 479,488 | 444,428 | ||||||||||||||||||||
| Reinvested dividends and distributions | 992,298 | 995,997 | 238 | 8,474 | 50,514 | 30,174 | ||||||||||||||||||||
| Shares repurchased | (9,863,868) | (7,103,437) | (667,313) | (719,248) | (477,857) | (383,452) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 597,706 | 1,982,141 | 1,899,402 | (346,014) | 52,145 | 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 | 26,874,507 | 26,276,801 | 3,273,424 | 1,374,022 | 1,240,576 | 1,188,431 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Shares sold | 10,814,005 | 7,316,770 | 1,549,523 | 105,426 | 194,342 | 145,506 | ||||||||||||||||||||
| Reinvested dividends and distributions | 797,863 | 668,946 | – | – | 21,513 | 10,483 | ||||||||||||||||||||
| Shares repurchased | (3,836,572) | (3,547,152) | (214,002) | (339,562) | (93,019) | (90,667) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 7,775,296 | 4,438,564 | 1,335,521 | (234,136) | 122,836 | 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 | 32,212,767 | 24,437,471 | 2,510,616 | 1,175,095 | 589,411 | 466,575 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Shares sold | 3,815,715 | 4,583,550 | 5,363,281 | 5,244,751 | 638,795 | 1,006,015 | ||||||||||||||||||||
| Reinvested dividends and distributions | 2,037,292 | 2,135,360 | 198,431 | 1,104,387 | 758,822 | 464,127 | ||||||||||||||||||||
| Shares repurchased | (4,640,191) | (5,321,888) | (9,466,560) | (14,084,331) | (1,380,377) | (1,687,993) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,212,816 | 1,397,022 | (3,904,848) | (7,735,193) | 17,240 | (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 | 45,418,511 | 44,205,695 | 102,800,363 | 106,705,211 | 13,848,738 | 13,831,498 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Shares sold | 18,890,033 | 15,051,849 | 11,926,608 | 2,503,132 | 1,897,940 | 1,571,703 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,336,773 | 2,950,332 | 14,442 | 29,255 | 198,411 | 94,362 | ||||||||||||||||||||
| Shares repurchased | (11,450,127) | (58,483,288) | (2,328,628) | (1,163,698) | (1,805,281) | (1,182,366) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 8,776,679 | (40,481,107) | 9,612,422 | 1,368,689 | 291,070 | 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 | 41,941,607 | 33,164,928 | 14,193,582 | 4,581,160 | 6,399,338 | 6,108,268 | ||||||||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
| Shares sold | 9,296,224 | 54,990,665 | N/A | N/A | 845,728 | 167,715 | ||||||||||||||||||||
| Reinvested dividends and distributions | 2,390,289 | 677,994 | N/A | N/A | 9,507 | 3,653 | ||||||||||||||||||||
| Shares repurchased | (7,886,085) | (6,762,875) | N/A | N/A | (56,927) | (55,746) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 3,800,428 | 48,905,784 | N/A | N/A | 798,308 | 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 | 52,987,964 | 49,187,536 | N/A | N/A | 949,975 | 151,667 | ||||||||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
| Shares sold | 2,894,763 | 3,367,500 | 44,408 | 18,215 | 304,814 | 315,544 | ||||||||||||||||||||
| Reinvested dividends and distributions | 362,365 | 381,056 | – | 47 | 38,948 | 22,890 | ||||||||||||||||||||
| Shares repurchased | (2,899,091) | (2,841,783) | (46,243) | (65,402) | (261,636) | (318,355) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 358,037 | 906,773 | (1,835) | (47,140) | 82,126 | 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 | 9,999,170 | 9,641,133 | 87,406 | 89,241 | 855,857 | 773,731 | ||||||||||||||||||||
180 | SEPTEMBER 30, 2014
Table of Contents
| Janus | Janus | Janus | ||||||||||||||||||||||||
| Balanced Fund | Contrarian Fund | Enterprise Fund | ||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Shares sold | 5,331,729 | 7,038,190 | 206,407 | 23,129 | 666,791 | 990,016 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,208,498 | 1,376,627 | – | 215 | 178,391 | 103,307 | ||||||||||||||||||||
| Shares repurchased | (8,370,636) | (8,879,593) | (40,944) | (101,175) | (1,656,907) | (944,351) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (1,830,409) | (464,776) | 165,463 | (77,831) | (811,725) | 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 | 26,937,955 | 28,768,364 | 274,867 | 109,404 | 2,388,908 | 3,200,633 | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Shares sold | 28,751,536 | 27,291,588 | 18,599,427 | 12,119,361 | 3,169,012 | 2,785,266 | ||||||||||||||||||||
| Reinvested dividends and distributions | 6,317,242 | 6,510,402 | 73,809 | 450,146 | 751,898 | 426,263 | ||||||||||||||||||||
| Shares repurchased | (25,726,991) | (28,508,445) | (15,413,393) | (14,465,906) | (2,595,651) | (2,548,435) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 9,341,787 | 5,293,545 | 3,259,843 | (1,896,399) | 1,325,259 | 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 | 145,965,525 | 136,623,738 | 56,513,295 | 53,253,452 | 14,725,035 | 13,399,776 | ||||||||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
Janus Growth & Core Funds | 181
Table of Contents
Notes to Financial Statements (continued)
| Janus | Janus | Janus | ||||||||||||||||||||||||
| Forty Fund | Fund | Growth and Income Fund | ||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Shares sold | 1,620,422 | 1,994,590 | 68,236 | 11,131,163 | 107,492 | 188,615 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,545,154 | 33,044 | 2,077 | 240,115 | 9,793 | 9,624 | ||||||||||||||||||||
| Shares repurchased | (5,712,330) | (4,562,842) | (201,414) | (46,102,496) | (184,110) | (318,788) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (2,546,754) | (2,535,208) | (131,101) | (34,731,218) | (66,825) | (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 | 5,991,694 | 8,538,448 | 339,774 | 470,875 | 561,680 | 628,505 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Shares sold | 1,169,574 | 729,327 | 16,938 | 26,992 | 47,912 | 68,152 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,029,465 | – | 374 | – | 2,914 | 3,130 | ||||||||||||||||||||
| Shares repurchased | (2,140,502) | (2,548,149) | (26,444) | (67,008) | (41,376) | (75,434) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 58,537 | (1,818,822) | (9,132) | (40,016) | 9,450 | (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 | 7,630,456 | 7,571,919 | 126,381 | 135,513 | 352,540 | 343,090 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Shares sold | N/A | N/A | 2,265,391 | 2,807,982 | 1,811,609 | 2,380,167 | ||||||||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 1,137,146 | 1,221,106 | 1,009,156 | 1,082,814 | ||||||||||||||||||||
| Shares repurchased | N/A | N/A | (11,229,515) | (14,186,504) | (5,132,620) | (6,541,302) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | (7,826,978) | (10,157,416) | (2,311,855) | (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 | 132,067,449 | 139,894,427 | 56,592,961 | 58,904,816 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Shares sold | 16,433,819 | 5,872,487 | 3,099,447 | 487,848 | 614,463 | 225,402 | ||||||||||||||||||||
| Reinvested dividends and distributions | 2,745,909 | 134,129 | 31,692 | 37,271 | 17,247 | 11,209 | ||||||||||||||||||||
| Shares repurchased | (10,861,577) | (15,088,715) | (749,042) | (1,287,923) | (226,554) | (178,649) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 8,318,151 | (9,082,099) | 2,382,097 | (762,804) | 405,156 | 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 | 25,913,557 | 17,595,406 | 6,112,311 | 3,730,214 | 1,162,952 | 757,796 | ||||||||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
| Shares sold | 1,341,574 | 1,213,844 | 33,574 | 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 | (415,536) | (754,688) | (301,241) | (10,195,561) | N/A | N/A | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,129,119 | 464,236 | (263,633) | (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 | 1,628,129 | 499,010 | 433,079 | 696,712 | N/A | N/A | ||||||||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
| Shares sold | 615,949 | 638,444 | 26,430 | 28,484 | 18,862 | 14,165 | ||||||||||||||||||||
| Reinvested dividends and distributions | 692,342 | – | 467 | 45 | 864 | 909 | ||||||||||||||||||||
| Shares repurchased | (1,556,879) | (1,868,065) | (49,417) | (17,984) | (16,618) | (18,959) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (248,588) | (1,229,621) | (22,520) | 10,545 | 3,108 | (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 | 3,398,365 | 3,646,953 | 64,954 | 87,474 | 68,831 | 65,723 | ||||||||||||||||||||
182 | SEPTEMBER 30, 2014
Table of Contents
| Janus | Janus | Janus | ||||||||||||||||||||||||
| Forty Fund | Fund | Growth and Income Fund | ||||||||||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Shares sold | 2,303,411 | 3,800,368 | 188,074 | 189,428 | 96,624 | 189,584 | ||||||||||||||||||||
| Reinvested dividends and distributions | 6,933,659 | 109,043 | 6,645 | 3,292 | 12,422 | 15,905 | ||||||||||||||||||||
| Shares repurchased | (24,074,974) | (17,058,653) | (575,727) | (485,363) | (339,037) | (371,532) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (14,837,904) | (13,149,242) | (381,008) | (292,643) | (229,991) | (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 | 16,682,760 | 31,520,664 | 708,092 | 1,089,100 | 710,570 | 940,561 | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Shares sold | 299,782 | 607,284 | 3,457,191 | 3,754,146 | 3,910,299 | 3,510,716 | ||||||||||||||||||||
| Reinvested dividends and distributions | 184,515 | 7,862 | 332,520 | 277,400 | 557,593 | 624,858 | ||||||||||||||||||||
| Shares repurchased | (678,385) | (1,212,612) | (10,101,437) | (22,850,387) | (5,890,213) | (8,813,681) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (194,088) | (597,466) | (6,311,726) | (18,818,841) | (1,422,321) | (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 | 622,370 | 816,458 | 37,183,512 | 43,495,238 | 32,701,258 | 34,123,579 | ||||||||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
Janus Growth & Core Funds | 183
Table of Contents
Notes to Financial Statements (continued)
| Janus | Janus | |||||||||||||||||
| Research Fund | Triton Fund | |||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 139,489 | 136,163 | 6,715,936 | 16,635,490 | ||||||||||||||
| Reinvested dividends and distributions | 2,680 | 1,830 | 865,096 | 834,359 | ||||||||||||||
| Shares repurchased | (216,269) | (134,031) | (12,603,702) | (10,081,394) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (74,100) | 3,962 | (5,022,670) | 7,388,455 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 415,131 | 411,169 | 25,918,812 | 18,530,357 | ||||||||||||||
| Shares Outstanding, End of Period | 341,031 | 415,131 | 20,896,142 | 25,918,812 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 24,786 | 20,552 | 2,225,244 | 4,480,754 | ||||||||||||||
| Reinvested dividends and distributions | 212 | – | 307,473 | 252,466 | ||||||||||||||
| Shares repurchased | (12,862) | (19,907) | (2,530,428) | (2,071,790) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 12,136 | 645 | 2,289 | 2,661,430 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 65,129 | 64,484 | 9,291,629 | 6,630,199 | ||||||||||||||
| Shares Outstanding, End of Period | 77,265 | 65,129 | 9,293,918 | 9,291,629 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 1,812,572 | 1,867,156 | 5,159,604 | 9,423,756 | ||||||||||||||
| Reinvested dividends and distributions | 411,480 | 436,997 | 1,434,343 | 1,635,322 | ||||||||||||||
| Shares repurchased | (4,360,784) | (5,765,379) | (7,960,388) | (8,009,362) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (2,136,732) | (3,461,226) | (1,366,441) | 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 | 52,748,244 | 54,884,976 | 35,239,980 | 36,606,421 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 1,753,887 | 1,511,290 | 16,927,185 | 37,427,032 | ||||||||||||||
| Reinvested dividends and distributions | 25,087 | 24,532 | 1,898,375 | 1,834,487 | ||||||||||||||
| Shares repurchased | (1,117,575) | (1,153,584) | (28,983,936) | (25,701,951) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 661,399 | 382,238 | (10,158,376) | 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 | 4,207,089 | 3,545,690 | 47,733,404 | 57,891,780 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | 435,033 | 957,250 | 4,973,789 | 4,164,112 | ||||||||||||||
| Reinvested dividends and distributions | 10,282 | 13,615 | 207,804 | 165,936 | ||||||||||||||
| Shares repurchased | (155,686) | (1,198,998) | (1,314,839) | (2,022,430) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 289,629 | (228,133) | 3,866,754 | 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 | 1,409,948 | 1,120,319 | 9,186,791 | 5,320,037 | ||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 2,498,701 | 4,189,050 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 201,466 | 101,584 | ||||||||||||||
| Shares repurchased | N/A | N/A | (2,109,504) | (1,037,862) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 590,663 | 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 | 6,253,696 | 5,663,033 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | 58,043 | 6,328 | 5,243,452 | 10,010,284 | ||||||||||||||
| Reinvested dividends and distributions | 598 | 87 | 527,565 | 389,775 | ||||||||||||||
| Shares repurchased | (13,962) | (1,732) | (4,458,895) | (3,641,486) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 44,679 | 4,683 | 1,312,122 | 6,758,573 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 21,547 | 16,864 | 13,188,598 | 6,430,025 | ||||||||||||||
| Shares Outstanding, End of Period | 66,226 | 21,547 | 14,500,720 | 13,188,598 | ||||||||||||||
184 | SEPTEMBER 30, 2014
Table of Contents
| Janus | Janus | |||||||||||||||||
| Research Fund | Triton Fund | |||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 3,686,831 | 3,710,974 | 21,850,427 | 43,228,803 | ||||||||||||||
| Reinvested dividends and distributions | 237,936 | 258,022 | 3,697,363 | 3,832,441 | ||||||||||||||
| Shares repurchased | (5,739,830) | (11,951,506) | (29,477,076) | (28,902,024) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (1,815,063) | (7,982,510) | (3,929,286) | 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 | 32,165,911 | 33,980,974 | 91,013,679 | 94,942,965 | ||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
Janus Growth & Core Funds | 185
Table of Contents
Notes to Financial Statements (continued)
| Janus | Janus | |||||||||||||||||
| Twenty Fund | Venture Fund | |||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 264,806 | 1,620,847 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 116,122 | 462,079 | ||||||||||||||
| Shares repurchased | N/A | N/A | (745,484) | (4,926,279) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | (364,556) | (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 | 260,579 | 625,135 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 76,052 | 59,145 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 14,135 | 1,189 | ||||||||||||||
| Shares repurchased | N/A | N/A | (26,551) | (2,744) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 63,636 | 57,590 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 64,519 | 6,929 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 128,155 | 64,519 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 1,497,254 | 1,537,977 | 1,197,745 | 1,236,368 | ||||||||||||||
| Reinvested dividends and distributions | 21,905,044 | 645,954 | 3,119,846 | 2,024,993 | ||||||||||||||
| Shares repurchased | (7,554,597) | (7,830,280) | (2,269,979) | (1,950,980) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 15,847,701 | (5,646,349) | 2,047,612 | 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 | 91,316,020 | 75,468,319 | 20,723,560 | 18,675,948 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 1,845,456 | 1,532,752 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 303,254 | 100,646 | ||||||||||||||
| Shares repurchased | N/A | N/A | (770,352) | (320,568) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 1,378,358 | 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 | 3,182,995 | 1,804,637 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 39,094 | 33,909 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 16,468 | 10,148 | ||||||||||||||
| Shares repurchased | N/A | N/A | (49,887) | (12,565) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 5,675 | 31,492 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 94,307 | 62,815 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 99,982 | 94,307 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 58,655 | 105,635 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 14,788 | 1,553 | ||||||||||||||
| Shares repurchased | N/A | N/A | (52,700) | (24,328) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 20,743 | 82,860 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 85,994 | 3,134 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 106,737 | 85,994 | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 3,438,094 | 4,329,458 | 4,373,658 | 5,459,197 | ||||||||||||||
| Reinvested dividends and distributions | 13,994,428 | 367,884 | 1,617,467 | 1,049,427 | ||||||||||||||
| Shares repurchased | (16,784,566) | (11,548,852) | (3,738,079) | (5,655,331) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 647,956 | (6,851,510) | 2,253,046 | 853,293 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 48,459,860 | 55,311,370 | 9,104,587 | 8,251,294 | ||||||||||||||
| Shares Outstanding, End of Period | 49,107,816 | 48,459,860 | 11,357,633 | 9,104,587 | ||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
186 | SEPTEMBER 30, 2014
Table of Contents
| 7. | Purchases and Sales of Investment Securities |
For the year ended September 30, 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 | $ | 4,381,736,544 | $ | 3,413,292,535 | $ | 4,269,459,021 | $ | 4,673,079,821 | ||||||
| Janus Contrarian Fund | 2,410,591,963 | 2,221,932,738 | – | – | ||||||||||
| Janus Enterprise Fund | 579,669,330 | 535,959,094 | – | – | ||||||||||
| Janus Forty Fund | 1,464,674,181 | 2,407,288,474 | – | – | ||||||||||
| Janus Fund | 4,656,016,551 | 5,249,614,555 | – | – | ||||||||||
| Janus Growth and Income Fund | 980,235,964 | 1,043,692,415 | – | – | ||||||||||
| Janus Research Fund | 1,793,376,473 | 1,933,313,020 | – | – | ||||||||||
| Janus Triton Fund | 1,696,806,034 | 2,181,928,539 | – | – | ||||||||||
| Janus Twenty Fund | 3,353,757,377 | 4,459,277,076 | – | – | ||||||||||
| Janus Venture Fund | 1,114,467,444 | 1,047,536,942 | – | – | ||||||||||
| 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 September 30, 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.
Janus Growth & Core Funds | 187
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders
of Janus Investment Fund:
of Janus Investment Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of 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 (ten of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at September 30, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
November 14, 2014
188 | SEPTEMBER 30, 2014
Table of Contents
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund 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,
Janus Growth & Core Funds | 189
Table of Contents
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. |
190 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Growth & Core Funds | 191
Table of Contents
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. |
192 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Growth & Core Funds | 193
Table of Contents
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
194 | SEPTEMBER 30, 2014
Table of Contents
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 |
Janus Growth & Core Funds | 195
Table of Contents
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. |
196 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Growth & Core Funds | 197
Table of Contents
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
198 | SEPTEMBER 30, 2014
Table of Contents
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.
Janus Growth & Core Funds | 199
Table of Contents
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 September 30, 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
200 | SEPTEMBER 30, 2014
Table of Contents
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
Janus Growth & Core Funds | 201
Table of Contents
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.
202 | SEPTEMBER 30, 2014
Table of Contents
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the year ended September 30, 2014:
Capital Gain Distributions
| Fund | ||||||||||
| Janus Balanced Fund | $ | 303,740,375 | ||||||||
| Janus Enterprise Fund | 170,969,121 | |||||||||
| Janus Forty Fund | 578,538,255 | |||||||||
| Janus Fund | 36,035,507 | |||||||||
| Janus Research Fund | 12,043,140 | |||||||||
| Janus Triton Fund | 210,496,246 | |||||||||
| Janus Twenty Fund | 2,172,637,421 | |||||||||
| Janus Venture Fund | 289,420,663 | |||||||||
Dividends Received Deduction Percentage
| Fund | ||||||||||
| Janus Balanced Fund | 63 | % | ||||||||
| Janus Contrarian Fund | 100 | |||||||||
| Janus Enterprise Fund | 100 | |||||||||
| Janus Forty Fund | 30 | |||||||||
| Janus Fund | 37 | |||||||||
| Janus Growth and Income Fund | 100 | |||||||||
| Janus Research Fund | 100 | |||||||||
| Janus Triton Fund | 100 | |||||||||
| Janus Twenty Fund | 100 | |||||||||
| Janus Venture Fund | 22 | |||||||||
Qualified Dividend Income Percentage
| Fund | ||||||||||
| Janus Balanced Fund | 67 | % | ||||||||
| Janus Contrarian Fund | 100 | |||||||||
| Janus Enterprise Fund | 100 | |||||||||
| Janus Forty Fund | 39 | |||||||||
| Janus Fund | 48 | |||||||||
| Janus Growth and Income Fund | 100 | |||||||||
| Janus Research Fund | 100 | |||||||||
| Janus Triton Fund | 100 | |||||||||
| Janus Twenty Fund | 100 | |||||||||
| Janus Venture Fund | 23 | |||||||||
Janus Growth & Core Funds | 203
Table of Contents
Trustees and Officers (unaudited)
The Funds’ Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Funds’ Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Funds’ Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 58 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Funds may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
Independent Trustees | ||||||||||
| William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | Chairman Trustee | 1/08-Present 6/02-Present | Chief Executive Officer, Imprint Capital (impact investment firm) (since 2013), and Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 58 | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds), and Director of the F.B. Heron Foundation (a private grantmaking foundation). | |||||
204 | SEPTEMBER 30, 2014
Table of Contents
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Alan A. Brown 151 Detroit Street Denver, CO 80206 DOB: 1962 | Trustee | 1/13-Present | Managing Director, Institutional Markets, of Dividend Capital Group (private equity real estate investment management firm) (since 2012). Formerly, Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 58 | Director of MotiveQuest LLC (strategic social market research company) (since 2003), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of Nuveen Global Investors LLC (2007-2011); Director of Communities in Schools (2004-2010); and Director of Mutual Fund Education Alliance (until 2010). | |||||
| William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | Trustee | 1/11-Present | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgewater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 58 | Managing Trustee of National Retirement Partners Liquidating Trust (since 2013). Formerly, Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). | |||||
Janus Growth & Core Funds | 205
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | Trustee | 1/97-Present | Co-founder and Managing Director of Roaring Fork Capital SBIC, L.P. (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004), and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | 58 | Formerly, Director of Red Robin Gourmet Burgers, Inc. (RRGB) (2004- 2014). | |||||
| William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | Trustee | 6/84-Present | Retired. Formerly, Corporate Vice President and General Manager of MKS Instruments - HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products) (1976-2012). | 58 | None | |||||
206 | SEPTEMBER 30, 2014
Table of Contents
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 58 | Director of Chicago Community Trust (Regional Community Foundation), Chicago Council on Global Affairs, The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Lurie Children’s Hospital (Chicago, IL), Rehabilitation Institute of Chicago, Walmart, and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Convention & Tourism Bureau (until 2014). | |||||
Trustee Consultant | ||||||||||
| Raudline Etienne 151 Detroit Street Denver, CO 80206 DOB: 1965 | Consultant | 6/14-Present | Senior Vice President, Albright Stonebridge Group LLC (global strategy firm) (since 2011). Formerly, Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | N/A | None | |||||
Janus Growth & Core Funds | 207
Table of Contents
Trustees and Officers (unaudited) (continued)
OFFICERS
| Positions Held | Term of Office* and | Principal Occupations | ||||
| Name, Address, and Age | with the Trust | Length of Time Served | During the Past Five Years | |||
| Jeremiah Buckley 151 Detroit Street Denver, CO 80206 DOB: 1976 | Executive Vice President and Co-Portfolio Manager Janus Growth and Income Fund | 7/14-Present | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. | |||
| Jonathan D. Coleman 151 Detroit Street Denver, CO 80206 DOB: 1971 | Executive Vice President and Portfolio Manager Janus Triton Fund Executive Vice President and Co-Portfolio Manager Janus Venture Fund | 5/13-Present 5/13-Present | Executive Vice President of Janus Capital and Portfolio Manager for other Janus accounts. Formerly, Co-Chief Investment Officer of Janus Capital (2006-2013). | |||
| Brian Demain 151 Detroit Street Denver, CO 80206 DOB: 1977 | Executive Vice President and Portfolio Manager Janus Enterprise Fund | 11/07-Present | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| James P. Goff 151 Detroit Street Denver, CO 80206 DOB: 1964 | Executive Vice President Janus Research Fund | 2/06-Present | Vice President and Director of Equity Research of Janus Capital. | |||
| Daniel Kozlowski 151 Detroit Street Denver, CO 80206 DOB: 1971 | Executive Vice President and Portfolio Manager Janus Contrarian Fund | 7/11-Present | Portfolio Manager for other Janus accounts. Formerly, Portfolio Manager (2008-2011) of Plaisance Capital LLC. | |||
| Maneesh Modi 151 Detroit Street Denver, CO 80206 DOB: 1978 | Executive Vice President and Co-Portfolio Manager Janus Venture Fund | 5/13-Present | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. | |||
| Marc Pinto 151 Detroit Street Denver, CO 80206 DOB: 1961 | Executive Vice President and Co-Portfolio Manager Janus Balanced Fund Executive Vice President and Co-Portfolio Manager Janus Growth and Income Fund Executive Vice President and Portfolio Manager Janus Twenty Fund | 5/05-Present 11/07-Present 5/13-Present | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| A. Douglas Rao 151 Detroit Street Denver, CO 80206 DOB: 1974 | Executive Vice President and Portfolio Manager Janus Forty Fund | 6/13-Present | Portfolio Manager for other Janus accounts. Formerly, Partner and Portfolio Manager for Chautauqua Capital Management (2012-2013) and Portfolio Manager for Marsico Capital Management, LLC (2007-2012). | |||
| Gibson Smith 151 Detroit Street Denver, CO 80206 DOB: 1968 | Executive Vice President and Co-Portfolio Manager Janus Balanced Fund | 5/05-Present | Chief Investment Officer Fixed Income and Executive Vice President of Janus Capital; Director of Perkins Investment Management LLC; and Portfolio Manager for other Janus accounts. Formerly, Executive Vice President of Janus Distributors LLC and Janus Services LLC (2007-2013). | |||
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
208 | SEPTEMBER 30, 2014
Table of Contents
OFFICERS (continued)
| Positions Held | Term of Office* and | Principal Occupations | ||||
| Name, Address, and Age | with the Trust | Length of Time Served | During the Past Five Years | |||
| Burton H. Wilson 151 Detroit Street Denver, CO 80206 DOB: 1963 | Executive Vice President and Portfolio Manager Janus Fund | 5/11-Present | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. Formerly, Assistant Director of Equity Research (2009-2014), Portfolio Manager (2006-2011) for Janus Global Technology Fund and Research Analyst (2004-2009) for Janus Capital. | |||
| Stephanie Grauerholz 151 Detroit Street Denver, CO 80206 DOB: 1970 | Chief Legal Counsel and Secretary Vice President | 1/06-Present 3/06-Present | Vice President and Assistant General Counsel of Janus Capital and Vice President and Assistant Secretary of Janus Distributors LLC. | |||
| Bruce L. Koepfgen 151 Detroit Street Denver, CO 80206 DOB: 1952 | President and Chief Executive Officer | 7/14-Present | President of Janus Capital Group Inc. and Janus Capital Management LLC (since August 2013); Executive Vice President and Director of Janus International Holding LLC (since August 2011); Executive Vice President of Janus Distributors LLC and Janus Services LLC (since July 2011); Executive Vice President and Working Director of INTECH Investment Management LLC (since July 2011); Executive Vice President and Director of Perkins Investment Management LLC (since July 2011); and Executive Vice President and Director of Janus Management Holdings Corporation (since May 2011). Formerly, Executive Vice President of Janus Capital Group Inc. and Janus Capital Management LLC (May 2011-July 2013); Chief Financial Officer of Janus Capital Group Inc., Janus Capital Management LLC, Janus Distributors LLC, Janus Management Holdings Corporation, and Janus Services LLC (July 2011-July 2013); and Co-Chief Executive Officer of Allianz Global Investors Management Partners and Chief Executive Officer of Oppenheimer Capital (2003-2009). | |||
| David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 6/02-Present | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC; and Director of The Janus Foundation. | |||
| Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | Chief Financial Officer Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present 2/05-Present | Vice President of Janus Capital and Janus Services LLC. | |||
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
Janus Growth & Core Funds | 209
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-1114-74425 | 125-02-01500 11-14 |
Table of Contents
annual report
September 30, 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 |
Table of Contents
Janus Preservation Series
| 1 | ||
| 12 | ||
| 22 | ||
| 25 | ||
| 27 | ||
| 28 | ||
| 29 | ||
| 35 | ||
| 51 | ||
| 52 | ||
| 63 | ||
| 66 | ||
| 67 |
Table of Contents
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 12-month period ended September 30, 2014, Janus Preservation Series – Global Class I Shares returned 7.07% versus a return of 12.20% for the MSCI World Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the Preservation Series – Global Blended Index, returned 7.27%.
INVESTMENT ENVIRONMENT
Global stocks delivered strong returns during the past 12 months. The period began with moderate gains supported by solid U.S. market performance, even as the Federal Reserve (Fed) announced a gradual reduction in its bond-buying program that would begin in January. Late in 2013, Europe benefitted from improving trade, manufacturing and other economic data, while returns from Japan slowed and emerging markets continued to underperform. First quarter 2014 saw additional positive euro-zone growth balanced by continued signs of slowdown in China, weaker Japanese stocks due to lack of economic reform progress and the potential for higher U.S. interest rates earlier than expected – all of which helped to keep global stock gains modest. Investors also doubted emerging markets’ ability to prop up their economies, although decisive central bank actions helped stabilize the region until Russian troops entered Crimea, causing new uncertainty.
After recovering from volatility in April due to momentum stock selling pressure and mounting geopolitical tensions, global markets rebounded. Catalysts included the European Central Bank’s interest rate cut and other measures designed to boost inflation and economic growth, as well as stronger credit market confidence in European peripheral countries. Emerging markets also showed notable improvement, led by pro-business election wins in India. As the period drew to a close, geopolitical turmoil in Ukraine and the Middle East more than offset generally positive U.S. economic news, pushing global markets lower. A brief Portugal banking scare and worries over Scotland’s independence vote, which was ultimately defeated, also weighed on investor sentiment, as did renewed concerns about China’s economic prospects. Corporate quarterly earnings, meanwhile, were largely in line with market expectations, and Japan’s economic growth did not fall as much as feared from a consumption tax increase earlier in the year. The Fed also helped markets by pledging to keep interest rates near zero for a “considerable time.”
