Emerging markets comprised 84.8% of total net assets.
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 N Shares commenced operations on January 26, 2018. Performance shown for periods prior to January 26, 2018, reflects the historical performance of the Fund's Class I Shares, calculated using the fees and expenses of Class N Shares, without the effect of any fee and expense limitations or waivers.
If Class N Shares of the Fund had been available during periods prior to January 26, 2018, the performance shown may have been different. The performance shown for periods following the Fund's commencement of Class N Shares reflects the fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers. Please refer to the Fund's 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.
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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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
Effective March 1, 2022, Matthey Culley and Daniel J. Graña are Co-Portfolio Managers of the Fund.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
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.
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.
Janus Henderson Asia Equity Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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 bears expenses incurred specifically on its behalf. 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.
The preparation of financial statements in conformity with US GAAP 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.
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.
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
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.
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.
2. Other Investments and Strategies
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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 countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. 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 the Fund invests in Chinese local market securities.
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 counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or 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 the Fund's Schedule of Investments.
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $548,448. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $582,400, resulting in the net amount due to the counterparty of $33,952.
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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to the Adviser 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 (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.92%, and the Fund’s benchmark index used in the calculation is the MSCI All Country Asia ex-Japan Index.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the
applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±7.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) 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. For the period ended March 31, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.81%.
The Adviser has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees (if applicable), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.99% of the Fund’s average daily net assets. The Adviser has agreed to continue the waiver for at least a one-year period commencing on January 28, 2022. The previous expense limit (for the one-year period commencing January 28, 2021) was 1.11%. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the
Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $71.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption
of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended March 31, 2022.
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in passive foreign investment companies.
5. Capital Share Transactions
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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.
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
U.S. Equity Funds
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Multi-Asset U.S. Equity Funds
that the Adviser 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.
U.S. Equity Funds
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, with the exception of extended market closures due to planned holidays, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
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.
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.
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.
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 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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
| | | | |
| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Balanced Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Balanced Fund
| | | | | | |
FUND SNAPSHOT For 25+ years, this dynamic allocation strategy has delivered our equity and fixed income expertise in a one-stop core solution. The Fund’s portfolio managers make allocation decisions based on their view of overall market risk and careful examination of individual security valuations across equity and fixed income markets. The end result is a multi-asset, core holding portfolio offering the potential for long-term capital appreciation with the flexibility to navigate uncertain and volatile markets. | | | 
Jeremiah Buckley co-portfolio manager | 
Michael Keough co-portfolio manager | 
Greg Wilensky co-portfolio manager |
| | | |
Janus Henderson Balanced Fund (unaudited)
Fund At A Glance
March 31, 2022
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| | | | | | | | | |
| 5 Top Contributors - Equity Sleeve Holdings | 5 Top Detractors - Equity Sleeve Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| UnitedHealth Group Inc | 3.41% | | 0.51% | | Adobe Inc | 2.55% | | -0.55% |
| Costco Wholesale Corp | 2.24% | | 0.34% | | Comcast Corp | 1.87% | | -0.31% |
| Progressive Corp/The | 1.66% | | 0.31% | | Morgan Stanley | 2.22% | | -0.28% |
| AbbVie Inc | 1.35% | | 0.30% | | Lam Research Corp | 2.30% | | -0.23% |
| Eli Lilly & Co | 2.09% | | 0.28% | | Align Technology Inc | 0.51% | | -0.20% |
| | | | | | | |
| 5 Top Contributors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | 0.88% | | 10.07% | 10.20% |
| Health Care | | 0.59% | | 14.68% | 13.12% |
| Financials | | 0.52% | | 10.45% | 11.29% |
| Industrials | | 0.22% | | 8.64% | 7.95% |
| Consumer Staples | | 0.10% | | 6.99% | 5.91% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Equity Sleeve Sectors* | | | | | |
| | | Relative | | Equity Sleeve | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -1.22% | | 0.00% | 3.16% |
| Consumer Discretionary | | -0.77% | | 15.52% | 12.37% |
| Utilities | | -0.30% | | 0.00% | 2.50% |
| Materials | | -0.21% | | 0.55% | 2.55% |
| Real Estate | | -0.17% | | 0.49% | 2.65% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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. |
Janus Henderson Balanced Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 5.4% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 3.9% |
Alphabet Inc - Class C | |
Interactive Media & Services | 3.7% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 2.8% |
UnitedHealth Group Inc | |
Health Care Providers & Services | 2.1% |
| | 17.9% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 61.3% | |
United States Treasury Notes/Bonds | | 14.7% | |
Corporate Bonds | | 10.1% | |
Asset-Backed/Commercial Mortgage-Backed Securities | | 6.1% | |
Mortgage-Backed Securities | | 6.1% | |
Investment Companies | | 4.9% | |
Bank Loans and Mezzanine Loans | | 0.0% | |
Other | | (3.2)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Balanced Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 0.68% | 7.81% | 11.59% | 9.74% | 9.85% | | | 0.89% |
Class A Shares at MOP | | -5.10% | 1.61% | 10.28% | 9.09% | 9.63% | | | |
Class C Shares at NAV | | 0.33% | 7.07% | 10.82% | 8.97% | 9.16% | | | 1.63% |
Class C Shares at CDSC | | -0.64% | 6.07% | 10.82% | 8.97% | 9.16% | | | |
Class D Shares | | 0.77% | 8.03% | 11.82% | 9.97% | 9.96% | | | 0.70% |
Class I Shares | | 0.81% | 8.08% | 11.89% | 10.04% | 9.99% | | | 0.65% |
Class N Shares | | 0.83% | 8.17% | 11.97% | 10.12% | 10.00% | | | 0.57% |
Class R Shares | | 0.45% | 7.33% | 11.14% | 9.31% | 9.46% | | | 1.32% |
Class S Shares | | 0.61% | 7.63% | 11.42% | 9.58% | 9.69% | | | 1.07% |
Class T Shares | | 0.72% | 7.90% | 11.71% | 9.86% | 9.91% | | | 0.82% |
S&P 500 Index | | 5.92% | 15.65% | 15.99% | 14.64% | 10.57% | | | |
Bloomberg U.S. Aggregate Bond Index | | -5.92% | -4.15% | 2.14% | 2.24% | 4.93% | | | |
Balanced Index | | 0.57% | 6.50% | 9.90% | 9.14% | 8.30% | | | |
Morningstar Quartile - Class T Shares | | - | 1st | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Allocation - 50% to 70% Equity Funds | | - | 75/713 | 29/659 | 45/555 | 14/183 | | | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Janus Henderson Balanced Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – September 1, 1992
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $1,006.80 | $4.40 | | $1,000.00 | $1,020.54 | $4.43 | 0.88% |
Class C Shares | $1,000.00 | $1,003.30 | $7.89 | | $1,000.00 | $1,017.05 | $7.95 | 1.58% |
Class D Shares | $1,000.00 | $1,007.70 | $3.45 | | $1,000.00 | $1,021.49 | $3.48 | 0.69% |
Class I Shares | $1,000.00 | $1,008.10 | $3.25 | | $1,000.00 | $1,021.69 | $3.28 | 0.65% |
Class N Shares | $1,000.00 | $1,008.30 | $2.85 | | $1,000.00 | $1,022.09 | $2.87 | 0.57% |
Class R Shares | $1,000.00 | $1,004.50 | $6.55 | | $1,000.00 | $1,018.40 | $6.59 | 1.31% |
Class S Shares | $1,000.00 | $1,006.10 | $5.30 | | $1,000.00 | $1,019.65 | $5.34 | 1.06% |
Class T Shares | $1,000.00 | $1,007.20 | $4.00 | | $1,000.00 | $1,020.94 | $4.03 | 0.80% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– 6.1% | | | |
| | 208 Park Avenue Mortgage Trust 2017-280P, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8800%, 1.1870%, 9/15/34 (144A)‡ | | $11,417,538 | | | $11,367,614 | |
| | Affirm Asset Securitization Trust 2021-B A, 1.0300%, 8/17/26 (144A) | | 12,148,000 | | | 11,257,758 | |
| | Angel Oak Mortgage Trust I LLC 2019-5, 2.5930%, 10/25/49 (144A)‡ | | 2,610,672 | | | 2,565,244 | |
| | Angel Oak Mortgage Trust I LLC 2019-6, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.9500%, 2.6200%, 11/25/59 (144A)‡ | | 2,152,167 | | | 2,152,167 | |
| | Angel Oak Mortgage Trust I LLC 2020-3, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.0000%, 2.4100%, 4/25/65 (144A)‡ | | 4,452,485 | | | 4,413,163 | |
| | Aqua Finance Trust 2021-A A, 1.5400%, 7/17/46 (144A) | | 7,278,712 | | | 6,937,115 | |
| | Arbys Funding LLC 2020-1A, 3.2370%, 7/30/50 (144A) | | 21,909,355 | | | 20,857,273 | |
| | Barclays Comercial Mortgage Securities LLC 2015-SRCH, | | | | | | |
| | 4.1970%, 8/10/35 (144A) | | 8,386,000 | | | 8,599,774 | |
| | Barclays Comercial Mortgage Securities LLC 2017-DELC, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8500%, 1.2466%, 8/15/36 (144A)‡ | | 7,553,000 | | | 7,477,860 | |
| | BVRT Financing Trust 2021-CRT1 M2, 2.5711%, 1/10/33‡ | | 2,463,809 | | | 2,433,859 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.6050%, 12/9/41 (144A) | | 4,134,000 | | | 3,988,026 | |
| | BX Commercial Mortgage Trust 2019-OC11, 3.8560%, 12/9/41 (144A) | | 8,218,000 | | | 7,799,056 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9200%, 1.3170%, 10/15/36 (144A)‡ | | 13,931,766 | | | 13,863,126 | |
| | BX Commercial Mortgage Trust 2019-XL, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0800%, 1.4770%, 10/15/36 (144A)‡ | | 2,210,000 | | | 2,192,566 | |
| | BX Commercial Mortgage Trust 2020-FOX A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0000%, 1.3970%, 11/15/32 (144A)‡ | | 21,875,353 | | | 21,678,861 | |
| | BX Commercial Mortgage Trust 2020-FOX B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3500%, 1.7470%, 11/15/32 (144A)‡ | | 3,874,745 | | | 3,833,378 | |
| | BX Commercial Mortgage Trust 2020-FOX C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.5500%, 1.9470%, 11/15/32 (144A)‡ | | 3,450,206 | | | 3,411,655 | |
| | BX Commercial Mortgage Trust 2021-LBA AJV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 1.1970%, 2/15/36 (144A)‡ | | 16,583,000 | | | 16,229,469 | |
| | BX Commercial Mortgage Trust 2021-LBA AV, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8000%, 1.1970%, 2/15/36 (144A)‡ | | 18,857,000 | | | 18,456,610 | |
| | BX Commercial Mortgage Trust 2021-VOLT B, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9500%, 1.3466%, 9/15/36 (144A)‡ | | 15,945,000 | | | 15,605,383 | |
| | BX Commercial Mortgage Trust 2021-VOLT D, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 2.0466%, 9/15/36 (144A)‡ | | 16,692,000 | | | 16,093,588 | |
| | BXP Trust 2017-GM, 3.3790%, 6/13/39 (144A) | | 4,190,000 | | | 4,122,902 | |
| | Carvana Auto Receivables Trust 2021-P4 A2, 0.8200%, 4/10/25 | | 13,461,000 | | | 13,313,967 | |
| | CBAM CLO Management 2019-11RA A1, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.1800%, 0%, 1/20/35 (144A)‡ | | 16,984,000 | | | 16,918,815 | |
| | CBAM CLO Management 2019-11RA B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.7500%, 0%, 1/20/35 (144A)‡ | | 6,819,244 | | | 6,805,040 | |
| | CF Hippolyta Issuer LLC 2021-1A A1, 1.5300%, 3/15/61 (144A) | | 16,239,377 | | | 15,187,076 | |
| | CF Hippolyta Issuer LLC 2021-1A B1, 1.9800%, 3/15/61 (144A) | | 6,132,325 | | | 5,614,047 | |
| | Chase Auto Credit Linked Notes 2021-1 B, 0.8750%, 9/25/28 (144A) | | 5,466,142 | | | 5,380,216 | |
| | Chase Auto Credit Linked Notes 2021-2 B, 0.8890%, 12/26/28 (144A) | | 12,128,633 | | | 11,889,840 | |
| | Chase Mortgage Finance Corp 2021-CL1 M1, | | | | | | |
| | US 30 Day Average SOFR + 1.2000%, 1.2990%, 2/25/50 (144A)‡ | | 17,760,744 | | | 17,388,864 | |
| | CIFC Funding Ltd 2021-7A B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.6000%, 0%, 1/23/35 (144A)‡ | | 5,524,216 | | | 5,455,428 | |
| | CIM Trust 2021-NR1 A1, 2.5690%, 7/25/55 (144A)Ç | | 12,118,079 | | | 11,773,048 | |
| | Cold Storage Trust 2020-ICE5 A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 1.2966%, 11/15/37 (144A)‡ | | 24,568,865 | | | 24,249,271 | |
| | Cold Storage Trust 2020-ICE5 B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3000%, 1.6966%, 11/15/37 (144A)‡ | | 10,924,957 | | | 10,763,970 | |
| | Cold Storage Trust 2020-ICE5 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 2.0466%, 11/15/37 (144A)‡ | | 10,966,242 | | | 10,819,521 | |
| | COLT Funding LLC 2020-2, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.5000%, 1.8530%, 3/25/65 (144A)‡ | | 1,151,739 | | | 1,143,228 | |
| | COLT Funding LLC 2020-3, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.2000%, 1.5060%, 4/27/65 (144A)‡ | | 1,638,498 | | | 1,631,983 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Conn Funding II LP 2021-A A, 1.0500%, 5/15/26 (144A) | | $10,750,333 | | | $10,650,804 | |
| | Connecticut Avenue Securities Trust 2014-C04, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.9000%, 5.3566%, 11/25/24‡ | | 834,966 | | | 858,866 | |
| | Connecticut Avenue Securities Trust 2015-C01 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.3000%, 4.7566%, 2/25/25‡ | | 5,969,805 | | | 6,014,199 | |
| | Connecticut Avenue Securities Trust 2016-C06 1M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.2500%, 4.7066%, 4/25/29‡ | | 5,660,200 | | | 5,904,897 | |
| | Connecticut Avenue Securities Trust 2017-C01, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.5500%, 4.0066%, 7/25/29‡ | | 6,979,235 | | | 7,096,926 | |
| | Connecticut Avenue Securities Trust 2018-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.4000%, 2.8566%, 4/25/31 (144A)‡ | | 3,053,973 | | | 3,052,160 | |
| | Connecticut Avenue Securities Trust 2019-R02, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.3000%, 2.7566%, 8/25/31 (144A)‡ | | 1,479,341 | | | 1,477,073 | |
| | Connecticut Avenue Securities Trust 2019-R03, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1500%, 2.6066%, 9/25/31 (144A)‡ | | 2,173,048 | | | 2,172,386 | |
| | Connecticut Avenue Securities Trust 2019-R04, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.5566%, 6/25/39 (144A)‡ | | 321,412 | | | 321,412 | |
| | Connecticut Avenue Securities Trust 2019-R05, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.4566%, 7/25/39 (144A)‡ | | 202,053 | | | 202,064 | |
| | Connecticut Avenue Securities Trust 2019-R07, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.1000%, 2.5566%, 10/25/39 (144A)‡ | | 2,553,098 | | | 2,553,290 | |
| | Connecticut Avenue Securities Trust 2021-R02 2M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 2.0990%, 11/25/41 (144A)‡ | | 32,659,000 | | | 30,613,356 | |
| | Connecticut Avenue Securities Trust 2021-R03 1M2, | | | | | | |
| | US 30 Day Average SOFR + 1.6500%, 1.7490%, 12/25/41 (144A)‡ | | 10,646,000 | | | 10,018,187 | |
| | Connecticut Avenue Securities Trust 2022-R02 2M2, | | | | | | |
| | US 30 Day Average SOFR + 3.0000%, 3.0990%, 1/25/42 (144A)‡ | | 12,368,000 | | | 12,058,809 | |
| | Connecticut Avenue Securities Trust 2022-R03 1M1, | | | | | | |
| | US 30 Day Average SOFR + 2.1000%, 2.1500%, 3/25/42 (144A)‡ | | 28,402,000 | | | 28,450,466 | |
| | Cosmopolitan Hotel Trust 2017, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9300%, 1.3266%, 11/15/36 (144A)‡ | | 17,676,659 | | | 17,646,292 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9800%, 1.3770%, 5/15/36 (144A)‡ | | 30,375,000 | | | 30,161,743 | |
| | Credit Suisse Commercial Mortgage Trust 2019-ICE4 C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.4300%, 1.8270%, 5/15/36 (144A)‡ | | 5,508,000 | | | 5,454,472 | |
| | Credit Suisse Commercial Mortgage Trust 2020-UNFI, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.6682%, 4.1682%, 12/15/22 (144A)‡ | | 8,316,000 | | | 8,247,090 | |
| | Credit Suisse Commercial Mortgage Trust 2021-WEHO A, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.9693%, 4.3663%, 4/15/23 (144A)‡ | | 14,093,879 | | | 13,698,566 | |
| | DB Master Finance LLC 2019-1A A2II, 4.0210%, 5/20/49 (144A) | | 3,721,575 | | | 3,731,698 | |
| | Diamond Infrastructure Funding LLC 2021-1A A, 1.7600%, 4/15/49 (144A) | | 17,354,000 | | | 15,713,004 | |
| | Domino's Pizza Master Issuer LLC, 4.1180%, 7/25/47 (144A) | | 3,117,120 | | | 3,094,278 | |
| | Domino's Pizza Master Issuer LLC, 4.1160%, 7/25/48 (144A) | | 11,690,303 | | | 11,767,741 | |
| | Domino's Pizza Master Issuer LLC, 4.3280%, 7/25/48 (144A) | | 7,270,763 | | | 7,260,628 | |
| | Domino's Pizza Master Issuer LLC, 3.6680%, 10/25/49 (144A) | | 22,666,420 | | | 21,909,944 | |
| | Exeter Automobile Receivables Trust 2019-1, 5.2000%, 1/15/26 (144A) | | 8,200,000 | | | 8,292,274 | |
| | Exeter Automobile Receivables Trust 2021-1A D, 1.0800%, 11/16/26 | | 11,355,000 | | | 10,921,732 | |
| | Extended Stay America Trust 2021-ESH A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0800%, 1.4770%, 7/15/38 (144A)‡ | | 21,386,377 | | | 21,130,361 | |
| | Extended Stay America Trust 2021-ESH B, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3800%, 1.7770%, 7/15/38 (144A)‡ | | 5,818,192 | | | 5,740,663 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.0000%, 5.4566%, 7/25/25‡ | | 4,193,078 | | | 4,305,004 | |
| | Fannie Mae Connecticut Avenue Securities, | | | | | | |
| | ICE LIBOR USD 1 Month + 5.7000%, 6.1566%, 4/25/28‡ | | 4,192,201 | | | 4,478,106 | |
| | Fannie Mae REMICS, 3.0000%, 5/25/48 | | 9,343,393 | | | 9,181,756 | |
| | Fannie Mae REMICS, 3.0000%, 11/25/49 | | 12,702,890 | | | 12,539,901 | |
| | Flagstar Mortgage Trust 2021-13IN A2, 3.0000%, 12/30/51 (144A)‡ | | 35,472,587 | | | 33,681,745 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2019-DNA4 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.9500%, 2.4066%, 10/25/49 (144A)‡ | | 856,262 | | | 855,215 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-DNA6 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.0000%, 2.0990%, 12/25/50 (144A)‡ | | $17,081,000 | | | $16,923,230 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA2 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1000%, 3.5566%, 3/25/50 (144A)‡ | | 6,043,566 | | | 6,067,653 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA4 M2, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1500%, 3.6066%, 9/25/50 (144A)‡ | | 1,585,971 | | | 1,587,181 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2020-HQA5 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.6000%, 2.6990%, 11/25/50 (144A)‡ | | 21,720,101 | | | 21,710,953 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-DNA2 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.3000%, 2.3990%, 8/25/33 (144A)‡ | | 6,224,000 | | | 6,134,798 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2021-HQA1 M2, | | | | | | |
| | US 30 Day Average SOFR + 2.2500%, 2.3490%, 8/25/33 (144A)‡ | | 23,429,000 | | | 22,459,854 | |
| | Freddie Mac Structured Agency Credit Risk Debt Notes 2022-HQA1 M1A, | | | | | | |
| | US 30 Day Average SOFR + 2.1000%, 2.1500%, 3/25/42 (144A)‡ | | 12,347,000 | | | 12,359,150 | |
| | GCAT 2022-INV1 A1, 3.0000%, 12/25/51 (144A)‡ | | 45,785,709 | | | 43,483,053 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0340%, 1.4310%, 12/15/36 (144A)‡ | | 3,938,000 | | | 3,887,396 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3340%, 1.7310%, 12/15/36 (144A)‡ | | 4,405,000 | | | 4,337,343 | |
| | Great Wolf Trust, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6330%, 2.0300%, 12/15/36 (144A)‡ | | 4,900,000 | | | 4,810,426 | |
| | Highbridge Loan Management Ltd 2021-16A B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.7000%, 1.9553%, 1/23/35 (144A)‡ | | 5,360,143 | | | 5,300,538 | |
| | Jack in the Box Funding LLC 2019-1A A23, 4.9700%, 8/25/49 (144A) | | 10,770,411 | | | 10,837,639 | |
| | Jack in the Box Funding LLC 2019-1A A2II, 4.4760%, 8/25/49 (144A) | | 22,337,370 | | | 22,025,598 | |
| | LAD Auto Receivables Trust 2021-1A A, 1.3000%, 8/17/26 (144A) | | 11,861,874 | | | 11,623,321 | |
| | Life Financial Services Trust 2021-BMR A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.7000%, 1.0970%, 3/15/38 (144A)‡ | | 30,568,406 | | | 29,903,419 | |
| | Life Financial Services Trust 2021-BMR C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1000%, 1.4970%, 3/15/38 (144A)‡ | | 15,119,064 | | | 14,594,748 | |
| | LUXE Commercial Mortgage Trust 2021-TRIP A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.0500%, 1.4470%, 10/15/38 (144A)‡ | | 15,291,000 | | | 14,978,755 | |
| | MED Trust 2021-MDLN C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.8000%, 2.1970%, 11/15/38 (144A)‡ | | 4,649,000 | | | 4,553,049 | |
| | MED Trust 2021-MDLN D, | | | | | | |
| | ICE LIBOR USD 1 Month + 2.0000%, 2.3970%, 11/15/38 (144A)‡ | | 4,904,000 | | | 4,786,998 | |
| | MED Trust 2021-MDLN E, | | | | | | |
| | ICE LIBOR USD 1 Month + 3.1500%, 3.5470%, 11/15/38 (144A)‡ | | 21,424,000 | | | 20,868,672 | |
| | MED Trust 2021-MDLN F, | | | | | | |
| | ICE LIBOR USD 1 Month + 4.0000%, 4.3970%, 11/15/38 (144A)‡ | | 14,528,000 | | | 14,170,857 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV2 A11, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 1.0490%, 8/25/51 (144A)‡ | | 11,809,060 | | | 11,728,850 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV3 A11, | | | | | | |
| | US 30 Day Average SOFR + 0.9500%, 1.0490%, 10/25/51 (144A)‡ | | 14,813,529 | | | 14,712,487 | |
| | Mello Mortgage Capital Acceptance Trust 2021-INV4 A3, | | | | | | |
| | 2.5000%, 12/25/51 (144A)‡ | | 8,900,302 | | | 8,217,077 | |
| | Mello Mortgage Capital Acceptance Trust 2022-INV1 A2, | | | | | | |
| | 3.0000%, 3/25/52 (144A)‡ | | 30,488,807 | | | 28,925,063 | |
| | Mercury Financial Credit Card Master Trust 2021-1A A, | | | | | | |
| | 1.5400%, 3/20/26 (144A) | | 14,022,000 | | | 13,747,181 | |
| | MHC Commercial Mortgage Trust 2021-MHC A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.8010%, 1.1980%, 4/15/38 (144A)‡ | | 32,472,249 | | | 31,959,194 | |
| | MHC Commercial Mortgage Trust 2021-MHC C, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.3510%, 1.7480%, 4/15/38 (144A)‡ | | 15,653,295 | | | 15,357,421 | |
| | New Residential Mortgage Loan Trust 2018-2, | | | | | | |
| | ICE LIBOR USD 6 Month + 0.6800%, 4.5000%, 2/25/58 (144A)‡ | | 1,755,073 | | | 1,781,606 | |
| | Newday Funding Master Issuer PLC 2021-1A A2, | | | | | | |
| | SOFR + 1.1000%, 1.1496%, 3/15/29 (144A)‡ | | 13,345,000 | | | 13,344,040 | |
| | Newday Funding Master Issuer PLC 2021-2A A2, | | | | | | |
| | SOFR + 0.9500%, 1.0000%, 7/15/29 (144A)‡ | | 7,558,000 | | | 7,554,933 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | NRZ Excess Spread Collateralized Notes 2020-PLS1 A, | | | | | | |
| | 3.8440%, 12/25/25 (144A) | | $5,130,143 | | | $4,993,312 | |
| | NRZ Excess Spread Collateralized Notes 2021-FHT1 A, 3.1040%, 7/25/26 (144A) | | 12,023,267 | | | 11,367,441 | |
| | Oak Street Investment Grade Net Lease Fund 2020-1A A1, | | | | | | |
| | 1.8500%, 11/20/50 (144A) | | 13,264,237 | | | 12,771,082 | |
| | Oceanview Mortgage Trust 2021-5 AF, | | | | | | |
| | US 30 Day Average SOFR + 0.8500%, 0.8987%, 11/25/51 (144A)‡ | | 16,764,662 | | | 16,566,468 | |
| | Oceanview Mortgage Trust 2022-1 A1, 3.0000%, 12/25/51 (144A)‡ | | 18,382,430 | | | 17,419,595 | |
| | Oceanview Mortgage Trust 2022-2 A1, 3.0000%, 12/25/51 (144A)‡ | | 34,381,501 | | | 32,652,386 | |
| | OneMain Direct Auto Receivables Trust 2018-1, 3.8500%, 10/14/25 (144A) | | 1,805,000 | | | 1,806,027 | |
| | OneMain Direct Auto Receivables Trust 2018-1, 4.4000%, 1/14/28 (144A) | | 1,842,000 | | | 1,843,242 | |
| | Onslow Bay Financial LLC 2021-INV3 A3, 2.5000%, 10/25/51 (144A)‡ | | 10,454,274 | | | 9,626,492 | |
| | Onslow Bay Financial LLC 2022-INV1 A1, 3.0000%, 12/25/51 (144A)‡ | | 34,619,595 | | | 32,878,506 | |
| | Onslow Bay Financial LLC 2022-INV1 A18, 3.0000%, 12/25/51 (144A)‡ | | 14,679,942 | | | 13,812,842 | |
| | Pagaya AI Debt Selection Trust 2022-1 A, 2.0300%, 10/15/29 (144A) | | 12,743,000 | | | 12,509,627 | |
| | Planet Fitness Master Issuer LLC 2019-1A, 3.8580%, 12/5/49 (144A) | | 11,853,165 | | | 11,168,880 | |
| | Preston Ridge Partners Mortgage Trust 2020-4 A1, 2.9510%, 10/25/25 (144A)Ç | | 10,821,712 | | | 10,649,813 | |
| | Preston Ridge Partners Mortgage Trust 2021-10 A1, 2.4870%, 10/25/26 (144A)Ç | | 18,586,443 | | | 18,015,001 | |
| | Preston Ridge Partners Mortgage Trust 2021-9 A1, 2.3630%, 10/25/26 (144A)‡ | | 16,401,286 | | | 15,820,493 | |
| | Regatta XXIII Funding Ltd 2021-4A B, | | | | | | |
| | ICE LIBOR USD 3 Month + 1.7000%, 1.8104%, 1/20/35 (144A)‡ | | 5,891,224 | | | 5,817,460 | |
| | Santander Bank Auto Credit-Linked Notes 2021-1A B, 1.8330%, 12/15/31 (144A) | | 5,936,219 | | | 5,829,149 | |
| | Santander Drive Auto Receivables Trust 2020-3 D, 1.6400%, 11/16/26 | | 27,434,000 | | | 26,803,059 | |
| | Sequoia Mortgage Trust 2013-5, 2.5000%, 5/25/43 (144A)‡ | | 2,614,007 | | | 2,475,066 | |
| | Sequoia Mortgage Trust 2020-2, 3.5000%, 3/25/50 (144A)‡ | | 1,086,665 | | | 1,051,773 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A1, | | | | | | |
| | ICE LIBOR USD 12 Month + 0.9500%, 2.5210%, 1/28/50 (144A)‡ | | 326,580 | | | 325,129 | |
| | Spruce Hill Mortgage Loan Trust 2020-SH1 A2, | | | | | | |
| | ICE LIBOR USD 12 Month + 1.0500%, 2.6240%, 1/28/50 (144A)‡ | | 1,713,811 | | | 1,703,046 | |
| | Taco Bell Funding LLC 2016-1A A23, 4.9700%, 5/25/46 (144A) | | 8,144,828 | | | 8,255,184 | |
| | Taco Bell Funding LLC 2018-1A A2II, 4.9400%, 11/25/48 (144A) | | 13,350,533 | | | 13,564,693 | |
| | Taco Bell Funding LLC 2021-1A A2II, 2.2940%, 8/25/51 (144A) | | 8,064,788 | | | 7,201,143 | |
| | Tesla Auto Lease Trust 2021-B A3, 0.6000%, 9/22/25 (144A) | | 8,570,000 | | | 8,158,446 | |
| | Tesla Auto Lease Trust 2021-B B, 0.9100%, 9/22/25 (144A) | | 4,395,000 | | | 4,149,758 | |
| | Theorem Funding Trust 2021-1A A, 1.2100%, 12/15/27 (144A) | | 7,718,279 | | | 7,597,975 | |
| | TPI Re-Remic Trust 2022-FRR1 AK33, 0%, 7/25/46 (144A)◊ | | 8,395,000 | | | 7,985,646 | |
| | TPI Re-Remic Trust 2022-FRR1 AK34, 0%, 7/25/46 (144A)◊ | | 6,915,000 | | | 6,577,813 | |
| | TPI Re-Remic Trust 2022-FRR1 AK35, 0%, 8/25/46 (144A)◊ | | 9,375,000 | | | 8,886,473 | |
| | United Wholesale Mortgage LLC 2021-INV1 A9, | | | | | | |
| | US 30 Day Average SOFR + 0.9000%, 0.9487%, 8/25/51 (144A)‡ | | 14,092,535 | | | 13,938,909 | |
| | United Wholesale Mortgage LLC 2021-INV4 A3, 2.5000%, 12/25/51 (144A)‡ | | 6,911,437 | | | 6,388,630 | |
| | Upstart Securitization Trust 2021-4 A, 0.8400%, 9/20/31 (144A) | | 11,348,774 | | | 11,034,660 | |
| | Upstart Securitization Trust 2021-5 A, 1.3100%, 11/20/31 (144A) | | 7,296,363 | | | 7,105,835 | |
| | Upstart Securitization Trust 2022-1 A, 3.1200%, 3/20/32 (144A) | | 25,038,000 | | | 24,851,471 | |
| | Vantage Data Centers LLC 2020-1A A2, 1.6450%, 9/15/45 (144A) | | 17,832,000 | | | 16,537,542 | |
| | Vantage Data Centers LLC 2020-2A A2, 1.9920%, 9/15/45 (144A) | | 11,511,000 | | | 10,409,435 | |
| | VASA Trust 2021-VASA A, | | | | | | |
| | ICE LIBOR USD 1 Month + 0.9000%, 1.2970%, 7/15/39 (144A)‡ | | 8,418,000 | | | 8,238,465 | |
| | VCAT Asset Securitization LLC 2021-NPL1 A1, 2.2891%, 12/26/50 (144A) | | 4,605,762 | | | 4,476,898 | |
| | VMC Finance LLC 2021-HT1 A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.6500%, 1.7870%, 1/18/37 (144A)‡ | | 13,593,427 | | | 13,321,561 | |
| | Wells Fargo Commercial Mortgage Trust 2021-SAVE A, | | | | | | |
| | ICE LIBOR USD 1 Month + 1.1500%, 1.5470%, 2/15/40 (144A)‡ | | 8,375,727 | | | 8,293,275 | |
| | Wendy's Funding LLC, 3.8840%, 3/15/48 (144A) | | 1,190,173 | | | 1,179,691 | |
| | Westgate Resorts 2022-1A A, 1.7880%, 8/20/36 (144A) | | 6,715,287 | | | 6,542,584 | |
| | Westlake Automobile Receivable Trust 2020-1A D, 2.8000%, 6/16/25 (144A) | | 12,457,000 | | | 12,392,149 | |
| | Wingstop Funding LLC 2020-1A A2, 2.8410%, 12/5/50 (144A) | | 11,375,835 | | | 10,582,126 | |
| | Woodward Capital Management 2021-3 A21, | | | | | | |
| | US 30 Day Average SOFR + 0.8000%, 0.8487%, 7/25/51 (144A)‡ | | 10,641,196 | | | 10,480,532 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Asset-Backed/Commercial Mortgage-Backed Securities– (continued) | | | |