PERFORMANCE DISCUSSION
We slightly decreased our exposure to equities during the period. We entered the year at 97.27% exposure to equities and ended at 96.18% exposure, with the protection component comprising the rest of the portfolio. The allocation to the protection component was a main factor that contributed to the Fund’s underperformance against its primary benchmark, the MSCI World Index.
The protection component can be comprised of cash and cash equivalents, U.S. Treasurys, short index futures and other instruments designed to reduce equity market exposure. Depending on the market environment, the Fund can be invested in any variation in either component. In rising markets, we expect there to be more assets in the equity component as compared with falling markets, during which we expect to have more allocated to the protection component. The protection feature, however, affects the Fund’s ability to respond to changing equity market conditions and the Fund’s ability to capture certain market gains.
During the course of the year, the average allocation to the protection component was approximately 6.69%. 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. As markets rose during the year, the allocation to the protection component played the largest role in our underperformance relative to 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
Janus Preservation Series | 1
Table of Contents
Janus Preservation Series - Global (unaudited)
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 year, our stock selection within the equity component also detracted from relative performance. Whole Food Markets was one of the Fund’s largest detractors from our absolute performance. The stock declined on disappointing long-term guidance due to increased competitive pressures. We believe the natural and organic foods grocery operator will continue to gain market share and will be aggressive in acquiring store sites and consumers from competitors to grow long term, but we recognize that effort will also lead to slower earnings growth over the short-to-intermediate term. We are continuing to analyze the competitive environment to assess whether that will restrict the long-term growth we anticipate for Whole Foods.
Sberbank was another top individual detractor. Russia’s largest bank suffered as a proxy for the broader Russian market, which sold off over the Ukraine crisis. 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.
Volkswagen also weighed on performance. The automaker encountered production issues related to implementing its new shared manufacturing strategy and suffered from a more cautious outlook from management for a European recovery, given rising geopolitical risks. Volkswagen also announced a restructuring program in its European operations, which raised doubts the company would be able to reach operating profit targets for its namesake brand. While the European recovery has not been as smooth as we expected, it is still recovering, in our view. Volkswagen also remains one of the largest and cheapest auto manufacturers in the world and continues to generate strong free cash flow. We also believe the company’s shared production platform will ultimately be successful in reducing costs and improving efficiencies.
While the aforementioned companies negatively impacted performance, we were pleased by the results of many other companies in the portfolio. Canadian Pacific Railway was our top individual contributor. The railroad company reported better-than-expected earnings on strong sales growth led by higher grain shipments. Management also increased its share repurchases during the period. We believe a new management team is improving the railroad company’s culture, operational performance and capital allocation decisions.
Apple, a large holding in the Fund, also aided performance on investor anticipation and subsequent announcements of new versions of its popular iPhone, along with an Apple Watch and a mobile payments system. We felt the product announcements demonstrate the company’s continued strength in combining hardware, software and services, which serve as an important differentiator from competitors. In addition, the cross-device integration between all of Apple’s products will continue to strengthen and expand its ecosystem, in our view. Even with recent gains, we still view the stock’s risk/reward profile as attractive.
Shire led the strong relative performance of our health care holdings. The Ireland-based specialty pharmaceutical firm rebuffed buyout attempts from U.S.-based AbbVie, citing undervaluation, during the period. We favor Shire for its dominant position in the attention deficit and hyperactivity (ADHD) market as well as its portfolio of drugs for rare diseases.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
Around the world, inflation and interest rates remain low, a mix of conditions that support higher multiples. At the same time, we see subdued economic growth and worry that a sharp change in risk tolerance could mean a contraction in market multiples.
In the U.S., it seems that the slow-but-steady recovery is continuing. Recent earnings were generally in line or ahead of expectations, and stocks responded modestly. The years in which companies meeting market expectations practically meant beating expectations are well behind us as markets have moderated their risk assessments. Most measures of risk suggest that investors have become complacent, but we are watchful. The shift this spring from momentum-based stocks and their subsequent underperformance reminded us how quickly markets penalize those chasing rather than anticipating a trend.
2 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
The rest of the world is not wholly different, but there are distinctions. In Europe, economic growth will not do as much for earnings as company restructuring. In the third quarter, economic data suggested slower growth, hurting equity prices. We think the Ukrainian situation weighed on sentiment. A new round of stimulus could boost optimism, and a weaker euro could help propel equities. With interest rates low in Europe and price-to-earnings multiples low, Europe holds promise for stock selection.
Emerging markets carry more macroeconomic risks, but those could be easing. We are past elections in India and Indonesia (with pro-market outcomes), nearing the presidential selection in Brazil and seeing China settle in at a slower but sustainable growth rate. Correlations between these markets have fallen in the last two years versus the two years before that when macro forces were stronger.
With equity markets remaining fairly priced (not expensive but not cheap either) in our view, the key is to find companies that can create value beyond expectations through superior growth or improved operations. Companies that are creating value can help equity portfolios. And, with interest rates low and bond spreads tight to Treasurys, the relative attractiveness of equities remains interesting.
Thank you for your investment in Janus Preservation Series – Global.
Janus Preservation Series | 3
Table of Contents
Janus Preservation Series - Global (unaudited)
Janus Preservation Series - Global At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Canadian Pacific Railway, Ltd. | 1.36% | |||
| Apple, Inc. | 0.69% | |||
| Shire PLC | 0.61% | |||
| Gilead Sciences, Inc. | 0.60% | |||
| AP Moeller – Maersk A/S – Class B | 0.54% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
S&P 500® E-mini Future – expired December 2013 | –0.40% | |||
| Whole Foods Market, Inc. | –0.32% | |||
| Sberbank of Russia (ADR) | –0.29% | |||
S&P 500® E-mini Future – expired June 2014 | –0.27% | |||
| Volkswagen AG | –0.26% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Industrials | 1.13% | 10.90% | 11.25% | |||||||||
| Health Care | 1.03% | 12.05% | 11.61% | |||||||||
| Materials | 0.59% | 3.73% | 5.71% | |||||||||
| Telecommunication Services | 0.06% | 1.20% | 3.61% | |||||||||
| Utilities | –0.02% | –0.03% | 3.23% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Protection Component** | –1.75% | 5.47% | 0.00% | |||||||||
| Information Technology | –1.20% | 14.91% | 12.21% | |||||||||
| Financials | –0.59% | 18.17% | 20.86% | |||||||||
| Consumer Staples | –0.43% | 9.07% | 9.85% | |||||||||
| Consumer Discretionary | –0.39% | 13.08% | 12.01% | |||||||||
| 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 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Canadian Pacific Railway, Ltd. Road & Rail | 2.6% | |||
| Apple, Inc. Technology Hardware, Storage & Peripherals | 2.2% | |||
| AIA Group, Ltd. Insurance | 1.6% | |||
| NGK Spark Plug Co., Ltd. Auto Components | 1.5% | |||
| Brenntag AG Trading Companies & Distributors | 1.4% | |||
| 9.3% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Preservation Series | 5
Table of Contents
Janus Preservation Series - Global (unaudited)
Performance
| Expense Ratios – | |||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Janus Preservation Series – Global – Class A Shares | |||||||||
| NAV | 6.75% | 8.38% | 2.97% | 1.92% | |||||
| MOP | 0.58% | 6.11% | |||||||
| Janus Preservation Series – Global – Class C Shares | |||||||||
| NAV | 5.97% | 7.60% | 3.73% | 2.65% | |||||
| CDSC | 4.97% | 7.60% | |||||||
| Janus Preservation Series – Global – Class D Shares(1) | 7.01% | 8.48% | 3.24% | 1.75% | |||||
| Janus Preservation Series – Global – Class I Shares | 7.07% | 8.66% | 2.68% | 1.63% | |||||
| Janus Preservation Series – Global – Class S Shares | 6.69% | 8.23% | 3.18% | 2.13% | |||||
| Janus Preservation Series – Global – Class T Shares | 7.01% | 8.51% | 2.93% | 1.88% | |||||
| MSCI World IndexSM | 12.20% | 17.74% | |||||||
| MSCI World Growth Index | 12.05% | 17.67% | |||||||
| Preservation Series – Global Blended Index | 7.27% | 10.49% | |||||||
| Protected Series – Global Blended Index | 7.19% | 10.46% | |||||||
| Morningstar Quartile – Class I Shares | 2nd | 3rd | |||||||
| Morningstar Ranking – based on total return for World Allocation Funds | 245/523 | 291/410 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
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%.
See important disclosures on the next page.
6 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
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 of 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,014.10 | $ | 9.69 | $ | 1,000.00 | $ | 1,015.44 | $ | 9.70 | 1.92% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,010.90 | $ | 13.46 | $ | 1,000.00 | $ | 1,011.68 | $ | 13.47 | 2.67% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,015.70 | $ | 8.84 | $ | 1,000.00 | $ | 1,016.29 | $ | 8.85 | 1.75% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,015.60 | $ | 8.24 | $ | 1,000.00 | $ | 1,016.90 | $ | 8.24 | 1.63% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,013.30 | $ | 10.70 | $ | 1,000.00 | $ | 1,014.44 | $ | 10.71 | 2.12% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,014.90 | $ | 9.45 | $ | 1,000.00 | $ | 1,015.69 | $ | 9.45 | 1.87% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 | SEPTEMBER 30, 2014
Table of Contents
Janus Preservation Series - Global(1)
Schedule of Investments
As of September 30, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Common Stock – 97.4% | ||||||||||
| Aerospace & Defense – 0.8% | ||||||||||
| 554 | Precision Castparts Corp. | $ | 131,232 | |||||||
| Air Freight & Logistics – 0.7% | ||||||||||
| 870 | Panalpina Welttransport Holding AG | 109,412 | ||||||||
| Airlines – 1.0% | ||||||||||
| 3,332 | United Continental Holdings, Inc.* | 155,904 | ||||||||
| Auto Components – 1.5% | ||||||||||
| 7,800 | NGK Spark Plug Co., Ltd. | 230,000 | ||||||||
| Automobiles – 0.5% | ||||||||||
| 473 | Hyundai Motor Co. | 85,314 | ||||||||
| Beverages – 2.8% | ||||||||||
| 2,182 | PepsiCo, Inc. | 203,122 | ||||||||
| 546 | Pernod Ricard SA | 61,705 | ||||||||
| 2,987 | SABMiller PLC | 165,957 | ||||||||
| | ||||||||||
| 430,784 | ||||||||||
| Biotechnology – 5.4% | ||||||||||
| 765 | Actelion, Ltd. | 89,709 | ||||||||
| 384 | Biogen Idec, Inc.* | 127,031 | ||||||||
| 1,252 | Celgene Corp.* | 118,665 | ||||||||
| 1,280 | Gilead Sciences, Inc.* | 136,256 | ||||||||
| 8,455 | Ironwood Pharmaceuticals, Inc.* | 109,535 | ||||||||
| 847 | Medivation, Inc.* | 83,743 | ||||||||
| 2,653 | NPS Pharmaceuticals, Inc.* | 68,978 | ||||||||
| 924 | Pharmacyclics, Inc.* | 108,505 | ||||||||
| | ||||||||||
| 842,422 | ||||||||||
| Capital Markets – 2.5% | ||||||||||
| 2,968 | Deutsche Bank AG | 104,092 | ||||||||
| 4,885 | E*TRADE Financial Corp.* | 110,352 | ||||||||
| 10,430 | UBS AG | 181,000 | ||||||||
| | ||||||||||
| 395,444 | ||||||||||
| Chemicals – 2.8% | ||||||||||
| 988 | Air Products & Chemicals, Inc. | 128,618 | ||||||||
| 19,708 | Alent PLC | 104,742 | ||||||||
| 1,046 | LyondellBasell Industries NV – Class A | 113,658 | ||||||||
| 738 | Monsanto Co. | 83,033 | ||||||||
| | ||||||||||
| 430,051 | ||||||||||
| Commercial Banks – 6.8% | ||||||||||
| 78,000 | China Construction Bank Corp. – Class H | 54,717 | ||||||||
| 2,794 | Citigroup, Inc. | 144,785 | ||||||||
| 17,214 | HSBC Holdings PLC | 175,166 | ||||||||
| 10,554 | ING Groep NV* | 150,100 | ||||||||
| 2,423 | JPMorgan Chase & Co. | 145,962 | ||||||||
| 72,557 | Lloyds Banking Group PLC* | 89,893 | ||||||||
| 4,568 | Sberbank of Russia (ADR) | 35,952 | ||||||||
| 40,700 | Seven Bank, Ltd. | 166,012 | ||||||||
| 2,532 | U.S. Bancorp | 105,914 | ||||||||
| | ||||||||||
| 1,068,501 | ||||||||||
| Communications Equipment – 1.7% | ||||||||||
| 3,027 | CommScope Holding Co., Inc.* | 72,376 | ||||||||
| 1,064 | Motorola Solutions, Inc. | 67,330 | ||||||||
| 10,099 | Telefonaktiebolaget LM Ericsson – Class B | 127,516 | ||||||||
| | ||||||||||
| 267,222 | ||||||||||
| Consumer Finance – 0.8% | ||||||||||
| 1,349 | American Express Co. | 118,091 | ||||||||
| Containers & Packaging – 0.8% | ||||||||||
| 2,924 | Crown Holdings, Inc.* | 130,176 | ||||||||
| Diversified Financial Services – 0.7% | ||||||||||
| 528 | Intercontinental Exchange, Inc. | 102,986 | ||||||||
| Electrical Equipment – 0.9% | ||||||||||
| 2,983 | Sensata Technologies Holding NV* | 132,833 | ||||||||
| Electronic Equipment, Instruments & Components – 1.9% | ||||||||||
| 500 | Keyence Corp. | 217,544 | ||||||||
| 1,571 | TE Connectivity, Ltd. (U.S. Shares) | 86,860 | ||||||||
| | ||||||||||
| 304,404 | ||||||||||
| Energy Equipment & Services – 1.5% | ||||||||||
| 959 | Core Laboratories NV | 140,350 | ||||||||
| 526 | National Oilwell Varco, Inc. | 40,028 | ||||||||
| 3,631 | Petrofac, Ltd. | 60,685 | ||||||||
| | ||||||||||
| 241,063 | ||||||||||
| Food & Staples Retailing – 1.6% | ||||||||||
| 2,803 | Kroger Co. | 145,756 | ||||||||
| 2,605 | Whole Foods Market, Inc. | 99,277 | ||||||||
| | ||||||||||
| 245,033 | ||||||||||
| Food Products – 1.6% | ||||||||||
| 854 | Hershey Co. | 81,497 | ||||||||
| 2,265 | Nestle SA | 166,172 | ||||||||
| | ||||||||||
| 247,669 | ||||||||||
| Health Care Equipment & Supplies – 0.7% | ||||||||||
| 1,137 | Zimmer Holdings, Inc. | 114,325 | ||||||||
| Health Care Providers & Services – 2.7% | ||||||||||
| 1,459 | Aetna, Inc. | 118,179 | ||||||||
| 2,134 | Catamaran Corp. (U.S. Shares)* | 89,948 | ||||||||
| 1,466 | Express Scripts Holding Co.* | 103,543 | ||||||||
| 1,853 | Omnicare, Inc. | 115,368 | ||||||||
| | ||||||||||
| 427,038 | ||||||||||
| Hotels, Restaurants & Leisure – 0.7% | ||||||||||
| 26,355 | Bwin.Party Digital Entertainment PLC | 38,780 | ||||||||
| 1,021 | Starbucks Corp. | 77,045 | ||||||||
| | ||||||||||
| 115,825 | ||||||||||
| Household Durables – 0.2% | ||||||||||
| 2,000 | Sony Corp. | 36,044 | ||||||||
| Household Products – 1.1% | ||||||||||
| 2,675 | Colgate-Palmolive Co. | 174,464 | ||||||||
| Information Technology Services – 2.4% | ||||||||||
| 1,701 | Amdocs, Ltd. (U.S. Shares) | 78,042 | ||||||||
| 2,560 | MasterCard, Inc. – Class A | 189,235 | ||||||||
| 535 | Visa, Inc. – Class A | 114,153 | ||||||||
| | ||||||||||
| 381,430 | ||||||||||
| Insurance – 3.8% | ||||||||||
| 47,800 | AIA Group, Ltd. | 246,702 | ||||||||
| 1,866 | Aon PLC | 163,592 | ||||||||
| 8,092 | Prudential PLC | 179,703 | ||||||||
| | ||||||||||
| 589,997 | ||||||||||
| Internet & Catalog Retail – 1.5% | ||||||||||
| 898 | Alibaba Group Holding, Ltd. (ADR)* | 79,787 | ||||||||
| 231 | Amazon.com, Inc.* | 74,484 | ||||||||
| 66 | Priceline Group, Inc.* | 76,466 | ||||||||
| | ||||||||||
| 230,737 | ||||||||||
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
As of September 30, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Internet Software & Services – 2.2% | ||||||||||
| 687 | Facebook, Inc. – Class A* | $ | 54,300 | |||||||
| 217 | Google, Inc. – Class A* | 127,685 | ||||||||
| 208 | Google, Inc. – Class C* | 120,091 | ||||||||
| 2,361 | Youku Tudou, Inc. (ADR)* | 42,309 | ||||||||
| | ||||||||||
| 344,385 | ||||||||||
| Leisure Products – 0.4% | ||||||||||
| 1,861 | Mattel, Inc. | 57,040 | ||||||||
| Machinery – 1.5% | ||||||||||
| 1,675 | Colfax Corp.* | 95,425 | ||||||||
| 1,003 | Dover Corp. | 80,571 | ||||||||
| 1,802 | Rexnord Corp. | 51,267 | ||||||||
| | ||||||||||
| 227,263 | ||||||||||
| Media – 3.9% | ||||||||||
| 875 | CBS Corp. – Class B | 46,812 | ||||||||
| 1,206 | CBS Outdoor Americas, Inc. | 36,108 | ||||||||
| 2,360 | Comcast Corp. – Class A | 126,921 | ||||||||
| 932 | Liberty Global PLC – Class A* | 39,647 | ||||||||
| 1,652 | Liberty Global PLC – Class C* | 67,757 | ||||||||
| 389 | Time Warner Cable, Inc. | 55,818 | ||||||||
| 3,713 | Twenty-First Century Fox, Inc. – Class A | 127,319 | ||||||||
| 1,220 | Walt Disney Co.† | 108,616 | ||||||||
| | ||||||||||
| 608,998 | ||||||||||
| Metals & Mining – 0.6% | ||||||||||
| 3,608 | ThyssenKrupp AG | 94,728 | ||||||||
| Oil, Gas & Consumable Fuels – 9.0% | ||||||||||
| 1,735 | Anadarko Petroleum Corp. | 175,998 | ||||||||
| 4,594 | Encana Corp. (U.S. Shares) | 97,439 | ||||||||
| 8,700 | Inpex Corp. | 123,184 | ||||||||
| 1,926 | Keyera Corp. | 155,191 | ||||||||
| 3,062 | Koninklijke Vopak NV | 164,846 | ||||||||
| 3,292 | MEG Energy Corp.* | 101,071 | ||||||||
| 2,317 | Noble Energy, Inc. | 158,390 | ||||||||
| 1,916 | Phillips 66 | 155,790 | ||||||||
| 2,504 | Royal Dutch Shell PLC (ADR) | 190,630 | ||||||||
| 1,655 | Valero Energy Corp. | 76,577 | ||||||||
| | ||||||||||
| 1,399,116 | ||||||||||
| Pharmaceuticals – 4.5% | ||||||||||
| 1,670 | Endo International PLC* | 114,128 | ||||||||
| 693 | Jazz Pharmaceuticals PLC* | 111,268 | ||||||||
| 6,271 | Meda AB – Class A | 88,157 | ||||||||
| 514 | Roche Holding AG | 152,228 | ||||||||
| 2,003 | Teva Pharmaceutical Industries, Ltd. (ADR) | 107,661 | ||||||||
| 964 | Valeant Pharmaceuticals International, Inc. | 126,333 | ||||||||
| | ||||||||||
| 699,775 | ||||||||||
| Professional Services – 0.9% | ||||||||||
| 342 | IHS, Inc. – Class A* | 42,815 | ||||||||
| 1,564 | Verisk Analytics, Inc. – Class A* | 95,232 | ||||||||
| | ||||||||||
| 138,047 | ||||||||||
| Real Estate Investment Trusts (REITs) – 1.8% | ||||||||||
| 1,234 | American Tower Corp. | 115,539 | ||||||||
| 4,954 | Lexington Realty Trust | 48,500 | ||||||||
| 564 | Simon Property Group, Inc. | 92,733 | ||||||||
| 334 | Ventas, Inc. | 20,691 | ||||||||
| | ||||||||||
| 277,463 | ||||||||||
| Real Estate Management & Development – 2.2% | ||||||||||
| 2,953 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 132,767 | ||||||||
| 946 | Jones Lang LaSalle, Inc. | 119,518 | ||||||||
| 4,000 | Mitsubishi Estate Co., Ltd. | 90,125 | ||||||||
| | ||||||||||
| 342,410 | ||||||||||
| Road & Rail – 3.7% | ||||||||||
| 1,144 | Canadian National Railway Co. | 81,228 | ||||||||
| 1,954 | Canadian Pacific Railway, Ltd. | 405,580 | ||||||||
| 722 | Kansas City Southern | 87,506 | ||||||||
| | ||||||||||
| 574,314 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.7% | ||||||||||
| 11,119 | ARM Holdings PLC | 161,988 | ||||||||
| 8,802 | Atmel Corp.* | 71,120 | ||||||||
| 2,080 | Freescale Semiconductor, Ltd.* | 40,623 | ||||||||
| 31 | Samsung Electronics Co., Ltd. | 34,709 | ||||||||
| 27,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 107,484 | ||||||||
| | ||||||||||
| 415,924 | ||||||||||
| Software – 2.3% | ||||||||||
| 3,360 | Microsoft Corp. | 155,770 | ||||||||
| 3,200 | Nexon Co., Ltd. | 26,423 | ||||||||
| 600 | Nintendo Co., Ltd. | 65,313 | ||||||||
| 1,425 | Oracle Corp. | 54,549 | ||||||||
| 1,037 | Solera Holdings, Inc. | 58,445 | ||||||||
| | ||||||||||
| 360,500 | ||||||||||
| Specialty Retail – 2.8% | ||||||||||
| 37,600 | Chow Tai Fook Jewellery Group, Ltd. | 48,923 | ||||||||
| 1,834 | Lowe’s Cos., Inc. | 97,055 | ||||||||
| 995 | PetSmart, Inc. | 69,740 | ||||||||
| 859 | Tiffany & Co. | 82,730 | ||||||||
| 719 | Ulta Salon Cosmetics & Fragrance, Inc. | 84,964 | ||||||||
| 864 | Williams-Sonoma, Inc. | 57,516 | ||||||||
| | ||||||||||
| 440,928 | ||||||||||
| Technology Hardware, Storage & Peripherals – 2.2% | ||||||||||
| 3,457 | Apple, Inc.† | 348,293 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.8% | ||||||||||
| 648 | Cie Financiere Richemont SA | 53,113 | ||||||||
| 1,176 | NIKE, Inc. – Class B | 104,899 | ||||||||
| 7,700 | Prada SpA | 46,680 | ||||||||
| 24,000 | Samsonite International SA | 77,252 | ||||||||
| | ||||||||||
| 281,944 | ||||||||||
| Tobacco – 1.9% | ||||||||||
| 3,554 | Imperial Tobacco Group PLC | 152,856 | ||||||||
| 4,500 | Japan Tobacco, Inc. | 146,496 | ||||||||
| | ||||||||||
| 299,352 | ||||||||||
| Trading Companies & Distributors – 2.2% | ||||||||||
| 4,484 | Brenntag AG | 220,130 | ||||||||
| 1,067 | MSC Industrial Direct Co., Inc. – Class A | 91,186 | ||||||||
| 1,259 | NOW, Inc. | 38,286 | ||||||||
| | ||||||||||
| 349,602 | ||||||||||
| Wireless Telecommunication Services – 1.4% | ||||||||||
| 3,100 | T-Mobile U.S., Inc. | 89,497 | ||||||||
| 83,700 | Tower Bersama Infrastructure Tbk PT | 54,989 | ||||||||
| 22,823 | Vodafone Group PLC | 75,221 | ||||||||
| | ||||||||||
| 219,707 | ||||||||||
| Total Common Stock (cost $13,508,034) | 15,218,190 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Preferred Stock – 0.9% | ||||||||||
| Automobiles – 0.9% | ||||||||||
| 687 | Volkswagen AG (cost $177,699) | $ | 142,608 | |||||||
| U.S. Treasury Notes/Bonds – 0.2% | ||||||||||
| $15,000 | 0.8750%, 11/30/16 | 15,055 | ||||||||
| 15,000 | 1.3750%, 11/30/18 | 14,873 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $29,932) | 29,928 | |||||||||
| Money Market – 3.0% | ||||||||||
| 470,750 | Janus Cash Liquidity Fund LLC, 0.0682%°°,£ (cost $470,750) | 470,750 | ||||||||
| Capital Protection Agreement – 0% | ||||||||||
| 1 | Janus Preservation Series - Global with BNP Paribas Prime Brokerage, Inc. exercise price at 9/30/14 $9.99 – $10.24§ (cost $0) | 0 | ||||||||
| Total Investments (total cost $14,186,415) – 101.5% | 15,861,476 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (1.5)% | (229,140) | |||||||||
| Net Assets – 100% | $ | 15,632,336 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 9,247,162 | 58 | .3% | ||||
| United Kingdom | 1,395,621 | 8 | .8 | |||||
| Canada | 1,189,557 | 7 | .5 | |||||
| Japan | 1,101,141 | 6 | .9 | |||||
| Switzerland | 751,634 | 4 | .7 | |||||
| Germany | 561,558 | 3 | .5 | |||||
| Hong Kong | 372,877 | 2 | .4 | |||||
| Netherlands | 314,946 | 2 | .0 | |||||
| Sweden | 215,673 | 1 | .4 | |||||
| China | 176,813 | 1 | .1 | |||||
| South Korea | 120,023 | 0 | .8 | |||||
| Israel | 107,661 | 0 | .7 | |||||
| Taiwan | 107,484 | 0 | .7 | |||||
| France | 61,705 | 0 | .4 | |||||
| Indonesia | 54,989 | 0 | .3 | |||||
| Italy | 46,680 | 0 | .3 | |||||
| Russia | 35,952 | 0 | .2 | |||||
| Total | $ | 15,861,476 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 3.0%. | |
| (1) | Formerly named Janus Protected Series – Global. |
Schedule of Futures – Short
| Unrealized | ||||
| Appreciation/ | ||||
| Description | (Depreciation) | |||
EURO STOXX 50® expires December 2014 2 contracts principal amount $64,160 value $64,535 | $ | (375) | ||
| mini MSCI Emerging Markets expires December 2014 1 contract principal amount $50,965 value $50,135 | 830 | |||
S&P 500® E-mini expires December 2014 2 contracts principal amount $196,275 value $196,550 | (275) | |||
| Total Futures – Short | $ | 180 | ||
Schedule of OTC Purchased Option – Zero Strike Call
| Unrealized | ||||||||||||
| Counterparty/ | Premium to | Appreciation/ | ||||||||||
| Reference Asset | be Paid | Value | (Depreciation) | |||||||||
| BNP Paribas: BNP IVIX Index expires December 2014 78,149 contracts exercise price $0.00 | $ | (232,892) | $ | 206,048 | $ | (26,844) | ||||||
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 9.49% for the 12-month period ended September 30, 2014, versus a return of 19.15% for Russell 1000 Growth Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the Preservation Series – Growth Blended Index, returned 11.24%.
INVESTMENT ENVIRONMENT
U.S. large-cap growth equities performed well in the past 12 months. While markets climbed significantly higher early in the period, first quarter gains slowed due to a colder-than-normal winter that negatively affected a number of macroeconomic data points, as well as speculation around how and when the Federal Reserve (Fed) would begin raising interest rates. Tensions between Ukraine and Russia also caused bouts of volatility. Increasing confirmation signals that the U.S. economy was on stable footing, coupled with the European Central Bank’s interest rate cut and other measures to stimulate euro-zone growth, boosted markets broadly through the spring. The third quarter saw further gains on modestly improving data as investors largely shrugged off mounting geopolitical unrest. However, growing investor uncertainty also resulted in summer pullbacks and the beginnings of a sharp selloff in the last weeks of September. Despite this volatility, the period ended with generally positive corporate earnings reports, strong gross domestic product (GDP) growth and lower unemployment rates, all providing more evidence of a strengthening U.S. economy. In addition, the Fed indicated its intent to keep interest rates low for “a considerable time.”
PERFORMANCE DISCUSSION
We significantly increased our exposure to equities during the year. We entered the year at 66.58% exposure to equities and ended at 98.26% exposure, with the protection component comprising the rest of the portfolio. The allocation to the protection component was the main factor that contributed to the Fund’s underperformance against its primary benchmark, the Russell 1000 Growth Index.
The protection component can be comprised of cash and cash equivalents, U.S. Treasurys, short index futures and other instruments designed to reduce equity market exposure. Depending on the market environment, the Fund can be invested in any variation in either component. In rising markets, we expect there to be more assets in the equity component as compared with falling markets, during which we expect to have more allocated to the protection component. The protection feature, however, affects the Fund’s ability to respond to changing equity market conditions and the Fund’s ability to capture certain market gains.
During the course of the year, the average allocation to the protection component was approximately 12.22%. 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. As markets rose during the year, the allocation to the protection component played the largest role in our underperformance relative to 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 year, our stock selection within the 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
12 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
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. As we look across the portfolio we continue to be encouraged about the competitive advantages of most companies we own, and believe the potential for long-term growth for those companies is still in place. However, we also held several stocks that fell during the period and negatively impacted our performance.
Whole Foods Market was our largest detractor. The stock fell after the company announced disappointing earnings results. We are currently reviewing the future growth potential for the company, which is facing a more competitive landscape from other natural and organic grocers.
Colfax Corporation was another detractor. While the company recently reported weaker earnings, the reasons we own the company have not changed. The chairman of the company’s board comes from one of the most successful multi-industrial companies of the past decade. That company had a history of making shrewd acquisitions of industrial companies operating in large, growing addressable markets that were very fragmented. The company would grow earnings by consolidating these fragmented industries and also by emphasizing lean and efficient manufacturing improvements with the companies it acquired. The chairman is implementing a similar focus on industry consolidation and lean manufacturing at Colfax, which should lead to steady earnings growth over time.
Finally, L Brands was also a 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 relative performance this period, we were encouraged to see many other companies in the Fund put up impressive results and continue to execute on the strategies we believe set them apart from their competition. Apple, one of our largest holdings, was a top contributor. The stock was up in part due to excitement about new product launches from the company. Our basic view is that Apple is a strong brand and that as consumers get more familiar with Apple products, they get more deeply entrenched in the Apple ecosystem, branching out to buy new Apple products and returning to the brand when it is time to update existing ones. We see evidence in this trend by the fact that household spending on Apple products continues to increase. We think recent innovations by Apple, including its Apple Pay mobile payment system, further entrench Apple with its customers.
Canadian Pacific Railway was another top individual contributor. The transformation the company has experienced since 2012 began under a new CEO that year, who focused the efforts of the company on three key points: better service and reliability to customers, improved profitability through operating efficiency and new revenue opportunities. Since then, the CEO has put in a fully capable team around him to execute on each of the above points, and success in each category continues to drive the outperformance we are seeing. Service metrics such as on-time deliveries and velocity have improved, operating margins have increased dramatically with more opportunity to expand and the company has driven new revenues from such markets as domestic Canada container traffic, grain and crude by rail. Most recently, a new CFO has joined the company and had a positive impact on driving better capital allocation decisions, including commencing a share repurchase program that further benefits shareholders.
Google, another large holding, was up considerably 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.
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.
Janus Preservation Series | 13
Table of Contents
Janus Preservation Series - Growth (unaudited)
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We expect the U.S. economy to continue growing at a steady pace, with consumer spending remaining moderate as wage growth remains slow. Looking across large-cap equities, we believe stocks are reasonably valued, given an environment of moderate but durable growth and low inflation. While stocks are more reasonably valued than they were several quarters ago, we continue to find durable growth opportunities.
An example where we currently see opportunities is in the health care sector. The last decade has brought about rapid changes in the way in which drugs are developed and clinical trials are conducted. This has led to more successful research and development efforts and a wave of breakthrough therapies that represent significant improvements over previous treatment options for a number of high, unmet medical needs. We believe the drugs being developed by the companies we own represent meaningful, long duration growth opportunities.
Thank you for your investment in Janus Preservation Series – Growth.
14 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Janus Preservation Series - Growth At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Apple, Inc. | 1.89% | |||
| Canadian Pacific Railway, Ltd. | 1.23% | |||
| Google, Inc. – Class A | 1.04% | |||
| Gilead Sciences, Inc. | 0.79% | |||
| Union Pacific Corp. | 0.66% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
S&P 500® E-mini Future – expired June 2014 | –0.75% | |||
| Whole Foods Market, Inc. | –0.59% | |||
| Colfax Corp. | –0.29% | |||
S&P 500® E-mini Future – expired December 2013 | –0.25% | |||
| L Brands, Inc. | –0.24% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® Growth | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Financials | 0.43% | 3.06% | 5.37% | |||||||||
| Health Care | 0.43% | 14.19% | 12.63% | |||||||||
| Telecommunication Services | 0.02% | 0.52% | 2.18% | |||||||||
| Industrials | 0.00% | 13.68% | 12.26% | |||||||||
| Utilities | 0.00% | –0.06% | 0.15% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® Growth | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Protection Component** | –3.77% | 8.15% | 0.00% | |||||||||
| Consumer Staples | –1.30% | 6.81% | 11.53% | |||||||||
| Information Technology | –0.99% | 27.99% | 27.17% | |||||||||
| Consumer Discretionary | –0.53% | 16.70% | 19.17% | |||||||||
| Energy | –0.23% | 3.45% | 5.08% | |||||||||
| 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 Preservation Series | 15
Table of Contents
Janus Preservation Series - Growth (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 6.0% | |||
| Comcast Corp. – Class A Media | 2.9% | |||
| Google, Inc. – Class C Internet Software & Services | 2.7% | |||
| Home Depot, Inc. Specialty Retail | 2.5% | |||
| ARM Holdings PLC Semiconductor & Semiconductor Equipment | 2.4% | |||
| 16.5% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
*Includes Cash and Other of (0.7)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
16 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Janus Preservation Series – Growth – Class A Shares | |||||||||
| NAV | 9.22% | 0.55% | 1.82% | 1.82% | |||||
| MOP | 2.93% | –1.18% | |||||||
| Janus Preservation Series – Growth – Class C Shares | |||||||||
| NAV | 8.41% | –0.21% | 2.61% | 2.61% | |||||
| CDSC | 7.41% | –0.21% | |||||||
| Janus Preservation Series – Growth – Class D Shares(1) | 9.40% | 0.70% | 1.73% | 1.68% | |||||
| Janus Preservation Series – Growth – Class I Shares | 9.49% | 0.78% | 1.59% | 1.59% | |||||
| Janus Preservation Series – Growth – Class S Shares | 9.14% | 0.44% | 2.06% | 2.06% | |||||
| Janus Preservation Series – Growth – Class T Shares | 9.31% | 0.61% | 1.76% | 1.76% | |||||
| Russell 1000® Growth Index | 19.15% | 14.29% | |||||||
| Preservation Series – Growth Blended Index | 11.24% | 8.57% | |||||||
| Citigroup 3-Month U.S. Treasury Bill Index | 0.04% | 0.05% | |||||||
| Morningstar Quartile – Class I Shares | 4th | 4th | |||||||
| Morningstar Ranking – based on total return for Large Growth Funds | 1,696/1,762 | 1,631/1,637 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
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%.
See important disclosures on the next page.
Janus Preservation Series | 17
Table of Contents
Janus Preservation Series - Growth (unaudited)
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 of 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. |
18 | SEPTEMBER 30, 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; 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,036.60 | $ | 9.34 | $ | 1,000.00 | $ | 1,015.89 | $ | 9.25 | 1.83% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,033.30 | $ | 13.15 | $ | 1,000.00 | $ | 1,012.13 | $ | 13.01 | 2.58% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,037.50 | $ | 8.27 | $ | 1,000.00 | $ | 1,016.95 | $ | 8.19 | 1.62% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,038.40 | $ | 7.87 | $ | 1,000.00 | $ | 1,017.35 | $ | 7.79 | 1.54% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,035.70 | $ | 10.16 | $ | 1,000.00 | $ | 1,015.09 | $ | 10.05 | 1.99% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,036.50 | $ | 8.88 | $ | 1,000.00 | $ | 1,016.34 | $ | 8.80 | 1.74% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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 Preservation Series | 19
Table of Contents
Janus Preservation Series - Growth(1)
Schedule of Investments
As of September 30, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Common Stock – 98.5% | ||||||||||
| Aerospace & Defense – 3.5% | ||||||||||
| 8,755 | Honeywell International, Inc. | $ | 815,265 | |||||||
| 5,927 | Precision Castparts Corp. | 1,403,988 | ||||||||
| | ||||||||||
| 2,219,253 | ||||||||||
| Beverages – 1.7% | ||||||||||
| 13,018 | Diageo PLC | 376,345 | ||||||||
| 2,722 | Pernod Ricard SA | 307,620 | ||||||||
| 7,057 | SABMiller PLC | 392,085 | ||||||||
| | ||||||||||
| 1,076,050 | ||||||||||
| Biotechnology – 6.9% | ||||||||||
| 1,395 | Alexion Pharmaceuticals, Inc.* | 231,319 | ||||||||
| 4,214 | Biogen Idec, Inc.* | 1,394,033 | ||||||||
| 14,141 | Celgene Corp.* | 1,340,284 | ||||||||
| 5,312 | Medivation, Inc.* | 525,198 | ||||||||
| 7,924 | Pharmacyclics, Inc.* | 930,515 | ||||||||
| | ||||||||||
| 4,421,349 | ||||||||||
| Chemicals – 4.8% | ||||||||||
| 10,468 | Air Products & Chemicals, Inc. | 1,362,724 | ||||||||
| 8,516 | Monsanto Co. | 958,135 | ||||||||
| 3,758 | PPG Industries, Inc. | 739,349 | ||||||||
| | ||||||||||
| 3,060,208 | ||||||||||
| Communications Equipment – 3.0% | ||||||||||
| 11,372 | Motorola Solutions, Inc. | 719,620 | ||||||||
| 16,546 | QUALCOMM, Inc. | 1,237,145 | ||||||||
| | ||||||||||
| 1,956,765 | ||||||||||
| Electrical Equipment – 1.9% | ||||||||||
| 28,022 | Sensata Technologies Holding NV* | 1,247,820 | ||||||||
| Electronic Equipment, Instruments & Components – 1.7% | ||||||||||
| 5,003 | Amphenol Corp. – Class A | 499,600 | ||||||||
| 10,139 | TE Connectivity, Ltd. (U.S. Shares) | 560,585 | ||||||||
| | ||||||||||
| 1,060,185 | ||||||||||
| Food & Staples Retailing – 1.9% | ||||||||||
| 3,236 | Kroger Co. | 168,272 | ||||||||
| 7,091 | Sysco Corp. | 269,104 | ||||||||
| 20,682 | Whole Foods Market, Inc. | 788,191 | ||||||||
| | ||||||||||
| 1,225,567 | ||||||||||
| Food Products – 0.7% | ||||||||||
| 4,682 | Hershey Co. | 446,803 | ||||||||
| Health Care Equipment & Supplies – 1.5% | ||||||||||
| 9,407 | Zimmer Holdings, Inc. | 945,874 | ||||||||
| Health Care Providers & Services – 1.0% | ||||||||||
| 14,660 | Catamaran Corp. (U.S. Shares)* | 617,919 | ||||||||
| Health Care Technology – 1.1% | ||||||||||
| 5,159 | athenahealth, Inc.* | 679,389 | ||||||||
| Hotels, Restaurants & Leisure – 3.8% | ||||||||||
| 796 | Chipotle Mexican Grill, Inc.* | 530,606 | ||||||||
| 20,764 | Dunkin’ Brands Group, Inc. | 930,642 | ||||||||
| 13,268 | Starbucks Corp. | 1,001,203 | ||||||||
| | ||||||||||
| 2,462,451 | ||||||||||
| Household Products – 1.4% | ||||||||||
| 14,018 | Colgate-Palmolive Co. | 914,254 | ||||||||
| Information Technology Services – 3.6% | ||||||||||
| 16,689 | MasterCard, Inc. – Class A | 1,233,651 | ||||||||
| 5,133 | Visa, Inc. – Class A | 1,095,228 | ||||||||
| | ||||||||||
| 2,328,879 | ||||||||||
| Insurance – 1.4% | ||||||||||
| 10,614 | Aon PLC | 930,529 | ||||||||
| Internet & Catalog Retail – 3.3% | ||||||||||
| 3,893 | Alibaba Group Holding, Ltd. (ADR)* | 345,893 | ||||||||
| 2,844 | Amazon.com, Inc.* | 917,019 | ||||||||
| 4,205 | Ctrip.com International, Ltd. (ADR)* | 238,676 | ||||||||
| 561 | Priceline Group, Inc.* | 649,964 | ||||||||
| | ||||||||||
| 2,151,552 | ||||||||||
| Internet Software & Services – 7.1% | ||||||||||
| 2,580 | CoStar Group, Inc.* | 401,293 | ||||||||
| 8,983 | Facebook, Inc. – Class A* | 710,016 | ||||||||
| 2,599 | Google, Inc. – Class A*,† | 1,529,278 | ||||||||
| 2,957 | Google, Inc. – Class C* | 1,707,254 | ||||||||
| 1,037 | LinkedIn Corp. – Class A* | 215,478 | ||||||||
| | ||||||||||
| 4,563,319 | ||||||||||
| Machinery – 1.9% | ||||||||||
| 21,801 | Colfax Corp.* | 1,242,003 | ||||||||
| Media – 6.0% | ||||||||||
| 34,854 | Comcast Corp. – Class A | 1,874,448 | ||||||||
| 41,876 | Twenty-First Century Fox, Inc. – Class A | 1,435,928 | ||||||||
| 6,538 | Walt Disney Co. | 582,078 | ||||||||
| | ||||||||||
| 3,892,454 | ||||||||||
| Oil, Gas & Consumable Fuels – 2.2% | ||||||||||
| 6,401 | Antero Resources Corp. | 351,351 | ||||||||
| 2,564 | EOG Resources, Inc. | 253,887 | ||||||||
| 9,922 | Noble Energy, Inc. | 678,268 | ||||||||
| 4,285 | Southwestern Energy Co.* | 149,761 | ||||||||
| | ||||||||||
| 1,433,267 | ||||||||||
| Personal Products – 0.5% | ||||||||||
| 4,069 | Estee Lauder Cos., Inc. – Class A | 304,036 | ||||||||
| Pharmaceuticals – 7.3% | ||||||||||
| 17,805 | Bristol-Myers Squibb Co. | 911,260 | ||||||||
| 20,699 | Endo International PLC* | 1,414,570 | ||||||||
| 6,946 | Jazz Pharmaceuticals PLC* | 1,115,250 | ||||||||
| 4,114 | Mallinckrodt PLC* | 370,877 | ||||||||
| 3,022 | Perrigo Co. PLC | 453,874 | ||||||||
| 3,357 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 440,438 | ||||||||
| | ||||||||||
| 4,706,269 | ||||||||||
| Professional Services – 0.9% | ||||||||||
| 9,608 | Verisk Analytics, Inc. – Class A* | 585,031 | ||||||||
| Real Estate Investment Trusts (REITs) – 2.4% | ||||||||||
| 16,397 | American Tower Corp. | 1,535,251 | ||||||||
| Real Estate Management & Development – 0.6% | ||||||||||
| 12,779 | CBRE Group, Inc. – Class A* | 380,047 | ||||||||
| Road & Rail – 3.2% | ||||||||||
| 5,305 | Canadian Pacific Railway, Ltd. | 1,101,126 | ||||||||
| 8,926 | Union Pacific Corp. | 967,757 | ||||||||
| | ||||||||||
| 2,068,883 | ||||||||||
| Semiconductor & Semiconductor Equipment – 4.0% | ||||||||||
| 108,446 | ARM Holdings PLC | 1,579,902 | ||||||||
| 54,140 | Atmel Corp.* | 437,451 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
20 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Semiconductor & Semiconductor Equipment – (continued) | ||||||||||
| 15,295 | Freescale Semiconductor, Ltd.* | $ | 298,712 | |||||||
| 13,477 | Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 271,966 | ||||||||
| | ||||||||||
| 2,588,031 | ||||||||||
| Software – 6.7% | ||||||||||
| 5,166 | ANSYS, Inc.* | 390,911 | ||||||||
| 89,981 | Cadence Design Systems, Inc.* | 1,548,573 | ||||||||
| 13,221 | NetSuite, Inc.* | 1,183,808 | ||||||||
| 20,505 | Salesforce.com, Inc.* | 1,179,653 | ||||||||
| | ||||||||||
| 4,302,945 | ||||||||||
| Specialty Retail – 5.2% | ||||||||||
| 607 | AutoZone, Inc.* | 309,364 | ||||||||
| 17,619 | Home Depot, Inc. | 1,616,367 | ||||||||
| 27,592 | Sally Beauty Holdings, Inc.* | 755,193 | ||||||||
| 6,331 | TJX Cos., Inc. | 374,605 | ||||||||
| 2,584 | Ulta Salon Cosmetics & Fragrance, Inc. | 305,351 | ||||||||
| | ||||||||||
| 3,360,880 | ||||||||||
| Technology Hardware, Storage & Peripherals – 6.0% | ||||||||||
| 38,218 | Apple, Inc. | 3,850,464 | ||||||||
| Trading Companies & Distributors – 0.7% | ||||||||||
| 5,514 | MSC Industrial Direct Co., Inc. – Class A | 471,226 | ||||||||
| Wireless Telecommunication Services – 0.6% | ||||||||||
| 13,969 | T-Mobile U.S., Inc. | 403,285 | ||||||||
| Total Common Stock (cost $56,535,708) | 63,432,238 | |||||||||
| U.S. Treasury Notes/Bonds – 2.2% | ||||||||||
| $650,000 | 1.0000%, 9/30/16 | 654,875 | ||||||||
| 770,000 | 0.8750%, 11/30/16 | 772,828 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $1,421,223) | 1,427,703 | |||||||||
| Capital Protection Agreement – 0% | ||||||||||
| 1 | Janus Preservation Series - Growth with BNP Paribas Prime Brokerage, Inc. exercise price at 9/30/14 $8.13 – $8.41§ (cost $0) | 0 | ||||||||
| Total Investments (total cost $57,956,931) – 100.7% | 64,859,941 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.7)% | (425,610) | |||||||||
| Net Assets – 100% | $ | 64,434,331 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United States | $ | 59,187,971 | 91 | .3% | ||||
| United Kingdom | 2,348,332 | 3 | .6 | |||||
| Canada | 2,159,483 | 3 | .3 | |||||
| China | 584,569 | 0 | .9 | |||||
| France | 307,620 | 0 | .5 | |||||
| Taiwan | 271,966 | 0 | .4 | |||||
| Total | $ | 64,859,941 | 100 | .0% | ||||
| (1) | Formerly named Janus Protected Series – Growth. |
Schedule of OTC Purchased Option – Zero Strike Call
| Unrealized | ||||||||||||
| Counterparty/ | Premium to | Appreciation/ | ||||||||||
| Reference Asset | be Paid | Value | (Depreciation) | |||||||||
| BNP Paribas: BNP IVIX Index expires December 2014 320,511 contracts exercise price $0.00 | $ | (955,155) | $ | 845,059 | $ | (110,096) | ||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Preservation Series | 21
Table of Contents
Notes to Schedules of Investments and Other Information
| 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. | |
| EURO STOXX 50® Index | Provides a blue-chip representation of supersector leaders in the euro zone. The index covers 50 stocks from 12 euro zone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. | |
| MSCI Emerging Markets IndexSM | A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. | |
| 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 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 September 30, 2014, is noted below. |
| Fund | Aggregate Value | ||||
| Janus Preservation Series - Global | $ | 198,745 | |||
| Janus Preservation Series - Growth | 1,059,138 | ||||
°° | Rate shown is the 7-day yield as of September 30, 2014. |
| § | Schedule of Restricted and Illiquid Securities (as of September 30, 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 September 30, 2014. The issuer incurs all registration costs.
22 | SEPTEMBER 30, 2014
Table of Contents
| £ | 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 year ended September 30, 2014. Unless otherwise indicated, all information in the table is for the year ended September 30, 2014. |
| Share | Share | ||||||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 9/30/14 | Gain/(Loss) | Income | at 9/30/14 | |||||||||||||||||||
Janus Preservation Series – Global | |||||||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 422,212 | 9,336,538 | (9,288,000) | 470,750 | $ | – | $ | 532 | $ | 470,750 | |||||||||||||||
Janus Preservation Series – Growth | |||||||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 19,453,548 | 41,473,102 | (60,926,650) | – | $ | – | $ | 3,966 | $ | – | |||||||||||||||
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of September 30, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Preservation Series – Global | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Air Freight & Logistics | $ | – | $ | 109,412 | $ | – | |||||
| Auto Components | – | 230,000 | – | ||||||||
| Automobiles | – | 85,314 | – | ||||||||
| Beverages | 203,122 | 227,662 | – | ||||||||
| Biotechnology | 752,713 | 89,709 | – | ||||||||
| Capital Markets | 110,352 | 285,092 | – | ||||||||
| Chemicals | 325,309 | 104,742 | – | ||||||||
| Commercial Banks | 396,661 | 671,840 | – | ||||||||
| Communications Equipment | 139,706 | 127,516 | – | ||||||||
| Electronic Equipment, Instruments & Components | 86,860 | 217,544 | – | ||||||||
| Energy Equipment & Services | 180,378 | 60,685 | – | ||||||||
| Food Products | 81,497 | 166,172 | – | ||||||||
| Hotels, Restaurants & Leisure | 77,045 | 38,780 | – | ||||||||
| Household Durables | – | 36,044 | – | ||||||||
| Insurance | 163,592 | 426,405 | – | ||||||||
| Metals & Mining | – | 94,728 | – | ||||||||
| Oil, Gas & Consumable Fuels | 1,111,086 | 288,030 | – | ||||||||
| Pharmaceuticals | 459,390 | 240,385 | – | ||||||||
| Real Estate Management & Development | 252,285 | 90,125 | – | ||||||||
| Semiconductor & Semiconductor Equipment | 111,743 | 304,181 | – | ||||||||
| Software | 268,764 | 91,736 | – | ||||||||
| Specialty Retail | 392,005 | 48,923 | – | ||||||||
| Textiles, Apparel & Luxury Goods | 104,899 | 177,045 | – | ||||||||
| Tobacco | – | 299,352 | – | ||||||||
| Trading Companies & Distributors | 129,472 | 220,130 | – | ||||||||
| Wireless Telecommunication Services | 89,497 | 130,210 | – | ||||||||
| All Other | 4,920,052 | – | – | ||||||||
Preferred Stock | – | 142,608 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 29,928 | – | ||||||||
Money Market | – | 470,750 | – | ||||||||
| Total Investments in Securities | $ | 10,356,428 | $ | 5,505,048 | $ | – | |||||
Other Financial Instruments(a): | |||||||||||
Capital Protection Agreement | $ | – | $ | – | $ | 0 | |||||
Total Assets | $ | 10,356,428 | $ | 5,505,048 | $ | 0 | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
OTC Purchased Options – Zero Strike Calls | $ | – | $ | 26,844 | $ | – | |||||
Variation Margin Payable | – | 792 | – | ||||||||
Total Liabilities | $ | – | $ | 27,636 | $ | – | |||||
Janus Preservation Series | 23
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Janus Preservation Series – Growth | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Beverages | $ | – | $ | 1,076,050 | $ | – | |||||
| Semiconductor & Semiconductor Equipment | 1,008,129 | 1,579,902 | – | ||||||||
| All Other | 59,768,157 | – | – | ||||||||
U.S. Treasury Notes/Bonds | – | 1,427,703 | – | ||||||||
| Total Investments in Securities | $ | 60,776,286 | $ | 4,083,655 | $ | – | |||||
Other Financial Instruments(a): | |||||||||||
Capital Protection Agreement | $ | – | $ | – | $ | 0 | |||||
Total Assets | $ | 60,776,286 | $ | 4,083,655 | $ | 0 | |||||
Liabilities | |||||||||||
Other Financial Instruments(a): | |||||||||||
OTC Purchased Options – Zero Strike Calls | $ | – | $ | 110,096 | $ | – | |||||
| (a) | Other financial instruments include the capital protection agreement, futures, forward currency, written options, purchased zero strike options, and swap contracts. Forward currency contracts, purchased 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. Written options and the capital protection agreement are reported at their market value at measurement date. |
24 | SEPTEMBER 30, 2014
Table of Contents
Statements of Assets and Liabilities
| Janus Preservation | Janus Preservation | |||||||
| As of September 30, 2014 | Series - Global(1) | Series - Growth(2) | ||||||
| Assets: | ||||||||
| Investments at cost | $ | 14,186,415 | $ | 57,956,931 | ||||
| Unaffiliated investments at value | $ | 15,390,726 | $ | 64,859,941 | ||||
| Affiliated investments at value | 470,750 | – | ||||||
| Capital protection agreement (Note 1) | 0 | 0 | ||||||
| Cash | 448 | – | ||||||
| Restricted cash (Note 1) | – | 20,000 | ||||||
| Non-interested Trustees’ deferred compensation | 323 | 1,335 | ||||||
| Receivables: | ||||||||
| Investments sold | 30,770 | 3,050,429 | ||||||
| Fund shares sold | – | 31,767 | ||||||
| Dividends | 21,405 | 54,736 | ||||||
| Dividends from affiliates | 36 | – | ||||||
| Foreign dividend tax reclaim | 8,516 | 3,239 | ||||||
| Interest | 113 | 2,282 | ||||||
| Other assets | 287 | 1,188 | ||||||
| Total Assets | 15,923,374 | 68,024,917 | ||||||
| Liabilities: | ||||||||
| Due to custodian | – | 167,326 | ||||||
| Purchased options - zero strike calls(3) | 26,844 | 110,096 | ||||||
| Variation margin payable | 792 | – | ||||||
| Payables: | ||||||||
| Investments purchased | 175,679 | 3,051,979 | ||||||
| Fund shares repurchased | – | 68,682 | ||||||
| Advisory fees | 9,086 | 46,667 | ||||||
| Capital protection fee | 7,883 | 32,429 | ||||||
| Fund administration fees | 131 | 540 | ||||||
| Internal servicing cost | 69 | 419 | ||||||
| Administrative services fees | 1,195 | 3,239 | ||||||
| Distribution fees and shareholder servicing fees | 3,249 | 19,715 | ||||||
| Administrative, networking and omnibus fees | 285 | 7,711 | ||||||
| Non-interested Trustees’ fees and expenses | 106 | 471 | ||||||
| Non-interested Trustees’ deferred compensation fees | 323 | 1,335 | ||||||
| Accrued expenses and other payables | 65,396 | 79,977 | ||||||
| Total Liabilities | 291,038 | 3,590,586 | ||||||
| Net Assets | $ | 15,632,336 | $ | 64,434,331 | ||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Preservation Series | 25
Table of Contents
Statements of Assets and Liabilities (continued)
| Janus Preservation | Janus Preservation | |||||||
| As of September 30, 2014 | Series - Global(1) | Series - Growth(2) | ||||||
| Net Assets Consist of: | ||||||||
| Capital (par value and paid-in surplus)* | $ | 13,472,634 | $ | 56,468,496 | ||||
| Undistributed net investment income/(loss)* | (9,103) | (574,874) | ||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 520,957 | 1,747,999 | ||||||
| Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,647,848 | 6,792,710 | ||||||
| Total Net Assets | $ | 15,632,336 | $ | 64,434,331 | ||||
| Net Assets - Class A Shares | $ | 3,278,338 | $ | 18,045,028 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 267,340 | 1,771,239 | ||||||
Net Asset Value Per Share(4) | $ | 12.26 | $ | 10.19 | ||||
Maximum Offering Price Per Share(5) | $ | 13.01 | $ | 10.81 | ||||
Protected Net Asset Value Per Share(6) | $ | 10.18 | $ | 8.34 | ||||
| Net Assets - Class C Shares | $ | 2,570,694 | $ | 18,214,982 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 214,022 | 1,834,554 | ||||||
Net Asset Value Per Share(4) | $ | 12.01 | $ | 9.93 | ||||
Protected Net Asset Value Per Share(6) | $ | 9.99 | $ | 8.13 | ||||
| Net Assets - Class D Shares | $ | 3,212,895 | $ | 8,504,795 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 261,521 | 830,498 | ||||||
| Net Asset Value Per Share | $ | 12.29 | $ | 10.24 | ||||
Protected Net Asset Value Per Share(6) | $ | 10.19 | $ | 8.38 | ||||
| Net Assets - Class I Shares | $ | 2,459,984 | $ | 8,221,815 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 199,169 | 800,511 | ||||||
| Net Asset Value Per Share | $ | 12.35 | $ | 10.27 | ||||
Protected Net Asset Value Per Share(6) | $ | 10.24 | $ | 8.41 | ||||
| Net Assets - Class S Shares | $ | 1,974,089 | $ | 3,308,085 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 161,665 | 325,990 | ||||||
| Net Asset Value Per Share | $ | 12.21 | $ | 10.15 | ||||
Protected Net Asset Value Per Share(6) | $ | 10.14 | $ | 8.31 | ||||
| Net Assets - Class T Shares | $ | 2,136,336 | $ | 8,139,626 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 173,731 | 797,147 | ||||||
| Net Asset Value Per Share | $ | 12.30 | $ | 10.21 | ||||
Protected Net Asset Value Per Share(6) | $ | 10.20 | $ | 8.36 | ||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Formerly named Janus Protected Series - Global. | |
| (2) | Formerly named Janus Protected Series - Growth. | |
| (3) | Premiums to be paid of $232,892 and $955,155 for Janus Preservation Series - Global and Janus Preservation Series - Growth, respectively. | |
| (4) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (5) | Maximum offering price is computed at 100/94.25 of net asset value. | |
| (6) | The Protected NAV is the protection feature of each Fund and is calculated at 80% of the highest previously achieved NAV, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items. Shareholders cannot transact purchases or redemptions at the Protected NAV. |
See Notes to Financial Statements.