| | Zaxby's Funding LLC 2021-1A A2, 3.2380%, 7/30/51 (144A) | | $5,578,965 | | | $5,155,268 | |
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $1,743,633,918) | | 1,690,872,403 | |
Bank Loans and Mezzanine Loans– 0% | | | |
Finance Companies – 0% | | | |
| | Castlelake Aviation Ltd, | | | | | | |
| | ICE LIBOR USD 3 Month + 2.7500%, 3.5760%, 10/22/26‡(cost$9,870,135) | | 9,961,063 | | | 9,680,958 | |
Corporate Bonds– 10.1% | | | |
Banking – 3.1% | | | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 1.5120%, 3.7050%, 4/24/28‡ | | 12,653,000 | | | 12,733,919 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 1.0700%, 3.9700%, 3/5/29‡ | | 11,944,000 | | | 12,125,762 | |
| | Bank of America Corp, SOFR + 1.0600%, 2.0870%, 6/14/29‡ | | 25,438,000 | | | 23,236,173 | |
| | Bank of America Corp, SOFR + 2.1500%, 2.5920%, 4/29/31‡ | | 51,219,000 | | | 47,252,933 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 3.7050%, 6.2500%‡,µ | | 21,700,000 | | | 22,431,291 | |
| | Bank of America Corp, ICE LIBOR USD 3 Month + 3.1350%, 5.2000%‡,µ | | 7,250,000 | | | 7,304,375 | |
| | Bank of New York Mellon Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.3580%, 4.7000%‡,µ | | 31,297,000 | | | 32,048,128 | |
| | Bank of Montreal, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 1.4000%, 3.0880%, 1/10/37‡ | | 53,212,000 | | | 48,352,112 | |
| | BNP Paribas SA, SOFR + 1.2280%, 2.5910%, 1/20/28 (144A)‡ | | 12,805,000 | | | 12,050,846 | |
| | BNP Paribas SA, SOFR + 1.5610%, 3.1320%, 1/20/33 (144A)‡ | | 10,937,000 | | | 10,121,933 | |
| | BNP Paribas SA, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 2.0500%, 2.5880%, 8/12/35 (144A)‡ | | 28,115,000 | | | 24,407,160 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 1.5630%, 3.8870%, 1/10/28‡ | | 36,115,000 | | | 36,521,281 | |
| | Citigroup Inc, SOFR + 3.9140%, 4.4120%, 3/31/31‡ | | 24,901,000 | | | 25,851,089 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.4660%, 5.3500%‡,µ | | 8,824,000 | | | 8,824,000 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.9050%, 5.9500%‡,µ | | 8,361,000 | | | 8,522,367 | |
| | Citigroup Inc, ICE LIBOR USD 3 Month + 3.4230%, 6.3000%‡,µ | | 2,012,000 | | | 2,020,048 | |
| | Commonwealth Bank of Australia, 3.7840%, 3/14/32 (144A) | | 22,906,000 | | | 22,139,632 | |
| | First Republic Bank/CA, 4.6250%, 2/13/47 | | 5,767,000 | | | 6,173,664 | |
| | Goldman Sachs Group Inc, 3.5000%, 4/1/25 | | 39,166,000 | | | 39,458,100 | |
| | Goldman Sachs Group Inc, SOFR + 1.1140%, 2.6400%, 2/24/28‡ | | 14,486,000 | | | 13,850,453 | |
| | Goldman Sachs Group Inc, SOFR + 1.4100%, 3.1020%, 2/24/33‡ | | 15,819,000 | | | 14,910,792 | |
| | JPMorgan Chase & Co, SOFR + 1.8500%, 2.0830%, 4/22/26‡ | | 9,471,000 | | | 9,139,568 | |
| | JPMorgan Chase & Co, ICE LIBOR USD 3 Month + 1.2450%, 3.9600%, 1/29/27‡ | | 24,028,000 | | | 24,525,705 | |
| | JPMorgan Chase & Co, SOFR + 2.5150%, 2.9560%, 5/13/31‡ | | 22,144,000 | | | 20,720,067 | |
| | JPMorgan Chase & Co, SOFR + 1.2600%, 2.9630%, 1/25/33‡ | | 36,264,000 | | | 34,188,006 | |
| | JPMorgan Chase & Co, SOFR + 3.3800%, 5.0000%‡,µ | | 7,243,000 | | | 7,218,917 | |
| | JPMorgan Chase & Co, SOFR + 3.1250%, 4.6000%‡,µ | | 7,646,000 | | | 7,368,833 | |
| | Morgan Stanley, SOFR + 1.9900%, 2.1880%, 4/28/26‡ | | 24,836,000 | | | 23,990,793 | |
| | Morgan Stanley, 4.3500%, 9/8/26 | | 14,618,000 | | | 15,056,188 | |
| | Morgan Stanley, 3.9500%, 4/23/27 | | 22,247,000 | | | 22,606,337 | |
| | Morgan Stanley, SOFR + 0.8790%, 1.5930%, 5/4/27‡ | | 11,537,000 | | | 10,718,816 | |
| | Morgan Stanley, SOFR + 1.0340%, 1.7940%, 2/13/32‡ | | 20,010,000 | | | 17,207,119 | |
| | Morgan Stanley, SOFR + 1.1780%, 2.2390%, 7/21/32‡ | | 31,595,000 | | | 27,997,260 | |
| | Morgan Stanley, SOFR + 1.2900%, 2.9430%, 1/21/33‡ | | 39,331,000 | | | 36,882,177 | |
| | Morgan Stanley, SOFR + 1.3600%, 2.4840%, 9/16/36‡ | | 38,024,000 | | | 32,599,648 | |
| | National Australia Bank Ltd, 2.9900%, 5/21/31 (144A) | | 28,726,000 | | | 26,066,490 | |
| | SVB Financial Group, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.0740%, 4.2500%‡,µ | | 41,202,000 | | | 38,111,850 | |
| | SVB Financial Group, | | | | | | |
| | US Treasury Yield Curve Rate 10 Year + 3.0640%, 4.1000%‡,µ | | 23,100,000 | | | 19,635,000 | |
| | US Bancorp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 0.9500%, 2.4910%, 11/3/36‡ | | 24,698,000 | | | 22,146,772 | |
| | Wells Fargo & Co, SOFR + 1.5100%, 3.5260%, 3/24/28‡ | | 19,590,000 | | | 19,550,657 | |
| | Westpac Banking Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 1.7500%, 2.6680%, 11/15/35‡ | | 19,870,000 | | | 17,352,236 | |
| | | 863,418,497 | |
Basic Industry – 0.2% | | | |
| | Allegheny Technologies Inc, 5.8750%, 12/1/27 | | 14,411,000 | | | 14,400,840 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Basic Industry– (continued) | | | |
| | Axalta Coating Systems Ltd, 3.3750%, 2/15/29 (144A) | | $27,737,000 | | | $24,386,370 | |
| | Element Solutions Inc, 3.8750%, 9/1/28 (144A) | | 20,844,000 | | | 19,463,085 | |
| | Reliance Steel & Aluminum Co, 4.5000%, 4/15/23 | | 7,932,000 | | | 8,089,882 | |
| | | 66,340,177 | |
Brokerage – 0.3% | | | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 10 Year + 3.0790%, 4.0000%‡,µ | | 13,232,000 | | | 11,883,924 | |
| | Charles Schwab Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 4.9710%, 5.3750%‡,µ | | 55,634,000 | | | 57,303,020 | |
| | | 69,186,944 | |
Capital Goods – 0.1% | | | |
| | General Dynamics Corp, 3.5000%, 4/1/27 | | 7,372,000 | | | 7,512,764 | |
| | Standard Industries Inc/NJ, 4.3750%, 7/15/30 (144A) | | 5,859,000 | | | 5,366,580 | |
| | TransDigm Inc, 4.6250%, 1/15/29 | | 15,450,000 | | | 14,445,287 | |
| | | 27,324,631 | |
Communications – 0.3% | | | |
| | AT&T Inc, 3.8000%, 12/1/57 | | 13,125,000 | | | 11,974,463 | |
| | AT&T Inc, 3.6500%, 9/15/59 | | 2,171,000 | | | 1,903,821 | |
| | Charter Communications Operating LLC / Charter Communications Operating Capital, | | | | | | |
| | 2.8000%, 4/1/31 | | 16,387,000 | | | 14,769,505 | |
| | Charter Communications Operating LLC / Charter Communications Operating Capital, | | | | | | |
| | 6.4840%, 10/23/45 | | 3,584,000 | | | 4,079,966 | |
| | Charter Communications Operating LLC / Charter Communications Operating Capital, | | | | | | |
| | 4.8000%, 3/1/50 | | 9,331,000 | | | 8,863,605 | |
| | Comcast Corp, 3.7500%, 4/1/40 | | 6,795,000 | | | 6,839,936 | |
| | Fox Corp, 4.0300%, 1/25/24 | | 8,690,000 | | | 8,871,599 | |
| | GCI LLC, 4.7500%, 10/15/28 (144A) | | 34,870,000 | | | 34,042,186 | |
| | | 91,345,081 | |
Consumer Cyclical – 0.4% | | | |
| | Dollar General Corp, 4.1250%, 4/3/50 | | 11,279,000 | | | 11,250,792 | |
| | GLP Capital LP / GLP Financing II Inc, 5.2500%, 6/1/25 | | 4,305,000 | | | 4,431,180 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3750%, 4/15/26 | | 9,419,000 | | | 9,842,231 | |
| | GLP Capital LP / GLP Financing II Inc, 5.3000%, 1/15/29 | | 1,226,000 | | | 1,287,999 | |
| | Home Depot Inc/The, 2.8750%, 4/15/27 | | 6,352,000 | | | 6,328,134 | |
| | Home Depot Inc/The, 3.2500%, 4/15/32 | | 10,593,000 | | | 10,597,183 | |
| | Lithia Motors Inc, 3.8750%, 6/1/29 (144A) | | 31,092,000 | | | 29,389,402 | |
| | Lowe's Cos Inc, 3.3500%, 4/1/27 | | 3,626,000 | | | 3,647,200 | |
| | Lowe's Cos Inc, 3.7500%, 4/1/32 | | 23,889,000 | | | 24,151,763 | |
| | | 100,925,884 | |
Consumer Non-Cyclical – 1.5% | | | |
| | Aramark Services Inc, 6.3750%, 5/1/25 (144A) | | 25,501,000 | | | 26,177,542 | |
| | CVS Health Corp, 5.0500%, 3/25/48 | | 9,216,000 | | | 10,437,037 | |
| | Diageo Capital PLC, 1.3750%, 9/29/25 | | 11,362,000 | | | 10,759,725 | |
| | Diageo Capital PLC, 2.0000%, 4/29/30 | | 10,703,000 | | | 9,759,535 | |
| | Diageo Capital PLC, 2.1250%, 4/29/32 | | 8,585,000 | | | 7,743,769 | |
| | Elanco Animal Health Inc, 5.7720%, 8/28/23 | | 19,872,000 | | | 20,517,840 | |
| | GSK Consumer Healthcare Capital US LLC, 3.3750%, 3/24/27 (144A) | | 13,155,000 | | | 13,154,827 | |
| | GSK Consumer Healthcare Capital US LLC, 3.3750%, 3/24/29 (144A) | | 8,390,000 | | | 8,304,496 | |
| | Hasbro Inc, 3.9000%, 11/19/29 | | 25,055,000 | | | 25,141,531 | |
| | Hasbro Inc, 6.3500%, 3/15/40 | | 7,010,000 | | | 8,488,348 | |
| | Hasbro Inc, 5.1000%, 5/15/44 | | 3,976,000 | | | 4,272,005 | |
| | HCA Inc, 4.7500%, 5/1/23 | | 14,385,000 | | | 14,744,109 | |
| | HCA Inc, 5.3750%, 2/1/25 | | 7,877,000 | | | 8,196,019 | |
| | HCA Inc, 5.8750%, 2/15/26 | | 4,146,000 | | | 4,409,312 | |
| | HCA Inc, 5.3750%, 9/1/26 | | 3,180,000 | | | 3,339,000 | |
| | HCA Inc, 5.6250%, 9/1/28 | | 9,208,000 | | | 9,956,150 | |
| | HCA Inc, 5.8750%, 2/1/29 | | 6,941,000 | | | 7,587,901 | |
| | HCA Inc, 5.5000%, 6/15/47 | | 3,767,000 | | | 4,250,678 | |
| | HCA Inc, 5.2500%, 6/15/49 | | 5,651,000 | | | 6,188,753 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Consumer Non-Cyclical– (continued) | | | |
| | HCA Inc, 3.5000%, 7/15/51 | | $18,689,000 | | | $16,204,907 | |
| | JBS Finance Luxembourg Sarl, 3.6250%, 1/15/32 (144A) | | 13,258,000 | | | 12,131,203 | |
| | JBS USA LUX SA / JBS USA Finance Inc, 6.7500%, 2/15/28 (144A) | | 9,344,000 | | | 9,850,912 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 6.5000%, 4/15/29 (144A) | | 26,108,000 | | | 27,674,480 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 5.5000%, 1/15/30 (144A) | | 19,216,000 | | | 19,644,132 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 3.7500%, 12/1/31 (144A) | | 12,464,000 | | | 11,569,521 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 3.0000%, 5/15/32 (144A) | | 13,810,000 | | | 12,429,138 | |
| | JBS USA LUX SA / JBS USA Food Co / JBS USA Finance Inc, | | | | | | |
| | 4.3750%, 2/2/52 (144A) | | 36,173,000 | | | 31,466,292 | |
| | Mondelez International Inc, 2.7500%, 4/13/30 | | 1,182,000 | | | 1,130,782 | |
| | Performance Food Group Inc, 4.2500%, 8/1/29 (144A) | | 31,490,000 | | | 28,695,263 | |
| | Pilgrim's Pride Corp, 3.5000%, 3/1/32 (144A) | | 21,555,000 | | | 18,817,192 | |
| | Royalty Pharma PLC, 3.5500%, 9/2/50 | | 14,211,000 | | | 11,804,810 | |
| | Royalty Pharma PLC, 3.3500%, 9/2/51 | | 7,880,000 | | | 6,316,694 | |
| | Teva Pharmaceutical Industries Ltd, 4.7500%, 5/9/27 | | 6,781,000 | | | 6,509,421 | |
| | Teva Pharmaceutical Industries Ltd, 5.1250%, 5/9/29 | | 8,832,000 | | | 8,489,495 | |
| | | 426,162,819 | |
Electric – 0.4% | | | |
| | Algonquin Power & Utilities Corp, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.2490%, 4.7500%, 1/18/82‡ | | 22,545,000 | | | 21,020,958 | |
| | Dominion Energy Inc, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.1950%, 4.3500%‡,µ | | 12,405,000 | | | 11,996,379 | |
| | Duquesne Light Holdings Inc, 2.7750%, 1/7/32 (144A) | | 16,995,000 | | | 15,189,369 | |
| | NextEra Energy Capital Holdings Inc, 1.8750%, 1/15/27 | | 27,591,000 | | | 25,875,785 | |
| | NextEra Energy Capital Holdings Inc, 2.4400%, 1/15/32 | | 8,200,000 | | | 7,498,309 | |
| | NRG Energy Inc, 6.6250%, 1/15/27 | | 5,517,000 | | | 5,685,434 | |
| | NRG Energy Inc, 3.3750%, 2/15/29 (144A) | | 17,426,000 | | | 15,490,146 | |
| | NRG Energy Inc, 3.6250%, 2/15/31 (144A) | | 19,673,000 | | | 17,304,174 | |
| | | 120,060,554 | |
Energy – 0.4% | | | |
| | Cheniere Energy Partners LP, 4.0000%, 3/1/31 | | 12,892,000 | | | 12,497,376 | |
| | Cheniere Energy Partners LP, 3.2500%, 1/31/32 (144A) | | 16,346,000 | | | 14,863,254 | |
| | Continental Resources Inc, 5.7500%, 1/15/31 (144A) | | 20,039,000 | | | 21,918,658 | |
| | Energy Transfer Operating LP, 4.9500%, 6/15/28 | | 626,000 | | | 657,449 | |
| | Hess Midstream Operations LP, 5.1250%, 6/15/28 (144A) | | 23,398,000 | | | 23,382,674 | |
| | Hess Midstream Operations LP, 4.2500%, 2/15/30 (144A) | | 5,896,000 | | | 5,563,466 | |
| | Southwestern Energy Co, 4.7500%, 2/1/32 | | 15,561,000 | | | 15,541,549 | |
| | Targa Resources Corp, 4.2000%, 2/1/33 | | 6,441,000 | | | 6,499,769 | |
| | | 100,924,195 | |
Finance Companies – 0.5% | | | |
| | AerCap Ireland Capital DAC / AerCap Global Aviation Trust, | | | | | | |
| | 4.6250%, 10/15/27 | | 18,600,000 | | | 18,962,871 | |
| | AerCap Ireland Capital DAC / AerCap Global Aviation Trust, | | | | | | |
| | 3.0000%, 10/29/28 | | 12,919,000 | | | 11,913,736 | |
| | Air Lease Corp, 1.8750%, 8/15/26 | | 17,148,000 | | | 15,796,914 | |
| | Air Lease Corp, 3.0000%, 2/1/30 | | 8,657,000 | | | 7,973,548 | |
| | Ares Capital Corp, 2.8750%, 6/15/27 | | 17,055,000 | | | 15,516,291 | |
| | Quicken Loans LLC, 3.6250%, 3/1/29 (144A) | | 16,110,000 | | | 14,722,124 | |
| | Quicken Loans LLC, 3.8750%, 3/1/31 (144A) | | 16,984,000 | | | 15,370,520 | |
| | Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc, | | | | | | |
| | 2.8750%, 10/15/26 (144A) | | 19,212,000 | | | 17,639,402 | |
| | Rocket Mortgage LLC / Rocket Mortgage Co-Issuer Inc, | | | | | | |
| | 4.0000%, 10/15/33 (144A) | | 17,163,000 | | | 15,033,072 | |
| | | 132,928,478 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Insurance – 1.0% | | | |
| | Athene Global Funding, 1.7160%, 1/7/25 (144A) | | $10,522,000 | | | $10,027,234 | |
| | Athene Global Funding, 1.7300%, 10/2/26 (144A) | | 33,310,000 | | | 30,246,236 | |
| | Athene Global Funding, 2.7170%, 1/7/29 (144A) | | 21,681,000 | | | 19,928,333 | |
| | Athene Global Funding, 2.6460%, 10/4/31 (144A) | | 32,528,000 | | | 28,705,238 | |
| | Brown & Brown Inc, 4.2000%, 3/17/32 | | 6,426,000 | | | 6,529,204 | |
| | Brown & Brown Inc, 4.9500%, 3/17/52 | | 18,886,000 | | | 20,163,995 | |
| | Centene Corp, 4.2500%, 12/15/27 | | 19,545,000 | | | 19,618,294 | |
| | Centene Corp, 2.4500%, 7/15/28 | | 16,998,000 | | | 15,531,073 | |
| | Centene Corp, 3.0000%, 10/15/30 | | 18,048,000 | | | 16,576,547 | |
| | Corebridge Financial Inc, 3.6500%, 4/5/27 (144A) | | 17,701,000 | | | 17,676,219 | |
| | Corebridge Financial Inc, 3.8500%, 4/5/29 (144A) | | 6,350,000 | | | 6,344,222 | |
| | Corebridge Financial Inc, 3.9000%, 4/5/32 (144A) | | 17,406,000 | | | 17,380,239 | |
| | Molina Healthcare Inc, 4.3750%, 6/15/28 (144A) | | 48,521,000 | | | 48,017,352 | |
| | Prudential Financial Inc, | | | | | | |
| | US Treasury Yield Curve Rate 5 Year + 3.0350%, 3.7000%, 10/1/50‡ | | 27,945,000 | | | 25,608,798 | |
| | | 282,352,984 | |
Real Estate Investment Trusts (REITs) – 0.4% | | | |
| | Agree LP, 2.0000%, 6/15/28 | | 11,528,000 | | | 10,442,890 | |
| | Agree LP, 2.9000%, 10/1/30 | | 7,437,000 | | | 6,942,077 | |
| | Agree LP, 2.6000%, 6/15/33 | | 8,647,000 | | | 7,615,578 | |
| | Invitation Homes Inc, 2.0000%, 8/15/31 | | 19,425,000 | | | 16,588,348 | |
| | MPT Operating Partnership LP / MPT Finance Corp, 3.5000%, 3/15/31 | | 21,744,000 | | | 20,193,918 | |
| | Rexford Industrial Realty Inc, 2.1500%, 9/1/31 | | 22,753,000 | | | 19,750,913 | |
| | Sun Communities Inc, 2.7000%, 7/15/31 | | 21,657,000 | | | 19,537,553 | |
| | | 101,071,277 | |
Technology – 1.4% | | | |
| | Analog Devices Inc, 2.9500%, 4/1/25 | | 10,074,000 | | | 10,092,944 | |
| | Broadcom Inc, 4.3000%, 11/15/32 | | 14,848,000 | | | 15,067,251 | |
| | Broadcom Inc, 3.4190%, 4/15/33 (144A) | | 18,027,000 | | | 16,824,989 | |
| | Broadcom Inc, 3.4690%, 4/15/34 (144A) | | 28,381,000 | | | 26,284,531 | |
| | Equinix Inc, 2.1500%, 7/15/30 | | 9,552,000 | | | 8,359,593 | |
| | Global Payments Inc, 2.1500%, 1/15/27 | | 11,282,000 | | | 10,589,007 | |
| | Global Payments Inc, 2.9000%, 11/15/31 | | 16,923,000 | | | 15,417,986 | |
| | Marvell Technology Inc, 1.6500%, 4/15/26 | | 13,225,000 | | | 12,288,314 | |
| | Marvell Technology Inc, 4.8750%, 6/22/28 | | 14,717,000 | | | 15,406,779 | |
| | Microchip Technology Inc, 2.6700%, 9/1/23 | | 23,076,000 | | | 22,998,712 | |
| | MSCI Inc, 4.0000%, 11/15/29 (144A) | | 1,532,000 | | | 1,487,855 | |
| | MSCI Inc, 3.6250%, 9/1/30 (144A) | | 25,762,000 | | | 24,148,912 | |
| | MSCI Inc, 3.8750%, 2/15/31 (144A) | | 21,571,000 | | | 20,452,652 | |
| | Oracle Corp, 2.8750%, 3/25/31 | | 9,949,000 | | | 9,071,406 | |
| | Oracle Corp, 3.9500%, 3/25/51 | | 25,622,000 | | | 22,399,142 | |
| | PayPal Holdings Inc, 1.6500%, 6/1/25 | | 8,019,000 | | | 7,710,333 | |
| | S&P Global Inc, 2.7000%, 3/1/29 (144A) | | 15,938,000 | | | 15,448,916 | |
| | S&P Global Inc, 2.9000%, 3/1/32 (144A) | | 19,311,000 | | | 18,721,064 | |
| | Seagate HDD Cayman, 4.8750%, 6/1/27 | | 744,000 | | | 760,740 | |
| | Seagate HDD Cayman, 4.0910%, 6/1/29 | | 8,263,000 | | | 8,015,523 | |
| | Seagate HDD Cayman, 3.1250%, 7/15/29 | | 3,463,000 | | | 3,108,043 | |
| | Seagate HDD Cayman, 4.1250%, 1/15/31 | | 18,902,000 | | | 17,909,645 | |
| | SK Hynix Inc, 1.5000%, 1/19/26 (144A) | | 17,563,000 | | | 16,246,995 | |
| | SK Hynix Inc, 2.3750%, 1/19/31 (144A) | | 11,146,000 | | | 9,715,351 | |
| | Total System Services Inc, 4.8000%, 4/1/26 | | 11,686,000 | | | 12,267,641 | |
| | Trimble Inc, 4.7500%, 12/1/24 | | 18,923,000 | | | 19,459,062 | |
| | Trimble Inc, 4.9000%, 6/15/28 | | 11,312,000 | | | 11,715,603 | |
| | Workday Inc, 3.5000%, 4/1/27 | | 8,410,000 | | | 8,407,812 | |
| | Workday Inc, 3.7000%, 4/1/29 | | 6,316,000 | | | 6,330,110 | |
| | Workday Inc, 3.8000%, 4/1/32 | | 13,725,000 | | | 13,698,882 | |
| | | 400,405,793 | |
Transportation – 0.1% | | | |
| | GXO Logistics inc, 1.6500%, 7/15/26 (144A) | | 14,940,000 | | | 13,487,829 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Corporate Bonds– (continued) | | | |
Transportation– (continued) | | | |
| | GXO Logistics inc, 2.6500%, 7/15/31 (144A) | | $6,918,000 | | | $5,998,598 | |
| | | 19,486,427 | |
Total Corporate Bonds (cost $2,957,886,115) | | 2,801,933,741 | |
Mortgage-Backed Securities– 6.1% | | | |
Fannie Mae: | | | |
| | 1.5000%, TBA, 15 Year Maturity | | 4,361,241 | | | 4,129,899 | |
| | 2.0000%, TBA, 15 Year Maturity | | 47,739,539 | | | 46,345,019 | |
| | 3.0000%, TBA, 30 Year Maturity | | 70,952,981 | | | 69,378,463 | |
| | 2.5000%, TBA, 15 Year Maturity | | 28,461,400 | | | 28,119,436 | |
| | 3.5000%, TBA, 30 Year Maturity | | 209,851,106 | | | 210,136,504 | |
| | 2.5000%, TBA, 30 Year Maturity | | 219,739,628 | | | 209,586,998 | |
| | | 567,696,319 | |
Fannie Mae Pool: | | | |
| | 7.5000%, 7/1/28 | | 39,668 | | | 43,119 | |
| | 3.0000%, 10/1/34 | | 1,565,261 | | | 1,582,397 | |
| | 2.5000%, 11/1/34 | | 1,124,774 | | | 1,116,984 | |
| | 3.0000%, 11/1/34 | | 576,421 | | | 584,386 | |
| | 3.0000%, 12/1/34 | | 671,812 | | | 680,442 | |
| | 6.0000%, 2/1/37 | | 253,678 | | | 281,399 | |
| | 2.0000%, 2/1/42 | | 16,423,084 | | | 15,465,630 | |
| | 2.0000%, 2/1/42 | | 13,882,197 | | | 13,026,310 | |
| | 2.0000%, 2/1/42 | | 2,254,355 | | | 2,115,366 | |
| | 4.5000%, 11/1/42 | | 1,358,796 | | | 1,442,011 | |
| | 3.0000%, 1/1/43 | | 731,030 | | | 729,436 | |
| | 3.0000%, 2/1/43 | | 187,182 | | | 186,915 | |
| | 3.0000%, 5/1/43 | | 1,674,834 | | | 1,673,391 | |
| | 5.0000%, 7/1/44 | | 154,883 | | | 167,219 | |
| | 4.5000%, 10/1/44 | | 3,447,574 | | | 3,662,678 | |
| | 4.5000%, 3/1/45 | | 5,048,391 | | | 5,363,375 | |
| | 4.5000%, 6/1/45 | | 2,702,571 | | | 2,898,356 | |
| | 3.5000%, 12/1/45 | | 1,527,822 | | | 1,554,408 | |
| | 3.0000%, 1/1/46 | | 259,330 | | | 257,855 | |
| | 4.5000%, 2/1/46 | | 5,880,889 | | | 6,241,047 | |
| | 3.5000%, 7/1/46 | | 3,309,331 | | | 3,352,808 | |
| | 3.0000%, 9/1/46 | | 16,935,625 | | | 16,891,853 | |
| | 3.0000%, 2/1/47 | | 48,448,725 | | | 48,323,504 | |
| | 3.0000%, 3/1/47 | | 5,833,274 | | | 5,792,128 | |
| | 3.5000%, 3/1/47 | | 1,315,235 | | | 1,338,122 | |
| | 3.5000%, 7/1/47 | | 1,163,076 | | | 1,183,315 | |
| | 3.5000%, 8/1/47 | | 1,125,634 | | | 1,135,719 | |
| | 3.5000%, 8/1/47 | | 1,054,587 | | | 1,075,418 | |
| | 3.5000%, 12/1/47 | | 482,244 | | | 491,769 | |
| | 3.5000%, 12/1/47 | | 301,510 | | | 307,466 | |
| | 3.5000%, 1/1/48 | | 3,240,927 | | | 3,277,931 | |
| | 4.0000%, 1/1/48 | | 10,928,755 | | | 11,308,315 | |
| | 4.0000%, 1/1/48 | | 4,241,860 | | | 4,385,043 | |
| | 3.0000%, 2/1/48 | | 3,740,691 | | | 3,719,426 | |
| | 3.5000%, 3/1/48 | | 460,847 | | | 468,590 | |
| | 4.0000%, 3/1/48 | | 3,343,797 | | | 3,456,372 | |
| | 4.5000%, 3/1/48 | | 145,973 | | | 151,582 | |
| | 5.0000%, 5/1/48 | | 3,545,536 | | | 3,729,093 | |
| | 3.5000%, 7/1/48 | | 30,630,927 | | | 31,033,343 | |
| | 4.5000%, 8/1/48 | | 83,173 | | | 86,369 | |
| | 4.0000%, 2/1/49 | | 1,700,199 | | | 1,743,189 | |
| | 3.0000%, 8/1/49 | | 3,680,081 | | | 3,619,957 | |
| | 3.0000%, 8/1/49 | | 1,935,804 | | | 1,904,178 | |
| | 3.0000%, 9/1/49 | | 721,721 | | | 710,854 | |
| | 2.5000%, 1/1/50 | | 2,016,505 | | | 1,939,284 | |
| | 2.5000%, 3/1/50 | | 3,024,004 | | | 2,902,504 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Fannie Mae Pool– (continued) | | | |
| | 2.5000%, 8/1/50 | | $2,578,204 | | | $2,485,768 | |
| | 2.5000%, 10/1/50 | | 2,917,073 | | | 2,795,936 | |
| | 2.5000%, 1/1/51 | | 4,542,737 | | | 4,352,342 | |
| | 2.5000%, 8/1/51 | | 489,116 | | | 467,583 | |
| | 2.5000%, 12/1/51 | | 45,030,209 | | | 43,142,259 | |
| | 2.5000%, 1/1/52 | | 15,191,906 | | | 14,554,965 | |
| | 2.5000%, 2/1/52 | | 74,116,497 | | | 70,980,340 | |
| | 3.0000%, 2/1/52 | | 14,396,044 | | | 14,102,625 | |
| | 2.5000%, 3/1/52 | | 30,366,257 | | | 29,069,392 | |
| | 2.5000%, 3/1/52 | | 29,352,541 | | | 28,110,521 | |
| | 2.5000%, 3/1/52 | | 10,918,747 | | | 10,471,588 | |
| | 2.5000%, 3/1/52 | | 2,607,514 | | | 2,495,646 | |
| | 2.5000%, 3/1/52 | | 2,397,642 | | | 2,295,245 | |
| | 2.5000%, 3/1/52 | | 2,086,728 | | | 1,998,430 | |
| | 2.5000%, 3/1/52 | | 834,667 | | | 801,494 | |
| | 3.0000%, 3/1/52 | | 51,041,045 | | | 49,954,771 | |
| | 3.0000%, 3/1/52 | | 16,151,427 | | | 15,822,748 | |
| | 3.0000%, 3/1/52 | | 14,507,531 | | | 14,252,131 | |
| | 3.0000%, 4/1/52 | | 38,809,602 | | | 37,983,642 | |
| | 3.0000%, 4/1/52 | | 12,237,475 | | | 12,032,691 | |
| | 3.0000%, 4/1/52 | | 10,756,637 | | | 10,567,270 | |
| | 3.5000%, 8/1/56 | | 11,970,273 | | | 12,201,400 | |
| | 3.0000%, 2/1/57 | | 12,122,866 | | | 12,037,355 | |
| | 3.0000%, 6/1/57 | | 230,549 | | | 228,545 | |
| | | 606,605,543 | |
Freddie Mac Gold Pool: | | | |
| | 3.5000%, 1/1/47 | | 892,425 | | | 917,283 | |
Freddie Mac Pool: | | | |
| | 3.0000%, 5/1/31 | | 13,962,058 | | | 14,131,571 | |
| | 3.0000%, 9/1/32 | | 2,947,921 | | | 2,984,067 | |
| | 3.0000%, 10/1/32 | | 1,506,328 | | | 1,524,798 | |
| | 3.0000%, 12/1/32 | | 1,048,816 | | | 1,060,225 | |
| | 3.0000%, 1/1/33 | | 1,996,033 | | | 2,020,508 | |
| | 2.5000%, 12/1/33 | | 14,320,906 | | | 14,270,445 | |
| | 3.0000%, 10/1/34 | | 3,500,596 | | | 3,543,039 | |
| | 3.0000%, 10/1/34 | | 1,529,264 | | | 1,545,967 | |
| | 2.5000%, 11/1/34 | | 4,781,441 | | | 4,748,329 | |
| | 2.5000%, 11/1/34 | | 1,056,331 | | | 1,049,016 | |
| | 6.0000%, 4/1/40 | | 3,838,760 | | | 4,271,910 | |
| | 2.0000%, 1/1/42 | | 29,539,210 | | | 27,816,742 | |
| | 2.0000%, 3/1/42 | | 78,800,590 | | | 73,941,755 | |
| | 2.0000%, 4/1/42 | | 5,341,290 | | | 5,023,352 | |
| | 3.5000%, 7/1/42 | | 644,111 | | | 661,575 | |
| | 3.5000%, 8/1/42 | | 785,045 | | | 806,332 | |
| | 3.5000%, 8/1/42 | | 723,837 | | | 743,464 | |
| | 3.5000%, 2/1/43 | | 1,780,702 | | | 1,830,349 | |
| | 3.0000%, 3/1/43 | | 7,725,494 | | | 7,705,481 | |
| | 3.0000%, 6/1/43 | | 234,272 | | | 231,400 | |
| | 3.5000%, 2/1/44 | | 2,056,528 | | | 2,113,866 | |
| | 4.5000%, 5/1/44 | | 1,174,559 | | | 1,259,518 | |
| | 3.5000%, 12/1/44 | | 12,190,819 | | | 12,430,933 | |
| | 3.0000%, 1/1/45 | | 3,083,234 | | | 3,072,612 | |
| | 4.0000%, 4/1/45 | | 27,323 | | | 28,925 | |
| | 3.0000%, 1/1/46 | | 560,033 | | | 558,582 | |
| | 3.5000%, 7/1/46 | | 2,577,137 | | | 2,606,714 | |
| | 3.0000%, 10/1/46 | | 6,618,727 | | | 6,572,106 | |
| | 4.0000%, 3/1/47 | | 1,264,054 | | | 1,312,846 | |
| | 3.0000%, 4/1/47 | | 1,328,566 | | | 1,319,208 | |
| | 3.5000%, 4/1/47 | | 527,208 | | | 534,169 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Mortgage-Backed Securities– (continued) | | | |
Freddie Mac Pool– (continued) | | | |
| | 3.5000%, 9/1/47 | | $4,191,276 | | | $4,228,851 | |
| | 3.5000%, 12/1/47 | | 7,195,629 | | | 7,282,228 | |
| | 3.5000%, 2/1/48 | | 2,604,652 | | | 2,626,362 | |
| | 4.0000%, 3/1/48 | | 3,074,957 | | | 3,178,652 | |
| | 4.5000%, 3/1/48 | | 117,568 | | | 122,095 | |
| | 4.0000%, 4/1/48 | | 2,994,477 | | | 3,066,218 | |
| | 4.0000%, 4/1/48 | | 2,544,211 | | | 2,627,690 | |
| | 4.0000%, 5/1/48 | | 4,409,075 | | | 4,514,706 | |
| | 4.5000%, 7/1/48 | | 621,279 | | | 645,201 | |
| | 5.0000%, 9/1/48 | | 113,053 | | | 119,350 | |
| | 4.5000%, 12/1/48 | | 2,353,926 | | | 2,487,164 | |
| | 3.0000%, 8/1/49 | | 2,845,312 | | | 2,798,779 | |
| | 3.0000%, 8/1/49 | | 1,179,427 | | | 1,160,138 | |
| | 3.0000%, 12/1/49 | | 1,516,797 | | | 1,491,991 | |
| | 3.0000%, 12/1/49 | | 1,435,690 | | | 1,412,210 | |
| | 2.5000%, 1/1/50 | | 872,540 | | | 839,140 | |
| | 3.0000%, 3/1/50 | | 1,897,787 | | | 1,863,739 | |
| | 3.5000%, 3/1/50 | | 613,206 | | | 615,521 | |
| | 2.5000%, 8/1/50 | | 1,311,412 | | | 1,264,645 | |
| | 2.5000%, 8/1/50 | | 469,091 | | | 452,272 | |
| | 2.5000%, 9/1/50 | | 2,595,901 | | | 2,502,327 | |
| | 2.5000%, 8/1/51 | | 4,542,436 | | | 4,342,461 | |
| | 2.5000%, 1/1/52 | | 4,746,077 | | | 4,560,166 | |
| | 2.5000%, 1/1/52 | | 2,954,198 | | | 2,831,976 | |
| | 2.5000%, 2/1/52 | | 6,782,210 | | | 6,495,225 | |
| | 3.0000%, 2/1/52 | | 3,863,491 | | | 3,795,528 | |
| | 3.0000%, 2/1/52 | | 2,964,449 | | | 2,914,888 | |
| | 2.5000%, 3/1/52 | | 1,028,476 | | | 984,561 | |
| | 3.0000%, 3/1/52 | | 4,034,504 | | | 3,966,928 | |
| | | 276,910,816 | |
Ginnie Mae: | | | |
| | 3.0000%, TBA, 30 Year Maturity | | 93,133,822 | | | 92,014,726 | |
| | 2.5000%, TBA, 30 Year Maturity | | 89,896,710 | | | 87,119,171 | |
| | | 179,133,897 | |
Ginnie Mae I Pool: | | | |
| | 6.0000%, 1/15/34 | | 68,136 | | | 75,069 | |
| | 4.0000%, 1/15/45 | | 11,350,525 | | | 11,942,288 | |
| | 4.5000%, 8/15/46 | | 13,733,695 | | | 14,972,466 | |
| | 4.0000%, 7/15/47 | | 2,553,243 | | | 2,642,704 | |
| | 4.0000%, 8/15/47 | | 438,998 | | | 454,380 | |
| | 4.0000%, 11/15/47 | | 448,471 | | | 464,185 | |
| | 4.0000%, 12/15/47 | | 962,199 | | | 995,913 | |
| | | 31,547,005 | |
Ginnie Mae II Pool: | | | |
| | 4.0000%, 8/20/47 | | 1,214,928 | | | 1,251,838 | |
| | 4.0000%, 8/20/47 | | 285,537 | | | 294,212 | |
| | 4.0000%, 8/20/47 | | 189,631 | | | 195,392 | |
| | 4.5000%, 2/20/48 | | 1,597,234 | | | 1,677,891 | |
| | 4.5000%, 5/20/48 | | 2,921,589 | | | 3,041,703 | |
| | 4.5000%, 5/20/48 | | 519,315 | | | 540,665 | |
| | 4.0000%, 6/20/48 | | 11,628,597 | | | 11,930,229 | |
| | 5.0000%, 8/20/48 | | 4,841,265 | | | 5,099,740 | |
| | | 24,031,670 | |
Total Mortgage-Backed Securities (cost $1,718,884,958) | | 1,686,842,533 | |
United States Treasury Notes/Bonds– 14.7% | | | |
| | 0.1250%, 8/31/23 | | 74,246,000 | | | 72,233,237 | |
| | 0.3750%, 10/31/23 | | 85,664,600 | | | 83,261,975 | |
| | 0.8750%, 1/31/24 | | 41,703,000 | | | 40,640,877 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
United States Treasury Notes/Bonds– (continued) | | | |
| | 1.5000%, 2/29/24 | | $167,588,000 | | | $165,146,191 | |
| | 1.5000%, 2/15/25 | | 19,258,000 | | | 18,717,873 | |
| | 1.7500%, 3/15/25 | | 5,709,000 | | | 5,588,130 | |
| | 0.3750%, 1/31/26 | | 170,339,600 | | | 156,945,319 | |
| | 0.7500%, 4/30/26 | | 164,071,000 | | | 152,816,755 | |
| | 0.8750%, 6/30/26 | | 235,686,000 | | | 220,127,043 | |
| | 0.6250%, 7/31/26 | | 84,517,000 | | | 77,986,742 | |
| | 0.7500%, 8/31/26 | | 20,923,800 | | | 19,392,930 | |
| | 0.8750%, 9/30/26 | | 211,206,700 | | | 196,595,486 | |
| | 1.2500%, 11/30/26 | | 133,754,800 | | | 126,549,805 | |
| | 1.2500%, 12/31/26 | | 354,740,000 | | | 335,160,016 | |
| | 1.5000%, 1/31/27 | | 534,416,500 | | | 510,701,768 | |
| | 1.8750%, 2/28/27 | | 60,762,000 | | | 59,133,768 | |
| | 1.2500%, 4/30/28 | | 9,610,400 | | | 8,952,688 | |
| | 1.2500%, 6/30/28 | | 18,454,000 | | | 17,166,545 | |
| | 1.1250%, 8/31/28 | | 145,870,000 | | | 134,394,133 | |
| | 1.7500%, 1/31/29 | | 9,294,400 | | | 8,899,388 | |
| | 1.8750%, 2/28/29 | | 7,782,000 | | | 7,512,062 | |
| | 1.8750%, 2/15/32 | | 690,507,600 | | | 663,103,080 | |
| | 1.3750%, 11/15/40 | | 45,337,000 | | | 37,064,768 | |
| | 1.7500%, 8/15/41 | | 285,318,000 | | | 247,290,460 | |
| | 2.0000%, 11/15/41 | | 160,422,000 | | | 145,156,844 | |
| | 2.3750%, 2/15/42 | | 55,180,000 | | | 53,222,834 | |
| | 2.7500%, 8/15/42 | | 103,596,600 | | | 105,340,746 | |
| | 1.3750%, 8/15/50 | | 152,363,200 | | | 117,272,051 | |
| | 1.8750%, 2/15/51 | | 70,452,600 | | | 61,560,711 | |
| | 1.8750%, 11/15/51 | | 247,549,400 | | | 217,147,239 | |
Total United States Treasury Notes/Bonds (cost $4,267,027,436) | | 4,065,081,464 | |
Common Stocks– 61.3% | | | |
Aerospace & Defense – 1.2% | | | |
| | General Dynamics Corp | | 871,664 | | | 210,227,924 | |
| | L3Harris Technologies Inc | | 509,056 | | | 126,485,144 | |
| | | 336,713,068 | |
Air Freight & Logistics – 1.3% | | | |
| | United Parcel Service Inc | | 1,640,597 | | | 351,842,433 | |
Auto Components – 0.3% | | | |
| | Aptiv PLC* | | 641,540 | | | 76,798,753 | |
Banks – 1.3% | | | |
| | Bank of America Corp | | 8,981,741 | | | 370,227,364 | |
Beverages – 1.0% | | | |
| | Constellation Brands Inc | | 322,754 | | | 74,336,701 | |
| | Monster Beverage Corp* | | 2,382,392 | | | 190,353,121 | |
| | | 264,689,822 | |
Biotechnology – 1.0% | | | |
| | AbbVie Inc | | 1,779,143 | | | 288,416,872 | |
Capital Markets – 2.9% | | | |
| | Charles Schwab Corp | | 1,495,453 | | | 126,081,642 | |
| | CME Group Inc | | 954,417 | | | 227,017,628 | |
| | Goldman Sachs Group Inc | | 236,790 | | | 78,164,379 | |
| | Morgan Stanley | | 3,662,942 | | | 320,141,131 | |
| | S&P Global Inc | | 140,048 | | | 57,444,889 | |
| | | 808,849,669 | |
Communications Equipment – 0.4% | | | |
| | Motorola Solutions Inc | | 499,594 | | | 121,001,667 | |
Consumer Finance – 1.1% | | | |
| | American Express Co | | 1,582,175 | | | 295,866,725 | |
Electrical Equipment – 0.4% | | | |
| | Rockwell Automation Inc | | 376,070 | | | 105,310,882 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Electronic Equipment, Instruments & Components – 0.3% | | | |
| | Corning Inc | | 2,200,186 | | | $81,208,865 | |
Entertainment – 1.0% | | | |
| | Netflix Inc* | | 150,834 | | | 56,500,908 | |
| | Walt Disney Co* | | 1,606,870 | | | 220,398,289 | |
| | | 276,899,197 | |
Food & Staples Retailing – 1.8% | | | |
| | Costco Wholesale Corp | | 713,223 | | | 410,709,465 | |
| | Sysco Corp | | 1,188,116 | | | 97,009,671 | |