26 | SEPTEMBER 30, 2014
Table of Contents
Statements of Operations
| Janus Preservation | Janus Preservation | |||||||
| For the year ended September 30, 2014 | Series - Global(1) | Series - Growth(2) | ||||||
| Investment Income: | ||||||||
| Interest | $ | 357 | $ | 17,231 | ||||
| Dividends | 254,288 | 602,098 | ||||||
| Dividends from affiliates | 532 | 3,966 | ||||||
| Other income | 130 | 162 | ||||||
| Foreign tax withheld | (11,055) | (6,678) | ||||||
| Total Investment Income | 244,252 | 616,779 | ||||||
| Expenses: | ||||||||
| Advisory fees | 97,416 | 448,194 | ||||||
| Capital protection fee | 92,745 | 438,605 | ||||||
| Internal servicing expense - Class A Shares | 346 | 2,138 | ||||||
| Internal servicing expense - Class C Shares | 424 | 3,454 | ||||||
| Internal servicing expense - Class I Shares | 107 | 463 | ||||||
| Shareholder reports expense | 33,121 | 45,004 | ||||||
| Transfer agent fees and expenses | 1,610 | 3,152 | ||||||
| Registration fees | 113,839 | 90,217 | ||||||
| Custodian fees | 29,630 | 14,439 | ||||||
| Professional fees | 47,948 | 46,950 | ||||||
| Non-interested Trustees’ fees and expenses | 418 | 1,701 | ||||||
| Fund administration fees | 1,392 | 6,248 | ||||||
| Administrative services fees - Class D Shares | 3,501 | 9,863 | ||||||
| Administrative services fees - Class S Shares | 4,901 | 8,033 | ||||||
| Administrative services fees - Class T Shares | 5,297 | 25,988 | ||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 8,415 | 50,163 | ||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 24,979 | 192,261 | ||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 4,901 | 8,033 | ||||||
| Administrative, networking and omnibus fees - Class A Shares | 1,215 | 15,556 | ||||||
| Administrative, networking and omnibus fees - Class C Shares | 505 | 13,253 | ||||||
| Administrative, networking and omnibus fees - Class I Shares | 35 | 6,650 | ||||||
| Other expenses | 9,116 | 12,756 | ||||||
| Total Expenses | 481,861 | 1,443,121 | ||||||
| Less: Expense and Fee Offset | – | (18) | ||||||
| Less: Excess Expense Reimbursement | (185,167) | (86,759) | ||||||
| Net Expenses | 296,694 | 1,356,344 | ||||||
| Net Investment Income/(Loss) | (52,442) | (739,565) | ||||||
| Net Realized Gain/(Loss) on Investments: | ||||||||
| Investments and foreign currency transactions | 1,311,910 | 9,145,035 | ||||||
| Futures contracts | (210,832) | (669,981) | ||||||
| Purchased options - zero strike calls | (32,250) | (126,047) | ||||||
| Total Net Realized Gain/(Loss) on Investments | 1,068,828 | 8,349,007 | ||||||
| Change in Unrealized Net Appreciation/Depreciation: | ||||||||
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | (43,137) | (1,446,466) | ||||||
| Futures contracts | 180 | (35,716) | ||||||
| Purchased options - zero strike calls | (23,287) | (91,722) | ||||||
| Total Change in Unrealized Net Appreciation/Depreciation | (66,244) | (1,573,904) | ||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 950,142 | $ | 6,035,538 | ||||
| (1) | Formerly named Janus Protected Series - Global. | |
| (2) | Formerly named Janus Protected Series - Growth. |
See Notes to Financial Statements.
Janus Preservation Series | 27
Table of Contents
Statements of Changes in Net Assets
| Janus Preservation | Janus Preservation | |||||||||||||||
| Series - Global(1) | Series - Growth(2) | |||||||||||||||
| For each year ended September 30 | 2014 | 2013(3) | 2014 | 2013(3) | ||||||||||||
| Operations: | ||||||||||||||||
| Net investment income/(loss) | $ | (52,442) | $ | (88,365) | $ | (739,565) | $ | (1,076,998) | ||||||||
| Net realized gain/(loss) on investments | 1,068,828 | 372,145 | 8,349,007 | 4,039,695 | ||||||||||||
| Change in unrealized net appreciation/depreciation | (66,244) | 1,180,969 | (1,573,904) | 1,613,040 | ||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 950,142 | 1,464,749 | 6,035,538 | 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 | 256,809 | 717,354 | 968,692 | 2,379,207 | ||||||||||||
| Class C Shares | 230,737 | 186,611 | 1,221,801 | 1,761,154 | ||||||||||||
| Class D Shares | 1,012,037 | 562,664 | 2,123,347 | 2,302,611 | ||||||||||||
| Class I Shares | 515,176 | 257,663 | 1,288,130 | 3,364,237 | ||||||||||||
| Class T Shares | 204,113 | 151,840 | 335,391 | 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 | (401,029) | (1,061,315) | (6,620,702) | (28,345,452) | ||||||||||||
| Class C Shares | (100,229) | (61,974) | (4,991,180) | (16,935,402) | ||||||||||||
| Class D Shares | (427,856) | (261,381) | (2,034,630) | (2,310,370) | ||||||||||||
| Class I Shares | (370,166) | (32,713) | (3,997,021) | (11,960,654) | ||||||||||||
| Class T Shares | (225,714) | (25,114) | (5,033,402) | (4,801,917) | ||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 996,231 | 433,635 | (16,739,574) | (53,939,639) | ||||||||||||
| Net Increase/(Decrease) in Net Assets | 1,643,486 | 1,898,384 | (10,704,036) | (49,363,902) | ||||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of period | 13,988,850 | 12,090,466 | 75,138,367 | 124,502,269 | ||||||||||||
| End of period | $ | 15,632,336 | $ | 13,988,850 | $ | 64,434,331 | $ | 75,138,367 | ||||||||
| Undistributed Net Investment Income/(Loss)* | $ | (9,103) | $ | (63,506) | $ | (574,874) | $ | (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) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
See Notes to Financial Statements.
28 | SEPTEMBER 30, 2014
Table of Contents
Financial Highlights
Class A Shares
| Janus Preservation Series - Global(1) | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.73 | $10.50 | $10.00 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.04)(3) | (0.01) | (0.03) | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.82 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.78 | 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 | $12.26 | $11.73 | $10.50 | |||||||||||
| Total Return** | 6.75% | 11.71% | 5.00% | |||||||||||
| Net Assets, End of Period (in thousands) | $3,278 | $3,204 | $3,186 | |||||||||||
| Average Net Assets for the Period (in thousands) | $3,366 | $3,226 | $2,002 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.08% | 2.97% | 4.80% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.92% | 1.91% | 1.90% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.32)% | (0.64)% | (0.70)% | |||||||||||
| Portfolio Turnover Rate | 82% | 141% | 124% | |||||||||||
Class A Shares
| Janus Preservation Series - Growth(4) | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.33 | $8.83 | $8.61 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.09)(3) | –(6) | (0.05) | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.95 | 0.50 | 0.27 | (1.38) | ||||||||||||||
| Total from Investment Operations | 0.86 | 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 | $10.19 | $9.33 | $8.83 | $8.61 | ||||||||||||||
| Total Return** | 9.22% | 5.66% | 2.56% | (13.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $18,045 | $21,859 | $46,314 | $31,514 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $20,065 | $33,076 | $46,797 | $11,929 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.91% | 1.82% | 1.93% | 3.36% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.80% | 1.75% | 1.72% | 1.66% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.92)% | (0.96)% | (1.12)% | (0.90)% | ||||||||||||||
| Portfolio Turnover Rate | 114% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Formerly named Janus Protected Series - Growth. | |
| (5) | Period from May 4, 2011 (inception date) through September 30, 2011. | |
| (6) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Preservation Series | 29
Table of Contents
Financial Highlights (continued)
Class C Shares
| Janus Preservation Series - Global(1) | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.58 | $10.44 | $10.00 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.13)(3) | (0.07) | (0.08) | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.81 | 1.21 | 0.52 | |||||||||||
| Total from Investment Operations | 0.68 | 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 | $12.01 | $11.58 | $10.44 | |||||||||||
| Total Return** | 5.97% | 10.92% | 4.40% | |||||||||||
| Net Assets, End of Period (in thousands) | $2,571 | $2,303 | $1,953 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,498 | $2,123 | $1,410 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.80% | 3.73% | 5.63% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.66% | 2.65% | 2.62% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.05)% | (1.36)% | (1.44)% | |||||||||||
| Portfolio Turnover Rate | 82% | 141% | 124% | |||||||||||
Class C Shares
| Janus Preservation Series - Growth(4) | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.16 | $8.74 | $8.59 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.16)(3) | (0.12) | (0.11) | (0.03) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.93 | 0.54 | 0.26 | (1.38) | ||||||||||||||
| Total from Investment Operations | 0.77 | 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 | $9.93 | $9.16 | $8.74 | $8.59 | ||||||||||||||
| Total Return** | 8.41% | 4.81% | 1.75% | (14.10)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $18,215 | $20,391 | $34,567 | $23,354 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $19,226 | $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*** | 2.55% | 2.51% | 2.47% | 2.39% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.67)% | (1.72)% | (1.87)% | (1.61)% | ||||||||||||||
| Portfolio Turnover Rate | 114% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (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 | SEPTEMBER 30, 2014
Table of Contents
Class D Shares
| Janus Preservation Series - Global(1) | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.74 | $10.48 | $10.00 | |||||||||||
| Income/(loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.02)(3) | 0.02 | (0.05) | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.82 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.80 | 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 | $12.29 | $11.74 | $10.48 | |||||||||||
| Total Return** | 6.92% | 12.02% | 4.80% | |||||||||||
| Net Assets, End of Period (in thousands) | $3,213 | $2,454 | $1,901 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,918 | $2,224 | $1,560 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.09% | 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 Income/(Loss) to Average Net Assets*** | (0.13)% | (0.47)% | (0.83)% | |||||||||||
| Portfolio Turnover Rate | 82% | 141% | 124% | |||||||||||
Class D Shares
| Janus Preservation Series - Growth(4) | ||||||||||||||||||
| For a share outstanding during each 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/(loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.07)(3) | 0.06 | (0.04) | (0.02) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.95 | 0.45 | 0.27 | (1.36) | ||||||||||||||
| Total from Investment Operations | 0.88 | 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 | $10.24 | $9.36 | $8.85 | $8.62 | ||||||||||||||
| Total Return** | 9.40% | 5.76% | 2.67% | (13.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,505 | $7,679 | $7,289 | $5,604 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $8,219 | $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*** | 1.60% | 1.61% | 1.60% | 1.52% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.72)% | (0.83)% | (1.00)% | (0.52)% | ||||||||||||||
| Portfolio Turnover Rate | 114% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Formerly named Janus Protected Series - Growth. | |
| (5) | 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 I Shares
| Janus Preservation Series - Global(1) | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.78 | $10.51 | $10.00 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | –(3)(4) | 0.03 | (0.03) | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.82 | 1.24 | 0.54 | |||||||||||
| Total from Investment Operations | 0.82 | 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 | $12.35 | $11.78 | $10.51 | |||||||||||
| Total Return** | 7.07% | 12.08% | 5.10% | |||||||||||
| Net Assets, End of Period (in thousands) | $2,460 | $2,157 | $1,707 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,361 | $1,954 | $1,322 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.76% | 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 Income/(Loss) to Average Net Assets*** | (0.03)% | (0.33)% | (0.47)% | |||||||||||
| Portfolio Turnover Rate | 82% | 141% | 124% | |||||||||||
Class I Shares
| Janus Preservation Series - Growth(5) | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(6) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.38 | $8.86 | $8.62 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.07)(3) | 0.06 | (0.06) | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.96 | 0.46 | 0.30 | (1.37) | ||||||||||||||
| Total from Investment Operations | 0.89 | 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 | $10.27 | $9.38 | $8.86 | $8.62 | ||||||||||||||
| Total Return** | 9.49% | 5.87% | 2.78% | (13.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,222 | $10,124 | $17,922 | $26,506 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $8,912 | $14,828 | $23,996 | $12,205 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.65% | 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 Income/(Loss) to Average Net Assets*** | (0.67)% | (0.71)% | (0.90)% | (0.73)% | ||||||||||||||
| Portfolio Turnover Rate | 114% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Less than $0.005 on a per share basis. | |
| (5) | Formerly named Janus Protected Series - Growth. | |
| (6) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
32 | SEPTEMBER 30, 2014
Table of Contents
Class S Shares
| Janus Preservation Series - Global(1) | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.70 | $10.47 | $10.00 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.05)(3) | (0.01) | (0.06) | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.81 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.76 | 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 | $12.21 | $11.70 | $10.47 | |||||||||||
| Total Return** | 6.60% | 11.75% | 4.70% | |||||||||||
| Net Assets, End of Period (in thousands) | $1,974 | $1,851 | $1,658 | |||||||||||
| Average Net Assets for the Period (in thousands) | $1,960 | $1,741 | $1,294 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.26% | 3.18% | 5.26% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.00% | 2.03% | 2.14% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.40)% | (0.75)% | (0.96)% | |||||||||||
| Portfolio Turnover Rate | 82% | 141% | 124% | |||||||||||
Class S Shares
| Janus Preservation Series - Growth(4) | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.30 | $8.81 | $8.61 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.10)(3) | 0.04 | (0.09) | (0.03) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.95 | 0.45 | 0.29 | (1.36) | ||||||||||||||
| Total from Investment Operations | 0.85 | 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 | $10.15 | $9.30 | $8.81 | $8.61 | ||||||||||||||
| Total Return** | 9.14% | 5.56% | 2.32% | (13.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $3,308 | $3,032 | $2,873 | $3,588 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,213 | $2,914 | $3,348 | $3,933 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.07% | 2.06% | 2.11% | 3.33% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.85% | 1.88% | 1.90% | 1.73% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.97)% | (1.10)% | (1.32)% | (0.68)% | ||||||||||||||
| Portfolio Turnover Rate | 114% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Formerly named Janus Protected Series - Growth. | |
| (5) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Preservation Series | 33
Table of Contents
Financial Highlights (continued)
Class T Shares
| Janus Preservation Series - Global(1) | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.75 | $10.49 | $10.00 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.02)(3) | 0.02 | (0.04) | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.82 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.80 | 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 | $12.30 | $11.75 | $10.49 | |||||||||||
| Total Return** | 6.92% | 12.01% | 4.90% | |||||||||||
| Net Assets, End of Period (in thousands) | $2,136 | $2,020 | $1,685 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,119 | $1,817 | $1,324 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.01% | 2.93% | 5.03% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.76% | 1.79% | 1.90% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.15)% | (0.49)% | (0.71)% | |||||||||||
| Portfolio Turnover Rate | 82% | 141% | 124% | |||||||||||
Class T Shares
| Janus Preservation Series - Growth(4) | ||||||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.34 | $8.84 | $8.62 | $10.00 | ||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.08)(3) | 0.04 | (0.06) | (0.02) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.95 | 0.46 | 0.28 | (1.36) | ||||||||||||||
| Total from Investment Operations | 0.87 | 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 | $10.21 | $9.34 | $8.84 | $8.62 | ||||||||||||||
| Total Return** | 9.31% | 5.66% | 2.55% | (13.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,140 | $12,053 | $15,537 | $12,986 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $10,395 | $13,394 | $17,794 | $8,438 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.81% | 1.76% | 1.85% | 3.14% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.68% | 1.69% | 1.71% | 1.58% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.80)% | (0.91)% | (1.12)% | (0.73)% | ||||||||||||||
| Portfolio Turnover Rate | 114% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Formerly named Janus Protected Series - Growth. | |
| (5) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
34 | SEPTEMBER 30, 2014
Table of Contents
Notes to Financial Statements
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 year ended September 30, 2014. The Trust offers forty-six 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. Class D 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 net asset value (“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
Janus Preservation Series | 35
Table of Contents
Notes to Financial Statements (continued)
counterclaims as the Capital Protection Provider would have under the Capital Protection Agreement.
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 no 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 or, as needed, by obtaining market quotations from independent broker-dealers. Certain 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
36 | SEPTEMBER 30, 2014
Table of Contents
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. 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.
Indemnifications
In the normal course of business, the Funds may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. A Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against a Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
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.
Janus Preservation Series | 37
Table of Contents
Notes to Financial Statements (continued)
Restricted Cash
As of September 30, 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 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 may be 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, swaps, investments in unregistered investment companies, 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 September 30, 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.
The Funds did not hold a significant amount of Level 3 securities as of September 30, 2014.
The following table shows the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the year. The Funds recognize transfers between the levels as of the beginning of the fiscal year.
| Transfers Out | Transfers Out | |||||||||
| of Level 1 | of Level 2 | |||||||||
| Fund | to Level 2 | to Level 1 | ||||||||
| Janus Preservation Series - Global | $ | 3,250,920 | $ | 202,846 | ||||||
| Janus Preservation Series - Growth | 2,886,224 | 375,104 | ||||||||
Financial assets were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current fiscal year and no factor was applied at the end of the prior fiscal year.
Financial assets were transferred out of Level 2 to Level 1 as the current market for the securities with quoted prices are considered active.
| 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
38 | SEPTEMBER 30, 2014
Table of Contents
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 year ended September 30, 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 purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative (to earn income and seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| • | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fund. | |
| • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
| • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
| • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
| • | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
| • | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. | |
| • | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fund creates leverage by 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. |
Janus Preservation Series | 39
Table of Contents
Notes to Financial Statements (continued)
| • | 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.
During the year, the Funds sold futures on equity indices to decrease exposure to equity risk.
The following table provides average ending monthly market value amounts on sold futures contracts during the year ended September 30, 2014.
| Fund | Sold | |||||
| Janus Preservation Series - Global | $ | 194,130 | ||||
| Janus Preservation Series - Growth | 1,533,863 | |||||
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 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
40 | SEPTEMBER 30, 2014
Table of Contents
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.
During the year, the Funds purchased call options on various equity indices for the purpose of increasing exposure to broad equity risk.
The following table provides average ending monthly market value amounts on purchased call options during the year ended September 30, 2014.
| Purchased Zero-Strike | ||||||
| Fund | Call Options | |||||
| Janus Preservation Series - Global | $ | 153,454 | ||||
| Janus Preservation Series - Growth | 700,208 | |||||
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 September 30, 2014.
Fair Value of Derivative Instruments as of September 30, 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 | $ | 26,844 | |||||||||
| Equity Contracts | Variation margin payable | 792 | ||||||||||
| Total | $ | 0 | $ | 27,636 | ||||||||
Janus Preservation Series - Growth | ||||||||||||
| Capital Protection Agreement | Capital protection agreement | $ | 0 | |||||||||
| Equity Contracts | Purchased options - zero strike calls | $ | 110,096 | |||||||||
Janus Preservation Series | 41
Table of Contents
Notes to Financial Statements (continued)
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the year ended September 30, 2014.
The effect of Derivative Instruments on the Statements of Operations for the year ended September 30, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||
| Derivatives not accounted for as | Investments and foreign | Purchased options - | ||||||||||||||
| hedging instruments | currency transactions | Futures contracts | zero strike calls | Total | ||||||||||||
Janus Preservation Series - Global | ||||||||||||||||
| Equity Contracts | $ | – | $ | (210,832 | ) | $ | (32,250 | ) | $ | (243,082 | ) | |||||
Janus Preservation Series - Growth | ||||||||||||||||
| Equity Contracts | $ | 119,918* | $ | (669,981 | ) | $ | (126,047 | ) | $ | (676,110 | ) | |||||
| * | 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’ | Purchased options - | ||||||||||||||
| hedging instruments | deferred compensation | Futures contracts | zero strike calls | Total | ||||||||||||
Janus Preservation Series - Global | ||||||||||||||||
| Capital Protection Agreement | $ | 0 | $ | – | $ | – | $ | 0 | ||||||||
| Equity Contracts | – | 180 | (23,287 | ) | (23,107 | ) | ||||||||||
| Total | $ | 0 | $ | 180 | $ | (23,287 | ) | $ | (23,107 | ) | ||||||
Janus Preservation Series - Growth | ||||||||||||||||
| Capital Protection Agreement | $ | 0 | $ | – | $ | – | $ | 0 | ||||||||
| Equity Contracts | 81,215* | (35,716 | ) | (91,722 | ) | (46,223 | ) | |||||||||
| Total | $ | 81,215 | $ | (35,716 | ) | $ | (91,722 | ) | $ | (46,223 | ) | |||||
| * | Amounts relate to purchased options. |
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
| 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 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 took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient each could 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 continue to impact 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. As a result, 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 provided 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
42 | SEPTEMBER 30, 2014
Table of Contents
Dodd-Frank Act remain pending and 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 increased 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 restructurings 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, 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 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. 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 with respect to financial assets and liabilities approximates its carrying value. See the “Offsetting Assets and Liabilities” section of this Note for further details.
A Fund may also be exposed to counterparty risk through participation in various programs including, but not limited to, 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 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
Janus Preservation Series | 43
Table of Contents
Notes to Financial Statements (continued)
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 instruments’ 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 instruments’ 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). For corresponding information grouped by type of instrument, see either the “Fair Value of Derivative Instruments as of September 30, 2014” table located in Note 2 of these Notes to Financial Statements and/or the applicable Fund’s Schedule of Investments.
Offsetting of Financial Liabilities and Derivative Liabilities
Janus Preservation Series - Global
| Counterparty | Gross Amounts of Recognized Liabilities | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| BNP Paribas | $ | 26,844 | $ | – | $ | – | $ | 26,844 | ||||||||||
Janus Preservation Series - Growth | ||||||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| BNP Paribas | $ | 110,096 | $ | – | $ | (20,000) | $ | 90,096 | ||||||||||
| (a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statements of Assets and Liabilities. | |
| (b) | 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 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
44 | SEPTEMBER 30, 2014
Table of Contents
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).
| Average | Contractual | |||||||||
| Daily | Investment | |||||||||
| Net Assets | Advisory | |||||||||
| Fund | of the Fund | Fee (%) | ||||||||
| 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.
Under separate distribution and shareholder servicing plans (each, a “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Funds may pay the Trust’s distributor, Janus Distributors LLC, a wholly-owned subsidiary of Janus Capital, a fee at an annual rate 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. Under the terms of each Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Funds. Payments under each 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
Janus Preservation Series | 45
Table of Contents
Notes to Financial Statements (continued)
Funds. 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 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 September 30, 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 year ended September 30, 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 $283,000 were paid by the Trust to a Trustee under the Deferred Plan during the year ended September 30, 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 $522,703 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 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 year ended September 30, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | ||||||
| Fund (Class A Shares) | Sales Charge | |||||
| Janus Preservation Series - Global | $ | 265 | ||||
| Janus Preservation Series - Growth | 6,247 | |||||
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 year ended September 30, 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 year ended September 30, 2014,
46 | SEPTEMBER 30, 2014
Table of Contents
redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | |||||
| Janus Preservation Series - Global | $ | 138 | ||||
| Janus Preservation Series - Growth | 1,696 | |||||
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 year ended September 30, 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 September 30, 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 Class | % of Fund | |||||||||
| Fund | Owned | Owned | ||||||||
| Janus Preservation Series - Global - Class A Shares | 60 | % | 13 | % | ||||||
| Janus Preservation Series - Global - Class C Shares | 76 | 12 | ||||||||
| Janus Preservation Series - Global - Class D Shares | 62 | 13 | ||||||||
| Janus Preservation Series - Global - Class I Shares | 81 | 13 | ||||||||
| Janus Preservation Series - Global - Class S Shares | 100 | 13 | ||||||||
| Janus Preservation Series - Global - Class T Shares | 93 | 13 | ||||||||
| Janus Preservation Series - Growth - Class A Shares | 18 | 5 | ||||||||
| Janus Preservation Series - Growth - Class C Shares | 18 | 5 | ||||||||
| Janus Preservation Series - Growth - Class D Shares | 39 | 5 | ||||||||
| Janus Preservation Series - Growth - Class I Shares | 41 | 5 | ||||||||
| Janus Preservation Series - Growth - Class S Shares | 100 | 5 | ||||||||
| Janus Preservation Series - Growth - Class T Shares | 41 | 5 | ||||||||
| 5. | Federal Income Tax |
The tax components of capital shown in the table below represent: (1) distribution requirements the Funds must satisfy under the income tax regulations; (2) losses or deductions the Funds may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences primarily consist of deferred compensation, derivatives and foreign currency contract adjustments. 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 Funds have elected to defer post-October losses and qualified late-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| Undistributed | Undistributed | Loss Deferrals | Other Book | ||||||||||||||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year | Post-October | to Tax | Net Tax | |||||||||||||||||||||||||
| Fund | Income | Gains | Capital Losses | Loss Deferrals | Capital Loss | Differences | Appreciation | ||||||||||||||||||||||||
| Janus Preservation Series - Global | $ | 19,943 | $ | 833,384 | $ | – | $ | – | $ | – | $ | (27,678) | $ | 1,334,053 | |||||||||||||||||
| Janus Preservation Series - Growth | – | 2,589,820 | – | (573,892) | – | (111,283) | 6,061,190 | ||||||||||||||||||||||||
Janus Preservation Series | 47
Table of Contents
Notes to Financial Statements (continued)
During the year ended September 30, 2014, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| Capital Loss | ||||||||||||||||||
| Carryover | ||||||||||||||||||
| Fund | Utilized | |||||||||||||||||
| Janus Preservation Series - Growth | $ | 5,000,878 | ||||||||||||||||
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 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.
| Federal Tax | Unrealized | Unrealized | ||||||||||||
| Fund | Cost | Appreciation | (Depreciation) | |||||||||||
| Janus Preservation Series - Global | $ | 14,527,423 | $ | 1,882,195 | $ | (548,142) | ||||||||
| Janus Preservation Series - Growth | 58,798,751 | 6,864,478 | (803,288) | |||||||||||
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. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
For the year ended September 30, 2014
| Distributions | ||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||
| Janus Preservation Series - Global | $ | 33,405 | $ | 269,482 | $ | – | $ | – | ||||||||||||||
| Janus Preservation Series - Growth | – | – | – | (1,028,650) | ||||||||||||||||||
For the year ended September 30, 2013 | ||||||||||||||||||||||
| Distributions | ||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||
| Janus Preservation Series - Global | $ | – | $ | – | $ | – | $ | (83,287) | ||||||||||||||
| Janus Preservation Series - Growth | – | – | – | (1,522,068) | ||||||||||||||||||
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Funds:
| Increase/(Decrease) | Increase/(Decrease) | |||||||||||||
| Increase/(Decrease) | to Undistributed Net | to Undistributed Net | ||||||||||||
| Fund | to Capital | Investment Income/Loss | Realized Gain/Loss | |||||||||||
| Janus Preservation Series - Global | $ | – | $ | 106,845 | $ | (106,845) | ||||||||
| Janus Preservation Series - Growth | (1,028,649) | 990,327 | 38,322 | |||||||||||
48 | SEPTEMBER 30, 2014
Table of Contents
| 6. | Capital Share Transactions |
| Janus Preservation | Janus Preservation | |||||||||||||||||
| Series - Global | Series - Growth | |||||||||||||||||
| For each year ended September 30 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 20,948 | 66,256 | 97,489 | 268,911 | ||||||||||||||
| Reinvested dividends and distributions | 5,941 | – | – | – | ||||||||||||||
| Shares repurchased | (32,560) | (96,811) | (668,568) | (3,170,057) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (5,671) | (30,555) | (571,079) | (2,901,146) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 273,011 | 303,566 | 2,342,318 | 5,243,464 | ||||||||||||||
| Shares Outstanding, End of Period | 267,340 | 273,011 | 1,771,239 | 2,342,318 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 19,212 | 17,195 | 127,967 | 200,499 | ||||||||||||||
| Reinvested dividends and distributions | 4,416 | – | – | – | ||||||||||||||
| Shares repurchased | (8,424) | (5,562) | (518,653) | (1,930,502) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 15,204 | 11,633 | (390,686) | (1,730,003) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 198,818 | 187,185 | 2,225,240 | 3,955,243 | ||||||||||||||
| Shares Outstanding, End of Period | 214,022 | 198,818 | 1,834,554 | 2,225,240 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 83,206 | 51,212 | 215,995 | 255,620 | ||||||||||||||
| Reinvested dividends and distributions | 4,530 | – | – | – | ||||||||||||||
| Shares repurchased | (35,258) | (23,575) | (205,774) | (259,288) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 52,478 | 27,637 | 10,221 | (3,668) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 209,043 | 181,406 | 820,277 | 823,945 | ||||||||||||||
| Shares Outstanding, End of Period | 261,521 | 209,043 | 830,498 | 820,277 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 42,168 | 23,654 | 128,054 | 376,542 | ||||||||||||||
| Reinvested dividends and distributions | 3,915 | – | – | – | ||||||||||||||
| Shares repurchased | (29,992) | (3,016) | (406,270) | (1,321,104) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 16,091 | 20,638 | (278,216) | (944,562) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 183,078 | 162,440 | 1,078,727 | 2,023,289 | ||||||||||||||
| Shares Outstanding, End of Period | 199,169 | 183,078 | 800,511 | 1,078,727 | ||||||||||||||
| 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 | 16,789 | 13,794 | 33,467 | 68,741 | ||||||||||||||
| Reinvested dividends and distributions | 3,595 | – | – | – | ||||||||||||||
| Shares repurchased | (18,602) | (2,359) | (526,520) | (537,020) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,782 | 11,435 | (493,053) | (468,279) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 171,949 | 160,514 | 1,290,200 | 1,758,479 | ||||||||||||||
| Shares Outstanding, End of Period | 173,731 | 171,949 | 797,147 | 1,290,200 | ||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. |
Janus Preservation Series | 49
Table of Contents
Notes to Financial Statements (continued)
| 7. | Purchases and Sales of Investment Securities |
For the year ended September 30, 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 | $ | 12,574,370 | $ | 12,065,093 | $ | – | $ | – | |||||||||
| Janus Preservation Series - Growth | 75,340,889 | 72,327,625 | – | 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 September 30, 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.
50 | SEPTEMBER 30, 2014
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders
of Janus Investment Fund:
of Janus Investment Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Janus Preservation Series – Growth (formerly named Janus Protected Series – Growth) and Janus Preservation Series – Global (formerly named Janus Protected Series – Global) (two of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at September 30, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
November 14, 2014
Janus Preservation Series | 51
Table of Contents
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
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
52 | SEPTEMBER 30, 2014
Table of Contents
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 |
Janus Preservation Series | 53
Table of Contents
Additional Information (unaudited) (continued)
| 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. |
54 | SEPTEMBER 30, 2014
Table of Contents
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 |
Janus Preservation Series | 55
Table of Contents
Additional Information (unaudited) (continued)
| 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 |
56 | SEPTEMBER 30, 2014
Table of Contents
| 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,
Janus Preservation Series | 57
Table of Contents
Additional Information (unaudited) (continued)
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. |
58 | SEPTEMBER 30, 2014
Table of Contents
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 |
Janus Preservation Series | 59
Table of Contents
Additional Information (unaudited) (continued)
| 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 |
60 | SEPTEMBER 30, 2014
Table of Contents
| 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
Janus Preservation Series | 61
Table of Contents
Additional Information (unaudited) (continued)
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.
62 | SEPTEMBER 30, 2014
Table of Contents
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 September 30, 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 Preservation Series | 63
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
64 | SEPTEMBER 30, 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 Preservation Series | 65
Table of Contents
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the year ended September 30, 2014:
Capital Gain Distributions
| Fund | ||||||||||
| Janus Preservation Series - Global | $ | 269,482 | ||||||||
Dividends Received Deduction Percentage
| Fund | ||||||||||
| Janus Preservation Series - Global | 100 | % | ||||||||
| Janus Preservation Series - Growth | 100 | |||||||||
Qualified Dividend Income Percentage
| Fund | ||||||||||
| Janus Preservation Series - Global | 100 | % | ||||||||
| Janus Preservation Series - Growth | 100 | |||||||||
66 | SEPTEMBER 30, 2014
Table of Contents
Trustees and Officers (unaudited)
Each Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Funds’ Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Funds’ Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 58 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Funds may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
Independent Trustees | ||||||||||
| William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | Chairman Trustee | 1/08-Present 6/02-Present | Chief Executive Officer, Imprint Capital (impact investment firm) (since 2013), and Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 58 | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds), and Director of the F.B. Heron Foundation (a private grantmaking foundation). | |||||
Janus Preservation Series | 67
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Alan A. Brown 151 Detroit Street Denver, CO 80206 DOB: 1962 | Trustee | 1/13-Present | Managing Director, Institutional Markets, of Dividend Capital Group (private equity real estate investment management firm) (since 2012). Formerly, Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 58 | Director of MotiveQuest LLC (strategic social market research company) (since 2003), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of Nuveen Global Investors LLC (2007-2011); Director of Communities in Schools (2004-2010); and Director of Mutual Fund Education Alliance (until 2010). | |||||
| William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | Trustee | 1/11-Present | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgewater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 58 | Managing Trustee of National Retirement Partners Liquidating Trust (since 2013). Formerly, Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). | |||||
68 | SEPTEMBER 30, 2014
Table of Contents
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | Trustee | 1/97-Present | Co-founder and Managing Director of Roaring Fork Capital SBIC, L.P. (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004), and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | 58 | Formerly, Director of Red Robin Gourmet Burgers, Inc. (RRGB) (2004- 2014). | |||||
| William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | Trustee | 6/84-Present | Retired. Formerly, Corporate Vice President and General Manager of MKS Instruments - HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products) (1976-2012). | 58 | None | |||||
Janus Preservation Series | 69
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 58 | Director of Chicago Community Trust (Regional Community Foundation), Chicago Council on Global Affairs, The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Lurie Children’s Hospital (Chicago, IL), Rehabilitation Institute of Chicago, Walmart, and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Convention & Tourism Bureau (until 2014). | |||||
Trustee Consultant | ||||||||||
| Raudline Etienne 151 Detroit Street Denver, CO 80206 DOB: 1965 | Consultant | 6/14-Present | Senior Vice President, Albright Stonebridge Group LLC (global strategy firm) (since 2011). Formerly, Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | N/A | None | |||||
70 | SEPTEMBER 30, 2014
Table of Contents
OFFICERS
| Positions Held | Term of Office* and | Principal Occupations | ||||
| Name, Address, and Age | with the Trust | Length of Time Served | During the Past Five Years | |||
| Jonathan D. Coleman 151 Detroit Street Denver, CO 80206 DOB: 1971 | Executive Vice President and Portfolio Manager Janus Preservation Series - Growth Executive Vice President and Portfolio Manager Janus Preservation Series - Global | 4/11-Present 12/11-Present | Executive Vice President of Janus Capital and Portfolio Manager for other Janus accounts. Formerly, Co-Chief Investment Officer of Janus Capital (2006-2013). | |||
| Stephanie Grauerholz 151 Detroit Street Denver, CO 80206 DOB: 1970 | Chief Legal Counsel and Secretary Vice President | 1/06-Present 3/06-Present | Vice President and Assistant General Counsel of Janus Capital and Vice President and Assistant Secretary of Janus Distributors LLC. | |||
| Bruce L. Koepfgen 151 Detroit Street Denver, CO 80206 DOB: 1952 | President and Chief Executive Officer | 7/14-Present | President of Janus Capital Group Inc. and Janus Capital Management LLC (since August 2013); Executive Vice President and Director of Janus International Holding LLC (since August 2011); Executive Vice President of Janus Distributors LLC and Janus Services LLC (since July 2011); Executive Vice President and Working Director of INTECH Investment Management LLC (since July 2011); Executive Vice President and Director of Perkins Investment Management LLC (since July 2011); and Executive Vice President and Director of Janus Management Holdings Corporation (since May 2011). Formerly, Executive Vice President of Janus Capital Group Inc. and Janus Capital Management LLC (May 2011-July 2013); Chief Financial Officer of Janus Capital Group Inc., Janus Capital Management LLC, Janus Distributors LLC, Janus Management Holdings Corporation, and Janus Services LLC (July 2011-July 2013); and Co-Chief Executive Officer of Allianz Global Investors Management Partners and Chief Executive Officer of Oppenheimer Capital (2003-2009). | |||
| David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 6/02-Present | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC; and Director of The Janus Foundation. | |||
| Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | Chief Financial Officer Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present 2/05-Present | Vice President of Janus Capital and Janus Services LLC. | |||
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
Janus Preservation Series | 71
Table of Contents
Notes
72 | SEPTEMBER 30, 2014
Table of Contents
Notes
Janus Preservation Series | 73
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-1114-74726 | 125-02-01800 11-14 |
Table of Contents
annual report
September 30, 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
| 1 | ||
| 12 | ||
| 23 | ||
| 25 | ||
| 27 | ||
| 28 | ||
| 30 | ||
| 37 | ||
| 51 | ||
| 52 | ||
| 63 | ||
| 66 | ||
| 67 |
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 10.74% over the year ended September 30, 2014, underperforming its primary benchmark, the MSCI World Index, which returned 12.20% during the year. The Fund’s secondary benchmark, the MSCI All Country World Index, returned 11.32%. While we are generally pleased with the extent of our absolute gain, it is frustrating to lag a strong market. Increasingly, we see stock prices embedding significant optimism which may or may not be warranted. This makes it challenging to buy without also assuming significant downside risk. Over the past few years, stocks have seen the balance of risk and reward become much less favorable, in our view. This leads us to position the portfolio in what we believe is a cautious manner, which explains our lagging performance.
ECONOMIC OVERVIEW
Stock markets around the world continued to perform well over the year ended September 30, 2014, despite heightened volatility in the last few months of the period as investors digested a reduction in the Federal Reserve’s (Fed) securities purchase program and as foreign economies showed signs of slowing. The MSCI World Index ended September 3.7% below its all-time high in early July 2014.
The U.S. stock market was the strongest of the major developed markets over the year ended September 30, 2014, with the S&P 500 Index up more than 17%. The unbridled stock market strength that U.S. investors have enjoyed of late is now well into its sixth year, without a meaningful decline since 2011. We continue to exercise caution at these elevated valuation levels. With the S&P 500 ending the period at approximately 18x trailing 12-month earnings, valuations are not yet at a peak relative to other periods, but they are above long-term averages and appear to have a considerable amount of optimism priced in. Forward earnings estimates appear increasingly stretched, and our internal reward-to-risk ratios remain far from compelling. Given relatively higher valuations than other markets in which we can invest, we remain underweight the U.S. market.
In contrast to the strong gains posted by the U.S. equity market, the STOXX Europe 600 Index, which represents large, mid and small capitalization companies across 18 countries of the European region, rose by only 3.1% in dollar terms. We continue to believe that the massive rally in Eurozone assets since mid-2012, when the European Central Bank’s (ECB) Mario Draghi vowed to save the euro, rests upon a fragile foundation. Recent economic statistics have led some economists to begin using a new term when discussing Europe: “secular stagnation.” By this they mean that a particularly noxious mix of economic fundamentals – a very low nominal rate of growth, low and falling inflation, still high and worrisome government debt burdens and high unemployment – may mean that Europe is approaching the sort of “lost decade” experienced by Japan. Recently imposed sanctions against Russia, an important trading partner for export-oriented economies like Germany, have not helped matters. The bond market has taken notice, with yields on two-year sovereign bonds in Germany and several other countries recently turning negative. It is not often that governments can borrow two-year money and have investors pay them for the privilege. Given anemic growth and falling inflation (important countries such as Spain and Italy are now in outright deflation), many are calling for the ECB to consider a more radical program of quantitative easing, similar to what has been implemented by the Fed. We question the likely effectiveness of this given already low levels of government bond yields and the fact that financing in the euro zone is much more tied to bank lending than in the U.S. (though with European banks still overleveraged, the bond market has gained some traction over the last few years). We continue to believe the better risk/rewards in Europe are the multinationals, which aren’t completely
Janus Value Funds | 1
Table of Contents
Perkins Global Value Fund (unaudited)
dependent on local macroeconomic dynamics playing out in a benign manner.
Japan also posted weak performance relative to the U.S. The TOPIX Index, which measures stock prices on the Tokyo Stock Exchange, gained more than 11% in local yen terms, but the weakening of the yen meant the market was down slightly in dollars. Thus, the impressive market rally that began in late 2012 when Prime Minister Shinzo Abe came to power has lost steam in recent quarters. Recently revised economic growth figures showed that the sales tax hike in April 2014 did more damage than previously thought, with gross domestic product (GDP) shrinking by 1.8% in the second quarter, or 7.1% on an annualized basis. The Abe administration may have also misjudged the effects of the Bank of Japan’s (BoJ) huge quantitative easing program (note that the BoJ now owns a fifth of Japan’s outstanding government debt), as the weaker yen has failed to produce the boom in exports that many expected. This is partly because big exporters like Toyota have already moved much of their production overseas following years of yen strength. Another important pillar of Abe’s policies, structural reform, has seen limited tangible progress to date. We have trimmed our once sizable overweight position in Japan, given the strong run in many of our holdings. However, we are still identifying a reasonable number of attractive risk/reward opportunities, particularly at the lower end of the market-cap spectrum.
Emerging markets were modestly positive over the year ended September 30, 2014, reversing a small loss in the prior year to leave them roughly flat over the past two years. With large, important customers of emerging markets slowing (e.g., Europe and Japan), China’s economic growth faltering, and the Fed tapering its unconventional monetary policies, it is not surprising that emerging market stocks have struggled to make progress. While they have become a bit more interesting relative to developed market stocks given their huge underperformance since 2010, we remain concerned about the potential for a bust cycle following a huge credit cycle over the last decade-plus. Specifically, we are wary of structural imbalances in many of the countries (including, but not limited to, a reliance on foreign capital and persistent current account deficits), rapid credit growth over the last several years, deteriorating bank credit ratios, and uncertainty surrounding China’s transition from an investment-driven economy to one powered more by domestic consumption. We don’t believe emerging market stock valuations, generally, offer very compelling risk/rewards yet.
DETRACTORS FROM PERFORMANCE
Stock selection was weak in consumer staples and health care. Our underweight in information technology also hurt relative performance. From a country perspective, stock selection in the UK and Canada contributed negatively, as did our underweight exposure to the U.S. Our cash weighting continues to be sizeable and detracted from relative performance.
Individual detractors were led by Tesco, a grocery and general merchandise retailer based in the UK. For nearly three 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 but has been contracting of late. During the period, the company announced a raft of negative news. First, it admitted that management’s strategy for turning the business around has largely failed, leading the board to bring in its first ever “outsider” to take over as CEO and leaving investors with great uncertainty about the path forward. Second, the company announced multiple profit warnings, the last of which entailed accounting irregularities discovered by new management. Third, the company cut its interim dividend and is thought to be mulling a rights issue to more easily deal with this period of reduced profitability. This investment has been a costly mistake for us thus far, but as we examine the current market price relative to asset value and our reduced view of long-term earnings power, we believe the near-term headwinds are more than reflected in the stock.
Rogers Communications, another detractor, is the largest wireless telecommunications and cable TV provider in Canada. The stock declined during the period after reporting weaker-than-expected results in early 2014. The company is in the middle of a transitional year following the appointment of new leadership and the introduction of lower pricing in its wireless plans. Further, an ongoing regulatory overhang (the Canadian government has said it would like to see more competition in the wireless market) has continued to dampen investor sentiment towards this high quality franchise. We believe short-term headwinds should moderate as pricing plans complete their first year and as smartphone data consumption continues to grow. With its strong competitive position, robust balance sheet and generation of free cash flow, which the company has historically returned to shareholders, we believe Rogers remains an attractive risk/reward.
Rounding out the list of detractors was GlaxoSmithKline, a leading global health care company based in the UK. Glaxo has struggled to grow its earnings over the past few years due largely to pricing and volume pressure in its
2 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
legacy product portfolio, legal/operating problems in the U.S. and China, and a pipeline that has not delivered new products of sufficient scale to offset this. During the period, the company reported weak operating results and lowered its full year guidance to an expectation of zero profit growth, from a prior expectation of positive growth. While disappointing, we continue to believe that profits and cash flow are near trough and that the business is capable of reasonable growth over our investment time horizon. In the meantime, the stock trades at a discount to the sector and offers a dividend yield of nearly 6%.
CONTRIBUTORS TO PERFORMANCE
Stock selection in industrials aided relative results for the year, as did our underweight exposures to the consumer discretionary and materials sectors. From a country perspective, stock selection in Japan and Mexico contributed to performance, as did our underweight in Australia. Our currency hedges were also positive in the period, with both the euro and yen weakening against the U.S. dollar.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Individual contributors were led by Microsoft, which makes software for a variety of consumer and enterprise applications, and derives a majority of its profits from three main areas: PC operating systems, business software applications (including its Office franchise), and server & database operating systems. During the period, the company reported strong results in its core software business. Revenue increased by more than 10% in the fiscal year ended June 30, 2014, led by growth in its enterprise-related server and tools division. Deferred revenue also increased strongly, giving us increased confidence in the longer-term health of the business. While the acquisition of Nokia’s handset division will weigh on profit margins and growth of the total company, Microsoft announced significant cost cuts to that division. We continue to hold a sizable position in the company as we believe its risk/reward remains attractive, despite recent appreciation.
America Movil, another contributor, is one of the world’s largest integrated telecommunications companies with over 300 million access lines in nearly 20 Latin American countries. The shares struggled in early 2014 in anticipation of regulatory changes in Mexico, the company’s most important market. Despite the regulatory overhang, we believed that America Movil’s unrivaled scale and diversification of operations, large free cash flow and strong balance sheet were significant competitive advantages that limited potential downside and would enable the company to weather the storm. Early in 3Q14, the same day the lower house in Mexico passed the new Telecom Laws, America Movil announced a series of planned divestments in its Mexican business that will allow it to abide by the new regulations but also maximize the value of its assets and give the company significant capital to deploy into better opportunities elsewhere. The market responded favorably to the news.
Wells Fargo, which also contributed, is one of the largest consumer banks in the U.S. and is well diversified into commercial lending, capital markets, and wealth management. Wells Fargo’s diversified business model yielded strong quarterly earnings reports during the period, leading to stock outperformance. Additionally, the high quality of Wells Fargo’s business was highlighted by favorable results in the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR), a study in which other large banks did not fare as well. We believe that the diversified business model combined with Wells Fargo’s strong balance sheet and 11.3% Tier One Common equity ratio position the company well throughout the economic cycle. With the stock trading near its five-year average earnings multiple, we believe the stock is still attractively valued.
PORTFOLIO POSITIONING & OUTLOOK
In our recently published whitepaper “Out of Sight, Out of Mind,” we encourage investors to consider the notion that as markets soar, it will benefit them to keep risk in their field of vision. Global markets – both stocks and bonds – have delivered remarkable gains to investors during the past five years. It appears to us that the balance between greed and fear that tends to drive markets, especially in later cycle stages, has tipped firmly toward greed, with investors more interested in maximizing gains (or “reaching for yield”) than in avoiding losses should volatility re-emerge. While it can be easy to forget about risk when stocks are rising, it is important to remember what Benjamin Graham called “tides of pessimism and euphoria that sweep the market,” and avoid being lulled into a false sense of security by several years of strong positive returns. We propose that instead of extrapolating the recent past, investors would be better off preparing for a changing market. Even a casual review of the economic situation reveals a number of alarming issues, including the ongoing euro crisis, the Federal Reserve’s “exit” strategy and China’s changing growth dynamics, among many others. Much more importantly, though, our stock-level research is uncovering significant downside
Janus Value Funds | 3
Table of Contents
Perkins Global Value Fund (unaudited)
exposures related to earnings sustainability, valuation expansion and balance sheet strength.
To that end, our portfolio is positioned with these downside risks firmly in mind. Specifically, we are overweight sectors which typically exhibit stable cash flows that are relatively less economically sensitive than the broad market. We believe the earnings streams from our holdings will prove more sustainable as a result. These include consumer staples, telecommunication services, utilities and health care. Valuation expansion has occurred in many of the developed markets over the past few years, and in our mind is most pronounced today in the U.S., where the Shiller P/E, an inflation-adjusted measure using the past 10 years of earnings, has expanded to roughly 25x, as compared to the long-term average of roughly 15x to 16x. We are significantly underweight the U.S. market, as we aim to avoid the potential trap of paying too much but ultimately receiving too little in the form of future returns, as has often been the case historically when valuations reached the current level. While we tend to steer clear of highly leveraged balance sheets as a matter of basic process, we are attempting to be especially mindful of both the extent and use of leverage in the current environment, which to us is characterized by extremely easy credit markets which may become tighter in the future, and thus leave over-indulgent companies in a difficult position. Finally, we continue to hold an above average roughly 17% cash position, which as we’ve noted in the past results from our bottom up stock-level research that has yielded fewer true bargains in recent years as the worldwide rally has progressed. In summary, we believe the bulk of the companies in our portfolio can be characterized as having sustainable earnings, reasonable valuations and strong balance sheets, and thus we believe we will be somewhat shielded from a more negative market environment should one develop.
Thank you for your investment and continued confidence in Perkins Global Value Fund.
4 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Perkins Global Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Microsoft Corp. | 0.90% | |||
| America Movil SAB de CV – Series L | 0.78% | |||
| Wells Fargo & Co. | 0.67% | |||
| Johnson & Johnson | 0.56% | |||
| Novartis AG | 0.54% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Tesco PLC | –1.37% | |||
| Rogers Communications, Inc. – Class B | –0.17% | |||
| GlaxoSmithKline PLC | –0.13% | |||
| Matas A/S | –0.12% | |||
| Danone SA | –0.12% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Industrials | 0.77% | 7.33% | 11.25% | |||||||||
| Consumer Discretionary | 0.61% | 2.82% | 12.01% | |||||||||
| Financials | 0.48% | 11.98% | 20.86% | |||||||||
| Materials | 0.41% | 1.12% | 5.71% | |||||||||
| Energy | 0.39% | 7.74% | 9.64% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Other** | –2.19% | 16.94% | 0.00% | |||||||||
| Consumer Staples | –0.85% | 19.33% | 9.85% | |||||||||
| Information Technology | –0.83% | 6.52% | 12.21% | |||||||||
| Health Care | –0.51% | 14.18% | 11.61% | |||||||||
| Utilities | 0.16% | 4.86% | 3.23% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Value Funds | 5
Table of Contents
Perkins Global Value Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| Wells Fargo & Co. Commercial Banks | 2.6% | |||
| America Movil SAB de CV – Series L Wireless Telecommunication Services | 2.6% | |||
| Procter & Gamble Co. Household Products | 2.6% | |||
| Oracle Corp. Software | 2.5% | |||
| Coca-Cola Co. Beverages | 2.5% | |||
| 12.8% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
6 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| One | Five | Ten | Since | Total Annual Fund | |||||||
| Year | Year | Year | Inception* | Operating Expenses | |||||||
| Perkins Global Value Fund – Class A Shares | |||||||||||
| NAV | 10.71% | 10.48% | 6.57% | 6.85% | 1.10% | ||||||
| MOP | 4.36% | 9.18% | 5.94% | 6.37% | |||||||
| Perkins Global Value Fund – Class C Shares | |||||||||||
| NAV | 9.80% | 9.84% | 5.86% | 6.12% | 1.89% | ||||||
| CDSC | 8.80% | 9.84% | 5.86% | 6.12% | |||||||
| Perkins Global Value Fund – Class D Shares(1) | 10.84% | 10.69% | 6.79% | 7.07% | 0.98% | ||||||
| Perkins Global Value Fund – Class I Shares | 10.97% | 10.60% | 6.75% | 7.04% | 0.82% | ||||||
| Perkins Global Value Fund – Class N Shares | 11.01% | 10.60% | 6.75% | 7.04% | 0.78% | ||||||
| Perkins Global Value Fund – Class S Shares | 10.46% | 10.30% | 6.49% | 6.75% | 1.29% | ||||||
| Perkins Global Value Fund – Class T Shares | 10.74% | 10.60% | 6.75% | 7.04% | 1.03% | ||||||
| MSCI World IndexSM | 12.20% | 10.86% | 7.12% | 5.46% | |||||||
| MSCI All Country World IndexSM | 11.32% | 10.07% | 7.28% | 5.72% | |||||||
| Morningstar Quartile – Class T Shares | 2nd | 2nd | 3rd | 2nd | |||||||
| Morningstar Ranking – based on total return for World Stock Funds | 417/1,150 | 389/780 | 308/480 | 156/406 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
See important disclosures on the next page.
Janus Value Funds | 7
Table of Contents
Perkins Global Value Fund (unaudited)
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s 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 of 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. |
8 | SEPTEMBER 30, 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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,019.50 | $ | 5.47 | $ | 1,000.00 | $ | 1,019.65 | $ | 5.47 | 1.08% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,015.60 | $ | 9.30 | $ | 1,000.00 | $ | 1,015.84 | $ | 9.30 | 1.84% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,020.70 | $ | 4.71 | $ | 1,000.00 | $ | 1,020.41 | $ | 4.71 | 0.93% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,021.00 | $ | 4.05 | $ | 1,000.00 | $ | 1,021.06 | $ | 4.05 | 0.80% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,021.10 | $ | 3.80 | $ | 1,000.00 | $ | 1,021.31 | $ | 3.80 | 0.75% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,018.60 | $ | 6.33 | $ | 1,000.00 | $ | 1,018.80 | $ | 6.33 | 1.25% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,019.40 | $ | 5.06 | $ | 1,000.00 | $ | 1,020.06 | $ | 5.06 | 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 183/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Value Funds | 9
Table of Contents
Perkins Global Value Fund
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 82.6% | ||||||||||
| Aerospace & Defense – 0.7% | ||||||||||
| 15,219 | General Dynamics Corp. | $ | 1,934,183 | |||||||
| Air Freight & Logistics – 0.9% | ||||||||||
| 227,322 | UTi Worldwide, Inc. (U.S. Shares) | 2,416,433 | ||||||||
| Beverages – 6.2% | ||||||||||
| 422,349 | C&C Group PLC | 2,238,994 | ||||||||
| 164,232 | Coca-Cola Co. | 7,006,137 | ||||||||
| 68,079 | PepsiCo, Inc. | 6,337,474 | ||||||||
| 419,876 | Stock Spirits Group PLC | 1,983,441 | ||||||||
| | ||||||||||
| 17,566,046 | ||||||||||
| Chemicals – 1.0% | ||||||||||
| 29,210 | Mosaic Co. | 1,297,216 | ||||||||
| 75,200 | Nippon Fine Chemical Co., Ltd. | 547,552 | ||||||||
| 137,000 | Nitto FC Co., Ltd. | 831,198 | ||||||||
| | ||||||||||
| 2,675,966 | ||||||||||
| Commercial Banks – 6.1% | ||||||||||
| 98,857 | BB&T Corp. | 3,678,469 | ||||||||
| 119,665 | CIT Group, Inc. | 5,499,803 | ||||||||
| 52,535 | Fulton Financial Corp. | 582,088 | ||||||||
| 143,772 | Wells Fargo & Co. | 7,457,454 | ||||||||
| | ||||||||||
| 17,217,814 | ||||||||||
| Commercial Services & Supplies – 4.3% | ||||||||||
| 1,177,825 | G4S PLC | 4,775,340 | ||||||||
| 120,434 | Republic Services, Inc. | 4,699,335 | ||||||||
| 31,100 | Secom Co., Ltd. | 1,854,535 | ||||||||
| 33,200 | Secom Joshinetsu Co., Ltd. | 861,464 | ||||||||
| | ||||||||||
| 12,190,674 | ||||||||||
| Communications Equipment – 0.7% | ||||||||||
| 56,095 | Cisco Systems, Inc. | 1,411,911 | ||||||||
| 26,600 | Icom, Inc. | 666,785 | ||||||||
| | ||||||||||
| 2,078,696 | ||||||||||
| Diversified Consumer Services – 0.2% | ||||||||||
| 121,900 | Shingakukai Co., Ltd. | 431,038 | ||||||||
| Diversified Telecommunication Services – 0.8% | ||||||||||
| 73,261 | Telenor ASA | 1,608,180 | ||||||||
| 11,330 | Verizon Communications, Inc. | 568,313 | ||||||||
| | ||||||||||
| 2,176,493 | ||||||||||
| Electric Utilities – 4.4% | ||||||||||
| 23,445 | Entergy Corp. | 1,813,002 | ||||||||
| 110,770 | Exelon Corp. | 3,776,149 | ||||||||
| 204,790 | PPL Corp. | 6,725,304 | ||||||||
| | ||||||||||
| 12,314,455 | ||||||||||
| Electrical Equipment – 0.4% | ||||||||||
| 96,900 | Cosel Co., Ltd. | 1,147,565 | ||||||||
| Electronic Equipment, Instruments & Components – 0.3% | ||||||||||
| 69,800 | Kitagawa Industries Co., Ltd. | 718,084 | ||||||||
| Food & Staples Retailing – 3.3% | ||||||||||
| 118,395 | Sysco Corp. | 4,493,090 | ||||||||
| 1,650,697 | Tesco PLC | 4,937,326 | ||||||||
| | ||||||||||
| 9,430,416 | ||||||||||
| Food Products – 5.7% | ||||||||||
| 91,033 | Danone SA | 6,076,638 | ||||||||
| 45,625 | Nestle SA | 3,347,281 | ||||||||
| 477,670 | Orkla ASA | 4,324,119 | ||||||||
| 59,244 | Unilever NV | 2,354,661 | ||||||||
| | ||||||||||
| 16,102,699 | ||||||||||
| Health Care Equipment & Supplies – 2.4% | ||||||||||
| 6,820 | Becton Dickinson and Co. | 776,184 | ||||||||
| 5,900 | Medikit Co., Ltd. | 184,677 | ||||||||
| 35,040 | Medtronic, Inc. | 2,170,728 | ||||||||
| 17,900 | Nakanishi, Inc. | 659,792 | ||||||||
| 36,595 | Stryker Corp. | 2,955,046 | ||||||||
| | ||||||||||
| 6,746,427 | ||||||||||
| Health Care Providers & Services – 0.5% | ||||||||||
| 45,200 | As One Corp. | 1,417,572 | ||||||||
| Household Products – 2.6% | ||||||||||
| 86,818 | Procter & Gamble Co. | 7,270,139 | ||||||||
| Insurance – 1.1% | ||||||||||
| 22,020 | Allstate Corp. | 1,351,367 | ||||||||
| 72,200 | Sompo Japan Nipponkoa Holdings, Inc. | 1,754,480 | ||||||||
| | ||||||||||
| 3,105,847 | ||||||||||
| Machinery – 0.1% | ||||||||||
| 27,654 | Sansei Technologies, Inc. | 147,931 | ||||||||
| Media – 1.8% | ||||||||||
| 30,240 | Daekyo Co., Ltd. | 209,966 | ||||||||
| 103,389 | Grupo Televisa SAB (ADR) | 3,502,819 | ||||||||
| 158,838 | UBM PLC | 1,495,231 | ||||||||
| | ||||||||||
| 5,208,016 | ||||||||||
| Multi-Utilities – 0.8% | ||||||||||
| 61,587 | GDF Suez | 1,540,148 | ||||||||
| 45,539 | Suez Environment Co. | 766,858 | ||||||||
| | ||||||||||
| 2,307,006 | ||||||||||
| Oil, Gas & Consumable Fuels – 7.4% | ||||||||||
| 130,853 | BP PLC (ADR) | 5,750,989 | ||||||||
| 42,082 | Canadian Natural Resources, Ltd. | 1,635,103 | ||||||||
| 167,253 | Cenovus Energy, Inc. | 4,500,208 | ||||||||
| 31,362 | Devon Energy Corp. | 2,138,261 | ||||||||
| 147,285 | Royal Dutch Shell PLC – Class A | 5,616,910 | ||||||||
| 19,329 | Total SA | 1,249,042 | ||||||||
| | ||||||||||
| 20,890,513 | ||||||||||
| Personal Products – 0.2% | ||||||||||
| 10,800 | Pola Orbis Holdings, Inc. | 423,349 | ||||||||
| Pharmaceuticals – 9.7% | ||||||||||
| 287,897 | GlaxoSmithKline PLC | 6,588,383 | ||||||||
| 58,501 | Johnson & Johnson | 6,235,622 | ||||||||
| 61,774 | Novartis AG | 5,818,976 | ||||||||
| 121,090 | Pfizer, Inc. | 3,580,631 | ||||||||
| 8,609 | Roche Holding AG | 2,549,677 | ||||||||
| 23,271 | Sanofi | 2,625,004 | ||||||||
| | ||||||||||
| 27,398,293 | ||||||||||
| Real Estate Investment Trusts (REITs) – 2.5% | ||||||||||
| 80,135 | American Capital Agency Corp. | 1,702,869 | ||||||||
| 68,040 | Hatteras Financial Corp. | 1,221,998 | ||||||||
| 340,149 | Two Harbors Investment Corp. | 3,289,241 | ||||||||
| 64,033 | Western Asset Mortgage Capital Corp. | 946,408 | ||||||||
| | ||||||||||
| 7,160,516 | ||||||||||
| Real Estate Management & Development – 0.6% | ||||||||||
| 94,000 | Cheung Kong Holdings, Ltd. | 1,542,756 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | SEPTEMBER 30, 2014
Table of Contents
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Software – 5.3% | ||||||||||
| 106,445 | Lectra | $ | 1,088,912 | |||||||
| 147,159 | Microsoft Corp. | 6,822,291 | ||||||||
| 184,585 | Oracle Corp. | 7,065,914 | ||||||||
| | ||||||||||
| 14,977,117 | ||||||||||
| Specialty Retail – 0.8% | ||||||||||
| 103,012 | Matas A/S | 2,368,708 | ||||||||
| Technology Hardware, Storage & Peripherals – 0.5% | ||||||||||
| 40,400 | Canon, Inc. | 1,314,086 | ||||||||
| Thrifts & Mortgage Finance – 1.5% | ||||||||||
| 292,975 | Capitol Federal Financial, Inc. | 3,462,965 | ||||||||
| 39,629 | Washington Federal, Inc. | 806,846 | ||||||||
| | ||||||||||
| 4,269,811 | ||||||||||
| Tobacco – 2.1% | ||||||||||
| 19,190 | KT&G Corp. | 1,717,623 | ||||||||
| 131,859 | Swedish Match AB | 4,259,081 | ||||||||
| | ||||||||||
| 5,976,704 | ||||||||||
| Transportation Infrastructure – 1.2% | ||||||||||
| 319,529 | BBA Aviation PLC | 1,682,311 | ||||||||
| 73,668 | Hamburger Hafen und Logistik AG | 1,753,387 | ||||||||
| | ||||||||||
| 3,435,698 | ||||||||||
| Wireless Telecommunication Services – 6.5% | ||||||||||
| 5,881,767 | America Movil SAB de CV – Series L | 7,428,199 | ||||||||
| 136,600 | NTT DOCOMO, Inc. | 2,281,706 | ||||||||
| 134,462 | Rogers Communications, Inc. – Class B | 5,033,619 | ||||||||
| 1,120,822 | Vodafone Group PLC | 3,694,033 | ||||||||
| | ||||||||||
| 18,437,557 | ||||||||||
| Total Common Stock (cost $204,664,980) | 232,798,608 | |||||||||
| Repurchase Agreement – 7.3% | ||||||||||
| $20,700,000 | ING Financial Markets LLC, 0.0100%, dated 9/30/14, maturing 10/1/14 to be repurchased at $20,700,006 collateralized by $20,422,206 in U.S. Treasuries 0.8750%-3.1250%, 11/30/16-9/30/21 with a value of $21,114,115 (cost $20,700,000) | 20,700,000 | ||||||||
| Total Investments (total cost $225,364,980) – 89.9% | 253,498,608 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 10.1% | 28,553,552 | |||||||||
| Net Assets – 100% | $ | 282,052,160 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 132,192,871 | 52 | .2% | ||||
| United Kingdom | 36,523,964 | 14 | .4 | |||||
| Japan | 15,241,814 | 6 | .0 | |||||
| France | 13,346,602 | 5 | .3 | |||||
| Switzerland | 11,715,934 | 4 | .6 | |||||
| Canada | 11,168,930 | 4 | .4 | |||||
| Mexico | 10,931,018 | 4 | .3 | |||||
| Norway | 5,932,299 | 2 | .3 | |||||
| Sweden | 4,259,081 | 1 | .7 | |||||
| Denmark | 2,368,708 | 0 | .9 | |||||
| Netherlands | 2,354,661 | 0 | .9 | |||||
| Ireland | 2,238,994 | 0 | .9 | |||||
| South Korea | 1,927,589 | 0 | .8 | |||||
| Germany | 1,753,387 | 0 | .7 | |||||
| Hong Kong | 1,542,756 | 0 | .6 | |||||
| Total | $ | 253,498,608 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 8.2%. |
Schedule of Forward Currency Contracts, Open
| �� | ||||||||||||
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| Euro 10/23/14 | 1,865,000 | $ | 2,355,661 | $ | 44,669 | |||||||
| Japanese Yen 10/23/14 | 350,000,000 | 3,192,236 | 29,295 | |||||||||
| 5,547,897 | 73,964 | |||||||||||
| HSBC Securities (USA), Inc.: Japanese Yen 10/9/14 | 353,000,000 | 3,219,226 | 182,167 | |||||||||
| JPMorgan Chase & Co.: Euro 10/16/14 | 3,654,000 | 4,615,093 | 114,959 | |||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| Euro 10/16/14 | 2,288,000 | 2,889,801 | 77,735 | |||||||||
| Japanese Yen 10/16/14 | 318,000,000 | 2,900,207 | 119,080 | |||||||||
| 5,790,008 | 196,815 | |||||||||||
| Total | $ | 19,172,224 | $ | 567,905 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 11
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 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 5.61% over the year ended September 30, 2014, outperforming its primary benchmark, the MSCI EAFE Index, which returned 4.25% during the year. The Fund also outperformed its secondary benchmark, the MSCI All Country World ex-U.S. Index, which returned 4.77% in the same period. Increasingly, we see stock prices embedding significant optimism which may or may not be warranted. This makes it challenging to buy without also assuming significant downside risk. Over the past few years, stocks have seen the balance of risk and reward become much less favorable, in our view. This leads us to position the portfolio in what we believe is a cautious manner.