| | | 507,719,136 | |
Food Products – 0.5% | | | |
| | Hershey Co | | 701,533 | | | 151,973,094 | |
Health Care Equipment & Supplies – 2.9% | | | |
| | Abbott Laboratories | | 1,995,540 | | | 236,192,114 | |
| | Align Technology Inc* | | 240,739 | | | 104,962,204 | |
| | Edwards Lifesciences Corp* | | 1,133,268 | | | 133,408,309 | |
| | IDEXX Laboratories Inc* | | 128,636 | | | 70,371,610 | |
| | Intuitive Surgical Inc* | | 265,296 | | | 80,034,497 | |
| | Medtronic PLC | | 811,885 | | | 90,078,641 | |
| | Stryker Corp | | 378,320 | | | 101,143,852 | |
| | | 816,191,227 | |
Health Care Providers & Services – 2.1% | | | |
| | UnitedHealth Group Inc | | 1,124,308 | | | 573,363,351 | |
Hotels, Restaurants & Leisure – 2.4% | | | |
| | Hilton Worldwide Holdings Inc* | | 1,181,885 | | | 179,339,230 | |
| | McDonald's Corp | | 1,411,327 | | | 348,992,941 | |
| | Starbucks Corp | | 1,643,904 | | | 149,545,947 | |
| | | 677,878,118 | |
Household Products – 0.9% | | | |
| | Procter & Gamble Co | | 1,644,231 | | | 251,238,497 | |
Industrial Conglomerates – 0.9% | | | |
| | Honeywell International Inc | | 1,275,925 | | | 248,269,487 | |
Information Technology Services – 3.1% | | | |
| | Accenture PLC | | 549,285 | | | 185,235,381 | |
| | Fidelity National Information Services Inc | | 1,167,013 | | | 117,191,445 | |
| | Mastercard Inc | | 1,528,195 | | | 546,146,329 | |
| | | 848,573,155 | |
Insurance – 1.2% | | | |
| | Progressive Corp/The | | 2,831,772 | | | 322,793,690 | |
Interactive Media & Services – 3.7% | | | |
| | Alphabet Inc - Class C* | | 367,829 | | | 1,027,342,719 | |
Internet & Direct Marketing Retail – 3.4% | | | |
| | Amazon.com Inc* | | 242,345 | | | 790,032,583 | |
| | Booking Holdings Inc* | | 68,481 | | | 160,824,204 | |
| | | 950,856,787 | |
Leisure Products – 0.4% | | | |
| | Hasbro Inc | | 1,267,730 | | | 103,852,442 | |
Life Sciences Tools & Services – 1.0% | | | |
| | Illumina Inc* | | 204,311 | | | 71,386,263 | |
| | Thermo Fisher Scientific Inc | | 373,938 | | | 220,866,480 | |
| | | 292,252,743 | |
Machinery – 1.9% | | | |
| | Deere & Co | | 822,383 | | | 341,667,241 | |
| | Parker-Hannifin Corp | | 364,778 | | | 103,509,405 | |
| | Trane Technologies PLC | | 554,459 | | | 84,665,889 | |
| | | 529,842,535 | |
Media – 1.1% | | | |
| | Comcast Corp | | 6,575,298 | | | 307,855,452 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Multiline Retail – 0.9% | | | |
| | Dollar General Corp | | 1,152,984 | | | $256,688,828 | |
Personal Products – 0.2% | | | |
| | Estee Lauder Cos Inc | | 218,695 | | | 59,555,022 | |
Pharmaceuticals – 2.3% | | | |
| | Eli Lilly & Co | | 1,391,561 | | | 398,501,324 | |
| | Merck & Co Inc | | 2,253,663 | | | 184,913,049 | |
| | Zoetis Inc | | 263,796 | | | 49,749,288 | |
| | | 633,163,661 | |
Real Estate Management & Development – 0.3% | | | |
| | CBRE Group Inc* | | 838,046 | | | 76,697,970 | |
Semiconductor & Semiconductor Equipment – 4.6% | | | |
| | Advanced Micro Devices Inc* | | 1,328,791 | | | 145,290,008 | |
| | Lam Research Corp | | 652,158 | | | 350,606,662 | |
| | Marvell Technology Inc | | 761,536 | | | 54,609,747 | |
| | NVIDIA Corp | | 1,847,927 | | | 504,225,361 | |
| | Texas Instruments Inc | | 1,170,360 | | | 214,737,653 | |
| | | 1,269,469,431 | |
Software – 7.9% | | | |
| | Adobe Inc* | | 797,012 | | | 363,134,607 | |
| | Cadence Design Systems Inc* | | 764,252 | | | 125,688,884 | |
| | Microsoft Corp | | 4,822,050 | | | 1,486,686,235 | |
| | salesforce.com Inc* | | 693,772 | | | 147,301,671 | |
| | ServiceNow Inc* | | 107,757 | | | 60,008,796 | |
| | | 2,182,820,193 | |
Specialty Retail – 1.0% | | | |
| | Home Depot Inc | | 897,674 | | | 268,700,758 | |
Technology Hardware, Storage & Peripherals – 3.9% | | | |
| | Apple Inc | | 6,138,033 | | | 1,071,761,942 | |
Textiles, Apparel & Luxury Goods – 0.7% | | | |
| | NIKE Inc - Class B | | 1,508,618 | | | 202,999,638 | |
Total Common Stocks (cost $8,509,886,824) | | 17,009,685,193 | |
Investment Companies– 4.9% | | | |
Money Markets – 4.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $1,349,541,535) | | 1,349,427,138 | | | 1,349,562,081 | |
Total Investments (total cost $20,556,730,921) – 103.2% | | 28,613,658,373 | |
Liabilities, net of Cash, Receivables and Other Assets – (3.2)% | | (885,275,112) | |
Net Assets – 100% | | $27,728,383,261 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $28,318,702,068 | | 99.0 | % |
Canada | | 69,373,070 | | 0.2 | |
Australia | | 65,558,358 | | 0.2 | |
France | | 46,579,939 | | 0.2 | |
United Kingdom | | 41,607,069 | | 0.1 | |
Ireland | | 30,876,607 | | 0.1 | |
South Korea | | 25,962,346 | | 0.1 | |
Israel | | 14,998,916 | | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $28,613,658,373 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 4.9% |
Money Markets - 4.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 648,082 | $ | - | $ | - | $ | 1,349,562,081 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 4.9% |
Money Markets - 4.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 1,228,554,350 | | 3,408,531,070 | | (3,287,523,339) | | 1,349,562,081 |
Schedule of Futures
| | | | | | | | | | | | | | | |
Description | | Number of Contracts | | Expiration Date | | Notional Amount | | Value and Unrealized Appreciation/(Depreciation) | | |
Futures Long: | | | | | | | | | | |
10 Year US Treasury Note | | 1,803 | | 6/30/22 | $ | 221,543,625 | $ | (6,366,844) | |
2 Year US Treasury Note | | 5,848 | | 7/6/22 | | 1,239,319,131 | | (9,753,902) | |
5 Year US Treasury Note | | 6,657 | | 7/6/22 | | 763,474,688 | | (16,736,555) | |
Ultra Long Term US Treasury Bond | | 120 | | 6/30/22 | | 21,255,000 | | 520,222 | |
Total - Futures Long | | | | | | | | (32,337,079) | |
Futures Short: | | | | | | | | | | |
Ultra 10-Year Treasury Note | | 1,902 | | 6/30/22 | | (257,661,563) | | 7,998,029 | |
Total | | | | | | | $ | (24,339,050) | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Schedule of Investments (unaudited)
March 31, 2022
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022 |
| | | | | |
| | | | | Interest Rate
Contracts |
Asset Derivatives: | | | |
*Futures contracts | | | $ 8,518,251 |
| | | | |
Liability Derivatives: | | | |
*Futures contracts | | | $(32,857,301) |
| | | | |
*The fair value presented includes net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps. In the Statement of Assets and Liabilities, only current day's variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in total distributable earnings (loss). |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended March 31, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $(16,483,903) |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Interest Rate
Contracts |
Futures contracts | | $(24,339,050) |
| | | | | |
Please see the "Net Realized Gain/(Loss) on investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Value of Derivative Instruments During the Period Ended March 31, 2022 |
| |
| |
Futures contracts: | |
Average notional value of contracts - long | $676,620,899 |
Average notional value of contracts - short | (41,472,623) |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Balanced Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
Balanced Index | Balanced Index is an internally-calculated, hypothetical combination of total returns from the S&P 500® Index (55%) and the Bloomberg U.S. Aggregate Bond Index (45%). |
Bloomberg U.S. Aggregate Bond Index | Bloomberg U.S. Aggregate Bond Index is a broad-based measure of the investment grade, US dollar-denominated, fixed-rate taxable bond market. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ICE | Intercontinental Exchange |
LIBOR | London Interbank Offered Rate |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
SOFR | Secured Overnight Financing Rate |
TBA | (To Be Announced) Securities are purchased/sold on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement when specific mortgage pools are assigned. |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $2,537,988,437, which represents 9.2% of net assets. |
| | |
* | Non-income producing security. |
| | |
‡ | Variable or floating rate security. Rate shown is the current rate as of March 31, 2022. Certain variable rate securities are not based on a published reference rate and spread; they are determined by the issuer or agent and current market conditions. Reference rate is as of reset date and may vary by security, which may not indicate a reference rate and/or spread in their description. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
µ | Perpetual security. Perpetual securities have no stated maturity date, but they may be called/redeemed by the issuer. The date indicated, if any, represents the next call date. |
| | |
Ç | Step bond. The coupon rate will increase or decrease periodically based upon a predetermined schedule. The rate shown reflects the current rate. |
| | |
£ | 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. |
Janus Henderson Balanced Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Asset-Backed/Commercial Mortgage-Backed Securities | $ | - | $ | 1,690,872,403 | $ | - |
Bank Loans and Mezzanine Loans | | - | | 9,680,958 | | - |
Corporate Bonds | | - | | 2,801,933,741 | | - |
Mortgage-Backed Securities | | - | | 1,686,842,533 | | - |
United States Treasury Notes/Bonds | | - | | 4,065,081,464 | | - |
Common Stocks | | 17,009,685,193 | | - | | - |
Investment Companies | | - | | 1,349,562,081 | | - |
Total Investments in Securities | $ | 17,009,685,193 | $ | 11,603,973,180 | $ | - |
Other Financial Instruments(a): | | | | | | |
Futures Contracts | | 8,518,251 | | - | | - |
Total Assets | $ | 17,018,203,444 | $ | 11,603,973,180 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Futures Contracts | $ | 32,857,301 | $ | - | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures 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. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Balanced Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $19,207,189,386) | | $ | 27,264,096,292 | |
| Affiliated investments, at value (cost $1,349,541,535) | | | 1,349,562,081 | |
| Cash | | | 79,682 | |
| Deposits with brokers for futures | | | 16,410,000 | |
| Variation margin receivable on futures contracts | | | 2,740,276 | |
| Non-interested Trustees' deferred compensation | | | 760,715 | |
| Receivables: | | | | |
| | TBA investments sold | | | 396,480,065 | |
| | Investments sold | | | 316,949,454 | |
| | Interest | | | 41,574,457 | |
| | Fund shares sold | | | 34,824,016 | |
| | Dividends | | | 5,674,698 | |
| | Dividends from affiliates | | | 288,530 | |
| Other assets | | | 7,446,458 | |
Total Assets | | | 29,436,886,724 | |
Liabilities: | | | | |
| Variation margin payable on futures contracts | | | 453,212 | |
| Payables: | | | — | |
| | TBA investments purchased | | | 1,156,064,997 | |
| | Investments purchased | | | 470,520,416 | |
| | Fund shares repurchased | | | 55,975,957 | |
| | Advisory fees | | | 12,795,862 | |
| | Transfer agent fees and expenses | | | 4,094,790 | |
| | Dividends | | | 3,521,581 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 3,098,886 | |
| | Non-interested Trustees' deferred compensation fees | | | 760,715 | |
| | Non-interested Trustees' fees and expenses | | | 98,761 | |
| | Professional fees | | | 88,562 | |
| | Affiliated fund administration fees payable | | | 58,163 | |
| | Custodian fees | | | 29,381 | |
| | Accrued expenses and other payables | | | 942,180 | |
Total Liabilities | | | 1,708,503,463 | |
Net Assets | | $ | 27,728,383,261 | |
| | |
See Notes to Financial Statements. |
| |
24 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 19,613,867,639 | |
| Total distributable earnings (loss) | | | 8,114,515,622 | |
Total Net Assets | | $ | 27,728,383,261 | |
Net Assets - Class A Shares | | $ | 2,102,046,586 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 49,054,942 | |
Net Asset Value Per Share(1) | | $ | 42.85 | |
Maximum Offering Price Per Share(2) | | $ | 45.46 | |
Net Assets - Class C Shares | | $ | 2,787,466,272 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 65,897,255 | |
Net Asset Value Per Share(1) | | $ | 42.30 | |
Net Assets - Class D Shares | | $ | 2,355,821,357 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 54,798,227 | |
Net Asset Value Per Share | | $ | 42.99 | |
Net Assets - Class I Shares | | $ | 12,112,563,992 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 281,641,539 | |
Net Asset Value Per Share | | $ | 43.01 | |
Net Assets - Class N Shares | | $ | 1,947,809,473 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 45,340,322 | |
Net Asset Value Per Share | | $ | 42.96 | |
Net Assets - Class R Shares | | $ | 484,464,771 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,387,585 | |
Net Asset Value Per Share | | $ | 42.54 | |
Net Assets - Class S Shares | | $ | 534,608,196 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,480,978 | |
Net Asset Value Per Share | | $ | 42.83 | |
Net Assets - Class T Shares | | $ | 5,403,602,614 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 125,885,870 | |
Net Asset Value Per Share | | $ | 42.92 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Balanced Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Interest | $ | 102,542,377 | |
| Dividends | | 99,414,880 | |
| Dividends from affiliates | | 648,082 | |
| Other income | | 581,886 | |
| Foreign tax withheld | | (7,810) | |
Total Investment Income | | 203,179,415 | |
Expenses: | | | |
| Advisory fees | | 77,760,193 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 2,602,910 | |
| | Class C Shares | | 13,646,880 | |
| | Class R Shares | | 1,231,583 | |
| | Class S Shares | | 700,808 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,349,830 | |
| | Class R Shares | | 616,352 | |
| | Class S Shares | | 703,240 | |
| | Class T Shares | | 7,076,355 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 637,406 | |
| | Class C Shares | | 881,483 | |
| | Class I Shares | | 5,223,784 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 62,890 | |
| | Class C Shares | | 68,108 | |
| | Class D Shares | | 119,990 | |
| | Class I Shares | | 262,555 | |
| | Class N Shares | | 32,254 | |
| | Class R Shares | | 1,984 | |
| | Class S Shares | | 2,164 | |
| | Class T Shares | | 19,434 | |
| Affiliated fund administration fees | | 353,456 | |
| Shareholder reports expense | | 337,409 | |
| Non-interested Trustees’ fees and expenses | | 239,921 | |
| Registration fees | | 164,646 | |
| Professional fees | | 110,948 | |
| Custodian fees | | 69,699 | |
| Other expenses | | 756,098 | |
Total Expenses | | 115,032,380 | |
Less: Excess Expense Reimbursement and Waivers | | (313,008) | |
Net Expenses | | 114,719,372 | |
Net Investment Income/(Loss) | | 88,460,043 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
26 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 251,570,086 | |
| Futures contracts | | (16,483,903) | |
Total Net Realized Gain/(Loss) on Investments | | 235,086,183 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (147,965,578) | |
| Futures contracts | | (24,339,050) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (172,304,628) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 151,241,598 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson Balanced Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 88,460,043 | | $ | 219,235,486 | |
| Net realized gain/(loss) on investments | | 235,086,183 | | | 1,088,154,513 | |
| Change in unrealized net appreciation/depreciation | | (172,304,628) | | | 2,493,558,324 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 151,241,598 | | | 3,800,948,323 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (84,024,283) | | | (35,331,714) | |
| | Class C Shares | | (108,475,010) | | | (37,789,179) | |
| | Class D Shares | | (98,316,386) | | | (49,717,591) | |
| | Class I Shares | | (500,805,633) | | | (207,941,551) | |
| | Class N Shares | | (81,845,873) | | | (36,454,465) | |
| | Class R Shares | | (18,874,632) | | | (7,295,538) | |
| | Class S Shares | | (21,936,262) | | | (10,876,463) | |
| | Class T Shares | | (228,309,178) | | | (145,991,988) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,142,587,257) | | | (531,398,489) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 214,623,262 | | | 216,989,230 | |
| | Class C Shares | | 69,638,021 | | | 58,219,595 | |
| | Class D Shares | | 73,330,937 | | | 49,335,057 | |
| | Class I Shares | | 871,122,088 | | | 2,890,909,675 | |
| | Class N Shares | | 420,825,560 | | | 122,411,936 | |
| | Class R Shares | | 27,614,500 | | | 11,140,051 | |
| | Class S Shares | | (13,862,851) | | | (60,806,557) | |
| | Class T Shares | | (28,867,911) | | | (1,833,754,835) | |
Net Increase/(Decrease) from Capital Share Transactions | | 1,634,423,606 | | | 1,454,444,152 | |
Net Increase/(Decrease) in Net Assets | | 643,077,947 | | | 4,723,993,986 | |
Net Assets: | | | | | | |
| Beginning of period | | 27,085,305,314 | | | 22,361,311,328 | |
| End of period | $ | 27,728,383,261 | | $ | 27,085,305,314 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
28 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.26 | | | $38.77 | | | $35.45 | | | $35.22 | | | $32.46 | | | $29.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.12 | | | 0.34 | | | 0.49 | | | 0.60 | | | 0.50 | | | 0.52 | |
| | Net realized and unrealized gain/(loss) | | 0.28 | | | 6.02 | | | 3.75 | | | 1.82 | | | 3.87 | | | 3.88 | |
| Total from Investment Operations | | 0.40 | | | 6.36 | | | 4.24 | | | 2.42 | | | 4.37 | | | 4.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.41) | | | (0.53) | | | (0.60) | | | (0.50) | | | (0.59) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.81) | | | (0.87) | | | (0.92) | | | (2.19) | | | (1.61) | | | (0.94) | |
| Net Asset Value, End of Period | | $42.85 | | | $44.26 | | | $38.77 | | | $35.45 | | | $35.22 | | | $32.46 | |
| Total Return* | | 0.68% | | | 16.58% | | | 12.14% | | | 7.73% | | | 13.81% | | | 15.44% | |
| Net Assets, End of Period (in thousands) | | $2,102,047 | | | $1,963,351 | | | $1,519,093 | | | $1,082,508 | | | $768,529 | | | $625,454 | |
| Average Net Assets for the Period (in thousands) | | $2,088,048 | | | $1,788,265 | | | $1,249,156 | | | $905,165 | | | $666,296 | | | $781,785 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.88% | | | 0.89% | | | 0.90% | | | 0.93% | | | 0.95% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.88% | | | 0.89% | | | 0.90% | | | 0.93% | | | 0.95% | | | 0.94% | |
| | Ratio of Net Investment Income/(Loss) | | 0.56% | | | 0.80% | | | 1.34% | | | 1.78% | | | 1.48% | | | 1.68% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.74 | | | $38.34 | | | $35.09 | | | $34.90 | | | $32.19 | | | $28.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.03) | | | 0.04 | | | 0.23 | | | 0.37 | | | 0.27 | | | 0.31 | |
| | Net realized and unrealized gain/(loss) | | 0.27 | | | 5.95 | | | 3.71 | | | 1.79 | | | 3.84 | | | 3.85 | |
| Total from Investment Operations | | 0.24 | | | 5.99 | | | 3.94 | | | 2.16 | | | 4.11 | | | 4.16 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.13) | | | (0.30) | | | (0.38) | | | (0.29) | | | (0.40) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.68) | | | (0.59) | | | (0.69) | | | (1.97) | | | (1.40) | | | (0.75) | |
| Net Asset Value, End of Period | | $42.30 | | | $43.74 | | | $38.34 | | | $35.09 | | | $34.90 | | | $32.19 | |
| Total Return* | | 0.33% | | | 15.76% | | | 11.37% | | | 6.98% | | | 13.06% | | | 14.67% | |
| Net Assets, End of Period (in thousands) | | $2,787,466 | | | $2,817,466 | | | $2,415,890 | | | $1,992,062 | | | $1,594,610 | | | $1,290,994 | |
| Average Net Assets for the Period (in thousands) | | $2,893,071 | | | $2,671,210 | | | $2,207,746 | | | $1,743,474 | | | $1,403,777 | | | $1,322,392 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.58% | | | 1.60% | | | 1.61% | | | 1.62% | | | 1.62% | | | 1.61% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.58% | | | 1.60% | | | 1.61% | | | 1.62% | | | 1.62% | | | 1.61% | |
| | Ratio of Net Investment Income/(Loss) | | (0.14)% | | | 0.10% | | | 0.64% | | | 1.10% | | | 0.81% | | | 1.03% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 29 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.40 | | | $38.89 | | | $35.54 | | | $35.30 | | | $32.52 | | | $29.06 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.17 | | | 0.42 | | | 0.56 | | | 0.68 | | | 0.58 | | | 0.59 | |
| | Net realized and unrealized gain/(loss) | | 0.27 | | | 6.04 | | | 3.77 | | | 1.82 | | | 3.89 | | | 3.88 | |
| Total from Investment Operations | | 0.44 | | | 6.46 | | | 4.33 | | | 2.50 | | | 4.47 | | | 4.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.49) | | | (0.59) | | | (0.67) | | | (0.58) | | | (0.66) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.85) | | | (0.95) | | | (0.98) | | | (2.26) | | | (1.69) | | | (1.01) | |
| Net Asset Value, End of Period | | $42.99 | | | $44.40 | | | $38.89 | | | $35.54 | | | $35.30 | | | $32.52 | |
| Total Return* | | 0.77% | | | 16.80% | | | 12.39% | | | 7.95% | | | 14.10% | | | 15.68% | |
| Net Assets, End of Period (in thousands) | | $2,355,821 | | | $2,362,421 | | | $2,022,689 | | | $1,860,900 | | | $1,761,817 | | | $1,562,693 | |
| Average Net Assets for the Period (in thousands) | | $2,426,814 | | | $2,246,350 | | | $1,895,563 | | | $1,759,287 | | | $1,667,210 | | | $1,477,105 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.69% | | | 0.70% | | | 0.71% | | | 0.72% | | | 0.71% | | | 0.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.70% | | | 0.71% | | | 0.72% | | | 0.71% | | | 0.72% | |
| | Ratio of Net Investment Income/(Loss) | | 0.75% | | | 0.99% | | | 1.54% | | | 2.00% | | | 1.71% | | | 1.92% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.41 | | | $38.90 | | | $35.55 | | | $35.31 | | | $32.53 | | | $29.06 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.44 | | | 0.58 | | | 0.70 | | | 0.61 | | | 0.61 | |
| | Net realized and unrealized gain/(loss) | | 0.28 | | | 6.04 | | | 3.77 | | | 1.83 | | | 3.88 | | | 3.89 | |
| Total from Investment Operations | | 0.46 | | | 6.48 | | | 4.35 | | | 2.53 | | | 4.49 | | | 4.50 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.18) | | | (0.51) | | | (0.61) | | | (0.70) | | | (0.60) | | | (0.68) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.86) | | | (0.97) | | | (1.00) | | | (2.29) | | | (1.71) | | | (1.03) | |
| Net Asset Value, End of Period | | $43.01 | | | $44.41 | | | $38.90 | | | $35.55 | | | $35.31 | | | $32.53 | |
| Total Return* | | 0.81% | | | 16.86% | | | 12.45% | | | 8.02% | | | 14.18% | | | 15.79% | |
| Net Assets, End of Period (in thousands) | | $12,112,564 | | | $11,674,873 | | | $7,688,726 | | | $5,225,684 | | | $3,197,893 | | | $2,096,893 | |
| Average Net Assets for the Period (in thousands) | | $12,290,897 | | | $9,205,809 | | | $6,311,815 | | | $4,116,708 | | | $2,460,247 | | | $1,795,486 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.65% | | | 0.65% | | | 0.65% | | | 0.65% | | | 0.64% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.65% | | | 0.65% | | | 0.65% | | | 0.65% | | | 0.64% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.78% | | | 1.04% | | | 1.59% | | | 2.07% | | | 1.80% | | | 2.00% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
30 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.37 | | | $38.86 | | | $35.51 | | | $35.28 | | | $32.50 | | | $29.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.19 | | | 0.48 | | | 0.61 | | | 0.73 | | | 0.63 | | | 0.64 | |
| | Net realized and unrealized gain/(loss) | | 0.28 | | | 6.03 | | | 3.76 | | | 1.81 | | | 3.88 | | | 3.87 | |
| Total from Investment Operations | | 0.47 | | | 6.51 | | | 4.37 | | | 2.54 | | | 4.51 | | | 4.51 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.54) | | | (0.63) | | | (0.72) | | | (0.62) | | | (0.70) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.88) | | | (1.00) | | | (1.02) | | | (2.31) | | | (1.73) | | | (1.05) | |
| Net Asset Value, End of Period | | $42.96 | | | $44.37 | | | $38.86 | | | $35.51 | | | $35.28 | | | $32.50 | |
| Total Return* | | 0.83% | | | 16.96% | | | 12.53% | | | 8.07% | | | 14.26% | | | 15.84% | |
| Net Assets, End of Period (in thousands) | | $1,947,809 | | | $1,611,032 | | | $1,285,159 | | | $946,741 | | | $2,480,945 | | | $2,054,731 | |
| Average Net Assets for the Period (in thousands) | | $1,920,076 | | | $1,562,471 | | | $1,142,389 | | | $1,651,136 | | | $2,273,486 | | | $1,952,775 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.57% | | | 0.57% | | | 0.57% | | | 0.58% | | | 0.57% | | | 0.58% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.57% | | | 0.57% | | | 0.57% | | | 0.58% | | | 0.57% | | | 0.58% | |
| | Ratio of Net Investment Income/(Loss) | | 0.88% | | | 1.12% | | | 1.67% | | | 2.19% | | | 1.86% | | | 2.07% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.96 | | | $38.52 | | | $35.23 | | | $35.02 | | | $32.29 | | | $28.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.16 | | | 0.34 | | | 0.47 | | | 0.37 | | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 5.97 | | | 3.73 | | | 1.80 | | | 3.85 | | | 3.87 | |
| Total from Investment Operations | | 0.29 | | | 6.13 | | | 4.07 | | | 2.27 | | | 4.22 | | | 4.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.23) | | | (0.39) | | | (0.47) | | | (0.38) | | | (0.50) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.71) | | | (0.69) | | | (0.78) | | | (2.06) | | | (1.49) | | | (0.85) | |
| Net Asset Value, End of Period | | $42.54 | | | $43.96 | | | $38.52 | | | $35.23 | | | $35.02 | | | $32.29 | |
| Total Return* | | 0.45% | | | 16.08% | | | 11.71% | | | 7.29% | | | 13.38% | | | 15.02% | |
| Net Assets, End of Period (in thousands) | | $484,465 | | | $473,663 | | | $404,420 | | | $366,621 | | | $345,667 | | | $341,389 | |
| Average Net Assets for the Period (in thousands) | | $494,436 | | | $450,253 | | | $375,839 | | | $347,861 | | | $339,637 | | | $327,651 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.31% | | | 1.32% | | | 1.32% | | | 1.32% | | | 1.32% | | | 1.32% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.31% | | | 1.31% | | | 1.32% | | | 1.32% | | | 1.32% | | | 1.32% | |
| | Ratio of Net Investment Income/(Loss) | | 0.12% | | | 0.38% | | | 0.93% | | | 1.39% | | | 1.11% | | | 1.33% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 31 |
Janus Henderson Balanced Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.24 | | | $38.76 | | | $35.43 | | | $35.20 | | | $32.44 | | | $28.99 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.27 | | | 0.43 | | | 0.55 | | | 0.46 | | | 0.48 | |
| | Net realized and unrealized gain/(loss) | | 0.28 | | | 6.00 | | | 3.76 | | | 1.82 | | | 3.87 | | | 3.88 | |
| Total from Investment Operations | | 0.36 | | | 6.27 | | | 4.19 | | | 2.37 | | | 4.33 | | | 4.36 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.09) | | | (0.33) | | | (0.47) | | | (0.55) | | | (0.46) | | | (0.56) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.77) | | | (0.79) | | | (0.86) | | | (2.14) | | | (1.57) | | | (0.91) | |
| Net Asset Value, End of Period | | $42.83 | | | $44.24 | | | $38.76 | | | $35.43 | | | $35.20 | | | $32.44 | |
| Total Return* | | 0.59% | | | 16.35% | | | 11.99% | | | 7.56% | | | 13.67% | | | 15.30% | |
| Net Assets, End of Period (in thousands) | | $534,608 | | | $566,156 | | | $551,605 | | | $551,985 | | | $589,812 | | | $622,279 | |
| Average Net Assets for the Period (in thousands) | | $564,137 | | | $570,377 | | | $532,958 | | | $549,514 | | | $610,278 | | | $637,727 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.06% | | | 1.07% | | | 1.07% | | | 1.08% | | | 1.07% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | | | 1.07% | | | 1.07% | | | 1.07% | | | 1.07% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 0.37% | | | 0.63% | | | 1.18% | | | 1.64% | | | 1.36% | | | 1.57% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $44.34 | | | $38.83 | | | $35.49 | | | $35.26 | | | $32.49 | | | $29.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.14 | | | 0.38 | | | 0.52 | | | 0.64 | | | 0.54 | | | 0.56 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 6.02 | | | 3.76 | | | 1.82 | | | 3.88 | | | 3.89 | |
| Total from Investment Operations | | 0.40 | | | 6.40 | | | 4.28 | | | 2.46 | | | 4.42 | | | 4.45 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.43) | | | (0.55) | | | (0.64) | | | (0.54) | | | (0.63) | |
| | Distributions (from capital gains) | | (1.68) | | | (0.46) | | | (0.39) | | | (1.59) | | | (1.11) | | | (0.35) | |
| Total Dividends and Distributions | | (1.82) | | | (0.89) | | | (0.94) | | | (2.23) | | | (1.65) | | | (0.98) | |
| Net Asset Value, End of Period | | $42.92 | | | $44.34 | | | $38.83 | | | $35.49 | | | $35.26 | | | $32.49 | |
| Total Return* | | 0.69% | | | 16.67% | | | 12.26% | | | 7.82% | | | 13.97% | | | 15.62% | |
| Net Assets, End of Period (in thousands) | | $5,403,603 | | | $5,616,342 | | | $6,473,729 | | | $5,813,161 | | | $5,422,276 | | | $4,736,612 | |
| Average Net Assets for the Period (in thousands) | | $5,676,636 | | | $6,945,465 | | | $6,067,333 | | | $5,475,178 | | | $5,098,558 | | | $4,654,904 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.82% | | | 0.82% | | | 0.83% | | | 0.82% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.81% | | | 0.82% | | | 0.82% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.63% | | | 0.89% | | | 1.43% | | | 1.90% | | | 1.61% | | | 1.83% | |
| Portfolio Turnover Rate | | 33%(2) | | | 60%(2) | | | 90%(2) | | | 81%(2) | | | 88% | | | 60% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Portfolio Turnover Rate excludes TBA (to be announced) purchase and sales commitments. |
| | |
See Notes to Financial Statements. |
| |
32 | MARCH 31, 2022 |
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Balanced Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term capital growth, consistent with preservation of capital and balanced by current income. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
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Notes to Financial Statements (unaudited)
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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.
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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 futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2022 is discussed in further detail below. A summary of derivative activity by the Fund 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 purposes (to earn income and seek to enhance returns). 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 that 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
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
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.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – 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 – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – 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 – the risk related 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 – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC 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. Additionally, the Fund may deposit cash and/or treasuries 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 contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market or other markets pending investment of cash balances or to meet liquidity needs. The Fund is
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Notes to Financial Statements (unaudited)
subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts on commodities are valued at the settlement price on valuation date on the commodities exchange as reported by an approved vendor. Mini contracts, as defined in the description of the contract, shall be valued using the Actual Settlement Price or “ASET” price type as reported by an approved vendor. In the event that foreign futures trade when the foreign equity markets are closed, the last foreign futures trade price shall be used.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities (if applicable). The change in unrealized net appreciation/depreciation is reported on the Statement of Operations (if applicable). When a contract is closed, a realized gain or loss is reported on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract.
Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
During the period, the Fund purchased interest rate futures to increase exposure to interest rate risk.
During the period, the Fund sold interest rate futures to decrease exposure to interest rate risk.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
Loans
The 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 the Fund’s total assets. Below are descriptions of the types of loans held by the Fund as of March 31, 2022.
· Bank Loans - Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. The Fund’s investments in bank loans are generally acquired as a participation interest in, or assignment of, loans originated by a lender or other financial institution. These investments may include institutionally-traded floating and fixed-rate debt securities.
· Floating Rate Loans – Floating rate loans are debt securities that have floating interest rates, that adjust periodically, and are tied to a benchmark lending rate, such as London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (‘‘borrowers’’) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. While the Fund generally expects to invest in fully funded term loans, certain of the loans in which the Fund may invest include revolving loans, bridge loans, and delayed draw term loans.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fund may receive fees such as covenant waiver fees or prepayment penalty fees. The Fund may pay fees such as facility fees. Such fees may affect the Fund’s return.
· Mezzanine Loans - Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure.
Mortgage- and Asset-Backed Securities
Mortgage- and asset-backed securities represent interests in “pools” of commercial or residential mortgages or other assets, including consumer and commercial loans or receivables. The Fund may purchase fixed or variable rate commercial or residential 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 as to the timely payment of principal and interest by the full faith and credit of the U.S. Government. Fannie Mae and
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
Freddie Mac securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Since that time, 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 Fund may also 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 various consumer obligations, including automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying loans are not paid, the securities’ issuer could be forced to sell the assets and recognize losses on such assets, which could impact your return. Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Mortgage- and asset-backed securities are subject to both extension risk, where borrowers pay off their debt obligations more slowly in times of rising interest rates, and prepayment risk, where borrowers pay off their debt obligations sooner than expected in times of declining interest rates. These risks may reduce the Fund’s returns. In addition, investments in mortgage- and asset-backed securities, including those comprised of subprime mortgages, may be subject to a higher degree of credit risk, valuation risk, extension risk (if interest rates rise), and liquidity risk than various other types of fixed-income securities. Additionally, although mortgage-backed securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that guarantors or insurers will meet their obligations.
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, corporate bonds, 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.
Sovereign Debt
The Fund may invest in U.S. and non-U.S. government debt securities (“sovereign debt”). Some investments in sovereign debt, such as U.S. sovereign debt, are considered low risk. However, investments in sovereign debt, especially the debt of less developed countries, 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, but not limited to, its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid. In addition, to the extent the Fund invests in non-U.S. sovereign debt, it may be subject to currency risk.
TBA Commitments
The Fund may enter into “to be announced” or “TBA” commitments. TBAs are forward agreements for the purchase or sale of securities, including mortgage-backed securities, for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate, and mortgage terms. Although the particular TBA securities must meet industry-accepted “good delivery” standards, there can be no assurance that a security purchased on forward commitment basis will ultimately be issued or delivered by the counterparty. During the settlement period, the
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
Fund will still bear the risk of any decline in the value of the security to be delivered. Because TBA commitments do not require the delivery of a specific security, the characteristics of the security delivered to the Fund may be less favorable than expected. If the counterparty to a transaction fails to deliver the security, the Fund could suffer a loss. To facilitate TBA commitments, the Fund will segregate or otherwise earmark liquid assets marked to market daily in an amount at least equal to such TBA commitments. Proposed rules of the Financial Industry Regulatory Authority (“FINRA”) include mandatory margin requirements for TBA commitments which, in some circumstances, will require the Fund to also post collateral. These collateral requirements may increase costs associated with the Fund’s participation in the TBA market.
When-Issued, Delayed Delivery and Forward Commitment Transactions
The Fund may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Typically, no income accrues on securities the Fund has committed to purchase prior to the time delivery of the securities is made. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund’s other investments. If the other party to a transaction fails to deliver the securities, the Fund could miss a favorable price or yield opportunity. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases (including TBA commitments) are outstanding, the purchases may result in a form of leverage.
When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to pay for the securities, the Fund could suffer a loss. Additionally, when selling a security on a when-issued, delayed delivery, or forward commitment basis without owning the security, the Fund will incur a loss if the security’s price appreciates in value such that the security’s price is above the agreed upon price on the settlement date. The Fund may dispose of or renegotiate a transaction after it is entered into, and may purchase or sell when-issued, delayed delivery or forward commitment securities before the settlement date, which may result in a gain or loss.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pay the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.55% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.68% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $421,848.
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. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class A Shares paid CDSCs of $2,895 to Janus Henderson Distributors.
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $143,556.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the period ended March 31, 2022, the Fund engaged in cross trades amounting to $7,112,256 in purchases and $115,107,549 in sales, resulting in a net realized loss of $230,828. The net realized loss is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 20,631,887,223 | $8,615,919,949 | $(634,148,799) | $ 7,981,771,150 |
Information on the tax components of derivatives as of March 31, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ - | $ 8,518,251 | $(32,857,301) | $ (24,339,050) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 7,238,477 | $ 327,316,488 | | 13,764,827 | $ 577,780,633 |
Reinvested dividends and distributions | 1,525,486 | 69,164,246 | | 678,524 | 28,028,513 |
Shares repurchased | (4,066,694) | (181,857,472) | | (9,265,354) | (388,819,916) |
Net Increase/(Decrease) | 4,697,269 | $ 214,623,262 | | 5,177,997 | $ 216,989,230 |
Class C Shares: | | | | | |
Shares sold | 5,615,033 | $ 248,866,839 | | 14,639,459 | $ 609,241,001 |
Reinvested dividends and distributions | 2,210,053 | 99,187,163 | | 856,542 | 34,428,980 |
Shares repurchased | (6,343,609) | (278,415,981) | | (14,090,972) | (585,450,386) |
Net Increase/(Decrease) | 1,481,477 | $ 69,638,021 | | 1,405,029 | $ 58,219,595 |
Class D Shares: | | | | | |
Shares sold | 2,062,504 | $ 92,503,837 | | 5,033,315 | $ 212,246,387 |
Reinvested dividends and distributions | 2,098,182 | 95,379,656 | | 1,161,749 | 48,189,661 |
Shares repurchased | (2,572,041) | (114,552,556) | | (5,001,298) | (211,100,991) |
Net Increase/(Decrease) | 1,588,645 | $ 73,330,937 | | 1,193,766 | $ 49,335,057 |
Class I Shares: | | | | | |
Shares sold | 38,770,304 | $1,751,806,565 | | 104,377,111 | $ 4,545,352,003 |
Reinvested dividends and distributions | 10,002,397 | 454,813,298 | | 4,391,432 | 182,787,869 |
Shares repurchased | (29,999,011) | (1,335,497,775) | | (43,550,749) | (1,837,230,197) |
Net Increase/(Decrease) | 18,773,690 | $ 871,122,088 | | 65,217,794 | $ 2,890,909,675 |
Class N Shares: | | | | | |
Shares sold | 11,323,613 | $ 522,130,884 | | 13,020,268 | $ 539,999,694 |
Reinvested dividends and distributions | 1,629,696 | 74,003,359 | | 779,841 | 32,372,046 |
Shares repurchased | (3,925,221) | (175,308,683) | | (10,561,427) | (449,959,804) |
Net Increase/(Decrease) | 9,028,088 | $ 420,825,560 | | 3,238,682 | $ 122,411,936 |
Class R Shares: | | | | | |
Shares sold | 1,180,625 | $ 52,023,505 | | 1,999,222 | $ 83,728,367 |
Reinvested dividends and distributions | 417,186 | 18,809,139 | | 177,843 | 7,227,617 |
Shares repurchased | (985,417) | (43,218,144) | | (1,902,127) | (79,815,933) |
Net Increase/(Decrease) | 612,394 | $ 27,614,500 | | 274,938 | $ 11,140,051 |
Class S Shares: | | | | | |
Shares sold | 980,419 | $ 43,817,930 | | 2,046,106 | $ 85,738,506 |
Reinvested dividends and distributions | 479,864 | 21,767,124 | | 261,683 | 10,748,352 |
Shares repurchased | (1,775,536) | (79,447,905) | | (3,744,399) | (157,293,415) |
Net Increase/(Decrease) | (315,253) | $ (13,862,851) | | (1,436,610) | $ (60,806,557) |
Class T Shares: | | | | | |
Shares sold | 7,101,474 | $ 318,963,200 | | 26,166,288 | $ 1,099,594,219 |
Reinvested dividends and distributions | 4,964,436 | 225,465,289 | | 3,503,860 | 144,556,702 |
Shares repurchased | (12,859,394) | (573,296,400) | | (69,724,255) | (3,077,905,756) |
Net Increase/(Decrease) | (793,484) | $ (28,867,911) | | (40,054,107) | $(1,833,754,835) |
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$3,792,461,553 | $4,725,750,006 | $ 5,513,619,852 | $ 4,256,217,661 |
Janus Henderson Balanced Fund
Notes to Financial Statements (unaudited)
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Balanced Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Balanced Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Balanced Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Balanced Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Balanced Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Balanced Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Balanced Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Balanced Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Balanced Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Balanced Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Balanced Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Balanced Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Balanced Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Balanced Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Balanced Fund
Useful Information About Your Fund Report (unaudited)
portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93037 05-22 |
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| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Contrarian Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Contrarian Fund
| | | | | | |
FUND SNAPSHOT The Fund seeks to generate capital appreciation by investing in companies with durable business models whose stocks are trading at a significant discount to what we believe is their fair value and whose value is expected to grow over time. We seek to accomplish this by selecting stocks from a broad opportunity set to construct an all-cap portfolio that is intended to be uncorrelated to the broad economy or market. | | | | | 
Nick Schommer portfolio manager |
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Janus Henderson Contrarian Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Freeport-McMoRan Inc | 4.54% | | 1.67% | | Caesars Entertainment Inc | 5.09% | | -2.19% |
| Occidental Petroleum Corp | 1.77% | | 1.42% | | Snap Inc - Class A | 2.38% | | -1.98% |
| Crown Holdings Inc | 7.29% | | 1.18% | | Rush Street Interactive Inc | 0.72% | | -0.97% |
| Liberty Media Corp-Liberty Formula One | 2.00% | | 0.49% | | Deckers Outdoor Corp | 1.56% | | -0.64% |
| American Electric Power Co Inc | 2.66% | | 0.45% | | Capital One Financial Corp | 2.62% | | -0.63% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 2.56% | | 15.21% | 2.55% |
| Utilities | | 0.65% | | 4.41% | 2.50% |
| Energy | | 0.33% | | 1.77% | 3.16% |
| Communication Services | | 0.17% | | 5.46% | 10.20% |
| Industrials | | -0.04% | | 6.40% | 7.95% |
| | | | | | |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -4.72% | | 17.97% | 12.37% |
| Financials | | -1.22% | | 10.79% | 11.29% |
| Health Care | | -0.78% | | 18.04% | 13.12% |
| Information Technology | | -0.77% | | 12.94% | 28.29% |
| Consumer Staples | | -0.76% | | 1.29% | 5.91% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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. |
Janus Henderson Contrarian Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Crown Holdings Inc | |
Containers & Packaging | 7.1% |
Horizon Therapeutics PLC | |
Pharmaceuticals | 6.1% |
Caesars Entertainment Inc | |
Hotels, Restaurants & Leisure | 4.7% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 4.4% |
VICI Properties Inc | |
Equity Real Estate Investment Trusts (REITs) | 4.4% |
| | 26.7% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.1% | |
Investment Companies | | 1.7% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.4% | |
Other | | (0.2)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Contrarian Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 0.39% | 10.77% | 16.05% | 13.39% | 8.72% | | | 1.12% | 1.12% |
Class A Shares at MOP | | -5.37% | 4.42% | 14.69% | 12.71% | 8.43% | | | | |
Class C Shares at NAV | | 0.03% | 9.95% | 15.27% | 12.56% | 7.92% | | | 1.87% | 1.87% |
Class C Shares at CDSC | | -0.87% | 8.96% | 15.27% | 12.56% | 7.92% | | | | |
Class D Shares | | 0.48% | 11.00% | 16.32% | 13.63% | 8.92% | | | 0.90% | 0.90% |
Class I Shares | | 0.52% | 11.04% | 16.38% | 13.71% | 8.96% | | | 0.85% | 0.85% |
Class N Shares | | 0.55% | 11.13% | 16.47% | 13.66% | 8.92% | | | 0.77% | 0.77% |
Class R Shares | | 0.13% | 10.18% | 15.46% | 12.88% | 8.24% | | | 1.76% | 1.61% |
Class S Shares | | 0.28% | 10.51% | 15.79% | 13.19% | 8.52% | | | 1.74% | 1.36% |
Class T Shares | | 0.44% | 10.90% | 16.22% | 13.54% | 8.87% | | | 1.01% | 1.01% |
S&P 500 Index | | 5.92% | 15.65% | 15.99% | 14.64% | 7.62% | | | | |
Morningstar Quartile - Class T Shares | | - | 1st | 1st | 1st | 2nd | | | | |
Morningstar Ranking - based on total returns for Mid-Cap Blend Funds | | - | 58/406 | 4/344 | 13/273 | 65/142 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Janus Henderson Contrarian Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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 August 4, 2017. Performance shown for periods prior to August 4, 2017, 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – February 29, 2000
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Contrarian 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $1,003.90 | $5.55 | | $1,000.00 | $1,019.40 | $5.59 | 1.11% |
Class C Shares | $1,000.00 | $1,000.30 | $9.18 | | $1,000.00 | $1,015.76 | $9.25 | 1.84% |
Class D Shares | $1,000.00 | $1,004.80 | $4.45 | | $1,000.00 | $1,020.49 | $4.48 | 0.89% |
Class I Shares | $1,000.00 | $1,005.20 | $4.35 | | $1,000.00 | $1,020.59 | $4.38 | 0.87% |
Class N Shares | $1,000.00 | $1,005.50 | $3.85 | | $1,000.00 | $1,021.09 | $3.88 | 0.77% |
Class R Shares | $1,000.00 | $1,001.30 | $7.88 | | $1,000.00 | $1,017.05 | $7.95 | 1.58% |
Class S Shares | $1,000.00 | $1,002.80 | $6.64 | | $1,000.00 | $1,018.30 | $6.69 | 1.33% |
Class T Shares | $1,000.00 | $1,004.40 | $4.95 | | $1,000.00 | $1,020.00 | $4.99 | 0.99% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Contrarian Fund
Schedule of Investments (unaudited)
March 31, 2022
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Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.1% | | | |
Aerospace & Defense – 3.2% | | | |
| | Howmet Aerospace Inc | | 4,794,494 | | | $172,314,114 | |
Beverages – 0.5% | | | |
| | Celsius Holdings Inc* | | 521,509 | | | 28,776,867 | |
Biotechnology – 5.2% | | | |
| | AbbVie Inc | | 679,934 | | | 110,224,101 | |
| | Amicus Therapeutics Inc* | | 3,344,087 | | | 31,668,504 | |
| | Biohaven Pharmaceutical Holding Co Ltd* | | 921,149 | | | 109,220,637 | |
| | Insmed Inc* | | 1,252,999 | | | 29,445,476 | |
| | | 280,558,718 | |
Capital Markets – 2.2% | | | |
| | Morgan Stanley | | 1,090,044 | | | 95,269,846 | |
| | Patria Investments Ltd - Class A | | 1,372,637 | | | 24,446,665 | |
| | | 119,716,511 | |
Chemicals – 0.8% | | | |
| | International Flavors & Fragrances Inc | | 333,078 | | | 43,743,134 | |
Consumer Finance – 4.7% | | | |
| | Capital One Financial Corp | | 905,288 | | | 118,855,261 | |
| | OneMain Holdings Inc | | 2,837,719 | | | 134,536,258 | |
| | | 253,391,519 | |
Containers & Packaging – 7.1% | | | |
| | Crown Holdings Inc | | 3,030,559 | | | 379,092,625 | |
Diversified Financial Services – 1.9% | | | |
| | Apollo Global Management Inc | | 1,621,915 | | | 100,542,511 | |
Electric Utilities – 2.8% | | | |
| | American Electric Power Co Inc | | 1,510,426 | | | 150,695,202 | |
Entertainment – 1.8% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 1,404,070 | | | 98,060,249 | |
Equity Real Estate Investment Trusts (REITs) – 4.4% | | | |
| | VICI Properties Inc | | 8,205,556 | | | 233,530,124 | |
Health Care Equipment & Supplies – 3.8% | | | |
| | Boston Scientific Corp* | | 2,337,810 | | | 103,541,605 | |
| | Globus Medical Inc* | | 1,311,819 | | | 96,786,006 | |
| | | 200,327,611 | |
Hotels, Restaurants & Leisure – 7.3% | | | |
| | Caesars Entertainment Inc* | | 3,246,081 | | | 251,116,826 | |
| | Monarch Casino & Resort Inc* | | 613,079 | | | 53,478,881 | |
| | Rush Street Interactive Inc*,£ | | 4,637,341 | | | 33,713,469 | |
| | Sportradar Group AG - Class A*,# | | 3,055,490 | | | 50,843,354 | |
| | | 389,152,530 | |
Interactive Media & Services – 2.3% | | | |
| | Snap Inc - Class A* | | 3,450,076 | | | 124,168,235 | |
Internet & Direct Marketing Retail – 4.4% | | | |
| | Amazon.com Inc* | | 72,622 | | | 236,744,089 | |
Leisure Products – 1.3% | | | |
| | Hasbro Inc | | 820,334 | | | 67,201,761 | |
Metals & Mining – 6.5% | | | |
| | Constellium SE*,£ | | 7,165,662 | | | 128,981,916 | |
| | Freeport-McMoRan Inc | | 4,350,850 | | | 216,411,279 | |
| | | 345,393,195 | |
Multi-Utilities – 2.1% | | | |
| | Sempra Energy | | 663,633 | | | 111,569,980 | |
Oil, Gas & Consumable Fuels – 2.8% | | | |
| | Occidental Petroleum Corp | | 2,638,277 | | | 149,695,837 | |
Personal Products – 1.8% | | | |
| | Beauty Health Co/The* | | 5,699,318 | | | 96,204,488 | |
Pharmaceuticals – 9.7% | | | |
| | Horizon Therapeutics PLC* | | 3,124,117 | | | 328,688,350 | |
| | Organon & Co | | 5,388,150 | | | 188,208,079 | |
| | | 516,896,429 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Semiconductor & Semiconductor Equipment – 8.8% | | | |
| | Analog Devices Inc | | 849,988 | | | $140,401,018 | |
| | Lam Research Corp | | 202,929 | | | 109,096,660 | |
| | Marvell Technology Inc | | 1,739,096 | | | 124,710,574 | |
| | Teradyne Inc | | 795,556 | | | 94,058,586 | |
| | | 468,266,838 | |
Software – 5.6% | | | |
| | Ceridian HCM Holding Inc* | | 477,465 | | | 32,639,507 | |
| | Workday Inc - Class A* | | 336,013 | | | 80,461,673 | |
| | Zendesk Inc* | | 1,547,972 | | | 186,205,552 | |
| | | 299,306,732 | |
Textiles, Apparel & Luxury Goods – 3.3% | | | |
| | Deckers Outdoor Corp* | | 325,627 | | | 89,146,904 | |
| | Under Armour Inc* | | 5,751,632 | | | 89,495,394 | |
| | | 178,642,298 | |
Trading Companies & Distributors – 3.1% | | | |
| | Core & Main Inc - Class A* | | 3,365,055 | | | 81,400,680 | |
| | Ferguson PLC | | 613,361 | | | 83,242,064 | |
| | | 164,642,744 | |
Wireless Telecommunication Services – 0.7% | | | |
| | T-Mobile US Inc* | | 305,523 | | | 39,213,877 | |
Total Common Stocks (cost $4,077,462,238) | | 5,247,848,218 | |
Investment Companies– 1.7% | | | |
Money Markets – 1.7% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $91,479,216) | | 91,470,069 | | | 91,479,216 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.4% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 18,934,308 | | | 18,934,308 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $4,740,477 | | | 4,740,477 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $23,674,785) | | 23,674,785 | |
Total Investments (total cost $4,192,616,239) – 100.2% | | 5,363,002,219 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | | (13,342,385) | |
Net Assets – 100% | | $5,349,659,834 | |
| | �� | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $5,158,730,284 | | 96.2 | % |
Netherlands | | 128,981,916 | | 2.4 | |
Switzerland | | 50,843,354 | | 0.9 | |
Cayman Islands | | 24,446,665 | | 0.5 | |
| | | | | | |
| | | | | | |
Total | | $5,363,002,219 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Contrarian Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 3/31/22 |
Common Stocks - 3.0% |
Hotels, Restaurants & Leisure - 0.6% | |
| | Rush Street Interactive Inc* | $ | - | $ | - | $ | (52,578,660) | $ | 33,713,469 |
Metals & Mining - 2.4% | |
| | Constellium SE* | | - | | (232,907) | | (6,157,181) | | 128,981,916 |
Total Common Stocks | $ | - | $ | (232,907) | $ | (58,735,841) | $ | 162,695,385 |
Investment Companies - 1.7% |
Money Markets - 1.7% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 32,355 | | 1,023 | | (1,023) | | 91,479,216 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 49,081∆ | | - | | - | | 18,934,308 |
Total Affiliated Investments - 5.0% | $ | 81,436 | $ | (231,884) | $ | (58,736,864) | $ | 273,108,909 |
(1) For securities that were affiliated for a portion of the period ended March 31, 2022, this column reflects amounts for the entire period ended March 31, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Common Stocks - 3.0% |
Hotels, Restaurants & Leisure - 0.6% | |
| | Rush Street Interactive Inc* | | - | | 86,292,129 | | - | | 33,713,469 |
Metals & Mining - 2.4% | |
| | Constellium SE* | | 148,291,425 | | - | | (12,919,421) | | 128,981,916 |
Investment Companies - 1.7% |
Money Markets - 1.7% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 132,374,603 | | 584,197,559 | | (625,092,946) | | 91,479,216 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 8,035,668 | | 143,231,231 | | (132,332,591) | | 18,934,308 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Schedule of OTC Written Options |
Counterparty/ Reference Asset | Number of Contracts | Exercise Price | | | Expiration Date | | Notional Amount | | Premiums Received | | Unrealized Appreciation/ (Depreciation) | | Options Written, at Value | |
| | | | | | | | | | | | | | | |
Written Call Options:
JPMorgan Chase Bank, National Association:
| | | | | | | | | | | | | | |
Occidental Petroleum Corp | 10,000 | 75.00 | USD | | 4/14/22 | $ | (56,740,000) | $ | 500,000 | $ | 416,821 | $ | (83,179) |
Total - Written Call Options | | | | 500,000 | | 416,821 | | (83,179) |
Total OTC Written Options | | | $ | 500,000 | $ | 416,821 | $ | (83,179) |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022 |
| | | | | |
| | | | | Equity
Contracts |
| | | |
Liability Derivatives: | | | |
Options written, at value | | | $ 83,179 |
| | | | |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended March 31, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Written options contracts | | $1,139,900 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Equity
Contracts |
Written options contracts | | $ 216,006 |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Contrarian Fund
Schedule of Investments (unaudited)
March 31, 2022
| | |
Average Ending Monthly Value of Derivative Instruments During the Period Ended March 31, 2022 |
| |
| |
Options: | |
Average value of option contracts written | $49,945 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
LLC | Limited Liability Company |
OTC | Over-the-Counter |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Trading Companies & Distributors | $ | 81,400,680 | $ | 83,242,064 | $ | - |
All Other | | 5,083,205,474 | | - | | - |
Investment Companies | | - | | 91,479,216 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 23,674,785 | | - |
Total Assets | $ | 5,164,606,154 | $ | 198,396,065 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Options Written, at Value | $ | - | $ | 83,179 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures 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. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Contrarian Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,923,595,285)(1) | | $ | 5,089,893,310 | |
| Affiliated investments, at value (cost $269,020,954) | | | 273,108,909 | |
| Deposits with brokers for OTC derivatives | | | 160,000 | |
| Non-interested Trustees' deferred compensation | | | 146,282 | |
| Receivables: | | | | |
| | Fund shares sold | | | 28,012,399 | |
| | Dividends | | | 5,197,306 | |
| | Dividends from affiliates | | | 13,884 | |
| Other assets | | | 46,999 | |
Total Assets | | | 5,396,579,089 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 23,674,785 | |
| Options written, at value (premiums received $500,000) | | | 83,179 | |
| Payables: | | | — | |
| | Investments purchased | | | 12,911,420 | |
| | Fund shares repurchased | | | 5,769,667 | |
| | Advisory fees | | | 3,270,541 | |
| | Transfer agent fees and expenses | | | 749,665 | |
| | Non-interested Trustees' deferred compensation fees | | | 146,282 | |
| | Professional fees | | | 39,057 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 37,626 | |
| | Non-interested Trustees' fees and expenses | | | 18,219 | |
| | Affiliated fund administration fees payable | | | 11,001 | |
| | Custodian fees | | | 6,247 | |
| | Accrued expenses and other payables | | | 201,566 | |
Total Liabilities | | | 46,919,255 | |
Net Assets | | $ | 5,349,659,834 | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,860,580,240 | |
| Total distributable earnings (loss) | | | 1,489,079,594 | |
Total Net Assets | | $ | 5,349,659,834 | |
Net Assets - Class A Shares | | $ | 72,511,883 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,534,673 | |
Net Asset Value Per Share(2) | | $ | 28.61 | |
Maximum Offering Price Per Share(3) | | $ | 30.36 | |
Net Assets - Class C Shares | | $ | 26,347,055 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,022,564 | |
Net Asset Value Per Share(2) | | $ | 25.77 | |
Net Assets - Class D Shares | | $ | 2,977,298,607 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 103,515,635 | |
Net Asset Value Per Share | | $ | 28.76 | |
Net Assets - Class I Shares | | $ | 914,478,135 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 31,797,906 | |
Net Asset Value Per Share | | $ | 28.76 | |
Net Assets - Class N Shares | | $ | 112,689,204 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,925,865 | |
Net Asset Value Per Share | | $ | 28.70 | |
Net Assets - Class R Shares | | $ | 2,175,682 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 79,546 | |
Net Asset Value Per Share | | $ | 27.35 | |
Net Assets - Class S Shares | | $ | 1,851,037 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 64,843 | |
Net Asset Value Per Share | | $ | 28.55 | |
Net Assets - Class T Shares | | $ | 1,242,308,231 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 43,248,000 | |