ECONOMIC OVERVIEW
Developed stock markets outside North America were somewhat volatile over the year ended September 30, 2014, with the MSCI EAFE Index gaining nearly 10% through early July before falling more than 7% to end the period up just 1.5% (each of these figures exclude dividends). The selloff came as investors digested a reduction in the Federal Reserve’s (Fed) securities purchase program and as foreign economies showed signs of slowing.
The STOXX Europe 600 Index, which represents large, mid and small capitalization companies across 18 countries of the European region, rose by 3.1% in dollar terms. We continue to believe that the massive rally in Eurozone assets since mid-2012, when the European Central Bank’s (ECB) Mario Draghi vowed to save the euro, rests upon a fragile foundation. Recent economic statistics have led some economists to begin using a new term when discussing Europe: “secular stagnation.” By this they mean that a particularly noxious mix of economic fundamentals – a very low nominal rate of growth, low and falling inflation, still high and worrisome government debt burdens and high unemployment – may mean that Europe is approaching the sort of “lost decade” experienced by Japan. Recently imposed sanctions against Russia, an important trading partner for export-oriented economies like Germany, have not helped matters. The bond market has taken notice, with yields on two-year sovereign bonds in Germany and several other countries recently turning negative. It is not often that governments can borrow two-year money and have investors pay them for the privilege. Given anemic growth and falling inflation (important countries such as Spain and Italy are now in outright deflation), many are calling for the ECB to consider a more radical program of quantitative easing, similar to what has been implemented by the Fed. We question the likely effectiveness of this given already low levels of government bond yields and the fact that financing in the euro zone is much more tied to bank lending than in the U.S. (though with European banks still overleveraged, the bond market has gained some traction over the last few years). We continue to believe the better risk/rewards in Europe are the multinationals, which aren’t completely dependent on local macroeconomic dynamics playing out in a benign manner.
The TOPIX Index, which measures stock prices on the Tokyo Stock Exchange, gained more than 11% in local yen terms, but the weakening of the yen meant the market was down slightly in dollars. Thus, the impressive market rally that began in late 2012 when Prime Minister Shinzo Abe came to power has lost steam in recent quarters. Recently revised economic growth figures showed that the sales tax hike in April 2014 did more damage than previously thought, with gross domestic product (GDP) shrinking by 1.8% in the second quarter, or 7.1% on an annualized basis. The Abe administration may have also misjudged the effects of the Bank of Japan’s (BoJ) huge quantitative easing program (note that the BoJ now owns a fifth of Japan’s outstanding government debt), as the weaker yen has failed to produce the boom in exports that many expected. This is partly because big exporters like Toyota have already moved much of their
12 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
production overseas following years of yen strength. Another important pillar of Abe’s policies, structural reform, has seen limited tangible progress to date. We have trimmed our once sizable overweight position in Japan, given the strong run in many of our holdings. However, we are still identifying a reasonable number of attractive risk/reward opportunities, particularly at the lower end of the market-cap spectrum.
Emerging markets were modestly positive over the year ended September 30, 2014, reversing a small loss in the prior year to leave them roughly flat over the past two years. With large, important customers of emerging markets slowing (e.g., Europe and Japan), China’s economic growth faltering, and the Fed tapering its unconventional monetary policies, it is not surprising that emerging market stocks have struggled to make progress. While they have become a bit more interesting relative to developed market stocks given their huge underperformance since 2010, we remain concerned about the potential for a bust cycle following a huge credit cycle over the last decade-plus. Specifically, we are wary of structural imbalances in many of the countries (including, but not limited to, a reliance on foreign capital and persistent current account deficits), rapid credit growth over the last several years, deteriorating bank credit ratios, and uncertainty surrounding China’s transition from an investment-driven economy to one powered more by domestic consumption. We don’t believe emerging market stock valuations, generally, offer very compelling risk/rewards yet.
DETRACTORS FROM PERFORMANCE
Stock selection was weak in consumer staples and information technology. Our underweight positions in utilities also negatively impacted relative performance during the year. From a country perspective, stock selection in the UK and Denmark contributed negatively, as did our underweight exposure to Spain. Our cash weighting continues to be sizeable and detracted from relative performance.
Individual detractors were led by Tesco, a grocery and general merchandise retailer based in the UK. For nearly three 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 but has been contracting of late. During the period, the company announced a raft of negative news. First, it admitted that management’s strategy for turning the business around has largely failed, leading the board to bring in its first ever “outsider” to take over as CEO and leaving investors with great uncertainty about the path forward. Second, the company announced multiple profit warnings, the last of which entailed accounting irregularities discovered by new management. Third, the company cut its interim dividend and is thought to be mulling a rights issue to more easily deal with this period of reduced profitability. This investment has been a costly mistake for us thus far, but as we examine the current market price relative to asset value and our reduced view of long-term earnings power, we believe the near-term headwinds are more than reflected in the stock.
HeidelbergCement, another detractor, is the #3 global producer of cement and the top producer of aggregates. Global cement stocks rallied in 2Q14 after the announcement of a merger between #1 and #2 players Holcim and Lafarge, but have drifted subsequently given the long regulatory approval process for Lafarge-Holcim and macroeconomic concerns. Specific to HeidelbergCement, margins have recently declined in its highly profitable Indonesian business due to foreign currency weakness, reduced energy subsidies from the government, and a volume slowdown in advance of elections. We believe these risks are overly reflected in the share price. With cement volumes down 40% and 50% from the peak in the U.S. and Europe, combined with a relatively more stable portfolio of emerging market exposures, we believe HeidelbergCement offers limited downside from current levels and is well positioned to benefit from a recovery in developed markets.
Rounding out the list of detractors was Michael Page International, a UK-listed professional staffing and recruitment firm. All of its geographic regions have seen acceleration in hiring and activity levels, and the company’s earnings results have been in-line with consensus expectations. However, because permanent placement (which represents roughly 75% of Michael Page’s business) is economically sensitive and lumpy, with high operating leverage and low visibility, sentiment is very sensitive to macro headlines. Thus, recent unfavorable economic developments in important markets like Brazil, Australia and continental Europe have weighed on the stock. With its earnings more than 40% below peak, a strong global franchise, a net cash balance sheet and robust cash generation (even in bad times), we believe the risk/reward remains stacked in our favor.
CONTRIBUTORS TO PERFORMANCE
Stock selection in consumer discretionary and telecommunication services aided relative results for the year, as did our underweight exposure to the materials sector. From a country perspective, stock selection in
Janus Value Funds | 13
Table of Contents
Perkins International Value Fund (unaudited)
Japan and Mexico contributed to performance, as did our underweight in Australia.
Individual contributors were led by America Movil, one of the world’s largest integrated telecom companies with over 300 million access lines in nearly 20 Latin American countries. The shares struggled in early 2014 in anticipation of regulatory changes in Mexico, the company’s most important market. Despite the regulatory overhang, we believed that America Movil’s unrivaled scale and diversification of operations, large free cash flow and strong balance sheet were significant competitive advantages that limited potential downside and would enable the company to weather the storm. Early in 3Q14, the same day the lower house in Mexico passed the new Telecom Laws, America Movil announced a series of planned divestments in its Mexican business that will allow it to abide by the new regulations but also maximize the value of its assets and give the company significant capital to deploy into better opportunities elsewhere. The market responded favorably to the news.
AstraZeneca, another contributor, is a leading global health care company based in the UK. During the period, the company released long-term revenue guidance that was well in excess of market consensus, driven in part by management’s confidence in its R&D pipeline of promising oncology and biologic products. Subsequent to this, news broke that Pfizer was interested in acquiring AstraZeneca at a price well above its then market value, fueled by tax arbitrage, operating cost synergies and a desire to benefit from Astra’s R&D pipeline. We sold our position as the stock appreciated to a level that we believed was no longer supported by the company’s operating fundamentals, leading us to conclude that potential downside meaningfully exceeded potential upside, particularly if the acquisition by Pfizer did not come to fruition.
Novartis, which also contributed, is a leading global health care company based in Switzerland. We have long felt that the company is very high quality and is capable of meaningfully higher earnings over our investment time horizon. During the period, Novartis announced a series of intelligent restructuring initiatives, including divestment of the Vaccines and Animal Health franchises at attractive prices (areas in which Novartis is subscale relative to peers and therefore has low margins), the purchase of promising oncology assets from GlaxoSmithKline (an area in which Novartis is a global top 3 player and thus competitively advantaged in sales/marketing capability and overall operating costs), and a $5 billion share repurchase, among other measures. The company also announced very favorable trial data for one of its late-stage research and development pipeline assets (LCZ696, a treatment for chronic heart failure) that increased the market’s confidence that this is likely to become a multibillion dollar “mega-blockbuster” product. All of this led the market to place a higher value on the stock.
PORTFOLIO POSITIONING & OUTLOOK
In our recently published whitepaper “Out of Sight, Out of Mind,” we encourage investors to consider the notion that as markets soar, it will benefit them to keep risk in their field of vision. Global markets – both stocks and bonds – have delivered remarkable gains to investors during the past five years. It appears to us that the balance between greed and fear that tends to drive markets, especially in later cycle stages, has tipped firmly toward greed, with investors more interested in maximizing gains (or “reaching for yield”) than in avoiding losses should volatility re-emerge. While it can be easy to forget about risk when stocks are rising, it is important to remember what Benjamin Graham called “tides of pessimism and euphoria that sweep the market,” and avoid being lulled into a false sense of security by several years of strong positive returns. We propose that instead of extrapolating the recent past, investors would be better off preparing for a changing market. Even a casual review of the economic situation reveals a number of alarming issues, including the ongoing euro crisis, the Federal Reserve’s “exit” strategy and China’s changing growth dynamics, among many others. Much more importantly, though, our stock-level research is uncovering significant downside exposures related to earnings sustainability, valuation expansion and balance sheet strength.
To that end, our portfolio is positioned with these downside risks firmly in mind. Specifically, we are overweight sectors which typically exhibit stable cash flows that are relatively less economically sensitive than the broad market. We believe the earnings streams from our holdings will prove more sustainable as a result. These include consumer staples and telecommunication services. We are also overweight industrials and energy, where we are finding a number of compelling bottom up valuations, but are significantly underweight financials and other more economically sensitive sectors such as materials and consumer discretionary. While we tend to steer clear of highly leveraged balance sheets as a matter of basic process, we are attempting to be especially mindful of both the extent and use of leverage in the current environment, which to us is characterized by extremely easy credit markets which may become tighter in the future, and thus leave over-indulgent companies in a difficult position. Finally, we continue to hold an above
14 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
average roughly 18% cash position, which as we’ve noted in the past results from our bottom up stock-level research that has yielded fewer true bargains in recent years as the worldwide rally has progressed. In summary, we believe the bulk of the companies in our portfolio can be characterized as having sustainable earnings, reasonable valuations and strong balance sheets, and thus we believe we will be somewhat shielded from a more negative market environment should one develop.
Thank you for your investment and continued confidence in Perkins International Value Fund.
Janus Value Funds | 15
Table of Contents
Perkins International Value Fund (unaudited)
Perkins International Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| America Movil SAB de CV – Series L | 0.96% | |||
| AstraZeneca PLC | 0.85% | |||
| Novartis AG | 0.66% | |||
| Orkla ASA | 0.57% | |||
| Royal Dutch Shell PLC – Class A | 0.56% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Tesco PLC | –1.53% | |||
| HeidelbergCement AG | –0.28% | |||
| Michael Page International PLC | –0.23% | |||
| Rogers Communications, Inc. – Class B | –0.19% | |||
| Vicat | –0.16% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI EAFE® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Consumer Discretionary | 1.20% | 6.33% | 11.75% | |||||||||
| Telecommunication Services | 0.76% | 10.12% | 5.22% | |||||||||
| Energy | 0.60% | 9.11% | 6.98% | |||||||||
| Materials | 0.55% | 3.17% | 8.08% | |||||||||
| Health Care | 0.36% | 10.59% | 10.36% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI EAFE® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Consumer Staples | –0.43% | 17.66% | 11.02% | |||||||||
| Other** | –0.25% | 17.33% | 0.00% | |||||||||
| Information Technology | –0.18% | 2.32% | 4.45% | |||||||||
| Utilities | –0.16% | 1.59% | 3.71% | |||||||||
| Financials | 0.18% | 4.33% | 25.65% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
16 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2014
| America Movil SAB de CV – Series L Wireless Telecommunication Services | 3.4% | |||
| Novartis AG Pharmaceuticals | 2.7% | |||
| GlaxoSmithKline PLC Pharmaceuticals | 2.7% | |||
| Danone SA Food Products | 2.6% | |||
| Royal Dutch Shell PLC – Class A Oil, Gas & Consumable Fuels | 2.6% | |||
| 14.0% |
Asset Allocation – (% of Net Assets)
As of September 30, 2014
Emerging markets comprised 6.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2014
Janus Value Funds | 17
Table of Contents
Perkins International Value Fund (unaudited)
Performance
| Expense Ratios – per the January 28, 2014 prospectuses | |||||||||
| Average Annual Total Return – for the periods ended September 30, 2014 | (estimated for the fiscal year) | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Perkins International Value Fund – Class A Shares | |||||||||
| NAV | 5.45% | 10.27% | 4.66% | 1.47% | |||||
| MOP | –0.62% | 6.00% | |||||||
| Perkins International Value Fund – Class C Shares | |||||||||
| NAV | 4.59% | 9.41% | 5.28% | 2.07% | |||||
| CDSC | 3.59% | 9.41% | |||||||
| Perkins International Value Fund – Class D Shares(1) | 5.59% | 10.37% | 4.75% | 1.24% | |||||
| Perkins International Value Fund – Class I Shares | 5.61% | 10.52% | 4.29% | 1.10% | |||||
| Perkins International Value Fund – Class N Shares | 5.68% | 10.57% | 4.21% | 1.04% | |||||
| Perkins International Value Fund – Class S Shares | 5.27% | 10.08% | 4.71% | 1.54% | |||||
| Perkins International Value Fund – Class T Shares | 5.42% | 10.32% | 4.46% | 1.29% | |||||
| MSCI EAFE® Index | 4.25% | 10.21% | |||||||
| MSCI All Country World ex-U.S. IndexSM | 4.77% | 8.00% | |||||||
| Morningstar Quartile – Class I Shares | 2nd | 3rd | |||||||
| Morningstar Ranking – based on total return for Foreign Large Value Funds | 122/383 | 195/383 | |||||||
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).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
See important disclosures on the next page.
18 | SEPTEMBER 30, 2014
Table of Contents
(unaudited)
The expense ratios shown are estimated.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Foreign securities 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 of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Until three years from inception, Janus Capital may recover expenses previously waived or reimbursed if the expense ratio falls below certain limits.
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 1, 2013 | |
| (1) | Closed to new investors. |
Janus Value Funds | 19
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 | ||||||||||||||||||||||||
| (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14) | (9/30/14) | (4/1/14 - 9/30/14)† | (4/1/14 - 9/30/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 993.00 | $ | 6.35 | $ | 1,000.00 | $ | 1,018.70 | $ | 6.43 | 1.27% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 990.40 | $ | 10.13 | $ | 1,000.00 | $ | 1,014.89 | $ | 10.25 | 2.03% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 993.90 | $ | 5.75 | $ | 1,000.00 | $ | 1,019.30 | $ | 5.82 | 1.15% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 994.80 | $ | 4.95 | $ | 1,000.00 | $ | 1,020.11 | $ | 5.01 | 0.99% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 994.80 | $ | 4.95 | $ | 1,000.00 | $ | 1,020.11 | $ | 5.01 | 0.99% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 992.20 | $ | 7.39 | $ | 1,000.00 | $ | 1,017.65 | $ | 7.49 | 1.48% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 993.90 | $ | 6.15 | $ | 1,000.00 | $ | 1,018.90 | $ | 6.23 | 1.23% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 183/365 (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. |
20 | SEPTEMBER 30, 2014
Table of Contents
Perkins International Value Fund
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 82.0% | ||||||||||
| Aerospace & Defense – 3.6% | ||||||||||
| 33,440 | BAE Systems PLC | $ | 255,485 | |||||||
| 14,222 | Cobham PLC | 66,739 | ||||||||
| 1,992 | Safran SA | 128,958 | ||||||||
| | ||||||||||
| 451,182 | ||||||||||
| Air Freight & Logistics – 1.0% | ||||||||||
| 1,024 | Panalpina Welttransport Holding AG | 128,779 | ||||||||
| Auto Components – 0.5% | ||||||||||
| 2,900 | Takata Corp. | 65,857 | ||||||||
| Automobiles – 0.5% | ||||||||||
| 744 | Daimler AG | 57,057 | ||||||||
| Beverages – 1.8% | ||||||||||
| 22,610 | C&C Group PLC | 119,862 | ||||||||
| 20,785 | Stock Spirits Group PLC | 98,186 | ||||||||
| | ||||||||||
| 218,048 | ||||||||||
| Chemicals – 2.3% | ||||||||||
| 9,176 | Borregaard ASA | 52,723 | ||||||||
| 4,600 | Nippon Fine Chemical Co., Ltd. | 33,494 | ||||||||
| 7,200 | Nitto FC Co., Ltd. | 43,683 | ||||||||
| 4,606 | Potash Corp. of Saskatchewan, Inc. | 159,511 | ||||||||
| | ||||||||||
| 289,411 | ||||||||||
| Commercial Services & Supplies – 3.7% | ||||||||||
| 69,762 | G4S PLC | 282,841 | ||||||||
| 2,300 | Secom Co., Ltd. | 137,152 | ||||||||
| 1,700 | Secom Joshinetsu Co., Ltd. | 44,111 | ||||||||
| | ||||||||||
| 464,104 | ||||||||||
| Communications Equipment – 0.4% | ||||||||||
| 1,800 | Icom, Inc. | 45,121 | ||||||||
| Construction Materials – 1.4% | ||||||||||
| 1,654 | HeidelbergCement AG | 109,278 | ||||||||
| 998 | Vicat | 64,603 | ||||||||
| | ||||||||||
| 173,881 | ||||||||||
| Diversified Consumer Services – 0.1% | ||||||||||
| 4,100 | Shingakukai Co., Ltd. | 14,498 | ||||||||
| Diversified Financial Services – 0.9% | ||||||||||
| 1,613 | Deutsche Boerse AG | 108,886 | ||||||||
| Diversified Telecommunication Services – 2.3% | ||||||||||
| 48,000 | Singapore Telecommunications, Ltd. | 142,688 | ||||||||
| 4,997 | Telenor ASA | 109,691 | ||||||||
| 755 | Verizon Communications, Inc. | 37,871 | ||||||||
| | ||||||||||
| 290,250 | ||||||||||
| Electrical Equipment – 1.8% | ||||||||||
| 6,967 | ABB, Ltd. | 155,913 | ||||||||
| 5,900 | Cosel Co., Ltd. | 69,872 | ||||||||
| | ||||||||||
| 225,785 | ||||||||||
| Electronic Equipment, Instruments & Components – 0.2% | ||||||||||
| 2,500 | Kitagawa Industries Co., Ltd. | 25,719 | ||||||||
| Food & Staples Retailing – 2.0% | ||||||||||
| 82,273 | Tesco PLC | 246,083 | ||||||||
| Food Products – 8.2% | ||||||||||
| 4,783 | Danone SA | 319,275 | ||||||||
| 3,241 | Nestle SA | 237,776 | ||||||||
| 28,346 | Orkla ASA | 256,603 | ||||||||
| 5,087 | Unilever NV | 202,184 | ||||||||
| | ||||||||||
| 1,015,838 | ||||||||||
| Health Care Equipment & Supplies – 0.5% | ||||||||||
| 150 | Medikit Co., Ltd. | 4,695 | ||||||||
| 1,600 | Nakanishi, Inc. | 58,976 | ||||||||
| | ||||||||||
| 63,671 | ||||||||||
| Health Care Providers & Services – 0.8% | ||||||||||
| 3,200 | As One Corp. | 100,359 | ||||||||
| Industrial Conglomerates – 1.5% | ||||||||||
| 8,794 | Smiths Group PLC | 180,101 | ||||||||
| Insurance – 0.9% | ||||||||||
| 4,700 | Sompo Japan Nipponkoa Holdings, Inc. | 114,211 | ||||||||
| Machinery – 0.1% | ||||||||||
| 1,472 | Sansei Technologies, Inc. | 7,874 | ||||||||
| Marine – 0.9% | ||||||||||
| 30,170 | Irish Continental Group PLC | 105,202 | ||||||||
| Media – 2.5% | ||||||||||
| 2,380 | Daekyo Co., Ltd. | 16,525 | ||||||||
| 6,099 | Grupo Televisa SAB (ADR) | 206,634 | ||||||||
| 8,615 | UBM PLC | 81,098 | ||||||||
| | ||||||||||
| 304,257 | ||||||||||
| Multi-Utilities – 1.4% | ||||||||||
| 3,913 | GDF Suez | 97,855 | ||||||||
| 4,241 | Suez Environment Co. | 71,417 | ||||||||
| | ||||||||||
| 169,272 | ||||||||||
| Oil, Gas & Consumable Fuels – 8.9% | ||||||||||
| 7,097 | BP PLC (ADR) | 311,913 | ||||||||
| 4,527 | Canadian Natural Resources, Ltd. | 175,897 | ||||||||
| 8,395 | Cenovus Energy, Inc. | 225,881 | ||||||||
| 8,267 | Royal Dutch Shell PLC – Class A | 315,273 | ||||||||
| 1,144 | Total SA | 73,926 | ||||||||
| | ||||||||||
| 1,102,890 | ||||||||||
| Personal Products – 0.5% | ||||||||||
| 1,500 | Pola Orbis Holdings, Inc. | 58,798 | ||||||||
| Pharmaceuticals – 8.2% | ||||||||||
| 14,744 | GlaxoSmithKline PLC | 337,409 | ||||||||
| 3,592 | Novartis AG | 338,359 | ||||||||
| 610 | Roche Holding AG | 180,660 | ||||||||
| 1,354 | Sanofi | 152,733 | ||||||||
| | ||||||||||
| 1,009,161 | ||||||||||
| Professional Services – 1.8% | ||||||||||
| 32,090 | Michael Page International PLC | 217,012 | ||||||||
| Real Estate Management & Development – 2.2% | ||||||||||
| 6,058 | Brookfield Real Estate Services, Inc. | 75,089 | ||||||||
| 12,000 | Cheung Kong Holdings, Ltd. | 196,948 | ||||||||
| | ||||||||||
| 272,037 | ||||||||||
| Software – 0.9% | ||||||||||
| 5,597 | Lectra | 57,257 | ||||||||
| 500 | Nintendo Co., Ltd. | 54,427 | ||||||||
| | ||||||||||
| 111,684 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 21
Table of Contents
Perkins International Value Fund
Schedule of Investments
As of September 30, 2014
| Shares or Principal Amount | Value | |||||||||
| Specialty Retail – 2.4% | ||||||||||
| 5,202 | Matas A/S | $ | 119,617 | |||||||
| 2,900 | Nitori Holdings Co., Ltd. | 179,688 | ||||||||
| | ||||||||||
| 299,305 | ||||||||||
| Technology Hardware, Storage & Peripherals – 0.9% | ||||||||||
| 3,600 | Canon, Inc. | 117,097 | ||||||||
| Tobacco – 5.7% | ||||||||||
| 6,513 | Imperial Tobacco Group PLC | 280,121 | ||||||||
| 1,911 | KT&G Corp. | 171,046 | ||||||||
| 7,953 | Swedish Match AB | 256,884 | ||||||||
| | ||||||||||
| 708,051 | ||||||||||
| Trading Companies & Distributors – 0.2% | ||||||||||
| 1,800 | Kuroda Electric Co., Ltd. | 26,435 | ||||||||
| Transportation Infrastructure – 2.5% | ||||||||||
| 21,001 | BBA Aviation PLC | 110,570 | ||||||||
| 155 | Flughafen Zuerich AG | 97,109 | ||||||||
| 4,531 | Hamburger Hafen und Logistik AG | 107,843 | ||||||||
| | ||||||||||
| 315,522 | ||||||||||
| Wireless Telecommunication Services – 8.5% | ||||||||||
| 330,681 | America Movil SAB de CV – Series L | 417,624 | ||||||||
| 8,962 | NTT DOCOMO, Inc. | 149,697 | ||||||||
| 7,544 | Rogers Communications, Inc. – Class B | 282,412 | ||||||||
| 61,768 | Vodafone Group PLC | 203,576 | ||||||||
| | ||||||||||
| 1,053,309 | ||||||||||
| Total Common Stock (cost $9,807,973) | 10,156,747 | |||||||||
| Repurchase Agreement – 8.1% | ||||||||||
| $1,000,000 | ING Financial Markets LLC, 0.0100%, dated 9/30/14, maturing 10/1/14 to be repurchased at $1,000,000 collateralized by $986,580 in U.S. Treasuries 0.8750%-3.1250%, 11/30/16-9/30/21 with a value of $1,020,006 (cost $1,000,000) | 1,000,000 | ||||||||
| Total Investments (total cost $10,807,973) – 90.1% | 11,156,747 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 9.9% | 1,229,461 | |||||||||
| Net Assets – 100% | $ | 12,386,208 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United Kingdom | $ | 2,986,407 | 26 | .8% | ||||
| Japan | 1,351,764 | 12 | .1 | |||||
| Switzerland | 1,138,596 | 10 | .2 | |||||
United States†† | 1,037,871 | 9 | .3 | |||||
| France | 966,024 | 8 | .7 | |||||
| Canada | 918,790 | 8 | .2 | |||||
| Mexico | 624,258 | 5 | .6 | |||||
| Norway | 419,017 | 3 | .7 | |||||
| Germany | 383,064 | 3 | .4 | |||||
| Sweden | 256,884 | 2 | .3 | |||||
| Ireland | 225,064 | 2 | .0 | |||||
| Netherlands | 202,184 | 1 | .8 | |||||
| Hong Kong | 196,948 | 1 | .8 | |||||
| South Korea | 187,571 | 1 | .7 | |||||
| Singapore | 142,688 | 1 | .3 | |||||
| Denmark | 119,617 | 1 | .1 | |||||
| Total | $ | 11,156,747 | 100 | .0% | ||||
| †† | Includes Cash Equivalents of 9.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
22 | SEPTEMBER 30, 2014
Table of Contents
Notes to Schedules of Investments and Other Information
| 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 | |
| U.S. Shares | Securities of foreign companies trading on an American stock exchange. |
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 September 30, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Perkins Global Value Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Beverages | $ | 13,343,611 | $ | 4,222,435 | $ | – | |||||
| Chemicals | 1,297,216 | 1,378,750 | – | ||||||||
| Commercial Services & Supplies | 4,699,335 | 7,491,339 | – | ||||||||
| Communications Equipment | 1,411,911 | 666,785 | – | ||||||||
| Diversified Consumer Services | – | 431,038 | – | ||||||||
| Diversified Telecommunication Services | 568,313 | 1,608,180 | – | ||||||||
| Electrical Equipment | – | 1,147,565 | – | ||||||||
| Electronic Equipment, Instruments & Components | – | 718,084 | – | ||||||||
| Food & Staples Retailing | 4,493,090 | 4,937,326 | – | ||||||||
| Food Products | – | 16,102,699 | – | ||||||||
| Health Care Equipment & Supplies | 5,901,958 | 844,469 | – | ||||||||
| Health Care Providers & Services | – | 1,417,572 | – | ||||||||
| Insurance | 1,351,367 | 1,754,480 | – | ||||||||
| Machinery | – | 147,931 | – | ||||||||
| Media | 3,502,819 | 1,705,197 | – | ||||||||
| Multi-Utilities | – | 2,307,006 | – | ||||||||
| Oil, Gas & Consumable Fuels | 14,024,561 | 6,865,952 | – | ||||||||
| Personal Products | – | 423,349 | – | ||||||||
| Pharmaceuticals | 9,816,253 | 17,582,040 | – | ||||||||
| Real Estate Management & Development | – | 1,542,756 | – | ||||||||
Janus Value Funds | 23
Table of Contents
Notes to Schedules of Investments and Other Information (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
| Software | $ | 13,888,205 | $ | 1,088,912 | $ | – | |||||
| Specialty Retail | – | 2,368,708 | – | ||||||||
| Technology Hardware, Storage & Peripherals | – | 1,314,086 | – | ||||||||
| Tobacco | – | 5,976,704 | – | ||||||||
| Transportation Infrastructure | – | 3,435,698 | – | ||||||||
| Wireless Telecommunication Services | 12,461,818 | 5,975,739 | – | ||||||||
| All Other | 52,583,351 | – | – | ||||||||
Repurchase Agreement | – | 20,700,000 | – | ||||||||
| Total Investments in Securities | $ | 139,343,808 | $ | 114,154,800 | $ | – | |||||
Other Financial Instruments(a): | |||||||||||
Forward Currency Contracts | $ | – | $ | 567,905 | $ | – | |||||
Total Assets | $ | 139,343,808 | $ | 114,722,705 | $ | – | |||||
| Perkins International Value Fund | |||||||||||
Assets | |||||||||||
Investments in Securities: | |||||||||||
Common Stock | |||||||||||
| Aerospace & Defense | $ | – | $ | 451,182 | $ | – | |||||
| Air Freight & Logistics | – | 128,779 | – | ||||||||
| Auto Components | – | 65,857 | – | ||||||||
| Automobiles | – | 57,057 | – | ||||||||
| Beverages | – | 218,048 | – | ||||||||
| Chemicals | 159,511 | 129,900 | – | ||||||||
| Commercial Services & Supplies | – | 464,104 | – | ||||||||
| Communications Equipment | – | 45,121 | – | ||||||||
| Construction Materials | – | 173,881 | – | ||||||||
| Diversified Consumer Services | – | 14,498 | – | ||||||||
| Diversified Financial Services | – | 108,886 | – | ||||||||
| Diversified Telecommunication Services | 37,871 | 252,379 | – | ||||||||
| Electrical Equipment | – | 225,785 | – | ||||||||
| Electronic Equipment, Instruments & Components | – | 25,719 | – | ||||||||
| Food & Staples Retailing | – | 246,083 | – | ||||||||
| Food Products | – | 1,015,838 | – | ||||||||
| Health Care Equipment & Supplies | – | 63,671 | – | ||||||||
| Health Care Providers & Services | – | 100,359 | – | ||||||||
| Industrial Conglomerates | – | 180,101 | – | ||||||||
| Insurance | – | 114,211 | – | ||||||||
| Machinery | – | 7,874 | – | ||||||||
| Marine | – | 105,202 | – | ||||||||
| Media | 206,634 | 97,623 | – | ||||||||
| Multi-Utilities | – | 169,272 | – | ||||||||
| Oil, Gas & Consumable Fuels | 713,691 | 389,199 | – | ||||||||
| Personal Products | – | 58,798 | – | ||||||||
| Pharmaceuticals | – | 1,009,161 | – | ||||||||
| Professional Services | – | 217,012 | – | ||||||||
| Real Estate Management & Development | 75,089 | 196,948 | – | ||||||||
| Software | – | 111,684 | – | ||||||||
| Specialty Retail | – | 299,305 | – | ||||||||
| Technology Hardware, Storage & Peripherals | – | 117,097 | – | ||||||||
| Tobacco | – | 708,051 | – | ||||||||
| Trading Companies & Distributors | – | 26,435 | – | ||||||||
| Transportation Infrastructure | – | 315,522 | – | ||||||||
| Wireless Telecommunication Services | 700,036 | 353,273 | – | ||||||||
Repurchase Agreement | – | 1,000,000 | – | ||||||||
Total Assets | $ | 1,892,832 | $ | 9,263,915 | $ | – | |||||
| (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. |
24 | SEPTEMBER 30, 2014
Table of Contents
Statements of Assets and Liabilities
| Perkins Global | Perkins International | |||||||
| As of September 30, 2014 | Value Fund | Value Fund | ||||||
| Assets: | ||||||||
| Investments at cost(1) | $ | 225,364,980 | $ | 10,807,973 | ||||
| Investments at value | $ | 232,798,608 | $ | 10,156,747 | ||||
| Repurchase agreements at value | 20,700,000 | 1,000,000 | ||||||
| Cash | 28,502,007 | 1,281,534 | ||||||
| Cash denominated in foreign currency(2) | 29,864 | 1,983 | ||||||
| Forward currency contracts | 567,905 | – | ||||||
| Closed foreign currency contracts | 6,275 | – | ||||||
| Non-interested Trustees’ deferred compensation | 5,839 | 256 | ||||||
| Receivables: | ||||||||
| Investments sold | 1,238,214 | 4,483 | ||||||
| Fund shares sold | 133,528 | 550 | ||||||
| Dividends | 706,337 | 28,818 | ||||||
| Foreign dividend tax reclaim | 264,503 | 13,408 | ||||||
| Other assets | 5,057 | 226 | ||||||
| Total Assets | 284,958,137 | 12,488,005 | ||||||
| Liabilities: | ||||||||
| Payables: | ||||||||
| Investments purchased | 2,401,798 | 31,011 | ||||||
| Fund shares repurchased | 213,601 | – | ||||||
| Advisory fees | 129,492 | 136 | ||||||
| Fund administration fees | 2,355 | 105 | ||||||
| Internal servicing cost | 583 | 28 | ||||||
| Administrative services fees | 26,063 | 438 | ||||||
| Distribution fees and shareholder servicing fees | 15,491 | 306 | ||||||
| Administrative, networking and omnibus fees | 10,606 | 22 | ||||||
| Non-interested Trustees’ fees and expenses | 1,963 | 81 | ||||||
| Non-interested Trustees’ deferred compensation fees | 5,839 | 256 | ||||||
| Accrued expenses and other payables | 98,186 | 69,414 | ||||||
| Total Liabilities | 2,905,977 | 101,797 | ||||||
| Net Assets | $ | 282,052,160 | $ | 12,386,208 | ||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Value Funds | 25
Table of Contents
Statements of Assets and Liabilities (continued)
| Perkins Global | Perkins International | |||||||
| As of September 30, 2014 | Value Fund | Value Fund | ||||||
| Net Assets Consist of: | ||||||||
| Capital (par value and paid-in surplus)* | $ | 239,842,689 | $ | 11,552,146 | ||||
| Undistributed net investment income/(loss)* | 3,814,498 | 228,610 | ||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 9,718,426 | 258,153 | ||||||
| Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 28,676,547 | 347,299 | ||||||
| Total Net Assets | $ | 282,052,160 | $ | 12,386,208 | ||||
| Net Assets - Class A Shares | $ | 24,290,722 | $ | 229,221 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,659,695 | 20,066 | ||||||
Net Asset Value Per Share(3) | $ | 14.64 | $ | 11.42 | ||||
Maximum Offering Price Per Share(4) | $ | 15.53 | $ | 12.12 | ||||
| Net Assets - Class C Shares | $ | 11,928,444 | $ | 251,946 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 832,598 | 22,219 | ||||||
Net Asset Value Per Share(3) | $ | 14.33 | $ | 11.34 | ||||
| Net Assets - Class D Shares | $ | 101,485,729 | $ | 2,345,778 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,868,903 | 205,710 | ||||||
| Net Asset Value Per Share | $ | 14.77 | $ | 11.40 | ||||
| Net Assets - Class I Shares | $ | 65,528,987 | $ | 7,238,929 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,496,227 | 634,371 | ||||||
| Net Asset Value Per Share | $ | 14.57 | $ | 11.41 | ||||
| Net Assets - Class N Shares | $ | 3,179,548 | $ | 1,374,732 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 218,949 | 120,383 | ||||||
| Net Asset Value Per Share | $ | 14.52 | $ | 11.42 | ||||
| Net Assets - Class S Shares | $ | 320,260 | $ | 212,703 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 21,623 | 18,588 | ||||||
| Net Asset Value Per Share | $ | 14.81 | $ | 11.44 | ||||
| Net Assets - Class T Shares | $ | 75,318,470 | $ | 732,899 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,108,437 | 64,249 | ||||||
| Net Asset Value Per Share | $ | 14.74 | $ | 11.41 | ||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Includes cost of repurchase agreements of $20,700,000 and $1,000,000 for Perkins Global Value Fund and Perkins International Value Fund, respectively. | |
| (2) | Includes cost of $29,864 and $1,983 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.
26 | SEPTEMBER 30, 2014
Table of Contents
Statements of Operations
| Perkins Global | Perkins International | |||||||
| For the year ended September 30, 2014 | Value Fund | Value Fund | ||||||
| Investment Income: | ||||||||
| Interest | $ | 11,967 | $ | 546 | ||||
| Dividends | 7,863,503 | 392,928 | ||||||
| Other income | 713 | – | ||||||
| Foreign tax withheld | (389,460) | (29,629) | ||||||
| Total Investment Income | 7,486,723 | 363,845 | ||||||
| Expenses: | ||||||||
| Advisory fees | 1,567,097 | 89,791 | ||||||
| Internal servicing expense - Class A Shares | 2,646 | 32 | ||||||
| Internal servicing expense - Class C Shares | 1,078 | 60 | ||||||
| Internal servicing expense - Class I Shares | 1,640 | 231 | ||||||
| Shareholder reports expense | 63,236 | 1,029 | ||||||
| Transfer agent fees and expenses | 50,859 | 1,730 | ||||||
| Registration fees | 130,425 | 91,792 | ||||||
| Custodian fees | 19,059 | 12,826 | ||||||
| Professional fees | 54,523 | 35,761 | ||||||
| Non-interested Trustees’ fees and expenses | 5,782 | 317 | ||||||
| Fund administration fees | 22,719 | 1,052 | ||||||
| Administrative services fees - Class D Shares | 120,532 | 2,179 | ||||||
| Administrative services fees - Class S Shares | 798 | 599 | ||||||
| Administrative services fees - Class T Shares | 171,344 | 1,755 | ||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 64,100 | 645 | ||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 77,821 | 2,773 | ||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 798 | 599 | ||||||
| Administrative, networking and omnibus fees - Class A Shares | 19,026 | – | ||||||
| Administrative, networking and omnibus fees - Class C Shares | 6,933 | – | ||||||
| Administrative, networking and omnibus fees - Class I Shares | 22,358 | – | ||||||
| Other expenses | 19,991 | 7,006 | ||||||
| Total Expenses | 2,422,765 | 250,177 | ||||||
| Less: Expense and Fee Offset | (135) | – | ||||||
| Less: Excess Expense Reimbursement | (4,439) | (130,556) | ||||||
| Net Expenses | 2,418,191 | 119,621 | ||||||
| Net Investment Income/(Loss) | 5,068,532 | 244,224 | ||||||
| Net Realized Gain/(Loss) on Investments: | ||||||||
| Investments and foreign currency transactions | 11,923,646 | 330,004 | ||||||
| Total Net Realized Gain/(Loss) on Investments | 11,923,646 | 330,004 | ||||||
| Change in Unrealized Net Appreciation/Depreciation: | ||||||||
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | 5,950,211 | (37,233) | ||||||
| Total Change in Unrealized Net Appreciation/Depreciation | 5,950,211 | (37,233) | ||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 22,942,389 | $ | 536,995 | ||||
See Notes to Financial Statements.
Janus Value Funds | 27
Table of Contents
Statements of Changes in Net Assets
| Perkins Global | Perkins International | |||||||||||||||
| Value Fund | Value Fund | |||||||||||||||
| For each year or period ended September 30 | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||
| Operations: | ||||||||||||||||
| Net investment income/(loss) | $ | 5,068,532 | $ | 3,246,891 | $ | 244,224 | $ | 35,796 | ||||||||
| Net realized gain/(loss) on investments | 11,923,646 | 7,712,554 | 330,004 | 36,863 | ||||||||||||
| Change in unrealized net appreciation/depreciation | 5,950,211 | 12,874,286 | (37,233) | 384,533 | ||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 22,942,389 | 23,833,731 | 536,995 | 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) | – | ||||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Shares Sold | ||||||||||||||||
| Class A Shares | 19,427,912 | 12,639,922 | – | 464,570 | ||||||||||||
| Class C Shares | 8,069,153 | 3,534,836 | 40,001 | 428,571 | ||||||||||||
| Class D Shares | 10,828,229 | 14,446,551 | 1,789,445 | 1,426,527 | ||||||||||||
| Class I Shares | 51,890,864 | 18,589,155 | 5,082,931 | 2,515,572 | ||||||||||||
| Class N Shares | 716,805 | 764,312 | 503,933 | 780,439 | ||||||||||||
| Class S Shares | 39,962 | 4,300 | – | 477,331 | ||||||||||||
| Class T Shares | 34,686,065 | 21,884,886 | 209,201 | 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 | 104,591 | – | ||||||||||||
| 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 | – | ||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
28 | SEPTEMBER 30, 2014
Table of Contents
| Perkins Global | Perkins International | |||||||||||||||
| Value Fund | Value Fund | |||||||||||||||
| For each year or period ended September 30 | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||
| Shares Repurchased | ||||||||||||||||
| Class A Shares | (19,515,545) | (3,206,972) | (296,976) | – | ||||||||||||
| Class C Shares | (834,358) | (353,859) | (273,500) | – | ||||||||||||
| Class D Shares | (14,432,622) | (11,248,837) | (935,629) | (83,637) | ||||||||||||
| Class I Shares | (11,628,999) | (1,374,469) | (768,366) | (28,993) | ||||||||||||
| Class N Shares | (3,941,404) | (947,342) | (19,825) | – | ||||||||||||
| Class S Shares | (60,543) | (47,320) | (277,656) | (45,155) | ||||||||||||
| Class T Shares | (19,217,268) | (13,296,204) | (488,793) | – | ||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 67,293,787 | 49,847,215 | 4,721,257 | 6,830,888 | ||||||||||||
| Net Increase/(Decrease) in Net Assets | 78,375,034 | 65,032,398 | 5,098,128 | 7,288,080 | ||||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of period | 203,677,126 | 138,644,728 | 7,288,080 | – | ||||||||||||
| End of period | $ | 282,052,160 | $ | 203,677,126 | $ | 12,386,208 | $ | 7,288,080 | ||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 3,814,498 | $ | 3,005,873 | $ | 228,610 | $ | 39,314 | ||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. | |
| (2) | 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
Class A Shares
| For a share outstanding during each year or period ended | Perkins Global Value Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.28(3) | 0.34 | 0.36 | 0.25 | 0.19 | 0.06 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.16 | 1.58 | 1.60 | (0.01) | 0.68 | 1.40 | ||||||||||||||||||||
| Total from Investment Operations | 1.44 | 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 | – | –(4) | – | – | ||||||||||||||||||||
| Total Distributions and Other | (0.77) | (0.83) | (0.70) | (0.22) | (0.17) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.64 | $13.97 | $12.88 | $11.62 | $11.60 | $10.90 | ||||||||||||||||||||
| Total Return** | 10.71% | 15.78% | 17.58% | 1.97% | 8.08% | 15.47% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $24,291 | $21,864 | $10,379 | $248 | $160 | $16 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $25,640 | $14,952 | $4,748 | $184 | $189 | $6 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.09% | 1.10% | 1.21% | 1.27% | 1.40% | 0.93% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.09% | 1.10% | 1.21% | 1.26% | 1.40% | 0.84% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.95% | 1.87% | 2.17% | 2.01% | 2.45% | 0.50% | ||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class A Shares
| Perkins International Value Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(5) | ||||||||
| Net Asset Value, Beginning of Period | $10.98 | $10.00 | ||||||||
| Income/(Loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.21(3) | 0.10 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.38 | 0.88 | ||||||||
| Total from Investment Operations | 0.59 | 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 | $11.42 | $10.98 | ||||||||
| Total Return** | 5.45% | 9.80% | ||||||||
| Net Assets, End of Period (in thousands) | $229 | $508 | ||||||||
| Average Net Assets for the Period (in thousands) | $258 | $460 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.20% | 12.52% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.20% | 1.36% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.80% | 1.80% | ||||||||
| Portfolio Turnover Rate | 37% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
30 | SEPTEMBER 30, 2014
Table of Contents
Class C Shares
| For a share outstanding during each year or period ended | Perkins Global Value Fund | |||||||||||||||||||||||||
| September 30 and the period 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.17(3) | 0.28 | 0.27 | 0.23 | 0.16 | 0.03 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.13 | 1.52 | 1.65 | (0.06) | 0.60 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.30 | 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 | – | –(4) | – | – | ||||||||||||||||||||
| Total Distributions and Other | (0.74) | (0.78) | (0.67) | (0.19) | (0.16) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.33 | $13.77 | $12.75 | $11.50 | $11.52 | $10.92 | ||||||||||||||||||||
| Total Return** | 9.80% | 14.87% | 17.35% | 1.38% | 7.03% | 15.68% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $11,928 | $4,296 | $902 | $133 | $15 | $13 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $7,782 | $1,828 | $492 | $56 | $13 | $3 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.85% | 1.89% | 1.59%(5) | 1.90% | 1.92% | 1.79% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.85% | 1.89% | 1.59%(5) | 1.90% | 1.91% | 1.63% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.18% | 1.04% | 1.56% | 1.73% | 1.62% | 0.31% | ||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class C Shares
| Perkins International Value Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(6) | ||||||||
| Net Asset Value, Beginning of Period | $10.94 | $10.00 | ||||||||
| Income/(Loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.12(3) | 0.07 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.38 | 0.87 | ||||||||
| Total from Investment Operations | 0.50 | 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 | $11.34 | $10.94 | ||||||||
| Total Return** | 4.59% | 9.40% | ||||||||
| Net Assets, End of Period (in thousands) | $252 | $469 | ||||||||
| Average Net Assets for the Period (in thousands) | $277 | $447 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.02% | 13.51% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.00% | 2.06% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.04% | 1.14% | ||||||||
| Portfolio Turnover Rate | 37% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 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 2.03% and 2.03%, respectively, without the inclusion of the non-recurring expense adjustment. | |
| (6) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
Janus Value Funds | 31
Table of Contents
Financial Highlights (continued)
Class D Shares
| Perkins Global Value Fund | ||||||||||||||||||||||
| For a share outstanding during 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/(loss) from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.31(2) | 0.38 | 0.26 | 0.30 | 0.19 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.15 | 1.57 | 1.73 | (0.02) | 0.30 | |||||||||||||||||
| Total from Investment Operations | 1.46 | 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 | –(3) | –(3) | –(3) | |||||||||||||||||
| Total Distributions and Other | (0.78) | (0.83) | (0.69) | (0.26) | – | |||||||||||||||||
| Net Asset Value, End of Period | $14.77 | $14.09 | $12.97 | $11.67 | $11.65 | |||||||||||||||||
| Total Return** | 10.76% | 15.91% | 17.72% | 2.30% | 4.39% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $101,486 | $94,989 | $79,206 | $70,479 | $74,552 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $100,443 | $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*** | 0.95% | 0.98% | 1.04% | 1.03% | 1.30% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.98% | 1.04% | 1.03% | 1.30% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.10% | 1.97% | 2.12% | 2.25% | 2.61% | |||||||||||||||||
| Portfolio Turnover Rate | 19% | 22% | 37% | 51% | 49% | |||||||||||||||||
Class D Shares
| Perkins International Value Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(4) | ||||||||
| Net Asset Value, Beginning of Period | $10.98 | $10.00 | ||||||||
| Income/(loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.22(2) | 0.06 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.39 | 0.92 | ||||||||
| Total from Investment Operations | 0.61 | 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 | $11.40 | $10.98 | ||||||||
| Total Return** | 5.59% | 9.80% | ||||||||
| Net Assets, End of Period (in thousands) | $2,346 | $1,439 | ||||||||
| Average Net Assets for the Period (in thousands) | $1,816 | $931 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.44% | 11.24% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17% | 1.16% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.92% | 1.48% | ||||||||
| Portfolio Turnover Rate | 37% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Redemption fees aggregated less than $0.005 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.
32 | SEPTEMBER 30, 2014
Table of Contents
Class I Shares
| For a share outstanding during each year or period ended | Perkins Global Value Fund | |||||||||||||||||||||||||
| September 30 and the 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.32(3) | 0.43 | 0.37 | 0.38 | 0.16 | 0.02 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.14 | 1.52 | 1.60 | (0.09) | 0.61 | 1.46 | ||||||||||||||||||||
| Total from Investment Operations | 1.46 | 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 | –(4) | –(4) | – | – | ||||||||||||||||||||
| Total Distributions and Other | (0.81) | (0.81) | (0.70) | (0.30) | (0.17) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.57 | $13.92 | $12.78 | $11.51 | $11.52 | $10.92 | ||||||||||||||||||||
| Total Return** | 10.89% | 16.15% | 17.87% | 2.40% | 7.15% | 15.68% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $65,529 | $22,746 | $3,452 | $4,517 | $2,675 | $562 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $39,067 | $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*** | 0.81% | 0.82% | 0.95% | 0.91% | 1.28% | 0.85% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.82% | 0.95% | 0.90% | 1.27% | 0.54% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.23% | 2.30% | 2.20% | 2.55% | 1.33% | (0.10)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class I Shares
| Perkins International Value Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(5) | ||||||||
| Net Asset Value, Beginning of Period | $11.00 | $10.00 | ||||||||
| Income/(Loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.27(3) | 0.03 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.34 | 0.97 | ||||||||
| Total from Investment Operations | 0.61 | 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 | $11.41 | $11.00 | ||||||||
| Total Return** | 5.61% | 10.00% | ||||||||
| Net Assets, End of Period (in thousands) | $7,239 | $2,583 | ||||||||
| Average Net Assets for the Period (in thousands) | $6,812 | $967 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.14% | 6.34% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.92% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.34% | 1.49% | ||||||||
| Portfolio Turnover Rate | 37% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
Janus Value Funds | 33
Table of Contents
Financial Highlights (continued)
Class N Shares
| Perkins Global Value Fund | ||||||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $13.86 | $12.78 | $11.55 | |||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | 0.28(2) | 0.41 | 0.03 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.19 | 1.54 | 1.20 | |||||||||||
| Total from Investment Operations | 1.47 | 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 | $14.52 | $13.86 | $12.78 | |||||||||||
| Total Return** | 11.01% | 16.17% | 10.65% | |||||||||||
| Net Assets, End of Period (in thousands) | $3,180 | $6,009 | $5,317 | |||||||||||
| Average Net Assets for the Period (in thousands) | $3,989 | $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/(Loss) to Average Net Assets*** | 1.99% | 2.16% | 4.09% | |||||||||||
| Portfolio Turnover Rate | 19% | 22% | 37% | |||||||||||
Class N Shares
| Perkins International Value Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(3) | ||||||||
| Net Asset Value, Beginning of Period | $11.00 | $10.00 | ||||||||
| Income/(Loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.26(2) | 0.08 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.36 | 0.92 | ||||||||
| Total from Investment Operations | 0.62 | 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 | $11.42 | $11.00 | ||||||||
| Total Return** | 5.68% | 10.00% | ||||||||
| Net Assets, End of Period (in thousands) | $1,375 | $844 | ||||||||
| Average Net Assets for the Period (in thousands) | $1,119 | $595 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.16% | 11.22% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 1.02% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.23% | 1.82% | ||||||||
| Portfolio Turnover Rate | 37% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
34 | SEPTEMBER 30, 2014
Table of Contents
Class S Shares
| For a share outstanding during each year or period ended | Perkins Global Value Fund | |||||||||||||||||||||||||
| September 30 and the period 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/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.26(3) | 0.34 | 0.22 | 0.27 | 0.18 | 0.16 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.17 | 1.58 | 1.73 | (0.03) | 0.64 | 1.25 | ||||||||||||||||||||
| Total from Investment Operations | 1.43 | 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 | – | –(4) | – | 0.17 | ||||||||||||||||||||
| Total Distributions and Other | (0.74) | (0.79) | (0.64) | (0.23) | (0.17) | 0.17 | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.81 | $14.12 | $12.99 | $11.68 | $11.67 | $11.02 | ||||||||||||||||||||
| Total Return** | 10.46% | 15.56% | 17.32% | 1.96% | 7.51% | 16.74% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $320 | $310 | $310 | $370 | $653 | $11 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $319 | $301 | $333 | $510 | $439 | $9 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.26% | 1.29% | 1.36% | 1.36% | 1.64% | 1.13% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.29% | 1.35% | 1.36% | 1.64% | 1.09% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.77% | 1.60% | 1.79% | 1.67% | 2.34% | 1.10% | ||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class S Shares
| Perkins International Value Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(5) | ||||||||
| Net Asset Value, Beginning of Period | $10.97 | $10.00 | ||||||||
| Income/(Loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.19(3) | 0.10 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.38 | 0.87 | ||||||||
| Total from Investment Operations | 0.57 | 0.97 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | –(6) | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.10) | – | ||||||||
| Net Asset Value, End of Period | $11.44 | $10.97 | ||||||||
| Total Return** | 5.27% | 9.70% | ||||||||
| Net Assets, End of Period (in thousands) | $213 | $473 | ||||||||
| Average Net Assets for the Period (in thousands) | $240 | $467 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.49% | 13.17% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.34% | 1.56% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.66% | 1.65% | ||||||||
| Portfolio Turnover Rate | 37% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (4) | Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Period from April 1, 2013 (inception date) through September 30, 2013. | |
| (6) | Less than $0.005 on a per share basis. |
See Notes to Financial Statements.