Net Asset Value Per Share | | $ | 28.73 | |
| |
(1) Includes $22,838,400 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Contrarian Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 30,402,231 | |
| Affiliated securities lending income, net | | 49,081 | |
| Dividends from affiliates | | 32,355 | |
| Unaffiliated securities lending income, net | | 1,026 | |
Total Investment Income | | 30,484,693 | |
Expenses: | | | |
| Advisory fees | | 19,110,912 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 83,834 | |
| | Class C Shares | | 118,734 | |
| | Class R Shares | | 4,366 | |
| | Class S Shares | | 2,165 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,665,782 | |
| | Class R Shares | | 2,246 | |
| | Class S Shares | | 2,165 | |
| | Class T Shares | | 1,562,740 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 30,611 | |
| | Class C Shares | | 10,720 | |
| | Class I Shares | | 412,423 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 2,094 | |
| | Class C Shares | | 608 | |
| | Class D Shares | | 191,327 | |
| | Class I Shares | | 17,164 | |
| | Class N Shares | | 1,748 | |
| | Class R Shares | | 54 | |
| | Class S Shares | | 36 | |
| | Class T Shares | | 5,903 | |
| Registration fees | | 168,215 | |
| Shareholder reports expense | | 139,150 | |
| Affiliated fund administration fees | | 64,895 | |
| Non-interested Trustees’ fees and expenses | | 48,553 | |
| Professional fees | | 38,143 | |
| Custodian fees | | 14,442 | |
| Other expenses | | 184,226 | |
Total Expenses | | 23,883,256 | |
Less: Excess Expense Reimbursement and Waivers | | (112,621) | |
Net Expenses | | 23,770,635 | |
Net Investment Income/(Loss) | | 6,714,058 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 367,100,104 | |
| Investments in affiliates | | (231,884) | |
| Written options contracts | | 1,139,900 | |
Total Net Realized Gain/(Loss) on Investments | | 368,008,120 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (294,681,219) | |
| Investments in affiliates | | (58,736,864) | |
| Written options contracts | | 216,006 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (353,202,077) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 21,520,101 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Contrarian Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 6,714,058 | | $ | 13,785,613 | |
| Net realized gain/(loss) on investments | | 368,008,120 | | | 439,258,196 | |
| Change in unrealized net appreciation/depreciation | | (353,202,077) | | | 878,034,390 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 21,520,101 | | | 1,331,078,199 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (6,096,729) | | | (551,331) | |
| | Class C Shares | | (2,439,370) | | | (111,698) | |
| | Class D Shares | | (269,945,160) | | | (42,701,012) | |
| | Class I Shares | | (67,446,783) | | | (2,551,582) | |
| | Class N Shares | | (9,363,778) | | | (1,040,095) | |
| | Class R Shares | | (166,324) | | | (5,233) | |
| | Class S Shares | | (163,299) | | | (5,653) | |
| | Class T Shares | | (112,642,510) | | | (15,470,567) | |
Net Decrease from Dividends and Distributions to Shareholders | | (468,263,953) | | | (62,437,171) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 15,444,089 | | | 22,436,653 | |
| | Class C Shares | | 7,800,990 | | | 10,889,787 | |
| | Class D Shares | | 211,156,514 | | | 13,298,688 | |
| | Class I Shares | | 299,392,726 | | | 540,891,777 | |
| | Class N Shares | | 43,552,678 | | | 12,840,751 | |
| | Class R Shares | | 910,845 | | | 818,768 | |
| | Class S Shares | | 1,287,394 | | | 106,225 | |
| | Class T Shares | | 90,947,320 | | | 166,160,611 | |
Net Increase/(Decrease) from Capital Share Transactions | | 670,492,556 | | | 767,443,260 | |
Net Increase/(Decrease) in Net Assets | | 223,748,704 | | | 2,036,084,288 | |
Net Assets: | | | | | | |
| Beginning of period | | 5,125,911,130 | | | 3,089,826,842 | |
| End of period | $ | 5,349,659,834 | | $ | 5,125,911,130 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $31.37 | | | $22.46 | | | $21.63 | | | $21.61 | | | $19.92 | | | $18.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | 0.04 | | | 0.12 | | | 0.12 | | | 0.06 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 0.02 | | | 9.28 | | | 3.17 | | | 1.36 | | | 3.10 | | | 2.02 | |
| Total from Investment Operations | | 0.03 | | | 9.32 | | | 3.29 | | | 1.48 | | | 3.16 | | | 2.07 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | (0.10) | | | (0.14) | | | (0.04) | | | — | | | —(2) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Total Dividends and Distributions | | (2.79) | | | (0.41) | | | (2.46) | | | (1.46) | | | (1.47) | | | (0.68) | |
| Net Asset Value, End of Period | | $28.61 | | | $31.37 | | | $22.46 | | | $21.63 | | | $21.61 | | | $19.92 | |
| Total Return* | | 0.39% | | | 41.82% | | | 16.01% | | | 8.76% | | | 16.89% | | | 11.24% | |
| Net Assets, End of Period (in thousands) | | $72,512 | | | $63,005 | | | $28,123 | | | $20,126 | | | $14,940 | | | $14,557 | |
| Average Net Assets for the Period (in thousands) | | $67,251 | | | $45,546 | | | $23,713 | | | $17,754 | | | $13,854 | | | $30,749 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.11% | | | 1.12% | | | 0.97% | | | 0.94% | | | 0.87% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.12% | | | 0.97% | | | 0.94% | | | 0.87% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.07% | | | 0.14% | | | 0.60% | | | 0.58% | | | 0.31% | | | 0.25% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $28.59 | | | $20.55 | | | $19.98 | | | $20.16 | | | $18.80 | | | $17.64 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.14) | | | (0.03) | | | (0.02) | | | (0.07) | | | (0.10) | |
| | Net realized and unrealized gain/(loss) | | 0.01 | | | 8.49 | | | 2.92 | | | 1.26 | | | 2.90 | | | 1.94 | |
| Total from Investment Operations | | (0.08) | | | 8.35 | | | 2.89 | | | 1.24 | | | 2.83 | | | 1.84 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Total Dividends and Distributions | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Net Asset Value, End of Period | | $25.77 | | | $28.59 | | | $20.55 | | | $19.98 | | | $20.16 | | | $18.80 | |
| Total Return* | | 0.03% | | | 40.91% | | | 15.20% | | | 8.08% | | | 16.10% | | | 10.46% | |
| Net Assets, End of Period (in thousands) | | $26,347 | | | $21,150 | | | $7,178 | | | $10,556 | | | $19,126 | | | $27,507 | |
| Average Net Assets for the Period (in thousands) | | $24,493 | | | $12,788 | | | $9,451 | | | $12,089 | | | $21,999 | | | $35,731 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.84% | | | 1.81% | | | 1.63% | | | 1.58% | | | 1.56% | | | 1.53% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.84% | | | 1.81% | | | 1.63% | | | 1.58% | | | 1.56% | | | 1.53% | |
| | Ratio of Net Investment Income/(Loss) | | (0.65)% | | | (0.52)% | | | (0.15)% | | | (0.10)% | | | (0.38)% | | | (0.54)% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $31.54 | | | $22.56 | | | $21.70 | | | $21.65 | | | $19.97 | | | $18.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | 0.10 | | | 0.17 | | | 0.16 | | | 0.11 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 0.01 | | | 9.33 | | | 3.19 | | | 1.37 | | | 3.11 | | | 2.06 | |
| Total from Investment Operations | | 0.05 | | | 9.43 | | | 3.36 | | | 1.53 | | | 3.22 | | | 2.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.09) | | | (0.14) | | | (0.18) | | | (0.06) | | | (0.07) | | | (0.07) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Total Dividends and Distributions | | (2.83) | | | (0.45) | | | (2.50) | | | (1.48) | | | (1.54) | | | (0.75) | |
| Net Asset Value, End of Period | | $28.76 | | | $31.54 | | | $22.56 | | | $21.70 | | | $21.65 | | | $19.97 | |
| Total Return* | | 0.48% | | | 42.18% | | | 16.29% | | | 8.99% | | | 17.20% | | | 11.43% | |
| Net Assets, End of Period (in thousands) | | $2,977,299 | | | $3,021,999 | | | $2,152,848 | | | $1,988,711 | | | $1,925,749 | | | $1,824,343 | |
| Average Net Assets for the Period (in thousands) | | $2,995,174 | | | $2,773,321 | | | $1,994,412 | | | $1,855,826 | | | $1,841,765 | | | $1,882,932 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.89% | | | 0.90% | | | 0.72% | | | 0.71% | | | 0.65% | | | 0.64% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.90% | | | 0.72% | | | 0.71% | | | 0.65% | | | 0.64% | |
| | Ratio of Net Investment Income/(Loss) | | 0.28% | | | 0.34% | | | 0.83% | | | 0.80% | | | 0.53% | | | 0.33% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $31.55 | | | $22.58 | | | $21.73 | | | $21.68 | | | $19.99 | | | $18.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.14 | | | 0.18 | | | 0.17 | | | 0.12 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.01 | | | 9.30 | | | 3.20 | | | 1.37 | | | 3.12 | | | 2.07 | |
| Total from Investment Operations | | 0.06 | | | 9.44 | | | 3.38 | | | 1.54 | | | 3.24 | | | 2.14 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.16) | | | (0.21) | | | (0.07) | | | (0.08) | | | (0.08) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Total Dividends and Distributions | | (2.85) | | | (0.47) | | | (2.53) | | | (1.49) | | | (1.55) | | | (0.76) | |
| Net Asset Value, End of Period | | $28.76 | | | $31.55 | | | $22.58 | | | $21.73 | | | $21.68 | | | $19.99 | |
| Total Return* | | 0.52% | | | 42.18% | | | 16.37% | | | 9.05% | | | 17.29% | | | 11.54% | |
| Net Assets, End of Period (in thousands) | | $914,478 | | | $679,220 | | | $79,528 | | | $90,754 | | | $54,348 | | | $75,603 | |
| Average Net Assets for the Period (in thousands) | | $762,341 | | | $316,791 | | | $86,316 | | | $59,058 | | | $58,166 | | | $104,290 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.87% | | | 0.85% | | | 0.66% | | | 0.65% | | | 0.57% | | | 0.56% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.87% | | | 0.85% | | | 0.66% | | | 0.65% | | | 0.57% | | | 0.56% | |
| | Ratio of Net Investment Income/(Loss) | | 0.32% | | | 0.48% | | | 0.84% | | | 0.85% | | | 0.60% | | | 0.37% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $31.50 | | | $22.54 | | | $21.68 | | | $21.63 | | | $19.96 | | | $19.49 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.06 | | | 0.13 | | | 0.20 | | | 0.19 | | | 0.14 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | 0.01 | | | 9.31 | | | 3.20 | | | 1.36 | | | 3.10 | | | 0.46 | |
| Total from Investment Operations | | 0.07 | | | 9.44 | | | 3.40 | | | 1.55 | | | 3.24 | | | 0.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.17) | | | (0.22) | | | (0.08) | | | (0.10) | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | — | |
| Total Dividends and Distributions | | (2.87) | | | (0.48) | | | (2.54) | | | (1.50) | | | (1.57) | | | — | |
| Net Asset Value, End of Period | | $28.70 | | | $31.50 | | | $22.54 | | | $21.68 | | | $21.63 | | | $19.96 | |
| Total Return* | | 0.55% | | | 42.28% | | | 16.50% | | | 9.16% | | | 17.37% | | | 2.41% | |
| Net Assets, End of Period (in thousands) | | $112,689 | | | $78,699 | | | $48,111 | | | $39,056 | | | $26,808 | | | $19,528 | |
| Average Net Assets for the Period (in thousands) | | $99,495 | | | $60,719 | | | $39,349 | | | $28,593 | | | $24,664 | | | $12,254 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.77% | | | 0.58% | | | 0.58% | | | 0.50% | | | 0.51% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.77% | | | 0.77% | | | 0.58% | | | 0.58% | | | 0.50% | | | 0.51% | |
| | Ratio of Net Investment Income/(Loss) | | 0.42% | | | 0.46% | | | 0.97% | | | 0.92% | | | 0.69% | | | 0.44% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $30.14 | | | $21.62 | | | $20.88 | | | $20.97 | | | $19.47 | | | $18.19 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.06) | | | (0.10) | | | 0.01 | | | 0.01 | | | (0.05) | | | (0.04) | |
| | Net realized and unrealized gain/(loss) | | 0.01 | | | 8.93 | | | 3.05 | | | 1.32 | | | 3.02 | | | 2.00 | |
| Total from Investment Operations | | (0.05) | | | 8.83 | | | 3.06 | | | 1.33 | | | 2.97 | | | 1.96 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Total Dividends and Distributions | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Net Asset Value, End of Period | | $27.35 | | | $30.14 | | | $21.62 | | | $20.88 | | | $20.97 | | | $19.47 | |
| Total Return* | | 0.13% | | | 41.11% | | | 15.37% | | | 8.21% | | | 16.26% | | | 10.81% | |
| Net Assets, End of Period (in thousands) | | $2,176 | | | $1,450 | | | $410 | | | $780 | | | $676 | | | $740 | |
| Average Net Assets for the Period (in thousands) | | $1,802 | | | $1,227 | | | $804 | | | $695 | | | $667 | | | $974 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.66% | | | 1.76% | | | 1.70% | | | 1.74% | | | 1.47% | | | 1.23% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.58% | | | 1.61% | | | 1.50% | | | 1.48% | | | 1.41% | | | 1.23% | |
| | Ratio of Net Investment Income/(Loss) | | (0.42)% | | | (0.33)% | | | 0.07% | | | 0.04% | | | (0.24)% | | | (0.21)% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 4, 2017 (inception date) through September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Contrarian Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $31.34 | | | $22.41 | | | $21.55 | | | $21.53 | | | $19.89 | | | $18.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.02) | | | (0.03) | | | 0.05 | | | 0.07 | | | 0.02 | | | —(2) | |
| | Net realized and unrealized gain/(loss) | | 0.01 | | | 9.27 | | | 3.18 | | | 1.37 | | | 3.09 | | | 2.04 | |
| Total from Investment Operations | | (0.01) | | | 9.24 | | | 3.23 | | | 1.44 | | | 3.11 | | | 2.04 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.04) | | | — | | | (0.05) | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Total Dividends and Distributions | | (2.78) | | | (0.31) | | | (2.37) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Net Asset Value, End of Period | | $28.55 | | | $31.34 | | | $22.41 | | | $21.55 | | | $21.53 | | | $19.89 | |
| Total Return* | | 0.28% | | | 41.49% | | | 15.71% | | | 8.52% | | | 16.65% | | | 11.05% | |
| Net Assets, End of Period (in thousands) | | $1,851 | | | $739 | | | $451 | | | $1,032 | | | $1,033 | | | $3,842 | |
| Average Net Assets for the Period (in thousands) | | $1,736 | | | $628 | | | $756 | | | $996 | | | $3,068 | | | $3,920 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.44% | | | 1.74% | | | 1.46% | | | 1.35% | | | 1.04% | | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.33% | | | 1.35% | | | 1.21% | | | 1.18% | | | 1.03% | | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | (0.12)% | | | (0.09)% | | | 0.27% | | | 0.33% | | | 0.10% | | | 0.00% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $31.48 | | | $22.54 | | | $21.68 | | | $21.63 | | | $19.95 | | | $18.58 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.07 | | | 0.15 | | | 0.14 | | | 0.09 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 0.02 | | | 9.30 | | | 3.19 | | | 1.38 | | | 3.11 | | | 2.05 | |
| Total from Investment Operations | | 0.05 | | | 9.37 | | | 3.34 | | | 1.52 | | | 3.20 | | | 2.10 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.12) | | | (0.16) | | | (0.05) | | | (0.05) | | | (0.05) | |
| | Distributions (from capital gains) | | (2.74) | | | (0.31) | | | (2.32) | | | (1.42) | | | (1.47) | | | (0.68) | |
| Total Dividends and Distributions | | (2.80) | | | (0.43) | | | (2.48) | | | (1.47) | | | (1.52) | | | (0.73) | |
| Net Asset Value, End of Period | | $28.73 | | | $31.48 | | | $22.54 | | | $21.68 | | | $21.63 | | | $19.95 | |
| Total Return* | | 0.48% | | | 41.94% | | | 16.22% | | | 8.92% | | | 17.11% | | | 11.35% | |
| Net Assets, End of Period (in thousands) | | $1,242,308 | | | $1,259,649 | | | $773,177 | | | $730,400 | | | $676,452 | | | $672,788 | |
| Average Net Assets for the Period (in thousands) | | $1,253,627 | | | $1,076,107 | | | $731,491 | | | $652,848 | | | $656,674 | | | $741,874 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 1.01% | | | 0.82% | | | 0.81% | | | 0.74% | | | 0.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.99% | | | 1.00% | | | 0.81% | | | 0.79% | | | 0.73% | | | 0.72% | |
| | Ratio of Net Investment Income/(Loss) | | 0.18% | | | 0.24% | | | 0.73% | | | 0.72% | | | 0.44% | | | 0.26% | |
| Portfolio Turnover Rate | | 20% | | | 37% | | | 68% | | | 76% | | | 59% | | | 116% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Contrarian Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as nondiversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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 futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
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 purposes (to earn income and seek to enhance returns). 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 that 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.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – 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 – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – 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 – the risk related 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 – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC 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. Additionally, the Fund may deposit cash and/or treasuries 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 contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
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 on or before a specified date. The purchaser pays a premium to the seller for this right. The seller has the corresponding obligation to sell or buy a financial instrument if the purchaser (owner) "exercises" the option. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid. Upon expiration, or closing of the option transaction, a realized gain or loss is reported on the Statement of Operations (if applicable). The difference between the premium paid/received and the market value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported on the Statement of Operations (if applicable). Option contracts are typically valued using an approved
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
vendor’s option valuation model. To the extent reliable market quotations are available, option contracts are valued using market quotations. In cases when an approved vendor cannot provide coverage for an option and there is no reliable market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used. Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. 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. The Fund may be subject to counterparty risk, interest rate risk, liquidity risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts.
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.
In writing an option, the Fund bears the risk of an unfavorable change in the price of the security underlying the written option. 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. Options written are reported as a liability on the Statement of Assets and Liabilities as “Options written, at value” (if applicable). The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. 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.
During the period, the Fund wrote call options on various equity securities for the purpose of decreasing exposure to individual equity risk and/or generating income.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 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 has entered 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.
The following tables present gross amounts of recognized assets and/or 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 the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022” table located in the Fund’s Schedule of Investments.
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 22,838,400 | $ | — | $ | (22,838,400) | $ | — |
| | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 83,179 | $ | — | $ | — | $ | 83,179 |
| | | | | | | | | |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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 contracts 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, corporate bonds, 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.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser makes efforts to balance the benefits and risks
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $22,838,400. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $23,674,785, resulting in the net amount due to the counterparty of $836,385.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to the Adviser 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 (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.64%, and the Fund’s benchmark index used in the calculation is the S&P 500® Index.
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±7.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) 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. For the period ended March 31, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.74%.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees (if applicable), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.75% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing January 28, 2022. The previous expense limit (for the one-year period commencing January 28, 2021) was 0.83%. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
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 Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $45,283.
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. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class A Shares paid CDSCs of $11 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $1,189.
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 33 | | 1 | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the period ended March 31, 2022, the Fund engaged in cross trades amounting to $7,495,063 in purchases and $10,820,088 in sales, resulting in a net realized gain of $6,029,783. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 4,198,589,444 | $1,328,502,313 | $(164,089,538) | $ 1,164,412,775 |
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
Information on the tax components of derivatives as of March 31, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (500,000) | $ 416,821 | $ - | $ 416,821 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 620,401 | $ 18,281,247 | | 1,037,291 | $ 30,699,744 |
Reinvested dividends and distributions | 164,479 | 4,559,347 | | 15,888 | 422,291 |
Shares repurchased | (258,695) | (7,396,505) | | (296,808) | (8,685,382) |
Net Increase/(Decrease) | 526,185 | $ 15,444,089 | | 756,371 | $ 22,436,653 |
Class C Shares: | | | | | |
Shares sold | 321,612 | $ 8,829,774 | | 527,475 | $ 14,399,575 |
Reinvested dividends and distributions | 90,315 | 2,258,775 | | 4,365 | 106,333 |
Shares repurchased | (129,226) | (3,287,559) | | (141,226) | (3,616,121) |
Net Increase/(Decrease) | 282,701 | $ 7,800,990 | | 390,614 | $ 10,889,787 |
Class D Shares: | | | | | |
Shares sold | 2,389,825 | $ 71,286,483 | | 6,311,733 | $185,542,741 |
Reinvested dividends and distributions | 9,388,581 | 261,472,004 | | 1,551,849 | 41,387,799 |
Shares repurchased | (4,091,930) | (121,601,973) | | (7,445,834) | (213,631,852) |
Net Increase/(Decrease) | 7,686,476 | $211,156,514 | | 417,748 | $ 13,298,688 |
Class I Shares: | | | | | |
Shares sold | 15,772,849 | $464,976,475 | | 20,840,930 | $624,629,266 |
Reinvested dividends and distributions | 2,326,660 | 64,774,205 | | 86,151 | 2,298,518 |
Shares repurchased | (7,827,893) | (230,357,954) | | (2,922,897) | (86,036,007) |
Net Increase/(Decrease) | 10,271,616 | $299,392,726 | | 18,004,184 | $540,891,777 |
Class N Shares: | | | | | |
Shares sold | 1,481,659 | $ 45,431,491 | | 1,088,820 | $ 33,285,683 |
Reinvested dividends and distributions | 333,560 | 9,266,301 | | 38,259 | 1,018,451 |
Shares repurchased | (387,695) | (11,145,114) | | (763,485) | (21,463,383) |
Net Increase/(Decrease) | 1,427,524 | $ 43,552,678 | | 363,594 | $ 12,840,751 |
Class R Shares: | | | | | |
Shares sold | 30,370 | $ 889,643 | | 70,907 | $ 2,016,233 |
Reinvested dividends and distributions | 6,157 | 163,350 | | 191 | 4,899 |
Shares repurchased | (5,095) | (142,148) | | (41,940) | (1,202,364) |
Net Increase/(Decrease) | 31,432 | $ 910,845 | | 29,158 | $ 818,768 |
Class S Shares: | | | | | |
Shares sold | 42,501 | $ 1,325,726 | | 10,193 | $ 296,736 |
Reinvested dividends and distributions | 5,902 | 163,299 | | 213 | 5,653 |
Shares repurchased | (7,130) | (201,631) | | (6,971) | (196,164) |
Net Increase/(Decrease) | 41,273 | $ 1,287,394 | | 3,435 | $ 106,225 |
Class T Shares: | | | | | |
Shares sold | 4,080,923 | $122,841,414 | | 12,964,866 | $376,240,340 |
Reinvested dividends and distributions | 3,963,364 | 110,260,797 | | 567,739 | 15,135,921 |
Shares repurchased | (4,804,327) | (142,154,891) | | (7,832,238) | (225,215,650) |
Net Increase/(Decrease) | 3,239,960 | $ 90,947,320 | | 5,700,367 | $166,160,611 |
Janus Henderson Contrarian Fund
Notes to Financial Statements (unaudited)
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$1,267,629,931 | $1,020,335,957 | $ - | $ - |
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Contrarian Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Contrarian Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Contrarian Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Contrarian Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Contrarian Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Contrarian Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Contrarian Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Contrarian Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Contrarian Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Contrarian Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Contrarian Fund
Notes
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Janus Henderson Contrarian Fund
Notes
NotesPage2
Janus Henderson Contrarian Fund
Notes
NotesPage3
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93038 05-22 |
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| | | SEMIANNUAL REPORT March 31, 2022 |
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| | Janus Henderson Emerging Markets Fund |
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| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Emerging Markets Fund
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FUND SNAPSHOT This style-agnostic fund seeks to identify the most compelling emerging market opportunities across countries and corporations in various stages of political and economic development. | | | | 
Matthew Culley co-portfolio manager | 
Daniel J. Graña co-portfolio manager |
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Janus Henderson Emerging Markets Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| FSN E-Commerce Ventures Ltd | 0.59% | | 1.08% | | Ozon Holdings PLC (ADR) | 0.97% | | -1.23% |
| Ivanhoe Mines Ltd | 1.84% | | 0.82% | | Full Truck Alliance Co (ADR) | 1.54% | | -1.08% |
| Anglo American PLC | 1.76% | | 0.82% | | LUKOIL PJSC (ADR) | 1.72% | | -0.92% |
| Meituan Dianping | 0.95% | | 0.32% | | VTEX - Class A | 0.82% | | -0.89% |
| Suzano SA | 1.32% | | 0.30% | | Yandex NV | 0.90% | | -0.54% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Emerging Markets Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 0.69% | | 10.43% | 13.79% |
| Other** | | 0.68% | | 6.98% | 0.00% |
| Consumer Staples | | 0.60% | | 4.45% | 5.81% |
| Materials | | 0.35% | | 9.09% | 8.83% |
| Real Estate | | 0.12% | | 1.33% | 2.05% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Emerging Markets Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -2.81% | | 14.22% | 20.24% |
| Communication Services | | -2.37% | | 10.14% | 10.59% |
| Industrials | | -1.25% | | 5.97% | 5.01% |
| Energy | | -0.80% | | 1.72% | 5.55% |
| Information Technology | | -0.07% | | 28.45% | 21.64% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Emerging Markets Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 9.4% |
Samsung Electronics Co Ltd | |
Technology Hardware, Storage & Peripherals | 7.0% |
Tencent Holdings Ltd | |
Interactive Media & Services | 5.0% |
Housing Development Finance Corp Ltd | |
Thrifts & Mortgage Finance | 3.5% |
Hon Hai Precision Industry Co Ltd | |
Electronic Equipment, Instruments & Components | 2.9% |
| | 27.8% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 94.1% | |
Investment Companies | | 4.4% | |
Preferred Stocks | | 1.1% | |
Other | | 0.4% |
| | | 100.0% |
Emerging markets comprised 84.1% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Emerging Markets Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -13.25% | -16.74% | 2.81% | 2.08% | 1.19% | | | 1.67% | 1.37% |
Class A Shares at MOP | | -18.21% | -21.51% | 1.59% | 1.47% | 0.66% | | | | |
Class C Shares at NAV | | -13.42% | -17.31% | 2.06% | 1.32% | 0.44% | | | 2.49% | 2.12% |
Class C Shares at CDSC | | -14.28% | -18.12% | 2.06% | 1.32% | 0.44% | | | | |
Class D Shares | | -13.11% | -16.59% | 2.98% | 2.15% | 1.24% | | | 1.46% | 1.18% |
Class I Shares | | -13.07% | -16.48% | 3.09% | 2.35% | 1.45% | | | 1.37% | 1.11% |
Class N Shares | | -13.05% | -16.45% | 3.15% | 2.27% | 1.36% | | | 1.28% | 1.03% |
Class S Shares | | -13.23% | -16.81% | 2.75% | 1.87% | 0.97% | | | 4.44% | 1.54% |
Class T Shares | | -13.16% | -16.63% | 2.89% | 2.06% | 1.16% | | | 1.62% | 1.28% |
MSCI Emerging Markets Index | | -8.20% | -11.37% | 5.98% | 3.36% | 2.32% | | | | |
Morningstar Quartile - Class I Shares | | - | 3rd | 4th | 3rd | 3rd | | | | |
Morningstar Ranking - based on total returns for Diversified Emerging Markets Funds | | - | 506/814 | 598/688 | 359/484 | 276/390 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and
Janus Henderson Emerging Markets Fund (unaudited)
Performance
potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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.
Returns of the Fund shown prior to June 5, 2017 are those for Henderson Emerging Markets Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares, Class C Shares and Class I Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on December 31, 2010. Class R6 Shares of the Predecessor Fund commenced operations on November 30, 2015. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class N Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the estimated fees and expenses of Class D 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
Effective March 1, 2022, Matthey Culley and Daniel J. Graña are Co-Portfolio Managers of the Fund.
*The Predecessor Fund’s inception date – December 31, 2010
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $867.50 | $6.38 | | $1,000.00 | $1,018.10 | $6.89 | 1.37% |
Class C Shares | $1,000.00 | $865.80 | $9.68 | | $1,000.00 | $1,014.56 | $10.45 | 2.08% |
Class D Shares | $1,000.00 | $868.90 | $5.50 | | $1,000.00 | $1,019.05 | $5.94 | 1.18% |
Class I Shares | $1,000.00 | $869.30 | $5.22 | | $1,000.00 | $1,019.35 | $5.64 | 1.12% |
Class N Shares | $1,000.00 | $869.50 | $4.80 | | $1,000.00 | $1,019.80 | $5.19 | 1.03% |
Class S Shares | $1,000.00 | $867.70 | $7.17 | | $1,000.00 | $1,017.25 | $7.75 | 1.54% |
Class T Shares | $1,000.00 | $868.40 | $5.92 | | $1,000.00 | $1,018.60 | $6.39 | 1.27% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Emerging Markets Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 94.1% | | | |
Auto Components – 1.0% | | | |
| | Zhejiang Yinlun Machinery Co Ltd - Class A | | 562,673 | | | $810,615 | |
Automobiles – 1.1% | | | |
| | Li Auto Inc - Class A* | | 70,516 | | | 916,282 | |
Banks – 13.2% | | | |
| | Alinma Bank | | 51,130 | | | 527,102 | |
| | Bank Negara Indonesia Persero Tbk PT | | 2,067,600 | | | 1,183,123 | |
| | Bank Tabungan Pensiunan Nasional Syariah Tbk PT | | 6,750,300 | | | 1,547,382 | |
| | China Merchants Bank Co Ltd - Class A | | 283,697 | | | 2,082,461 | |
| | HDFC Bank Ltd | | 83,849 | | | 1,618,474 | |
| | ICICI Bank Ltd | | 225,483 | | | 2,161,447 | |
| | OTP Bank Nyrt* | | 17,875 | | | 649,329 | |
| | Vietnam Technological & Commercial Joint Stock Bank* | | 599,100 | | | 1,294,566 | |
| | | 11,063,884 | |
Beverages – 3.1% | | | |
| | Becle SAB de CV | | 431,639 | | | 1,062,466 | |
| | Varun Beverages Ltd | | 122,380 | | | 1,510,135 | |
| | | 2,572,601 | |
Building Products – 0.7% | | | |
| | China Lesso Group Holdings Ltd | | 51,000 | | | 61,457 | |
| | Xinyi Glass Holdings Ltd | | 219,000 | | | 526,121 | |
| | | 587,578 | |
Capital Markets – 0.8% | | | |
| | CITIC Securities Co Ltd | | 293,500 | | | 674,485 | |
Chemicals – 1.4% | | | |
| | Fertiglobe PLC | | 347,867 | | | 473,853 | |
| | Hansol Chemical Co Ltd | | 3,496 | | | 703,285 | |
| | | 1,177,138 | |
Communications Equipment – 1.9% | | | |
| | Accton Technology Corp | | 204,000 | | | 1,576,750 | |
Containers & Packaging – 0.8% | | | |
| | Yunnan Energy New Material Co Ltd - Class A | | 19,655 | | | 673,976 | |
Diversified Financial Services – 3.2% | | | |
| | HH&L Acquisition Co* | | 124,308 | | | 1,225,677 | |
| | Linklogis Inc - Class B (144A)* | | 1,531,939 | | | 1,452,397 | |
| | | 2,678,074 | |
Diversified Telecommunication Services – 1.6% | | | |
| | Saudi Telecom Co | | 46,286 | | | 1,324,597 | |
Electrical Equipment – 1.3% | | | |
| | Ming Yang Smart Engergy Group Ltd - Class A | | 322,899 | | | 1,117,358 | |
Electronic Equipment, Instruments & Components – 4.9% | | | |
| | Hon Hai Precision Industry Co Ltd | | 660,000 | | | 2,431,968 | |
| | Sinbon Electronics Co Ltd | | 92,000 | | | 830,895 | |
| | Wingtech Technology Co Ltd - Class A | | 64,050 | | | 811,703 | |
| | | 4,074,566 | |
Food & Staples Retailing – 1.2% | | | |
| | Dino Polska SA (144A)* | | 12,218 | | | 977,741 | |
Food Products – 1.4% | | | |
| | Masan Group Corp | | 185,800 | | | 1,154,164 | |
Health Care Providers & Services – 2.0% | | | |
| | Mouwasat Medical Services Co | | 17,254 | | | 974,171 | |
| | New Horizon Health Ltd (144A)* | | 248,000 | | | 716,061 | |
| | | 1,690,232 | |
Hotels, Restaurants & Leisure – 1.5% | | | |
| | Yum China Holdings Inc | | 29,350 | | | 1,283,007 | |
Independent Power and Renewable Electricity Producers – 1.5% | | | |
| | China Longyuan Power Group Corp Ltd | | 549,000 | | | 1,244,522 | |
Information Technology Services – 0.8% | | | |
| | Network International Holdings PLC (144A)* | | 195,870 | | | 717,144 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Insurance – 1.1% | | | |
| | AIA Group Ltd | | 88,000 | | | $921,345 | |
Interactive Media & Services – 6.7% | | | |
| | NAVER Corp | | 3,449 | | | 964,540 | |
| | Tencent Holdings Ltd | | 89,100 | | | 4,203,488 | |
| | VTEX - Class A* | | 68,613 | | | 421,970 | |
| | | 5,589,998 | |
Internet & Direct Marketing Retail – 4.8% | | | |
| | Alibaba Group Holding Ltd* | | 119,432 | | | 1,634,762 | |
| | JD.Com Inc - Class A* | | 47,042 | | | 1,377,811 | |
| | MercadoLibre Inc* | | 830 | | | 987,268 | |
| | | 3,999,841 | |
Life Sciences Tools & Services – 0.9% | | | |
| | Syngene International Ltd (144A)* | | 99,167 | | | 779,763 | |
Machinery – 1.2% | | | |
| | Sany Heavy Industry Co Ltd | | 359,947 | | | 986,560 | |
Metals & Mining – 5.2% | | | |
| | Anglo American PLC | | 34,944 | | | 1,801,952 | |
| | Ivanhoe Mines Ltd* | | 152,780 | | | 1,425,132 | |
| | Solaris Resources Inc* | | 115,480 | | | 1,134,476 | |
| | | 4,361,560 | |
Paper & Forest Products – 1.7% | | | |
| | Suzano SA | | 124,372 | | | 1,440,900 | |
Pharmaceuticals – 1.4% | | | |
| | Canbridge Cornerstone*,§ | | 196,231 | | | 145,104 | |
| | CANbridge Pharmaceuticals Inc*,§ | | 401,250 | | | 281,871 | |
| | Everest Medicines Ltd (144A)* | | 167,000 | | | 547,417 | |
| | Zhaoke Ophthalmology Ltd (144A)* | | 521,000 | | | 231,655 | |
| | | 1,206,047 | |
Real Estate Management & Development – 1.3% | | | |
| | Vinhomes JSC (144A) | | 343,258 | | | 1,136,472 | |
Road & Rail – 1.5% | | | |
| | Full Truck Alliance Co (ADR)* | | 186,185 | | | 1,241,854 | |
Semiconductor & Semiconductor Equipment – 11.8% | | | |
| | LEENO Industrial Inc | | 5,265 | | | 798,105 | |
| | SK Hynix Inc | | 12,978 | | | 1,242,448 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 379,000 | | | 7,837,389 | |
| | | 9,877,942 | |
Technology Hardware, Storage & Peripherals – 7.0% | | | |
| | Samsung Electronics Co Ltd | | 102,533 | | | 5,858,194 | |
Thrifts & Mortgage Finance – 3.5% | | | |
| | Housing Development Finance Corp Ltd | | 92,973 | | | 2,911,553 | |
Transportation Infrastructure – 1.3% | | | |
| | International Container Terminal Services Inc | | 253,620 | | | 1,098,137 | |
Water Utilities – 1.3% | | | |
| | China Water Affairs Group Ltd | | 978,000 | | | 1,067,198 | |
Total Common Stocks (cost $77,003,121) | | 78,792,078 | |
Preferred Stocks– 1.1% | | | |
Biotechnology – 0.5% | | | |
| | ShouTi Inc PP*,¢,§ | | 92,696 | | | 373,129 | |
Health Care Providers & Services – 0.6% | | | |
| | API Holdings Private Ltd PP*,¢,§ | | 758,340 | | | 536,821 | |
Total Preferred Stocks (cost $926,137) | | 909,950 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Emerging Markets Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Investment Companies– 4.4% | | | |
Money Markets – 4.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $3,656,117) | | 3,655,751 | | | $3,656,117 | |
Total Investments (total cost $81,585,375) – 99.6% | | 83,358,145 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.4% | | 324,613 | |
Net Assets – 100% | | $83,682,758 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
China | | $23,508,198 | | 28.2 | % |
Taiwan | | 12,677,002 | | 15.2 | |
South Korea | | 9,566,572 | | 11.5 | |
India | | 9,518,193 | | 11.4 | |
United States | | 3,656,117 | | 4.4 | |
Vietnam | | 3,585,202 | | 4.3 | |
Hong Kong | | 3,100,118 | | 3.7 | |
Saudi Arabia | | 2,825,870 | | 3.4 | |
Indonesia | | 2,730,505 | | 3.3 | |
Canada | | 2,559,608 | | 3.1 | |
United Kingdom | | 2,519,096 | | 3.0 | |
Brazil | | 1,862,870 | | 2.2 | |
Philippines | | 1,098,137 | | 1.3 | |
Mexico | | 1,062,466 | | 1.3 | |
Argentina | | 987,268 | | 1.2 | |
Poland | | 977,741 | | 1.2 | |
Hungary | | 649,329 | | 0.8 | |
United Arab Emirates | | 473,853 | | 0.5 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 4.4% |
Money Markets - 4.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 2,086 | $ | - | $ | - | $ | 3,656,117 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 4.4% |
Money Markets - 4.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 4,136,863 | | 26,645,413 | | (27,126,159) | | 3,656,117 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Emerging Markets Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI Emerging Markets IndexSM | MSCI Emerging Markets IndexSM reflects the equity market performance of emerging markets. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $6,558,650, which represents 7.8% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $909,950, which represents 1.1% of net assets. |
| | |
£ | 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. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
API Holdings Private Ltd PP | 9/27/21 | $ | 550,876 | $ | 536,821 | | 0.6 | % |
Canbridge Cornerstone | 12/10/21 | | 309,486 | | 145,104 | | 0.2 | |
CANbridge Pharmaceuticals Inc | 11/29/21 | | 592,646 | | 281,871 | | 0.3 | |
ShouTi Inc PP | 7/30/21 | | 375,261 | | 373,129 | | 0.5 | |
Total | | $ | 1,828,269 | $ | 1,336,925 | | 1.6 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Emerging Markets Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Beverages | $ | 1,062,466 | $ | 1,510,135 | $ | - |
Interactive Media & Services | | 421,970 | | 5,168,028 | | - |
Internet & Direct Marketing Retail | | 987,268 | | 3,012,573 | | - |
Metals & Mining | | 2,559,608 | | 1,801,952 | | - |
Paper & Forest Products | | 1,440,900 | | - | | - |
Pharmaceuticals | | 145,104 | | 1,060,943 | | - |
Road & Rail | | 1,241,854 | | - | | - |
All Other | | - | | 58,379,277 | | - |
Preferred Stocks | | - | | - | | 909,950 |
Investment Companies | | - | | 3,656,117 | | - |
Total Assets | $ | 7,859,170 | $ | 74,589,025 | $ | 909,950 |
| | | | | | | |
| | | | | | | | |
Level 3 Valuation Reconciliation of Assets (for the period ended March 31, 2022) |
| | | | | | | |
| Balance
as of
September 30, 2021 | Realized
Gain/(Loss) | Change in
Unrealized
Appreciation/
Depreciation(a) | Gross
Purchases | Gross
Sales | Transfers In
and/or
Out of Level 3 | Balance
as of
March 31, 2022 |
Investment in Securities: | | | | | | | |
Preferred Stocks | | | | | | | |
Biotechnology | $ 375,261 | $ - | $ (2,132) | $ - | $ - | $ - | $ 373,129 |
Health Care Providers & Services | 548,011 | - | (11,190) | - | - | - | 536,821 |
Pharmaceuticals | 592,646 | - | - | - | - | (592,646) | - |
Total | $ 1,515,918 | $ - | $ (13,322) | $ - | $ - | $ (592,646) | $ 909,950 |
(a) Included in "Change in unrealized net appreciation/depreciation of investments, foreign currency translations and non-interested Trustees' deferred compensation" on the Statement of Operations. |
Janus Henderson Emerging Markets Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $77,929,258) | | $ | 79,702,028 | |
| Affiliated investments, at value (cost $3,656,117) | | | 3,656,117 | |
| Non-interested Trustees' deferred compensation | | | 2,299 | |
| Receivables: | | | | |
| | Investments sold | | | 493,633 | |
| | Dividends | | | 212,713 | |
| | Fund shares sold | | | 74,214 | |
| | Foreign tax reclaims | | | 1,043 | |
| | Dividends from affiliates | | | 935 | |
| Other assets | | | 18,768 | |
Total Assets | | | 84,161,750 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Foreign tax liability | | | 161,194 | |
| | Fund shares repurchased | | | 134,882 | |
| | Professional fees | | | 74,281 | |
| | Advisory fees | | | 36,990 | |
| | Registration fees | | | 21,758 | |
| | Non-affiliated fund administration fees payable | | | 18,819 | |
| | Custodian fees | | | 11,679 | |
| | Transfer agent fees and expenses | | | 6,980 | |
| | Non-interested Trustees' deferred compensation fees | | | 2,299 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 2,117 | |
| | Non-interested Trustees' fees and expenses | | | 366 | |
| | Affiliated fund administration fees payable | | | 180 | |
| | Accrued expenses and other payables | | | 7,447 | |
Total Liabilities | | | 478,992 | |
Net Assets | | $ | 83,682,758 | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 88,616,633 | |
| Total distributable earnings (loss) (includes $161,194 of foreign capital gains tax) | | | (4,933,875) | |
Total Net Assets | | $ | 83,682,758 | |
Net Assets - Class A Shares | | $ | 4,265,408 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 432,409 | |
Net Asset Value Per Share(1) | | $ | 9.86 | |
Maximum Offering Price Per Share(2) | | $ | 10.46 | |
Net Assets - Class C Shares | | $ | 1,439,945 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 149,586 | |
Net Asset Value Per Share(1) | | $ | 9.63 | |
Net Assets - Class D Shares | | $ | 14,661,061 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,477,832 | |
Net Asset Value Per Share | | $ | 9.92 | |
Net Assets - Class I Shares | | $ | 14,597,213 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,476,033 | |
Net Asset Value Per Share | | $ | 9.89 | |
Net Assets - Class N Shares | | $ | 46,239,465 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,664,063 | |
Net Asset Value Per Share | | $ | 9.91 | |
Net Assets - Class S Shares | | $ | 93,469 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,340 | |
Net Asset Value Per Share | | $ | 10.01 | |
Net Assets - Class T Shares | | $ | 2,386,197 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 240,605 | |
Net Asset Value Per Share | | $ | 9.92 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Emerging Markets Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 486,365 | |
| Non-cash dividends | | 270,379 | |
| Dividends from affiliates | | 2,086 | |
| Other income | | 45 | |
| Foreign tax withheld | | (71,999) | |
Total Investment Income | | 686,876 | |
Expenses: | | | |
| Advisory fees | | 495,267 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 6,038 | |
| | Class C Shares | | 7,851 | |
| | Class S Shares | | 117 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 9,236 | |
| | Class S Shares | | 117 | |
| | Class T Shares | | 3,458 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 1,928 | |
| | Class C Shares | | 643 | |
| | Class I Shares | | 7,200 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 182 | |
| | Class C Shares | | 54 | |
| | Class D Shares | | 3,223 | |
| | Class I Shares | | 475 | |
| | Class N Shares | | 1,201 | |
| | Class S Shares | | 4 | |
| | Class T Shares | | 36 | |
| Registration fees | | 50,309 | |
| Professional fees | | 46,528 | |
| Non-affiliated fund administration fees | | 33,420 | |
| Custodian fees | | 27,245 | |
| Shareholder reports expense | | 4,501 | |
| Affiliated fund administration fees | | 1,239 | |
| Non-interested Trustees’ fees and expenses | | 910 | |
| Other expenses | | 6,765 | |
Total Expenses | | 707,947 | |
Less: Excess Expense Reimbursement and Waivers | | (156,233) | |
Net Expenses | | 551,714 | |
Net Investment Income/(Loss) | | 135,162 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $60,495) | $ | (1,856,581) | |
Total Net Realized Gain/(Loss) on Investments | | (1,856,581) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (net of increase in deferred foreign taxes of $158,983) | | (11,048,333) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (11,048,333) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (12,769,752) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Emerging Markets Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 135,162 | | $ | (7,135) | |
| Net realized gain/(loss) on investments | | (1,856,581) | | | 11,980,353 | |
| Change in unrealized net appreciation/depreciation | | (11,048,333) | | | (327,611) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (12,769,752) | | | 11,645,607 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (133,124) | | | (38,800) | |
| | Class C Shares | | (23,265) | | | (3,802) | |
| | Class D Shares | | (481,190) | | | (131,423) | |
| | Class I Shares | | (539,900) | | | (247,374) | |
| | Class N Shares | | (1,789,591) | | | (452,579) | |
| | Class S Shares | | (2,399) | | | (859) | |
| | Class T Shares | | (77,857) | | | (27,803) | |
Net Decrease from Dividends and Distributions to Shareholders | | (3,047,326) | | | (902,640) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 74,407 | | | 359,459 | |
| | Class C Shares | | (122,674) | | | (1,275,874) | |
| | Class D Shares | | (655,102) | | | 6,221,816 | |
| | Class I Shares | | (1,794,915) | | | (3,990,449) | |
| | Class N Shares | | (5,167,100) | | | 20,025,314 | |
| | Class S Shares | | 16,113 | | | (17,466) | |
| | Class T Shares | | (114,929) | | | 86,155 | |
Net Increase/(Decrease) from Capital Share Transactions | | (7,764,200) | | | 21,408,955 | |
Net Increase/(Decrease) in Net Assets | | (23,581,278) | | | 32,151,922 | |
Net Assets: | | | | | | |
| Beginning of period | | 107,264,036 | | | 75,112,114 | |
| End of period | $ | 83,682,758 | | $ | 107,264,036 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $11.68 | | | $10.02 | | | $8.72 | | | $9.48 | | | $10.36 | | | $10.19 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | —(3) | | | (0.03) | | | 0.02 | | | 0.10 | | | 0.10 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (1.51) | | | 1.79 | | | 1.40 | | | (0.55) | | | (0.67) | | | 0.13 | |
| Total from Investment Operations | | (1.51) | | | 1.76 | | | 1.42 | | | (0.45) | | | (0.57) | | | 0.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.31) | | | (0.10) | | | (0.12) | | | (0.13) | | | (0.10) | | | — | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | | | — | |
| Total Dividends and Distributions | | (0.31) | | | (0.10) | | | (0.12) | | | (0.31) | | | (0.31) | | | — | |
| Net Asset Value, End of Period | | $9.86 | | | $11.68 | | | $10.02 | | | $8.72 | | | $9.48 | | | $10.36 | |
| Total Return* | | (13.17)% | | | 17.58% | | | 16.32% | | | (4.66)%(4) | | | (5.80)% | | | 1.67% | |
| Net Assets, End of Period (in thousands) | | $4,265 | | | $4,986 | | | $4,000 | | | $4,859 | | | $15,771 | | | $15,562 | |
| Average Net Assets for the Period (in thousands) | | $4,844 | | | $4,989 | | | $4,394 | | | $8,932 | | | $16,103 | | | $15,471 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.72% | | | 1.66% | | | 1.87% | | | 1.65% | | | 1.51% | | | 1.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.37% | | | 1.37% | | | 1.37% | | | 1.30% | | | 1.33% | | | 1.46% | |
| | Ratio of Net Investment Income/(Loss) | | 0.03% | | | (0.25)% | | | 0.27% | | | 1.11% | | | 0.93% | | | 2.18% | |
| Portfolio Turnover Rate | | 27% | | | 76% | | | 110% | | | 68% | | | 26% | | | 2% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $11.29 | | | $9.69 | | | $8.42 | | | $9.12 | | | $9.98 | | | $9.83 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.04) | | | (0.12) | | | (0.04) | | | 0.05 | | | 0.01 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (1.46) | | | 1.74 | | | 1.35 | | | (0.55) | | | (0.65) | | | 0.13 | |
| Total from Investment Operations | | (1.50) | | | 1.62 | | | 1.31 | | | (0.50) | | | (0.64) | | | 0.15 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.02) | | | (0.04) | | | (0.02) | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | | | — | |
| Total Dividends and Distributions | | (0.16) | | | (0.02) | | | (0.04) | | | (0.20) | | | (0.22) | | | — | |
| Net Asset Value, End of Period | | $9.63 | | | $11.29 | | | $9.69 | | | $8.42 | | | $9.12 | | | $9.98 | |
| Total Return* | | (13.42)% | | | 16.67% | | | 15.56% | | | (5.38)%(5) | | | (6.59)% | | | 1.53% | |
| Net Assets, End of Period (in thousands) | | $1,440 | | | $1,802 | | | $2,573 | | | $3,432 | | | $5,985 | | | $9,017 | |
| Average Net Assets for the Period (in thousands) | | $1,627 | | | $2,385 | | | $2,927 | | | $4,604 | | | $8,442 | | | $8,877 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.56% | | | 2.48% | | | 2.61% | | | 2.54% | | | 2.26% | | | 2.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.08% | | | 2.11% | | | 2.09% | | | 2.11% | | | 2.07% | | | 2.35% | |
| | Ratio of Net Investment Income/(Loss) | | (0.70)% | | | (1.06)% | | | (0.44)% | | | 0.56% | | | 0.11% | | | 1.29% | |
| Portfolio Turnover Rate | | 27% | | | 76% | | | 110% | | | 68% | | | 26% | | | 2% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. (4) Total return without the effect of affiliated payments would have been (4.89)%. (5) Total return without the effect of affiliated payments would have been (5.61)%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.10 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 1.05 | |
| Total from Investment Operations | | 1.15 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.06) | |
| Total Dividends and Distributions | | (0.06) | |
| Net Asset Value, End of Period | | $10.19 | |
| Total Return* | | 12.80% | |
| Net Assets, End of Period (in thousands) | | $15,124 | |
| Average Net Assets for the Period (in thousands) | | $12,523 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.54% | |
| | Ratio of Net Investment Income/(Loss) | | 1.05% | |
| Portfolio Turnover Rate | | 32% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $8.79 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 1.02 | |
| Total from Investment Operations | | 1.05 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.01) | |
| Total Dividends and Distributions | | (0.01) | |
| Net Asset Value, End of Period | | $9.83 | |
| Total Return* | | 12.03% | |
| Net Assets, End of Period (in thousands) | | $8,530 | |
| Average Net Assets for the Period (in thousands) | | $6,219 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 2.53% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.29% | |
| | Ratio of Net Investment Income/(Loss) | | 0.37% | |
| Portfolio Turnover Rate | | 32% | |
| | | | | | | |
| |
* 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $11.77 | | | $10.09 | | | $8.78 | | | $9.53 | | | $10.41 | | | $10.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.01 | | | (0.01) | | | 0.05 | | | 0.14 | | | 0.11 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (1.52) | | | 1.81 | | | 1.41 | | | (0.59) | | | (0.67) | | | 0.13 | |
| Total from Investment Operations | | (1.51) | | | 1.80 | | | 1.46 | | | (0.45) | | | (0.56) | | | 0.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.34) | | | (0.12) | | | (0.15) | | | (0.12) | | | (0.11) | | | — | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | | | — | |
| Total Dividends and Distributions | | (0.34) | | | (0.12) | | | (0.15) | | | (0.30) | | | (0.32) | | | — | |
| Net Asset Value, End of Period | | $9.92 | | | $11.77 | | | $10.09 | | | $8.78 | | | $9.53 | | | $10.41 | |
| Total Return* | | (13.11)% | | | 17.85% | | | 16.66% | | | (4.59)%(3) | | | (5.64)% | | | 1.66% | |
| Net Assets, End of Period (in thousands) | | $14,661 | | | $17,993 | | | $10,854 | | | $10,957 | | | $13,104 | | | $16,053 | |
| Average Net Assets for the Period (in thousands) | | $16,616 | | | $20,727 | | | $10,785 | | | $12,337 | | | $15,607 | | | $16,501 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.52% | | | 1.45% | | | 1.70% | | | 1.80% | | | 1.38% | | | 1.80% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.18% | | | 1.17% | | | 1.19% | | | 1.19% | | | 1.15% | | | 1.46% | |
| | Ratio of Net Investment Income/(Loss) | | 0.21% | | | (0.07)% | | | 0.50% | | | 1.51% | | | 1.08% | | | 2.18% | |
| Portfolio Turnover Rate | | 27% | | | 76% | | | 110% | | | 68% | | | 26% | | | 2% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $11.74 | | | $10.07 | | | $8.78 | | | $9.52 | | | $10.42 | | | $10.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.02 | | | —(4) | | | 0.05 | | | 0.14 | | | 0.12 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (1.52) | | | 1.80 | | | 1.41 | | | (0.57) | | | (0.69) | | | 0.14 | |
| Total from Investment Operations | | (1.50) | | | 1.80 | | | 1.46 | | | (0.43) | | | (0.57) | | | 0.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.13) | | | (0.17) | | | (0.13) | | | (0.12) | | | — | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | | | — | |
| Total Dividends and Distributions | | (0.35) | | | (0.13) | | | (0.17) | | | (0.31) | | | (0.33) | | | — | |
| Net Asset Value, End of Period | | $9.89 | | | $11.74 | | | $10.07 | | | $8.78 | | | $9.52 | | | $10.42 | |
| Total Return* | | (13.07)% | | | 17.94% | | | 16.68% | | | (4.38)%(5) | | | (5.72)% | | | 1.76% | |
| Net Assets, End of Period (in thousands) | | $14,597 | | | $19,208 | | | $19,939 | | | $34,499 | | | $107,276 | | | $112,952 | |
| Average Net Assets for the Period (in thousands) | | $17,632 | | | $21,247 | | | $25,327 | | | $71,330 | | | $119,036 | | | $110,859 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.42% | | | 1.37% | | | 1.54% | | | 1.45% | | | 1.26% | | | 1.49% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.11% | | | 1.11% | | | 1.13% | | | 1.09% | | | 1.20% | |
| | Ratio of Net Investment Income/(Loss) | | 0.27% | | | (0.02)% | | | 0.50% | | | 1.49% | | | 1.17% | | | 2.42% | |
| Portfolio Turnover Rate | | 27% | | | 76% | | | 110% | | | 68% | | | 26% | | | 2% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Total return without the effect of affiliated payments would have been (4.82)%. (4) Less than $0.005 on a per share basis. (5) Total return without the effect of affiliated payments would have been (4.61)%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $10.05 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.12 | |
| Total from Investment Operations | | 0.19 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $10.24 | |
| Total Return* | | 1.89% | |
| Net Assets, End of Period (in thousands) | | $16,527 | |
| Average Net Assets for the Period (in thousands) | | $14,711 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.32% | |
| | Ratio of Net Investment Income/(Loss) | | 4.63% | |
| Portfolio Turnover Rate | | 32% | |
| | | | | | | |
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.13 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | 1.03 | |
| Total from Investment Operations | | 1.18 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.07) | |
| Total Dividends and Distributions | | (0.07) | |
| Net Asset Value, End of Period | | $10.24 | |
| Total Return* | | 13.15% | |
| Net Assets, End of Period (in thousands) | | $107,513 | |
| Average Net Assets for the Period (in thousands) | | $62,396 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.46% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.27% | |
| | Ratio of Net Investment Income/(Loss) | | 1.63% | |
| Portfolio Turnover Rate | | 32% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $11.77 | | | $10.09 | | | $8.79 | | | $9.53 | | | $10.42 | | | $10.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.02 | | | 0.01 | | | 0.06 | | | 0.15 | | | 0.12 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | (1.52) | | | 1.80 | | | 1.40 | | | (0.57) | | | (0.68) | | | 0.13 | |
| Total from Investment Operations | | (1.50) | | | 1.81 | | | 1.46 | | | (0.42) | | | (0.56) | | | 0.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.36) | | | (0.13) | | | (0.16) | | | (0.14) | | | (0.12) | | | — | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | | | — | |
| Total Dividends and Distributions | | (0.36) | | | (0.13) | | | (0.16) | | | (0.32) | | | (0.33) | | | — | |
| Net Asset Value, End of Period | | $9.91 | | | $11.77 | | | $10.09 | | | $8.79 | | | $9.53 | | | $10.42 | |
| Total Return* | | (13.05)% | | | 18.00% | | | 16.74% | | | (4.33)%(3) | | | (5.63)% | | | 1.76% | |
| Net Assets, End of Period (in thousands) | | $46,239 | | | $60,241 | | | $35,207 | | | $16,531 | | | $25,134 | | | $41,206 | |
| Average Net Assets for the Period (in thousands) | | $55,740 | | | $53,668 | | | $30,308 | | | $21,520 | | | $29,832 | | | $41,394 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.33% | | | 1.28% | | | 1.48% | | | 1.41% | | | 1.20% | | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.03% | | | 1.03% | | | 1.03% | | | 1.03% | | | 1.05% | |
| | Ratio of Net Investment Income/(Loss) | | 0.35% | | | 0.10% | | | 0.68% | | | 1.65% | | | 1.15% | | | 2.59% | |
| Portfolio Turnover Rate | | 27% | | | 76% | | | 110% | | | 68% | | | 26% | | | 2% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $11.85 | | | $10.17 | | | $8.81 | | | $9.51 | | | $10.41 | | | $10.23 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.01) | | | (0.05) | | | 0.02 | | | 0.08 | | | 0.13 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (1.53) | | | 1.83 | | | 1.41 | | | (0.52) | | | (0.73) | | | 0.14 | |
| Total from Investment Operations | | (1.54) | | | 1.78 | | | 1.43 | | | (0.44) | | | (0.60) | | | 0.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.30) | | | (0.10) | | | (0.07) | | | (0.08) | | | (0.09) | | | — | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | | | — | |
| Total Dividends and Distributions | | (0.30) | | | (0.10) | | | (0.07) | | | (0.26) | | | (0.30) | | | — | |
| Net Asset Value, End of Period | | $10.01 | | | $11.85 | | | $10.17 | | | $8.81 | | | $9.51 | | | $10.41 | |
| Total Return* | | (13.23)% | | | 17.47% | | | 16.26% | | | (4.49)%(4) | | | (5.98)% | | | 1.76% | |
| Net Assets, End of Period (in thousands) | | $93 | | | $93 | | | $95 | | | $77 | | | $1,753 | | | $316 | |
| Average Net Assets for the Period (in thousands) | | $94 | | | $113 | | | $79 | | | $488 | | | $1,189 | | | $311 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.04% | | | 4.44% | | | 5.74% | | | 2.25% | | | 1.85% | | | 1.91% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.54% | | | 1.49% | | | 1.46% | | | 1.18% | | | 1.47% | | | 1.51% | |
| | Ratio of Net Investment Income/(Loss) | | (0.12)% | | | (0.38)% | | | 0.27% | | | 0.89% | | | 1.28% | | | 2.11% | |
| Portfolio Turnover Rate | | 27% | | | 76% | | | 110% | | | 68% | | | 26% | | | 2% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Total return without the effect of affiliated payments would have been (4.56)%. (4) Total return without the effect of affiliated payments would have been (4.72)%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $9.13 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | 0.79 | |
| Total from Investment Operations | | 1.19 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.08) | |
| Total Dividends and Distributions | | (0.08) | |
| Net Asset Value, End of Period | | $10.24 | |
| Total Return* | | 13.17% | |
| Net Assets, End of Period (in thousands) | | $40,785 | |
| Average Net Assets for the Period (in thousands) | | $6,417 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.32% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.24% | |
| | Ratio of Net Investment Income/(Loss) | | 4.20% | |
| Portfolio Turnover Rate | | 32% | |
| | | | | | | |
| | | | | | | |
Class S Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(2) | |
| Net Asset Value, Beginning of Period | | $10.05 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.11 | |
| Total from Investment Operations | | 0.18 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $10.23 | |
| Total Return* | | 1.79% | |
| Net Assets, End of Period (in thousands) | | $304 | |
| Average Net Assets for the Period (in thousands) | | $266 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.59% | |
| | Ratio of Net Investment Income/(Loss) | | 4.51% | |
| Portfolio Turnover Rate | | 32% | |
| | | | | | | |
| |
* 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 or period. (2) Period from June 5, 2017 (inception date) through July 31, 2017. |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $11.75 | | | $10.08 | | | $8.78 | | | $9.52 | | | $10.42 | | | $10.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.01 | | | (0.02) | | | 0.04 | | | 0.13 | | | 0.10 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (1.52) | | | 1.80 | | | 1.40 | | | (0.57) | | | (0.68) | | | 0.14 | |
| Total from Investment Operations | | (1.51) | | | 1.78 | | | 1.44 | | | (0.44) | | | (0.58) | | | 0.18 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.32) | | | (0.11) | | | (0.14) | | | (0.12) | | | (0.11) | | | — | |
| | Distributions (from capital gains) | | — | | | — | | | — | | | (0.18) | | | (0.21) | | | — | |
| Total Dividends and Distributions | | (0.32) | | | (0.11) | | | (0.14) | | | (0.30) | | | (0.32) | | | — | |
| Net Asset Value, End of Period | | $9.92 | | | $11.75 | | | $10.08 | | | $8.78 | | | $9.52 | | | $10.42 | |
| Total Return* | | (13.08)% | | | 17.69% | | | 16.43% | | | (4.56)%(3) | | | (5.86)% | | | 1.76% | |
| Net Assets, End of Period (in thousands) | | $2,386 | | | $2,940 | | | $2,444 | | | $3,008 | | | $4,862 | | | $7,770 | |
| Average Net Assets for the Period (in thousands) | | $2,774 | | | $3,095 | | | $2,477 | | | $4,046 | | | $7,275 | | | $7,786 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.68% | | | 1.62% | | | 1.82% | | | 1.73% | | | 1.45% | | | 1.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.27% | | | 1.28% | | | 1.28% | | | 1.27% | | | 1.26% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | 0.12% | | | (0.18)% | | | 0.40% | | | 1.41% | | | 0.93% | | | 2.34% | |
| Portfolio Turnover Rate | | 27% | | | 76% | | | 110% | | | 68% | | | 26% | | | 2% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Total return without the effect of affiliated payments would have been (4.79)%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Emerging Markets Fund
Financial Highlights
| | | | | | | |
Class T Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $10.05 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.11 | |
| Total from Investment Operations | | 0.19 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $10.24 | |
| Total Return* | | 1.89% | |
| Net Assets, End of Period (in thousands) | | $7,629 | |
| Average Net Assets for the Period (in thousands) | | $6,024 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.38% | |
| | Ratio of Net Investment Income/(Loss) | | 5.01% | |
| Portfolio Turnover Rate | | 32% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | MARCH 31, 2022 |
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Emerging Markets Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson Emerging Markets Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. The Fund's first fiscal year end was July 31, 2017. Subsequent to July 31, 2017, the Fund changed its fiscal year end to September 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. For private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under ASC 820. These are categorized as Level 3 in the hierarchy.