Janus Value Funds | 35
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during each year or period ended | Perkins Global Value Fund | |||||||||||||||||||||||||
| September 30 and the year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $14.07 | $12.95 | $11.66 | $11.64 | $10.95 | $9.36 | ||||||||||||||||||||
| Income/(Loss) from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.30(2) | 0.38 | 0.27 | 0.29 | 0.18 | 0.23 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.16 | 1.57 | 1.70 | (0.03) | 0.66 | 2.11 | ||||||||||||||||||||
| Total from Investment Operations | 1.46 | 1.95 | 1.97 | 0.26 | 0.84 | 2.34 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.32) | (0.28) | (0.34) | (0.24) | (0.15) | (0.13) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | (0.34) | – | – | (0.62) | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (0.79) | (0.83) | (0.68) | (0.24) | (0.15) | (0.75) | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.74 | $14.07 | $12.95 | $11.66 | $11.64 | $10.95 | ||||||||||||||||||||
| Total Return** | 10.74% | 15.90% | 17.58% | 2.18% | 7.70% | 27.37% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $75,318 | $53,463 | $39,079 | $19,582 | $20,883 | $98,415 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $68,538 | $41,903 | $26,585 | $21,082 | $48,157 | $84,893 | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| 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% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.06% | 1.90% | 2.02% | 2.18% | 2.41% | 1.05% | ||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class T Shares
| Perkins International Value Fund | ||||||||||
| For a share outstanding during each year or period ended September 30 | 2014 | 2013(4) | ||||||||
| Net Asset Value, Beginning of Period | $10.99 | $10.00 | ||||||||
| Income/(Loss) from Investment Operations: | ||||||||||
| Net investment income/(loss) | 0.22(2) | 0.07 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.37 | 0.92 | ||||||||
| Total from Investment Operations | 0.59 | 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 | $11.41 | $10.99 | ||||||||
| Total Return** | 5.42% | 9.90% | ||||||||
| Net Assets, End of Period (in thousands) | $733 | $972 | ||||||||
| Average Net Assets for the Period (in thousands) | $702 | $762 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.29% | 11.54% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.27% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.89% | 1.48% | ||||||||
| Portfolio Turnover Rate | 37% | 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) | Per share amounts are calculated based on average shares outstanding during the year. | |
| (3) | Redemption fees aggregated less than $0.005 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.
36 | SEPTEMBER 30, 2014
Table of Contents
Notes to Financial Statements
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 year ended September 30, 2014. The Trust offers forty-six 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. Class D 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 no 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 or, as needed, by obtaining market quotations from independent broker-dealers. Certain short-term securities maturing within 60 days or less are valued on an amortized cost basis.
Janus Value Funds | 37
Table of Contents
Notes to Financial Statements (continued)
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.
Indemnifications
In the normal course of business, the Funds may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. A Fund’s maximum exposure under these arrangements is unknown, and would involve future claims that may be made against a Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
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
38 | SEPTEMBER 30, 2014
Table of Contents
shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
Each Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed each Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Valuation Inputs Summary
In accordance with Financial Accounting Standards Board (“FASB”) standard guidance, the Funds utilize the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities may be 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, swaps, investments in unregistered investment companies, 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 September 30, 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.
The Funds did not hold a significant amount of Level 3 securities as of September 30, 2014.
The following table shows the amounts of transfers between Level 1, Level 2 and Level 3 of the fair value
Janus Value Funds | 39
Table of Contents
Notes to Financial Statements (continued)
hierarchy during the year. The Funds recognize transfers between the levels as of the beginning of the fiscal year.
| Transfers Out | Transfers Out | |||||||||
| of Level 1 | of Level 2 | |||||||||
| Fund | to Level 2 | to Level 1 | ||||||||
| Perkins Global Value Fund | $ | 64,846,704 | $ | 6,904,029 | ||||||
| Perkins International Value Fund | 4,656,387 | 279,203 | ||||||||
Financial assets were transferred out of Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the current fiscal year and no factor was applied at the end of the prior fiscal year.
Financial assets were transferred out of Level 2 to Level 1 as the current market for the securities with quoted prices are considered active.
| 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 year ended September 30, 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 purposes (to offset risks associated with an investment, currency exposure, or market conditions), to adjust currency exposure relative to a benchmark index, or for speculative (to earn income and 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 |
40 | SEPTEMBER 30, 2014
Table of Contents
| 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 net asset value (“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 investments and foreign currency transactions” on the Statements of Operations (if applicable).
During the year, Perkins Global Value Fund entered into forward contracts with the obligation to sell foreign currencies in the future at an agreed upon rate in order to decrease exposure to currency risk associated with foreign currency denominated securities held by the Fund.
The following table provides average ending monthly currency units on sold forward contracts during the year ended September 30, 2014.
| Fund | Sold | |||||
| Perkins Global Value Fund | 1,085,596,615 | |||||
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 September 30, 2014.
Fair Value of Derivative Instruments as of September 30, 2014
| Derivatives not accounted | Asset Derivatives | |||||||
| for as hedging instruments | Statements of Assets and Liabilities Location | Fair Value | ||||||
Perkins Global Value Fund | ||||||||
| Currency Contracts | Forward currency contracts | $ | 567,905 | |||||
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statements of Operations for the year ended September 30, 2014.
The effect of Derivative Instruments on the Statements of Operations for the year ended September 30, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||
| Derivatives not accounted for as | Investments and foreign | |||
| hedging instruments | currency transactions | |||
Perkins Global Value Fund | ||||
| Currency Contracts | $ | 952,112 | ||
Janus Value Funds | 41
Table of Contents
Notes to Financial Statements (continued)
| 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 | ||||
| Currency Contracts | $ | 860,939 | ||
Please see the Fund’s Statements of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
| 3. | Other Investments and Strategies |
Additional Investment Risk
The financial crisis that began in 2008 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 took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient each could 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 continue to impact 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. As a result, 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 provided 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 remain pending and 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 increased 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 restructurings 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 with respect to financial assets and liabilities approximates its carrying value. See the “Offsetting Assets and Liabilities” section of this Note for further details.
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
42 | SEPTEMBER 30, 2014
Table of Contents
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 market countries.” 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, sanctions or imposition of restrictions by various governmental entities on investment and trading, 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 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 instruments’ 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 instruments’ 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). For corresponding information grouped by type of instrument, see either the “Fair Value of Derivative Instruments as of September 30, 2014” table located in Note 2 of these Notes to Financial Statements and/or the applicable Fund’s Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets
Perkins Global Value Fund
| Gross Amounts | ||||||||||||||||||
| Counterparty | of Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| Credit Suisse International | $ | 73,964 | $ | – | $ | – | $ | 73,964 | ||||||||||
| HSBC Securities (USA), Inc. | 182,167 | – | – | 182,167 | ||||||||||||||
| ING Financial Markets LLC | 20,700,000 | – | (20,700,000) | – | ||||||||||||||
| JPMorgan Chase & Co. | 114,959 | – | – | 114,959 | ||||||||||||||
| RBC Capital Markets Corp. | 196,815 | – | – | 196,815 | ||||||||||||||
| Total | $ | 21,267,905 | $ | – | $ | (20,700,000) | $ | 567,905 | ||||||||||
Janus Value Funds | 43
Table of Contents
Notes to Financial Statements (continued)
Perkins International Value Fund
| Gross Amounts | ||||||||||||||||||
| Counterparty | of Recognized Assets | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | ||||||||||||||
| ING Financial Markets LLC | $ | 1,000,000 | $ | – | $ | (1,000,000) | $ | – | ||||||||||
| (a) | Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statements of Assets and Liabilities. | |
| (b) | 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 exchange collateral on its forward currency contracts with its counterparties; however, a Fund will segregate cash or high-grade securities in an amount at all times equal to or greater than a Fund’s commitment with respect to these contracts. Such segregated assets, if with the Fund’s custodian, 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.
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 fee rate or base fee rate, as applicable (expressed as an annual rate).
| Contractual | ||||||||||
| Average Daily | Investment | |||||||||
| Net Assets | Advisory Fee/ | |||||||||
| Fund | of the Fund | Base Fee (%) | ||||||||
| 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.
44 | SEPTEMBER 30, 2014
Table of Contents
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. The performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses for the year ended September 30, 2014 is below:
| Performance Adjusted | ||||||
| Investment Advisory | ||||||
| Fund | Fee Rate (%) | |||||
| Perkins Global Value Fund | 0.64 | |||||
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.
Under separate distribution and shareholder servicing plans (each, a “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Funds may pay the Trust’s distributor, Janus Distributors LLC, a wholly-owned subsidiary of Janus Capital, a fee at an annual rate 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. Under the terms of each Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Funds. Payments under each 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
Janus Value Funds | 45
Table of Contents
Notes to Financial Statements (continued)
Funds. 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 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 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 certain 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. During the year ended September 30, 2014, Janus Capital reimbursed the Fund $129,839 of fees and expenses that are eligible for recoupment. As of September 30, 2014, the aggregate amount of recoupment that may potentially be made by the Fund to Janus Capital is $351,452. 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 September 30, 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 year ended September 30, 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 $283,000 were paid by the Trust to a Trustee under the Deferred Plan during the year ended September 30, 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 $522,703 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the year ended September 30, 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 year ended September 30, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | ||||||
| Fund (Class A Shares) | Sales Charge | |||||
| Perkins Global Value Fund | $ | 12,878 | ||||
46 | SEPTEMBER 30, 2014
Table of Contents
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 year ended September 30, 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 year ended September 30, 2014, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | |||||
| Perkins Global Value Fund | $ | 1,234 | ||||
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 September 30, 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 Class | % of Fund | |||||||||
| Fund | Owned | 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 | 36 | 4 | ||||||||
| Perkins International Value Fund - Class S Shares | 100 | 2 | ||||||||
| Perkins International Value Fund - Class T Shares | – | – | ||||||||
| 5. | Federal Income Tax |
The tax components of capital shown in the table below represent: (1) distribution requirements the Funds must satisfy under the income tax regulations; (2) losses or deductions the Funds may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences consist of deferred compensation and foreign currency contract adjustments. 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.
| Undistributed | Undistributed | Loss Deferrals | Other Book | ||||||||||||||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year | Post-October | to Tax | Net Tax | |||||||||||||||||||||||||
| Fund | Income | Gains | Capital Losses | Ordinary Loss | Capital Loss | Differences | Appreciation | ||||||||||||||||||||||||
| Perkins Global Value Fund | $ | 5,715,875 | $ | 8,818,057 | $ | – | $ | – | $ | – | $ | (28,846) | $ | 27,704,385 | |||||||||||||||||
| Perkins International Value Fund | 397,738 | 142,178 | – | – | – | (1,671) | 295,817 | ||||||||||||||||||||||||
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 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 | ||||||||||||
| Fund | Cost | Appreciation | (Depreciation) | |||||||||||
| Perkins Global Value Fund | $ | 225,794,223 | $ | 35,253,185 | $ | (7,548,800) | ||||||||
| Perkins International Value Fund | 10,860,930 | 782,934 | (487,117) | |||||||||||
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
Janus Value Funds | 47
Table of Contents
Notes to Financial Statements (continued)
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. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to capital.
For the year ended September 30, 2014
| Distributions | ||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||
| Perkins Global Value Fund | $ | 6,594,126 | $ | 5,267,016 | $ | – | $ | – | ||||||||||||||
| Perkins International Value Fund | 160,124 | – | – | – | ||||||||||||||||||
For the year or period ended September 30, 2013
| Distributions | ||||||||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||||||||||
| Perkins Global Value Fund | $ | 3,527,113 | $ | 5,121,435 | $ | – | $ | – | ||||||||||||||
Perkins International Value Fund(1) | – | – | – | – | ||||||||||||||||||
| (1) | Period from April 1, 2013 (inception date) through September 30, 2013. |
Permanent book to tax basis differences may result in reclassifications between the components of net assets. These differences have no impact on the results of operations or net assets. The following reclassifications have been made to the Funds:
| Increase/(Decrease) | Increase/(Decrease) | |||||||||||||
| Increase/(Decrease) | to Undistributed Net | to Undistributed Net | ||||||||||||
| Fund | to Capital | Investment Income/Loss | Realized Gain/Loss | |||||||||||
| Perkins Global Value Fund | $ | – | $ | 532,719 | $ | (532,719) | ||||||||
| Perkins International Value Fund | – | 21,221 | (21,221) | |||||||||||
| 6. | Capital Share Transactions |
| Perkins Global | Perkins International | |||||||||||||||||
| Value Fund | Value Fund | |||||||||||||||||
| For each year or period ended September 30 | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 1,342,763 | 945,987 | – | 46,237 | ||||||||||||||
| Reinvested dividends and distributions | 83,208 | 56,306 | 274 | – | ||||||||||||||
| Shares repurchased | (1,330,967) | (243,358) | (26,445) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 95,004 | 758,935 | (26,171) | 46,237 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 1,564,691 | 805,756 | 46,237 | – | ||||||||||||||
| Shares Outstanding, End of Period | 1,659,695 | 1,564,691 | 20,066 | 46,237 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 563,970 | 264,322 | 3,604 | 42,857 | ||||||||||||||
| Reinvested dividends and distributions | 14,653 | 4,496 | 199 | – | ||||||||||||||
| Shares repurchased | (58,097) | (27,481) | (24,441) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 520,526 | 241,337 | (20,638) | 42,857 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 312,072 | 70,735 | 42,857 | – | ||||||||||||||
| Shares Outstanding, End of Period | 832,598 | 312,072 | 22,219 | 42,857 | ||||||||||||||
48 | SEPTEMBER 30, 2014
Table of Contents
| Perkins Global | Perkins International | |||||||||||||||||
| Value Fund | Value Fund | |||||||||||||||||
| For each year or period ended September 30 | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 749,116 | 1,079,029 | 154,859 | 138,816 | ||||||||||||||
| Reinvested dividends and distributions | 374,168 | 399,517 | 1,841 | – | ||||||||||||||
| Shares repurchased | (996,132) | (845,369) | (81,967) | (7,839) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 127,152 | 633,177 | 74,733 | 130,977 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 6,741,751 | 6,108,574 | 130,977 | – | ||||||||||||||
| Shares Outstanding, End of Period | 6,868,903 | 6,741,751 | 205,710 | 130,977 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 3,584,904 | 1,459,231 | 457,205 | 237,797 | ||||||||||||||
| Reinvested dividends and distributions | 79,264 | 11,119 | 9,482 | – | ||||||||||||||
| Shares repurchased | (802,557) | (105,789) | (67,237) | (2,876) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 2,861,611 | 1,364,561 | 399,450 | 234,921 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 1,634,616 | 270,055 | 234,921 | – | ||||||||||||||
| Shares Outstanding, End of Period | 4,496,227 | 1,634,616 | 634,371 | 234,921 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | 50,017 | 59,673 | 43,945 | 76,754 | ||||||||||||||
| Reinvested dividends and distributions | 23,519 | 31,054 | 1,390 | – | ||||||||||||||
| Shares repurchased | (288,203) | (73,236) | (1,706) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (214,667) | 17,491 | 43,629 | 76,754 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 433,616 | 416,125 | 76,754 | – | ||||||||||||||
| Shares Outstanding, End of Period | 218,949 | 433,616 | 120,383 | 76,754 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | 2,712 | 324 | – | 47,594 | ||||||||||||||
| Reinvested dividends and distributions | 1,147 | 1,481 | 175 | – | ||||||||||||||
| Shares repurchased | (4,199) | (3,686) | (24,749) | (4,432) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (340) | (1,881) | (24,574) | 43,162 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 21,963 | 23,844 | 43,162 | – | ||||||||||||||
| Shares Outstanding, End of Period | 21,623 | 21,963 | 18,588 | 43,162 | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 2,386,459 | 1,620,879 | 18,484 | 88,441 | ||||||||||||||
| Reinvested dividends and distributions | 245,421 | 181,124 | 823 | – | ||||||||||||||
| Shares repurchased | (1,322,693) | (1,019,307) | (43,499) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,309,187 | 782,696 | (24,192) | 88,441 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 3,799,250 | 3,016,554 | 88,441 | – | ||||||||||||||
| Shares Outstanding, End of Period | 5,108,437 | 3,799,250 | 64,249 | 88,441 | ||||||||||||||
| (1) | Amounts reflect current year presentation. Prior year amounts were disclosed in thousands. | |
| (2) | Period from April 1, 2013 (inception date) through September 30, 2013. |
| 7. | Purchases and Sales of Investment Securities |
For the year ended September 30, 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 | $ | 84,767,551 | $ | 39,206,264 | $ | – | $ | – | ||||||
| Perkins International Value Fund | 7,092,124 | 3,432,035 | – | – | ||||||||||
Janus Value Funds | 49
Table of Contents
Notes to Financial Statements (continued)
| 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 September 30, 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.
50 | SEPTEMBER 30, 2014
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders
of Janus Investment Fund:
of Janus Investment Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Perkins Global Value Fund and Perkins International Value Fund (two of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at September 30, 2014, the results of each of their operations for the year then ended, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2014 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
November 14, 2014
Janus Value Funds | 51
Table of Contents
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund 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,
52 | SEPTEMBER 30, 2014
Table of Contents
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. |
Janus Value Funds | 53
Table of Contents
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. |
54 | SEPTEMBER 30, 2014
Table of Contents
| • | 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. |
Janus Value Funds | 55
Table of Contents
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. |
56 | SEPTEMBER 30, 2014
Table of Contents
| • | 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
Janus Value Funds | 57
Table of Contents
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 |
58 | SEPTEMBER 30, 2014
Table of Contents
| 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. |
Janus Value Funds | 59
Table of Contents
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. |
60 | SEPTEMBER 30, 2014
Table of Contents
| • | 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
Janus Value Funds | 61
Table of Contents
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.
62 | SEPTEMBER 30, 2014
Table of Contents
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 September 30, 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 Value Funds | 63
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
64 | SEPTEMBER 30, 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 managers. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Value Funds | 65
Table of Contents
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the year ended September 30, 2014:
Capital Gain Distributions
| Fund | ||||||||||
| Perkins Global Value Fund | $ | 5,267,016 | ||||||||
Foreign Taxes Paid and Foreign Source Income
| Fund | Foreign Taxes Paid | Foreign Source Income | ||||||||
| Perkins International Value Fund | $ | 28,563 | $ | 392,128 | ||||||
Dividends Received Deduction Percentage
| Fund | ||||||||||
| Perkins Global Value Fund | 41 | % | ||||||||
Qualified Dividend Income Percentage
| Fund | ||||||||||
| Perkins Global Value Fund | 100 | % | ||||||||
| Perkins International Value Fund | 91 | |||||||||
66 | SEPTEMBER 30, 2014
Table of Contents
Trustees and Officers (unaudited)
The Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 58 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the may also be officers and/or directors of Janus Capital. officers receive no compensation from the , except for the Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
Independent Trustees | ||||||||||
| William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | Chairman Trustee | 1/08-Present 6/02-Present | Chief Executive Officer, Imprint Capital (impact investment firm) (since 2013), and Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | 58 | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 2 funds), and Director of the F.B. Heron Foundation (a private grantmaking foundation). | |||||
Janus Value Funds | 67
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Alan A. Brown 151 Detroit Street Denver, CO 80206 DOB: 1962 | Trustee | 1/13-Present | Managing Director, Institutional Markets, of Dividend Capital Group (private equity real estate investment management firm) (since 2012). Formerly, Executive Vice President and Co-Head, Global Private Client Group (2007-2010), Executive Vice President, Mutual Funds (2005-2007), and Chief Marketing Officer (2001-2005) of Nuveen Investments, Inc. (asset management). | 58 | Director of MotiveQuest LLC (strategic social market research company) (since 2003), and Director of WTTW (PBS affiliate) (since 2003). Formerly, Director of Nuveen Global Investors LLC (2007-2011); Director of Communities in Schools (2004-2010); and Director of Mutual Fund Education Alliance (until 2010). | |||||
| William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | Trustee | 1/11-Present | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgewater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | 58 | Managing Trustee of National Retirement Partners Liquidating Trust (since 2013). Formerly, Chairman, National Retirement Partners, Inc. (formerly a network of advisors to 401(k) plans) (2005-2013); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). | |||||
68 | SEPTEMBER 30, 2014
Table of Contents
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | Trustee | 1/97-Present | Co-founder and Managing Director of Roaring Fork Capital SBIC, L.P. (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004), and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | 58 | Formerly, Director of Red Robin Gourmet Burgers, Inc. (RRGB) (2004- 2014). | |||||
| William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | Trustee | 6/84-Present | Retired. Formerly, Corporate Vice President and General Manager of MKS Instruments - HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products) (1976-2012). | 58 | None | |||||
Janus Value Funds | 69
Table of Contents
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| Other Directorships | ||||||||||
| Principal Occupations | Number of Portfolios/Funds | Held by Trustee | ||||||||
| Positions Held | Length of | During the Past Five | in Fund Complex | During the Past Five | ||||||
| Name, Address, and Age | with the Trust | Time Served | Years | Overseen by Trustee | Years | |||||
| Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | Trustee | 11/05-Present | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | 58 | Director of Chicago Community Trust (Regional Community Foundation), Chicago Council on Global Affairs, The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Lurie Children’s Hospital (Chicago, IL), Rehabilitation Institute of Chicago, Walmart, and Wrapports, LLC (digital communications company). Formerly, Director of Chicago Convention & Tourism Bureau (until 2014). | |||||
Trustee Consultant | ||||||||||
| Raudline Etienne 151 Detroit Street Denver, CO 80206 DOB: 1965 | Consultant | 6/14-Present | Senior Vice President, Albright Stonebridge Group LLC (global strategy firm) (since 2011). Formerly, Deputy Comptroller and Chief Investment Officer, New York State Common Retirement Fund (public pension fund) (2008-2011). | N/A | None | |||||
70 | SEPTEMBER 30, 2014
Table of Contents
OFFICERS
| Positions Held | Term of Office* and | Principal Occupations | ||||
| Name, Address, and Age | with the Trust | Length of Time Served | During the Past Five Years | |||
| Stephanie Grauerholz 151 Detroit Street Denver, CO 80206 DOB: 1970 | Chief Legal Counsel and Secretary Vice President | 1/06-Present 3/06-Present | Vice President and Assistant General Counsel of Janus Capital and Vice President and Assistant Secretary of Janus Distributors LLC. | |||
| Bruce L. Koepfgen 151 Detroit Street Denver, CO 80206 DOB: 1952 | President and Chief Executive Officer | 7/14-Present | President of Janus Capital Group Inc. and Janus Capital Management LLC (since August 2013); Executive Vice President and Director of Janus International Holding LLC (since August 2011); Executive Vice President of Janus Distributors LLC and Janus Services LLC (since July 2011); Executive Vice President and Working Director of INTECH Investment Management LLC (since July 2011); Executive Vice President and Director of Perkins Investment Management LLC (since July 2011); and Executive Vice President and Director of Janus Management Holdings Corporation (since May 2011). Formerly, Executive Vice President of Janus Capital Group Inc. and Janus Capital Management LLC (May 2011-July 2013); Chief Financial Officer of Janus Capital Group Inc., Janus Capital Management LLC, Janus Distributors LLC, Janus Management Holdings Corporation, and Janus Services LLC (July 2011-July 2013); and Co-Chief Executive Officer of Allianz Global Investors Management Partners and Chief Executive Officer of Oppenheimer Capital (2003-2009). | |||
| David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | 6/02-Present | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC; and Director of The Janus Foundation. | |||
| Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | Chief Financial Officer Vice President, Treasurer, and Principal Accounting Officer | 3/05-Present 2/05-Present | Vice President of Janus Capital and Janus Services LLC. | |||
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
Janus Value Funds | 71
Table of Contents
Notes
72 | SEPTEMBER 30, 2014
Table of Contents
Notes
Janus Value Funds | 73
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-1114-74423 | 125-02-02800 11-14 |
Table of Contents
Item 2 - Code of Ethics
As of the end of the period covered by this Form N-CSR, the Registrant has adopted a Code of Ethics (as defined in Item 2(b) of Form N-CSR), which is posted on the Registrant’s website: janus.com. Registrant intends to post any amendments to, or waivers from (as defined in Item 2 of Form N-CSR), such code on janus.com within five business days following the date of such amendment or waiver.
Item 3 - Audit Committee Financial Expert
Janus Investment Fund’s Board of Trustees has determined that the following members of Janus Investment Fund’s Audit Committee are “audit committee financial experts,” as defined in Item 3 to Form N-CSR: William D. Cvengros (Chairman) and William D. Stewart who are each “independent” under the standards set forth in Item 3 to Form N-CSR.
Item 4 - Principal Accountant Fees and Services
The following table shows the amount of fees that PricewaterhouseCoopers LLP (“Auditor”), Janus Investment Fund’s (the “Fund”) auditor, billed to the Fund during the Fund’s last two fiscal years. For the reporting periods, the Audit Committee approved in advance all audit services and non-audit services that Auditor provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to Auditor during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
Services that the Fund’s Auditor Billed to the Fund
| Fiscal Year Ended | Audit Fees | Audit-Related | Tax Fees | All Other Fees | ||||||||||||
| September 30 | Billed to Fund | Fees Billed to Fund | Billed to Fund | Billed to Fund | ||||||||||||
| 2014 | $ | 860,789 | $ | 0 | $ | 220,878 | $ | 0 | ||||||||
| Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
| 2013 | $ | 860,871 | $ | 9,540 | $ | 355,774 | $ | 4,240 | ||||||||
| Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
The above “Audit Fees” were billed for amounts related to the audit of the Fund’s financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. The above “Audit-Related Fees” were billed for amounts related to semi-annual financial statement disclosure review. The above “Tax Fees” were billed for amounts related to tax compliance, tax planning, tax advice, and corporate actions review.
Table of Contents
Services that the Fund’s Auditor Billed to the Adviser
and Affiliated Fund Service Providers
and Affiliated Fund Service Providers
The following table shows the amount of fees billed by Auditor to Janus Capital Management LLC (the “Adviser”), and any entity controlling, controlled by or under common control with the Adviser (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal years.
The table also shows the percentage of fees, if any, subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Auditor by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal years in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.
| Audit-Related | All Other Fees | |||||||||||
| Fees Billed to | Tax Fees Billed to | Billed to Adviser | ||||||||||
| Adviser and | Adviser and | and Affiliated | ||||||||||
| Fiscal Year Ended | Affiliated Fund | Affiliated Fund | Fund Service | |||||||||
| September 30 | Service Providers | Service Providers | Providers | |||||||||
| 2014 | $ | 46,931 | $ | 0 | $ | 0 | ||||||
| Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | ||||||
| 2013 | $ | 64,349 | $ | 5,055 | $ | 4,240 | ||||||
| Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | ||||||
The above “Audit-Related Fees” were billed for amounts related to semi-annual financial statement disclosure review, and internal control examination.
Non-Audit Services
The following table shows the amount of fees that Auditor billed during the Fund’s last two fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Auditor provides to the Adviser and any Affiliated Fund Service Provider, if the engagement relates directly to the Fund’s operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Auditor about any non-audit services that Auditor rendered during the Fund’s last fiscal years to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Auditor’s independence.
| Total Non-Audit Fees | ||||||||||||||||
| billed to Adviser and | ||||||||||||||||
| Affiliated Fund Service | Total Non-Audit | |||||||||||||||
| Providers(engagements | Fees billed to | |||||||||||||||
| related directly to the | Adviser and | |||||||||||||||
| Total | operations and | Affiliated Fund | ||||||||||||||
| Non-Audit Fees | financial reporting of | Service Providers | ||||||||||||||
| Fiscal Year Ended | Billed to the Fund | the Fund) | (all other engagements) | Total of (A), (B) | ||||||||||||
| September 30 | (A) | (B) | (C) | and (C)1 | ||||||||||||
| 2014 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
| 2013 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
| 1. | The Audit Committee also considered amounts billed by Auditor to all other Control Affiliates in evaluating Auditor’s independence. |
Table of Contents
Pre-Approval Policies
The Fund’s Audit Committee Charter requires the Fund’s Audit Committee to pre-approve any engagement of Auditor (i) to provide Audit or Non-Audit Services to the Fund or (ii) to provide non-audit services to Adviser or any Affiliated Fund Service Provider, if the engagement relates directly to the operations and financial reporting of the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X. The Chairman of the Audit Committee or, if the Chairman is unavailable, another member of the Audit Committee who is an independent Trustee, may grant the pre-approval. All such delegated pre- approvals must be presented to the Audit Committee no later than the next Audit Committee meeting.
| Item 5 - | Audit Committee of Listed Registrants | |
| Not applicable. |
| Item 6 - | Investments |
| (a) | Schedule of Investments is contained in the Reports to Shareholders included under Item 1 of this Form N-CSR. | ||
| (b) | Not applicable. |
| Item 7 - | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies | |
| Not applicable to this Registrant. |
| Item 8 - | Portfolio Managers of Closed-End Management Investment Companies | |
| Not applicable to this Registrant. |
| Item 9 - | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers | |
| Not applicable to this Registrant. |
| Item 10 - | Submission of Matters to a Vote of Security Holders | |
| There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees. |
| Item 11 - | Controls and Procedures |
| (a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures were effective, as of that date. | ||
| (b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| Item 12 - | Exhibits |
| (a)(1) | Not applicable because the Registrant has posted its Code of Ethics (as defined in Item 2(b) of Form N-CSR) on its website pursuant to paragraph (f)(2) of Item 2 of Form N-CSR. | ||
| (a)(2) | Separate certifications for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required under Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached as Ex99.CERT. | ||
| (a)(3) | Not applicable to this Registrant. | ||
| (b) | A certification for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, is attached as Ex99.906CERT. |
Table of Contents
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/ Bruce Koepfgen | |||
| President and Chief Executive Officer of Janus Investment Fund | ||||
| (Principal Executive Officer) |
Date: November 28, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | /s/ Bruce Koepfgen | |||
| President and Chief Executive Officer of Janus Investment Fund | ||||
| (Principal Executive Officer) |
Date: November 28, 2014
| By: | /s/ Jesper Nergaard | |||
| Vice President, Chief Financial Officer, Treasurer and Principal | ||||
| Accounting Officer of Janus Investment Fund | ||||
| (Principal Accounting Officer and Principal Financial Officer) |
Date: November 28, 2014