For significant fair value measurements categorized within Level 3 of the fair value hierarchy, the table below summarizes the valuation techniques and provides quantitative information about the significant unobservable inputs. In addition, the table provides a narrative description of the uncertainty of the fair value measurement based on the use of significant unobservable inputs that have been different, or that reasonable could have been different, at the reporting date.
| | | | | | |
Asset | Fair Value at March 31, 2022 | Valuation Technique | Unobservable Input | Input Amount or Range | Impact to Valuation from an Increase in Input |
Preferred Stock | | | | | |
Biotechnology | $373,129 | Market Approach | Transaction Price | $4.03 | Increase |
Health Care Providers & Services | $536,821 | Market Approach | Transaction Price | INR 53.64 | Increase |
| | | | | | |
INR Indian Rupee
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
The following describes the amounts of transfers into or out of Level 3 of the fair value hierarchy during the period.
Financial assets of $592,646 were transferred out of Level 3 to Level 2 since certain securities prices were determined using other significant observable inputs at the end of the current fiscal year and significant unobservable inputs at the end of the prior fiscal year.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
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.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or 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. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. 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 the Fund invests in Chinese local market securities.
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.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
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, corporate
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $1 Billion | 1.00 |
Next $1 Billion | 0.90 |
Over $2 Billion | 0.85 |
The Fund’s actual investment advisory fee rate for the reporting period was 1.00% of average annual net assets before any applicable waivers.
The Adviser has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 1.03% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $115.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $137.
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 92 | | 51 | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended September 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(1,565,969) | $ - | $ (1,565,969) | | |
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 84,095,702 | $ 9,472,372 | $(10,209,929) | $ (737,557) |
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 29,554 | $ 328,286 | | 178,947 | $ 2,206,832 |
Reinvested dividends and distributions | 12,270 | 133,124 | | 3,383 | 38,800 |
Shares repurchased | (36,124) | (387,003) | | (154,674) | (1,886,173) |
Net Increase/(Decrease) | 5,700 | $ 74,407 | | 27,656 | $ 359,459 |
Class C Shares: | | | | | |
Shares sold | 11,150 | $ 108,167 | | 16,056 | $ 194,003 |
Reinvested dividends and distributions | 2,184 | 23,174 | | 340 | 3,793 |
Shares repurchased | (23,337) | (254,015) | | (122,409) | (1,473,670) |
Net Increase/(Decrease) | (10,003) | $ (122,674) | | (106,013) | $ (1,275,874) |
Class D Shares: | | | | | |
Shares sold | 186,983 | $ 2,081,645 | | 1,995,197 | $25,518,859 |
Reinvested dividends and distributions | 43,574 | 475,390 | | 11,263 | 129,977 |
Shares repurchased | (281,739) | (3,212,137) | | (1,553,046) | (19,427,020) |
Net Increase/(Decrease) | (51,182) | $ (655,102) | | 453,414 | $ 6,221,816 |
Class I Shares: | | | | | |
Shares sold | 112,677 | $ 1,237,237 | | 188,840 | $ 2,310,448 |
Reinvested dividends and distributions | 49,669 | 539,900 | | 21,333 | 245,325 |
Shares repurchased | (322,599) | (3,572,052) | | (553,189) | (6,546,222) |
Net Increase/(Decrease) | (160,253) | $(1,794,915) | | (343,016) | $ (3,990,449) |
Class N Shares: | | | | | |
Shares sold | 101,338 | $ 1,130,256 | | 1,932,868 | $23,679,300 |
Reinvested dividends and distributions | 164,333 | 1,789,591 | | 39,252 | 452,579 |
Shares repurchased | (719,168) | (8,086,947) | | (342,716) | (4,106,565) |
Net Increase/(Decrease) | (453,497) | $(5,167,100) | | 1,629,404 | $20,025,314 |
Class S Shares: | | | | | |
Shares sold | 1,281 | $ 13,752 | | 790 | $ 9,712 |
Reinvested dividends and distributions | 218 | 2,399 | | 74 | 859 |
Shares repurchased | (3) | (38) | | (2,330) | (28,037) |
Net Increase/(Decrease) | 1,496 | $ 16,113 | | (1,466) | $ (17,466) |
Class T Shares: | | | | | |
Shares sold | 94,593 | $ 1,107,622 | | 70,496 | $ 867,562 |
Reinvested dividends and distributions | 7,136 | 77,857 | | 2,411 | 27,803 |
Shares repurchased | (111,260) | (1,300,408) | | (65,195) | (809,210) |
Net Increase/(Decrease) | (9,531) | $ (114,929) | | 7,712 | $ 86,155 |
Janus Henderson Emerging Markets Fund
Notes to Financial Statements (unaudited)
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$25,744,968 | $ 36,909,462 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Emerging Markets Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Emerging Markets Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Emerging Markets Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Emerging Markets Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, with the exception of extended market closures due to planned holidays, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Emerging Markets Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Emerging Markets Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Emerging Markets Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Emerging Markets Fund
Notes
NotesPage2
Janus Henderson Emerging Markets Fund
Notes
NotesPage3
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
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| | | SEMIANNUAL REPORT March 31, 2022 |
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| | Janus Henderson Enterprise Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Enterprise Fund
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FUND SNAPSHOT By taking a moderate approach to an asset class with potential for rapid growth, this mid-cap growth fund has demonstrated lower volatility than the index. Unlike other competitor products that focus on short-term growth rates, this strategy seeks to invest in companies that exhibit sustainable and durable growth. | | | | 
Brian Demain co-portfolio manager | 
Cody Wheaton co-portfolio manager |
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Janus Henderson Enterprise Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| WR Berkley Corp | 2.05% | | 0.88% | | Ceridian HCM Holding Inc | 1.55% | | -0.56% |
| Semiconductor & Semiconductor Equipment | 2.77% | | 0.87% | | Wayfair Inc - Class A | 0.82% | | -0.40% |
| LPL Financial Holdings Inc | 3.24% | | 0.74% | | Redfin Corp | 0.42% | | -0.33% |
| JB Hunt Transport Services Inc | 2.71% | | 0.64% | | CarMax Inc | 2.01% | | -0.32% |
| GoDaddy Inc | 2.02% | | 0.57% | | SS&C Technologies Holdings Inc | 3.13% | | 0.51% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 2.68% | | 12.60% | 5.21% |
| Information Technology | | 1.96% | | 37.14% | 35.02% |
| Health Care | | 1.73% | | 16.78% | 16.83% |
| Communication Services | | 1.72% | | 1.86% | 3.77% |
| Industrials | | 0.94% | | 14.20% | 15.10% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell Midcap Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -0.59% | | 1.59% | 1.93% |
| Real Estate | | -0.20% | | 1.80% | 2.38% |
| Consumer Staples | | -0.14% | | 0.00% | 1.88% |
| Materials | | 0.08% | | 0.93% | 1.93% |
| Other** | | 0.18% | | 3.04% | 0.00% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Enterprise Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
LPL Financial Holdings Inc | |
Capital Markets | 3.7% |
SS&C Technologies Holdings Inc | |
Software | 3.2% |
ON Semiconductor Corp | |
Semiconductor & Semiconductor Equipment | 3.2% |
Constellation Software Inc/Canada | |
Software | 2.8% |
Intact Financial Corp | |
Insurance | 2.7% |
| | 15.6% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.7% | |
Investment Companies | | 3.3% | |
Other | | 0.0% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Enterprise Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -1.59% | 3.79% | 15.37% | 14.18% | 11.43% | | | 1.13% |
Class A Shares at MOP | | -7.25% | -2.18% | 14.01% | 13.51% | 11.21% | | | |
Class C Shares at NAV | | -1.83% | 3.24% | 14.72% | 13.47% | 10.67% | | | 1.72% |
Class C Shares at CDSC | | -2.65% | 2.38% | 14.72% | 13.47% | 10.67% | | | |
Class D Shares | | -1.43% | 4.12% | 15.73% | 14.53% | 11.60% | | | 0.79% |
Class I Shares | | -1.42% | 4.16% | 15.79% | 14.60% | 11.63% | | | 0.74% |
Class N Shares | | -1.37% | 4.26% | 15.89% | 14.70% | 11.65% | | | 0.66% |
Class R Shares | | -1.74% | 3.48% | 15.03% | 13.86% | 11.05% | | | 1.41% |
Class S Shares | | -1.62% | 3.74% | 15.32% | 14.14% | 11.32% | | | 1.16% |
Class T Shares | | -1.49% | 4.01% | 15.61% | 14.43% | 11.56% | | | 0.91% |
Russell Midcap Growth Index | | -10.09% | -0.89% | 15.10% | 13.52% | 10.75% | | | |
Morningstar Quartile - Class T Shares | | - | 1st | 2nd | 1st | 2nd | | | |
Morningstar Ranking - based on total returns for Mid-Cap Growth Funds | | - | 80/603 | 212/545 | 61/501 | 43/137 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Janus Henderson Enterprise Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – September 1, 1992
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $984.10 | $5.54 | | $1,000.00 | $1,019.35 | $5.64 | 1.12% |
Class C Shares | $1,000.00 | $981.70 | $7.91 | | $1,000.00 | $1,016.95 | $8.05 | 1.60% |
Class D Shares | $1,000.00 | $985.70 | $3.91 | | $1,000.00 | $1,020.99 | $3.98 | 0.79% |
Class I Shares | $1,000.00 | $985.80 | $3.71 | | $1,000.00 | $1,021.19 | $3.78 | 0.75% |
Class N Shares | $1,000.00 | $986.30 | $3.27 | | $1,000.00 | $1,021.64 | $3.33 | 0.66% |
Class R Shares | $1,000.00 | $982.60 | $6.92 | | $1,000.00 | $1,017.95 | $7.04 | 1.40% |
Class S Shares | $1,000.00 | $983.80 | $5.74 | | $1,000.00 | $1,019.15 | $5.84 | 1.16% |
Class T Shares | $1,000.00 | $985.10 | $4.45 | | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Enterprise Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 96.7% | | | |
Aerospace & Defense – 3.7% | | | |
| | L3Harris Technologies Inc | | 1,572,814 | | | $390,797,095 | |
| | Teledyne Technologies Inc* | | 746,874 | | | 352,995,059 | |
| | | 743,792,154 | |
Airlines – 0.9% | | | |
| | Ryanair Holdings PLC (ADR)* | | 2,030,937 | | | 176,935,231 | |
Auto Components – 0.6% | | | |
| | Visteon Corp* | | 1,042,986 | | | 113,821,062 | |
Banks – 0.6% | | | |
| | SVB Financial Group* | | 195,688 | | | 109,477,652 | |
Biotechnology – 2.2% | | | |
| | Ascendis Pharma A/S (ADR)* | | 780,006 | | | 91,541,504 | |
| | BioMarin Pharmaceutical Inc* | | 1,595,564 | | | 123,017,984 | |
| | Neurocrine Biosciences Inc* | | 1,581,538 | | | 148,269,187 | |
| | Sarepta Therapeutics Inc* | | 1,073,081 | | | 83,829,088 | |
| | | 446,657,763 | |
Capital Markets – 5.6% | | | |
| | Cboe Global Markets Inc | | 1,599,178 | | | 182,977,947 | |
| | Charles Schwab Corp | | 1,208,719 | | | 101,907,099 | |
| | LPL Financial Holdings Inc£ | | 4,111,220 | | | 751,037,670 | |
| | MSCI Inc | | 189,320 | | | 95,205,242 | |
| | | 1,131,127,958 | |
Commercial Services & Supplies – 1.9% | | | |
| | Cimpress PLC*,£ | | 2,154,740 | | | 137,019,917 | |
| | Ritchie Bros Auctioneers Inc | | 4,280,406 | | | 252,672,366 | |
| | | 389,692,283 | |
Containers & Packaging – 1.0% | | | |
| | Sealed Air Corp | | 3,101,763 | | | 207,694,050 | |
Diversified Consumer Services – 1.5% | | | |
| | Frontdoor Inc* | | 3,437,401 | | | 102,606,420 | |
| | Terminix Global Holdings Inc* | | 4,325,747 | | | 197,383,836 | |
| | | 299,990,256 | |
Electric Utilities – 1.7% | | | |
| | Alliant Energy Corp | | 5,354,787 | | | 334,567,092 | |
Electrical Equipment – 2.3% | | | |
| | Regal Beloit Corp | | 675,040 | | | 100,432,451 | |
| | Sensata Technologies Holding PLC* | | 7,037,320 | | | 357,847,722 | |
| | | 458,280,173 | |
Electronic Equipment, Instruments & Components – 5.6% | | | |
| | Dolby Laboratories Inc | | 1,243,028 | | | 97,229,650 | |
| | Flex Ltd* | | 18,018,604 | | | 334,245,104 | |
| | National Instruments Corp | | 5,780,684 | | | 234,637,964 | |
| | TE Connectivity Ltd | | 3,494,938 | | | 457,766,979 | |
| | | 1,123,879,697 | |
Entertainment – 1.7% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 4,955,946 | | | 346,123,269 | |
Equity Real Estate Investment Trusts (REITs) – 1.4% | | | |
| | Lamar Advertising Co | | 2,400,381 | | | 278,876,265 | |
Health Care Equipment & Supplies – 9.4% | | | |
| | Boston Scientific Corp* | | 11,997,287 | | | 531,359,841 | |
| | Cooper Cos Inc | | 637,960 | | | 266,405,716 | |
| | Dentsply Sirona Inc | | 4,421,283 | | | 217,615,549 | |
| | ICU Medical Inc* | | 1,166,348 | | | 259,675,719 | |
| | STERIS PLC | | 1,002,052 | | | 242,266,112 | |
| | Teleflex Inc | | 1,066,490 | | | 378,422,647 | |
| | | 1,895,745,584 | |
Hotels, Restaurants & Leisure – 1.9% | | | |
| | Aramark | | 5,578,823 | | | 209,763,745 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Hotels, Restaurants & Leisure– (continued) | | | |
| | Entain PLC* | | 7,650,840 | | | $164,068,469 | |
| | | 373,832,214 | |
Information Technology Services – 11.0% | | | |
| | Amdocs Ltd | | 5,484,437 | | | 450,875,566 | |
| | Broadridge Financial Solutions Inc | | 1,957,738 | | | 304,839,384 | |
| | Fidelity National Information Services Inc | | 2,652,558 | | | 266,369,874 | |
| | Global Payments Inc | | 1,982,747 | | | 271,319,099 | |
| | GoDaddy Inc* | | 5,769,561 | | | 482,912,256 | |
| | WEX Inc* | | 1,933,556 | | | 345,043,068 | |
| | Wix.com Ltd* | | 879,063 | | | 91,826,921 | |
| | | 2,213,186,168 | |
Insurance – 7.1% | | | |
| | Aon PLC - Class A | | 560,937 | | | 182,657,915 | |
| | Intact Financial Corp | | 3,647,380 | | | 538,995,227 | |
| | Ryan Specialty Group Holdings Inc - Class A* | | 4,925,433 | | | 191,057,546 | |
| | WR Berkley Corp | | 7,554,780 | | | 503,072,800 | |
| | | 1,415,783,488 | |
Internet & Direct Marketing Retail – 0.5% | | | |
| | Wayfair Inc - Class A* | | 943,840 | | | 104,558,595 | |
Life Sciences Tools & Services – 3.0% | | | |
| | Avantor Inc* | | 3,879,341 | | | 131,199,313 | |
| | Illumina Inc* | | 379,172 | | | 132,482,697 | |
| | PerkinElmer Inc | | 1,262,833 | | | 220,313,845 | |
| | Waters Corp* | | 391,209 | | | 121,427,361 | |
| | | 605,423,216 | |
Machinery – 2.4% | | | |
| | Ingersoll Rand Inc | | 5,022,437 | | | 252,879,703 | |
| | Wabtec Corp | | 2,443,671 | | | 235,007,840 | |
| | | 487,887,543 | |
Multiline Retail – 0.4% | | | |
| | Dollar Tree Inc* | | 445,491 | | | 71,345,384 | |
Oil, Gas & Consumable Fuels – 1.8% | | | |
| | Magellan Midstream Partners LP | | 7,147,831 | | | 350,744,067 | |
Pharmaceuticals – 2.2% | | | |
| | Catalent Inc* | | 2,424,498 | | | 268,876,828 | |
| | Elanco Animal Health Inc* | | 6,520,644 | | | 170,123,602 | |
| | | 439,000,430 | |
Professional Services – 0.2% | | | |
| | Upwork Inc* | | 1,795,397 | | | 41,725,026 | |
Real Estate Management & Development – 0.2% | | | |
| | Redfin Corp* | | 2,580,869 | | | 46,558,877 | |
Road & Rail – 2.6% | | | |
| | JB Hunt Transport Services Inc | | 2,622,869 | | | 526,645,866 | |
Semiconductor & Semiconductor Equipment – 8.1% | | | |
| | KLA Corp | | 1,071,156 | | | 392,107,365 | |
| | Lam Research Corp | | 243,093 | | | 130,689,228 | |
| | Microchip Technology Inc | | 3,891,004 | | | 292,370,040 | |
| | NXP Semiconductors NV | | 997,786 | | | 184,670,233 | |
| | ON Semiconductor Corp* | | 10,126,024 | | | 633,990,363 | |
| | | 1,633,827,229 | |
Software – 10.5% | | | |
| | Atlassian Corp PLC - Class A* | | 345,760 | | | 101,594,661 | |
| | Ceridian HCM Holding Inc* | | 3,556,449 | | | 243,118,854 | |
| | Constellation Software Inc/Canada | | 329,994 | | | 564,157,742 | |
| | Dynatrace Inc* | | 2,531,693 | | | 119,242,740 | |
| | j2 Global Inc* | | 1,213,356 | | | 117,428,594 | |
| | Nice Ltd (ADR)* | | 1,240,936 | | | 271,764,984 | |
| | SS&C Technologies Holdings Inc | | 8,676,112 | | | 650,881,922 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Enterprise Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Topicus.com Inc* | | 643,855 | | | $48,031,583 | |
| | | 2,116,221,080 | |
Specialty Retail – 2.3% | | | |
| | Burlington Stores Inc* | | 698,357 | | | 127,219,695 | |
| | CarMax Inc* | | 3,515,098 | | | 339,136,655 | |
| | | 466,356,350 | |
Textiles, Apparel & Luxury Goods – 1.0% | | | |
| | Gildan Activewear Inc | | 5,342,285 | | | 200,228,842 | |
Trading Companies & Distributors – 1.4% | | | |
| | Ferguson PLC | | 2,052,528 | | | 278,558,088 | |
Total Common Stocks (cost $11,489,197,657) | | 19,428,542,952 | |
Investment Companies– 3.3% | | | |
Money Markets – 3.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $669,672,840) | | 669,629,367 | | | 669,696,330 | |
Total Investments (total cost $12,158,870,497) – 100.0% | | 20,098,239,282 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 5,548,353 | |
Net Assets – 100% | | $20,103,787,635 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $17,596,421,752 | | 87.5 | % |
Canada | | 1,604,085,760 | | 8.0 | |
Israel | | 363,591,905 | | 1.8 | |
Ireland | | 176,935,231 | | 0.9 | |
United Kingdom | | 164,068,469 | | 0.8 | |
Australia | | 101,594,661 | | 0.5 | |
Denmark | | 91,541,504 | | 0.5 | |
| | | | | | |
| | | | | | |
Total | | $20,098,239,282 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 3/31/22 |
Common Stocks - 4.4% |
Capital Markets - 3.7% | |
| | LPL Financial Holdings Inc | $ | 2,055,610 | $ | - | $ | 106,562,823 | $ | 751,037,670 |
Commercial Services & Supplies - 0.7% | |
| | Cimpress PLC* | | - | | - | | (50,076,157) | | 137,019,917 |
Total Common Stocks | $ | 2,055,610 | $ | - | $ | 56,486,666 | $ | 888,057,587 |
Investment Companies - 3.3% |
Money Markets - 3.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 292,976 | | 11,179 | | (11,179) | | 669,696,330 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 17,933∆ | | - | | - | | - |
Total Affiliated Investments - 7.7% | $ | 2,366,519 | $ | 11,179 | $ | 56,475,487 | $ | 1,557,753,917 |
(1) For securities that were affiliated for a portion of the period ended March 31, 2022, this column reflects amounts for the entire period ended March 31, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Common Stocks - 4.4% |
Capital Markets - 3.7% | |
| | LPL Financial Holdings Inc | | 644,474,847 | | - | | - | | 751,037,670 |
Commercial Services & Supplies - 0.7% | |
| | Cimpress PLC* | | 187,096,074 | | - | | - | | 137,019,917 |
Investment Companies - 3.3% |
Money Markets - 3.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 744,167,504 | | 1,329,529,643 | | (1,404,000,817) | | 669,696,330 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 3,046,145 | | 314,813,644 | | (317,859,789) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Enterprise Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Barclays Capital, Inc.: | | | | | | | | |
Euro | 4/7/22 | 63,489,000 | $ | (70,852,613) | $ | (621,141) | | |
Euro | 4/7/22 | (79,243,000) | | 90,826,876 | | 3,168,344 | | |
Euro | 6/30/22 | (63,489,000) | | 71,089,109 | | 605,296 | | |
| | | | | | | | | |
| | | | | | | 3,152,499 | | |
Citibank, National Association: | | | | | | | | |
Canadian Dollar | 4/7/22 | 21,904,000 | | (17,425,368) | | 97,584 | | |
Canadian Dollar | 4/7/22 | 160,589,000 | | (128,659,125) | | (189,753) | | |
Canadian Dollar | 4/7/22 | (152,593,000) | | 121,954,758 | | (117,906) | | |
Canadian Dollar | 6/30/22 | (160,589,000) | | 128,620,482 | | 177,950 | | |
| | | | | | | | | |
| | | | | | | (32,125) | | |
Credit Suisse International: | | | | | | | | |
Canadian Dollar | 4/7/22 | 160,589,000 | | (128,538,554) | | (69,182) | | |
Canadian Dollar | 4/7/22 | (158,288,000) | | 126,365,110 | | (263,488) | | |
Canadian Dollar | 6/30/22 | (160,589,000) | | 128,493,404 | | 50,872 | | |
Euro | 4/7/22 | 63,489,000 | | (70,890,738) | | (659,266) | | |
Euro | 4/7/22 | (79,243,000) | | 90,798,214 | | 3,139,682 | | |
Euro | 6/30/22 | (63,489,000) | | 71,114,918 | | 631,104 | | |
| | | | | | | | | |
| | | | | | | 2,829,722 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
Canadian Dollar | 4/7/22 | 160,589,000 | | (128,656,465) | | (187,093) | | |
Canadian Dollar | 4/7/22 | (177,383,000) | | 141,380,358 | | (524,024) | | |
Canadian Dollar | 6/30/22 | (160,589,000) | | 128,621,430 | | 178,898 | | |
Euro | 4/7/22 | 11,669,000 | | (12,832,185) | | 76,052 | | |
Euro | 4/7/22 | 127,282,000 | | (143,160,474) | | (2,361,245) | | |
Euro | 4/7/22 | (86,143,000) | | 98,625,733 | | 3,334,427 | | |
Euro | 6/30/22 | (63,489,000) | | 71,076,570 | | 592,757 | | |
| | | | | | | | | |
| | | | | | | 1,109,772 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
Canadian Dollar | 4/7/22 | 160,589,000 | | (128,522,815) | | (53,443) | | |
Canadian Dollar | 4/7/22 | (182,896,000) | | 145,687,276 | | (627,444) | | |
Canadian Dollar | 6/30/22 | (160,589,000) | | 128,485,179 | | 42,648 | | |
Euro | 4/7/22 | (17,980,000) | | 20,525,733 | | 636,275 | | |
Euro | 4/7/22 | (9,900,000) | | 10,941,068 | | (10,303) | | |
Euro | 6/30/22 | 4,100,000 | | (4,562,284) | | (10,572) | | |
| | | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | | |
| | | | | | | (22,839) | |
State Street Bank and Trust Company: | | | | | | | |
Canadian Dollar | 4/7/22 | 6,900,000 | $ | (5,432,214) | | 87,708 | | |
Euro | 4/7/22 | 6,080,000 | | (6,639,307) | | 86,383 | | |
Euro | 4/7/22 | 12,100,000 | | (13,426,342) | | (41,333) | | |
Euro | 4/7/22 | (3,600,000) | | 4,035,391 | | 53,075 | | |
Euro | 4/7/22 | (8,000,000) | | 8,798,634 | | (50,959) | | |
| | | | | | | | |
| | | | | | | 134,874 | |
Total | | | | | $ | 7,171,903 | |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $12,959,055 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 5,787,152 |
| | | | |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended March 31, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $12,728,581 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ (7,015,498) |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Enterprise Fund
Schedule of Investments (unaudited)
March 31, 2022
| | |
Average Ending Monthly Value of Derivative Instruments During the Period Ended March 31, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $196,381,826 |
Average amounts sold - in USD | 938,082,927 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
Russell Midcap® Growth Index | Russell Midcap® Growth Index reflects the performance of U.S. mid-cap equities with higher price-to-book ratios and higher forecasted growth values. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
LP | Limited Partnership |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Hotels, Restaurants & Leisure | $ | 209,763,745 | $ | 164,068,469 | $ | - |
Trading Companies & Distributors | | - | | 278,558,088 | | - |
All Other | | 18,776,152,650 | | - | | - |
Investment Companies | | - | | 669,696,330 | | - |
Total Investments in Securities | $ | 18,985,916,395 | $ | 1,112,322,887 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 12,959,055 | | - |
Total Assets | $ | 18,985,916,395 | $ | 1,125,281,942 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 5,787,152 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures 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. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Enterprise Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $11,180,389,033) | | $ | 18,540,485,365 | |
| Affiliated investments, at value (cost $978,481,464) | | | 1,557,753,917 | |
| Cash | | | 54 | |
| Forward foreign currency exchange contracts | | | 12,959,055 | |
| Cash denominated in foreign currency (cost $2,000) | | | 2,000 | |
| Non-interested Trustees' deferred compensation | | | 552,417 | |
| Receivables: | | | | |
| | Fund shares sold | | | 108,805,375 | |
| | Investments sold | | | 66,228,096 | |
| | Dividends | | | 8,048,085 | |
| | Dividends from affiliates | | | 118,607 | |
| Other assets | | | 165,433 | |
Total Assets | | | 20,295,118,404 | |
Liabilities: | | | | |
| Forward foreign currency exchange contracts | | | 5,787,152 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 124,015,360 | |
| | Investments purchased | | | 46,192,948 | |
| | Advisory fees | | | 10,736,631 | |
| | Transfer agent fees and expenses | | | 2,693,451 | |
| | Non-interested Trustees' deferred compensation fees | | | 552,417 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 334,885 | |
| | Non-interested Trustees' fees and expenses | | | 78,396 | |
| | Professional fees | | | 49,890 | |
| | Custodian fees | | | 46,934 | |
| | Affiliated fund administration fees payable | | | 41,940 | |
| | Accrued expenses and other payables | | | 800,765 | |
Total Liabilities | | | 191,330,769 | |
Net Assets | | $ | 20,103,787,635 | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 10,841,573,891 | |
| Total distributable earnings (loss) | | | 9,262,213,744 | |
Total Net Assets | | $ | 20,103,787,635 | |
Net Assets - Class A Shares | | $ | 391,021,170 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,767,206 | |
Net Asset Value Per Share(1) | | $ | 141.31 | |
Maximum Offering Price Per Share(2) | | $ | 149.93 | |
Net Assets - Class C Shares | | $ | 155,637,409 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,250,638 | |
Net Asset Value Per Share(1) | | $ | 124.45 | |
Net Assets - Class D Shares | | $ | 2,405,446,878 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,391,649 | |
Net Asset Value Per Share | | $ | 146.75 | |
Net Assets - Class I Shares | | $ | 7,269,645,877 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 49,197,540 | |
Net Asset Value Per Share | | $ | 147.76 | |
Net Assets - Class N Shares | | $ | 5,424,955,943 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 36,524,262 | |
Net Asset Value Per Share | | $ | 148.53 | |
Net Assets - Class R Shares | | $ | 100,800,318 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 754,487 | |
Net Asset Value Per Share | | $ | 133.60 | |
Net Assets - Class S Shares | | $ | 382,195,769 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,727,561 | |
Net Asset Value Per Share | | $ | 140.12 | |
Net Assets - Class T Shares | | $ | 3,974,084,271 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 27,317,428 | |
Net Asset Value Per Share | | $ | 145.48 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Enterprise Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 91,803,621 | |
| Dividends from affiliates | | 2,348,586 | |
| Affiliated securities lending income, net | | 17,933 | |
| Unaffiliated securities lending income, net | | 688 | |
| Other income | | 178 | |
| Foreign tax withheld | | (1,615,279) | |
Total Investment Income | | 92,555,727 | |
Expenses: | | | |
| Advisory fees | | 69,018,507 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 548,787 | |
| | Class C Shares | | 742,052 | |
| | Class R Shares | | 263,433 | |
| | Class S Shares | | 521,716 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,391,478 | |
| | Class R Shares | | 134,753 | |
| | Class S Shares | | 521,716 | |
| | Class T Shares | | 5,857,826 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 496,781 | |
| | Class C Shares | | 55,119 | |
| | Class I Shares | | 3,604,325 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 13,904 | |
| | Class C Shares | | 4,169 | |
| | Class D Shares | | 150,817 | |
| | Class I Shares | | 173,365 | |
| | Class N Shares | | 98,220 | |
| | Class R Shares | | 752 | |
| | Class S Shares | | 4,561 | |
| | Class T Shares | | 19,616 | |
| Shareholder reports expense | | 366,933 | |
| Affiliated fund administration fees | | 269,604 | |
| Custodian fees | | 203,943 | |
| Non-interested Trustees’ fees and expenses | | 173,725 | |
| Registration fees | | 170,536 | |
| Professional fees | | 66,686 | |
| Other expenses | | 595,173 | |
Total Expenses | | 85,468,497 | |
Less: Excess Expense Reimbursement and Waivers | | (301,341) | |
Net Expenses | | 85,167,156 | |
Net Investment Income/(Loss) | | 7,388,571 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 1,412,788,204 | |
| Investments in affiliates | | 11,179 | |
| Forward foreign currency exchange contracts | | 12,728,581 | |
Total Net Realized Gain/(Loss) on Investments | | 1,425,527,964 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (1,731,460,083) | |
| Investments in affiliates | | 56,475,487 | |
| Forward foreign currency exchange contracts | | (7,015,498) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,682,000,094) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (249,083,559) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Enterprise Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 7,388,571 | | $ | 33,292,119 | |
| Net realized gain/(loss) on investments | | 1,425,527,964 | | | 3,648,893,083 | |
| Change in unrealized net appreciation/depreciation | | (1,682,000,094) | | | 2,631,753,149 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (249,083,559) | | | 6,313,938,351 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (65,714,839) | | | (39,548,234) | |
| | Class C Shares | | (28,152,759) | | | (16,803,309) | |
| | Class D Shares | | (359,561,565) | | | (182,191,933) | |
| | Class I Shares | | (1,130,089,504) | | | (616,012,620) | |
| | Class N Shares | | (789,979,114) | | | (437,937,089) | |
| | Class R Shares | | (16,455,015) | | | (10,772,784) | |
| | Class S Shares | | (62,009,288) | | | (39,534,196) | |
| | Class T Shares | | (699,266,902) | | | (471,925,055) | |
Net Decrease from Dividends and Distributions to Shareholders | | (3,151,228,986) | | | (1,814,725,220) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (10,607,399) | | | (82,099,821) | |
| | Class C Shares | | 7,462,089 | | | (28,623,413) | |
| | Class D Shares | | 292,825,998 | | | 63,796,686 | |
| | Class I Shares | | 474,449,645 | | | (432,474,164) | |
| | Class N Shares | | 647,762,451 | | | (332,892,132) | |
| | Class R Shares | | 8,285,686 | | | (32,913,124) | |
| | Class S Shares | | 7,442,078 | | | (120,403,166) | |
| | Class T Shares | | (494,626,149) | | | (1,151,012,592) | |
Net Increase/(Decrease) from Capital Share Transactions | | 932,994,399 | | | (2,116,621,726) | |
Net Increase/(Decrease) in Net Assets | | (2,467,318,146) | | | 2,382,591,405 | |
Net Assets: | | | | | | |
| Beginning of period | | 22,571,105,781 | | | 20,188,514,376 | |
| End of period | $ | 20,103,787,635 | | $ | 22,571,105,781 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $168.35 | | | $137.77 | | | $136.07 | | | $131.70 | | | $111.15 | | | $94.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.21) | | | (0.27) | | | (0.09) | | | (0.02) | | | (0.15) | | | (0.14) | |
| | Net realized and unrealized gain/(loss) | | (2.16) | | | 43.67 | | | 7.94 | | | 11.19 | | | 22.79 | | | 18.61 | |
| Total from Investment Operations | | (2.37) | | | 43.40 | | | 7.85 | | | 11.17 | | | 22.64 | | | 18.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Net Asset Value, End of Period | | $141.31 | | | $168.35 | | | $137.77 | | | $136.07 | | | $131.70 | | | $111.15 | |
| Total Return* | | (1.62)% | | | 32.57% | | | 5.81% | | | 9.88% | | | 20.63% | | | 19.89% | |
| Net Assets, End of Period (in thousands) | | $391,021 | | | $472,904 | | | $456,433 | | | $547,328 | | | $666,848 | | | $617,749 | |
| Average Net Assets for the Period (in thousands) | | $440,236 | | | $493,097 | | | $493,576 | | | $611,182 | | | $647,856 | | | $632,639 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.14% | | | 1.13% | | | 1.17% | | | 1.15% | | | 1.16% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.11% | | | 1.12% | | | 1.11% | | | 1.12% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | (0.27)% | | | (0.17)% | | | (0.07)% | | | (0.02)% | | | (0.13)% | | | (0.14)% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $151.54 | | | $125.75 | | | $125.40 | | | $122.67 | | | $104.26 | | | $89.01 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.51) | | | (1.06) | | | (0.77) | | | (0.71) | | | (0.81) | | | (0.70) | |
| | Net realized and unrealized gain/(loss) | | (1.91) | | | 39.67 | | | 7.27 | | | 10.24 | | | 21.31 | | | 17.51 | |
| Total from Investment Operations | | (2.42) | | | 38.61 | | | 6.50 | | | 9.53 | | | 20.50 | | | 16.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Net Asset Value, End of Period | | $124.45 | | | $151.54 | | | $125.75 | | | $125.40 | | | $122.67 | | | $104.26 | |
| Total Return* | | (1.85)% | | | 31.83% | | | 5.21% | | | 9.25% | | | 19.93% | | | 19.19% | |
| Net Assets, End of Period (in thousands) | | $155,637 | | | $179,240 | | | $173,129 | | | $212,985 | | | $254,496 | | | $250,285 | |
| Average Net Assets for the Period (in thousands) | | $171,258 | | | $187,356 | | | $188,953 | | | $219,505 | | | $255,949 | | | $233,290 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.60% | | | 1.67% | | | 1.69% | | | 1.70% | | | 1.70% | | | 1.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.60% | | | 1.67% | | | 1.69% | | | 1.70% | | | 1.70% | | | 1.73% | |
| | Ratio of Net Investment Income/(Loss) | | (0.74)% | | | (0.73)% | | | (0.64)% | | | (0.61)% | | | (0.71)% | | | (0.74)% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | �� | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $174.13 | | | $142.10 | | | $139.87 | | | $134.99 | | | $113.64 | | | $96.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.25 | | | 0.33 | | | 0.37 | | | 0.23 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | (2.25) | | | 45.06 | | | 8.20 | | | 11.50 | | | 23.31 | | | 19.02 | |
| Total from Investment Operations | | (2.19) | | | 45.31 | | | 8.53 | | | 11.87 | | | 23.54 | | | 19.19 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.52) | | | (0.46) | | | (0.15) | | | (0.19) | | | (0.10) | | | (0.09) | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (25.19) | | | (13.28) | | | (6.30) | | | (6.99) | | | (2.19) | | | (1.65) | |
| Net Asset Value, End of Period | | $146.75 | | | $174.13 | | | $142.10 | | | $139.87 | | | $134.99 | | | $113.64 | |
| Total Return* | | (1.45)% | | | 32.99% | | | 6.15% | | | 10.22% | | | 20.99% | | | 20.27% | |
| Net Assets, End of Period (in thousands) | | $2,405,447 | | | $2,507,220 | | | $1,983,824 | | | $2,061,471 | | | $1,973,861 | | | $1,696,184 | |
| Average Net Assets for the Period (in thousands) | | $2,502,333 | | | $2,394,871 | | | $1,974,784 | | | $1,930,540 | | | $1,853,456 | | | $1,547,274 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.79% | | | 0.80% | | | 0.81% | | | 0.81% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.79% | | | 0.80% | | | 0.81% | | | 0.81% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.07% | | | 0.15% | | | 0.25% | | | 0.28% | | | 0.18% | | | 0.17% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $175.21 | | | $142.89 | | | $140.62 | | | $135.69 | | | $114.20 | | | $96.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.32 | | | 0.40 | | | 0.45 | | | 0.32 | | | 0.23 | |
| | Net realized and unrealized gain/(loss) | | (2.27) | | | 45.33 | | | 8.24 | | | 11.55 | | | 23.42 | | | 19.09 | |
| Total from Investment Operations | | (2.19) | | | 45.65 | | | 8.64 | | | 12.00 | | | 23.74 | | | 19.32 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.59) | | | (0.51) | | | (0.22) | | | (0.27) | | | (0.16) | | | (0.16) | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (25.26) | | | (13.33) | | | (6.37) | | | (7.07) | | | (2.25) | | | (1.72) | |
| Net Asset Value, End of Period | | $147.76 | | | $175.21 | | | $142.89 | | | $140.62 | | | $135.69 | | | $114.20 | |
| Total Return* | | (1.44)% | | | 33.06% | | | 6.20% | | | 10.28% | | | 21.07% | | | 20.32% | |
| Net Assets, End of Period (in thousands) | | $7,269,646 | | | $8,014,607 | | | $6,919,545 | | | $7,666,702 | | | $6,443,068 | | | $4,550,263 | |
| Average Net Assets for the Period (in thousands) | | $7,721,312 | | | $7,776,971 | | | $7,335,476 | | | $6,775,060 | | | $5,408,221 | | | $3,535,026 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.75% | | | 0.74% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.74% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.10% | | | 0.19% | | | 0.30% | | | 0.34% | | | 0.25% | | | 0.22% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $176.05 | | | $143.53 | | | $141.19 | | | $136.18 | | | $114.57 | | | $96.86 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.47 | | | 0.53 | | | 0.56 | | | 0.42 | | | 0.33 | |
| | Net realized and unrealized gain/(loss) | | (2.28) | | | 45.53 | | | 8.28 | | | 11.60 | | | 23.51 | | | 19.15 | |
| Total from Investment Operations | | (2.12) | | | 46.00 | | | 8.81 | | | 12.16 | | | 23.93 | | | 19.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.73) | | | (0.66) | | | (0.32) | | | (0.35) | | | (0.23) | | | (0.21) | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (25.40) | | | (13.48) | | | (6.47) | | | (7.15) | | | (2.32) | | | (1.77) | |
| Net Asset Value, End of Period | | $148.53 | | | $176.05 | | | $143.53 | | | $141.19 | | | $136.18 | | | $114.57 | |
| Total Return* | | (1.39)% | | | 33.17% | | | 6.30% | | | 10.38% | | | 21.18% | | | 20.45% | |
| Net Assets, End of Period (in thousands) | | $5,424,956 | | | $5,636,167 | | | $4,867,667 | | | $4,860,043 | | | $3,947,225 | | | $2,940,422 | |
| Average Net Assets for the Period (in thousands) | | $5,566,646 | | | $5,609,015 | | | $4,941,595 | | | $4,213,287 | | | $3,463,197 | | | $2,309,608 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Investment Income/(Loss) | | 0.20% | | | 0.28% | | | 0.39% | | | 0.43% | | | 0.34% | | | 0.31% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $160.72 | | | $132.38 | | | $131.34 | | | $127.76 | | | $108.20 | | | $92.03 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.40) | | | (0.69) | | | (0.46) | | | (0.39) | | | (0.50) | | | (0.41) | |
| | Net realized and unrealized gain/(loss) | | (2.05) | | | 41.85 | | | 7.65 | | | 10.77 | | | 22.15 | | | 18.14 | |
| Total from Investment Operations | | (2.45) | | | 41.16 | | | 7.19 | | | 10.38 | | | 21.65 | | | 17.73 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Net Asset Value, End of Period | | $133.60 | | | $160.72 | | | $132.38 | | | $131.34 | | | $127.76 | | | $108.20 | |
| Total Return* | | (1.76)% | | | 32.18% | | | 5.51% | | | 9.56% | | | 20.27% | | | 19.56% | |
| Net Assets, End of Period (in thousands) | | $100,800 | | | $110,802 | | | $119,190 | | | $150,860 | | | $162,271 | | | $171,439 | |
| Average Net Assets for the Period (in thousands) | | $108,098 | | | $124,162 | | | $130,918 | | | $150,191 | | | $167,123 | | | $160,164 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.40% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | | | 1.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.40% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | | | 1.42% | |
| | Ratio of Net Investment Income/(Loss) | | (0.54)% | | | (0.45)% | | | (0.36)% | | | (0.32)% | | | (0.43)% | | | (0.42)% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Enterprise Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $167.17 | | | $136.94 | | | $135.34 | | | $131.09 | | | $110.70 | | | $93.89 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.23) | | | (0.34) | | | (0.14) | | | (0.08) | | | (0.21) | | | (0.17) | |
| | Net realized and unrealized gain/(loss) | | (2.15) | | | 43.39 | | | 7.89 | | | 11.13 | | | 22.69 | | | 18.54 | |
| Total from Investment Operations | | (2.38) | | | 43.05 | | | 7.75 | | | 11.05 | | | 22.48 | | | 18.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Net Asset Value, End of Period | | $140.12 | | | $167.17 | | | $136.94 | | | $135.34 | | | $131.09 | | | $110.70 | |
| Total Return* | | (1.64)% | | | 32.51% | | | 5.77% | | | 9.84% | | | 20.57% | | | 19.86% | |
| Net Assets, End of Period (in thousands) | | $382,196 | | | $442,011 | | | $465,207 | | | $589,792 | | | $626,458 | | | $580,629 | |
| Average Net Assets for the Period (in thousands) | | $418,520 | | | $480,226 | | | $538,012 | | | $592,420 | | | $593,963 | | | $536,354 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.30)% | | | (0.21)% | | | (0.11)% | | | (0.06)% | | | (0.17)% | | | (0.17)% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $172.66 | | | $141.02 | | | $138.90 | | | $134.10 | | | $112.96 | | | $95.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.03) | | | 0.07 | | | 0.20 | | | 0.24 | | | 0.11 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | (2.23) | | | 44.71 | | | 8.13 | | | 11.44 | | | 23.17 | | | 18.91 | |
| Total from Investment Operations | | (2.26) | | | 44.78 | | | 8.33 | | | 11.68 | | | 23.28 | | | 18.99 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.32) | | | (0.06) | | | (0.08) | | | (0.05) | | | (0.07) | |
| | Distributions (from capital gains) | | (24.67) | | | (12.82) | | | (6.15) | | | (6.80) | | | (2.09) | | | (1.56) | |
| Total Dividends and Distributions | | (24.92) | | | (13.14) | | | (6.21) | | | (6.88) | | | (2.14) | | | (1.63) | |
| Net Asset Value, End of Period | | $145.48 | | | $172.66 | | | $141.02 | | | $138.90 | | | $134.10 | | | $112.96 | |
| Total Return* | | (1.51)% | | | 32.84% | | | 6.04% | | | 10.12% | | | 20.88% | | | 20.16% | |
| Net Assets, End of Period (in thousands) | | $3,974,084 | | | $5,208,155 | | | $5,203,521 | | | $5,461,958 | | | $5,344,306 | | | $4,374,383 | |
| Average Net Assets for the Period (in thousands) | | $4,699,135 | | | $5,723,820 | | | $5,246,105 | | | $5,059,206 | | | $4,920,845 | | | $3,748,225 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.90% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.04)% | | | 0.05% | | | 0.15% | | | 0.19% | | | 0.09% | | | 0.08% | |
| Portfolio Turnover Rate | | 3% | | | 12% | | | 14% | | | 13% | | | 13% | | | 10% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Enterprise Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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.
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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 futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
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 purposes (to earn income and seek to enhance returns). 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 that 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
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
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.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – 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 – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – 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 – the risk related 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 – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC 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. Additionally, the Fund may deposit cash and/or treasuries 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 contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE are used to value the forward currency contracts.
The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The realized 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 forward currency contract is reported on the Statement of Operations (if applicable).
During the period, the Fund entered into forward currency contracts with the obligation to purchase 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.
During the period, the Fund entered into forward currency 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.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital,
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 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 has entered 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.
The following tables present gross amounts of recognized assets and/or 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 the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022” table located in the Fund’s Schedule of Investments.
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Barclays Capital, Inc. | $ | 3,773,640 | $ | (621,141) | $ | — | $ | 3,152,499 |
Citibank, National Association | | 275,534 | | (275,534) | | — | | — |
Credit Suisse International | | 3,821,658 | | (991,936) | | — | | 2,829,722 |
HSBC Securities (USA), Inc. | | 4,182,134 | | (3,072,362) | | — | | 1,109,772 |
JPMorgan Chase Bank, National Association | | 678,923 | | (678,923) | | — | | — |
State Street Bank and Trust Company | | 227,166 | | (92,292) | | — | | 134,874 |
| | | | | | | | | |
Total | $ | 12,959,055 | $ | (5,732,188) | $ | — | $ | 7,226,867 |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Barclays Capital, Inc. | $ | 621,141 | $ | (621,141) | $ | — | $ | — |
Citibank, National Association | | 307,659 | | (275,534) | | — | | 32,125 |
Credit Suisse International | | 991,936 | | (991,936) | | — | | — |
HSBC Securities (USA), Inc. | | 3,072,362 | | (3,072,362) | | — | | — |
JPMorgan Chase Bank, National Association | | 701,762 | | (678,923) | | — | | 22,839 |
State Street Bank and Trust Company | | 92,292 | | (92,292) | | — | | — |
| | | | | | | | | |
Total | $ | 5,787,152 | $ | (5,732,188) | $ | — | $ | 54,964 |
(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. |
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
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, corporate bonds, 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.
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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 Securities and Exchange Commission (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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations.
There were no securities on loan as of March 31, 2022.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.64% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.80% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $7,907.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $1,258.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the period ended March 31, 2022, the Fund engaged in cross trades amounting to $14,110,475 in sales, resulting in a net realized gain of $1,623,329. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 12,076,637,811 | $8,490,900,130 | $(469,298,659) | $ 8,021,601,471 |
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
Information on the tax components of derivatives as of March 31, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ - | $12,959,055 | $ (5,787,152) | $ 7,171,903 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 397,521 | $ 59,589,872 | | 623,354 | $ 99,334,382 |
Reinvested dividends and distributions | 297,360 | 42,632,523 | | 175,459 | 26,494,246 |
Shares repurchased | (736,789) | (112,829,794) | | (1,302,821) | (207,928,449) |
Net Increase/(Decrease) | (41,908) | $ (10,607,399) | | (504,008) | $ (82,099,821) |
Class C Shares: | | | | | |
Shares sold | 32,420 | $ 4,549,205 | | 46,061 | $ 6,656,959 |
Reinvested dividends and distributions | 217,666 | 27,523,875 | | 115,145 | 15,720,744 |
Shares repurchased | (182,253) | (24,610,991) | | (355,216) | (51,001,116) |
Net Increase/(Decrease) | 67,833 | $ 7,462,089 | | (194,010) | $ (28,623,413) |
Class D Shares: | | | | | |
Shares sold | 262,525 | $ 41,620,188 | | 604,201 | $ 99,963,713 |
Reinvested dividends and distributions | 2,340,660 | 348,173,218 | | 1,135,443 | 176,890,607 |
Shares repurchased | (609,728) | (96,967,408) | | (1,302,329) | (213,057,634) |
Net Increase/(Decrease) | 1,993,457 | $ 292,825,998 | | 437,315 | $ 63,796,686 |
Class I Shares: | | | | | |
Shares sold | 6,029,584 | $ 929,931,126 | | 10,671,413 | $ 1,782,257,942 |
Reinvested dividends and distributions | 6,230,188 | 933,095,224 | | 3,162,055 | 495,494,094 |
Shares repurchased | (8,805,984) | (1,388,576,705) | | (16,516,799) | (2,710,226,200) |
Net Increase/(Decrease) | 3,453,788 | $ 474,449,645 | | (2,683,331) | $ (432,474,164) |
Class N Shares: | | | | | |
Shares sold | 3,450,306 | $ 534,953,750 | | 4,712,549 | $ 781,848,813 |
Reinvested dividends and distributions | 5,161,986 | 776,930,572 | | 2,741,978 | 431,450,288 |
Shares repurchased | (4,102,609) | (664,121,871) | | (9,354,922) | (1,546,191,233) |
Net Increase/(Decrease) | 4,509,683 | $ 647,762,451 | | (1,900,395) | $ (332,892,132) |
Class R Shares: | | | | | |
Shares sold | 61,833 | $ 8,966,013 | | 134,921 | $ 20,428,800 |
Reinvested dividends and distributions | 119,781 | 16,249,554 | | 73,206 | 10,577,543 |
Shares repurchased | (116,536) | (16,929,881) | | (419,107) | (63,919,467) |
Net Increase/(Decrease) | 65,078 | $ 8,285,686 | | (210,980) | $ (32,913,124) |
Class S Shares: | | | | | |
Shares sold | 168,542 | $ 25,329,460 | | 290,570 | $ 45,840,839 |
Reinvested dividends and distributions | 435,205 | 61,877,468 | | 263,171 | 39,475,606 |
Shares repurchased | (520,197) | (79,764,850) | | (1,306,884) | (205,719,611) |
Net Increase/(Decrease) | 83,550 | $ 7,442,078 | | (753,143) | $ (120,403,166) |
Class T Shares: | | | | | |
Shares sold | 2,286,723 | $ 345,635,568 | | 3,888,927 | $ 630,422,843 |
Reinvested dividends and distributions | 4,668,938 | 688,715,006 | | 3,013,650 | 465,970,549 |
Shares repurchased | (9,802,082) | (1,528,976,723) | | (13,639,082) | (2,247,405,984) |
Net Increase/(Decrease) | (2,846,421) | $ (494,626,149) | | (6,736,505) | $(1,151,012,592) |
Janus Henderson Enterprise Fund
Notes to Financial Statements (unaudited)
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$727,603,951 | $2,879,055,986 | $ - | $ - |
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Enterprise Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Enterprise Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Enterprise Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Enterprise Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Enterprise Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Enterprise Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Enterprise Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Enterprise Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Enterprise Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Enterprise Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
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Useful Information About Your Fund Report (unaudited)
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 Henderson Enterprise Fund
Notes
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Janus Henderson Enterprise Fund
Notes
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
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| | | SEMIANNUAL REPORT March 31, 2022 |
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| | Janus Henderson European Focus Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson European Focus Fund
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FUND SNAPSHOT A regional equity fund that seeks to achieve long-term capital appreciation primarily through investment in European companies. The management team applies a high-conviction approach, with a focus on opportunities that offer material upside potential, regardless of style. | | | | | 
Robert Schramm-Fuchs Portfolio Manager |
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Janus Henderson European Focus Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Anglo American PLC | 2.84% | | 1.07% | | Wizz Air Holdings PLC | 1.52% | | -0.84% |
| Rheinmetall AG | 0.46% | | 0.88% | | BioNTech SE (ADR) | 0.27% | | -0.64% |
| Terna Rete Elettrica Nazionale SpA | 2.11% | | 0.42% | | JD Sports Fashion PLC | 1.83% | | -0.49% |
| UBS Group AG | 2.47% | | 0.40% | | Vestas Wind Systems A/S | 0.96% | | -0.46% |
| Wacker Chemie AG | 0.77% | | 0.30% | | Pandora A/S | 2.66% | | -0.42% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 1.19% | | 8.41% | 7.82% |
| Utilities | | 0.52% | | 6.45% | 4.18% |
| Information Technology | | 0.27% | | 5.69% | 8.19% |
| Other** | | 0.22% | | 1.95% | 0.00% |
| Consumer Staples | | 0.08% | | 13.37% | 12.72% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI Europe Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | -1.44% | | 12.64% | 14.62% |
| Industrials | | -1.41% | | 16.99% | 14.87% |
| Financials | | -1.28% | | 15.16% | 16.30% |
| Energy | | -0.84% | | 4.18% | 5.07% |
| Consumer Discretionary | | 0.03% | | 14.58% | 11.32% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson European Focus Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Hugo Boss AG | |
Textiles, Apparel & Luxury Goods | 3.8% |
Anglo American PLC | |
Metals & Mining | 3.7% |
Nestle SA (REG) | |
Food Products | 3.5% |
RELX PLC | |
Professional Services | 3.2% |
UBS Group AG | |
Capital Markets | 2.9% |
| | 17.1% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.9% | |
Investments Purchased with Cash Collateral from Securities Lending | | 1.5% | |
Investment Companies | | 0.4% | |
OTC Purchased Options – Puts | | 0.2% | |
Other | | (1.0)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
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Janus Henderson European Focus Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -5.31% | 2.58% | 7.43% | 6.14% | 11.79% | | | 1.41% | 1.30% |
Class A Shares at MOP | | -10.75% | -3.31% | 6.16% | 5.52% | 11.47% | | | | |
Class C Shares at NAV | | -5.66% | 1.80% | 6.63% | 5.34% | 10.96% | | | 2.18% | 2.06% |
Class C Shares at CDSC | | -6.60% | 0.80% | 6.63% | 5.34% | 10.96% | | | | |
Class D Shares | | -5.21% | 2.79% | 7.62% | 6.24% | 11.84% | | | 1.28% | 1.11% |
Class I Shares | | -5.17% | 2.85% | 7.72% | 6.43% | 11.98% | | | 1.14% | 1.03% |
Class N Shares | | -5.15% | 2.93% | 7.77% | 6.35% | 11.90% | | | 1.11% | 0.96% |
Class S Shares | | -5.16% | 2.73% | 7.52% | 6.14% | 11.79% | | | 6.00% | 1.46% |
Class T Shares | | -5.25% | 2.68% | 7.54% | 6.20% | 11.82% | | | 1.38% | 1.21% |
MSCI Europe Index | | -2.12% | 3.51% | 6.92% | 6.27% | 5.63% | | | | |
Morningstar Quartile - Class A Shares | | - | 2nd | 2nd | 3rd | 1st | | | | |
Morningstar Ranking - based on total returns for Europe Stock Funds | | - | 32/93 | 29/88 | 43/71 | 9/55 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
Janus Henderson European Focus Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson European Focus Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares and Class C Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on August 31, 2001. Class I Shares and Class R6 Shares of the Predecessor Fund commenced operations on March 31, 2009 and November 30, 2015, respectively. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to March 31, 2009, performance for Class I Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – August 31, 2001
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson European Focus 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $946.90 | $6.31 | | $1,000.00 | $1,018.45 | $6.54 | 1.30% |
Class C Shares | $1,000.00 | $943.40 | $9.93 | | $1,000.00 | $1,014.71 | $10.30 | 2.05% |
Class D Shares | $1,000.00 | $947.90 | $5.34 | | $1,000.00 | $1,019.45 | $5.54 | 1.10% |
Class I Shares | $1,000.00 | $948.30 | $5.05 | | $1,000.00 | $1,019.75 | $5.24 | 1.04% |
Class N Shares | $1,000.00 | $948.50 | $4.66 | | $1,000.00 | $1,020.14 | $4.84 | 0.96% |
Class S Shares | $1,000.00 | $948.40 | $4.86 | | $1,000.00 | $1,019.95 | $5.04 | 1.00% |
Class T Shares | $1,000.00 | $947.50 | $5.88 | | $1,000.00 | $1,018.90 | $6.09 | 1.21% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson European Focus Fund
Schedule of Investments (unaudited)
March 31, 2022
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Shares/Principal/
Contract Amounts | | | Value | |
Common Stocks– 98.9% | | | |
Aerospace & Defense – 3.6% | | | |
| | Leonardo SpA* | | 594,303 | | | $5,921,507 | |
| | Rheinmetall AG | | 52,115 | | | 11,060,557 | |
| | | 16,982,064 | |
Air Freight & Logistics – 1.2% | | | |
| | DSV Panalpina A/S | | 29,528 | | | 5,647,254 | |
Automobiles – 1.5% | | | |
| | Daimler AG | | 99,298 | | | 6,973,393 | |
Banks – 6.4% | | | |
| | BAWAG Group AG (144A)* | | 103,982 | | | 5,245,020 | |
| | BNP Paribas SA | | 78,393 | | | 4,462,864 | |
| | Erste Group Bank AG | | 186,340 | | | 6,757,307 | |
| | KBC Group NV | | 63,844 | | | 4,590,997 | |
| | Nordea Bank Abp | | 841,163 | | | 8,666,213 | |
| | | 29,722,401 | |
Beverages – 2.8% | | | |
| | Diageo PLC | | 257,241 | | | 12,999,357 | |
Capital Markets – 5.1% | | | |
| | Deutsche Boerse AG | | 54,941 | | | 9,868,167 | |
| | UBS Group AG | | 699,000 | | | 13,658,583 | |
| | | 23,526,750 | |
Chemicals – 3.3% | | | |
| | Symrise AG | | 40,207 | | | 4,826,297 | |
| | Wacker Chemie AG | | 60,185 | | | 10,330,208 | |
| | | 15,156,505 | |
Construction & Engineering – 2.0% | | | |
| | Vinci SA | | 89,107 | | | 9,108,828 | |
Diversified Telecommunication Services – 1.8% | | | |
| | Deutsche Telekom AG | | 447,274 | | | 8,352,640 | |
Electric Utilities – 2.1% | | | |
| | Terna Rete Elettrica Nazionale SpA | | 1,124,316 | | | 9,668,483 | |
Electrical Equipment – 4.5% | | | |
| | NEL ASA*,# | | 5,091,419 | | | 8,563,377 | |
| | Vestas Wind Systems A/S | | 420,331 | | | 12,412,543 | |
| | | 20,975,920 | |
Food & Staples Retailing – 1.0% | | | |
| | Koninklijke Ahold Delhaize NV | | 150,465 | | | 4,836,214 | |
Food Products – 7.3% | | | |
| | Chocoladefabriken Lindt & Spruengli AG (PC) | | 1,005 | | | 11,920,051 | |
| | Danone SA | | 99,317 | | | 5,470,406 | |
| | Nestle SA (REG) | | 126,126 | | | 16,376,438 | |
| | | 33,766,895 | |
Health Care Equipment & Supplies – 2.4% | | | |
| | Siemens Healthineers AG (144A) | | 70,449 | | | 4,367,841 | |
| | Straumann Holding AG | | 4,162 | | | 6,660,879 | |
| | | 11,028,720 | |
Hotels, Restaurants & Leisure – 1.1% | | | |
| | Compass Group PLC | | 237,768 | | | 5,123,197 | |
Life Sciences Tools & Services – 2.9% | | | |
| | Lonza Group AG | | 9,899 | | | 7,172,824 | |
| | QIAGEN NV* | | 133,102 | | | 6,532,513 | |
| | | 13,705,337 | |
Machinery – 2.0% | | | |
| | Atlas Copco AB | | 81,787 | | | 4,246,655 | |
| | Daimler Truck Holding AG* | | 151,275 | | | 4,201,995 | |
| | KION Group AG | | 14,182 | | | 942,991 | |
| | | 9,391,641 | |
Metals & Mining – 7.4% | | | |
| | Anglo American PLC | | 336,032 | | | 17,328,110 | |
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See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
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6 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Schedule of Investments (unaudited)
March 31, 2022
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Shares/Principal/
Contract Amounts | | | Value | |
Common Stocks– (continued) | | | |
Metals & Mining– (continued) | | | |
| | Rio Tinto PLC | | 128,459 | | | $10,188,229 | |
| | Salzgitter AG* | | 145,277 | | | 6,761,557 | |
| | | 34,277,896 | |
Multi-Utilities – 3.1% | | | |
| | RWE AG | | 220,024 | | | 9,595,751 | |
| | Veolia Environnement SA | | 144,493 | | | 4,610,042 | |
| | | 14,205,793 | |
Oil, Gas & Consumable Fuels – 4.6% | | | |
| | Lundin Petroleum AB | | 237,710 | | | 10,082,431 | |
| | Total SE | | 226,585 | | | 11,495,047 | |
| | | 21,577,478 | |
Paper & Forest Products – 2.2% | | | |
| | UPM-Kymmene Oyj | | 309,685 | | | 10,103,813 | |
Personal Products – 1.5% | | | |
| | L'Oreal SA | | 17,941 | | | 7,180,176 | |
Pharmaceuticals – 9.7% | | | |
| | AstraZeneca PLC | | 88,522 | | | 11,736,817 | |
| | Novo Nordisk A/S | | 104,876 | | | 11,616,741 | |
| | Roche Holding AG | | 32,261 | | | 12,760,501 | |
| | Sanofi | | 89,398 | | | 9,115,928 | |
| | | 45,229,987 | |
Professional Services – 4.6% | | | |
| | RELX PLC | | 484,031 | | | 15,073,861 | |
| | Wolters Kluwer NV | | 60,343 | | | 6,422,594 | |
| | | 21,496,455 | |
Semiconductor & Semiconductor Equipment – 4.5% | | | |
| | ASML Holding NV | | 14,036 | | | 9,360,709 | |
| | BE Semiconductor Industries NV | | 112,440 | | | 9,570,367 | |
| | Meyer Burger Technology AG* | | 4,363,654 | | | 1,836,334 | |
| | | 20,767,410 | |
Textiles, Apparel & Luxury Goods – 8.2% | | | |
| | Hugo Boss AG | | 302,557 | | | 17,610,073 | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 15,679 | | | 11,162,994 | |
| | Pandora A/S | | 99,533 | | | 9,418,481 | |
| | | 38,191,548 | |
Water Utilities – 2.1% | | | |
| | Severn Trent PLC | | 245,660 | | | 9,913,966 | |
Total Common Stocks (cost $417,696,984) | | 459,910,121 | |
Investment Companies– 0.4% | | | |
Money Markets – 0.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $2,073,250) | | 2,073,043 | | | 2,073,250 | |
Investments Purchased with Cash Collateral from Securities Lending– 1.5% | | | |
Investment Companies – 1.2% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 5,506,708 | | | 5,506,708 | |
Time Deposits – 0.3% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $1,376,677 | | | 1,376,677 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $6,883,385) | | 6,883,385 | |
OTC Purchased Options – Puts– 0.2% | | | |
Counterparty/Reference AssetCounterparty/Reference Asset | | | |
Citigroup: | | | | | | |
| | DAX Index, | | | | | | |
| | Notional amount $(39,860,272), premiums paid $629,475, unrealized appreciation $166,915, exercise price $14000.00, expires 4/29/22* | | 500 | | | 796,390 | |
Total Investments (total cost $427,283,094) – 101.0% | | 469,663,146 | |
Liabilities, net of Cash, Receivables and Other Assets – (1.0)% | | (4,421,782) | |
Net Assets – 100% | | $465,241,364 | |
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See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
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Janus Investment Fund | 7 |
Janus Henderson European Focus Fund
Schedule of Investments (unaudited)
March 31, 2022
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Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
Germany | | $102,220,373 | | 21.8 | % |
United Kingdom | | 82,363,537 | | 17.5 | |
Switzerland | | 70,385,610 | | 15.0 | |
France | | 62,606,285 | | 13.3 | |
Denmark | | 39,095,019 | | 8.3 | |
Netherlands | | 30,189,884 | | 6.4 | |
Finland | | 18,770,026 | | 4.0 | |
Italy | | 15,589,990 | | 3.3 | |
Sweden | | 14,329,086 | | 3.1 | |
Austria | | 12,002,327 | | 2.6 | |
United States | | 8,956,635 | | 1.9 | |
Norway | | 8,563,377 | | 1.8 | |
Belgium | | 4,590,997 | | 1.0 | |
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Total | | $469,663,146 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 0.4% |
Money Markets - 0.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 2,558 | $ | - | $ | - | $ | 2,073,250 |
Investments Purchased with Cash Collateral from Securities Lending - 1.2% |
Investment Companies - 1.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 29,429∆ | | - | | - | | 5,506,708 |
Total Affiliated Investments - 1.6% | $ | 31,987 | $ | - | $ | - | $ | 7,579,958 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 0.4% |
Money Markets - 0.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 2,579,657 | | 157,910,973 | | (158,417,380) | | 2,073,250 |
Investments Purchased with Cash Collateral from Securities Lending - 1.2% |
Investment Companies - 1.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | - | | 17,886,215 | | (12,379,507) | | 5,506,708 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Schedule of OTC Written Options |
Counterparty/ Reference Asset | Number of Contracts | Exercise Price | | | Expiration Date | | Notional Amount | | Premiums Received | | Unrealized Appreciation/ (Depreciation) | | Options Written, at Value | |
| | | | | | | | | | | | | | | |
Written Put Options:
Citigroup:
| | | | | | | | | | | | | | |
DAX Index | 500 | 13,000.00 | EUR | | 4/29/22 | $ | 39,860,272 | $ | 225,549 | $ | (81,393) | $ | (306,942) |
Rheinmetall AG | 1,025 | 120.00 | EUR | | 6/17/22 | | 21,722,635 | | 502,905 | | 403,521 | | (99,384) |
Total - Written Put Options | | | | 728,454 | | 322,128 | | (406,326) |
Total OTC Written Options | | | $ | 728,454 | $ | 322,128 | $ | (406,326) |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022 |
| | | | | |
| | | | | Equity
Contracts |
Asset Derivatives: | | | |
Purchased options, at value | | | $ 796,390 |
| | | | |
Liability Derivatives: | | | |
Options written, at value | | | $ 406,326 |
| | | | |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended March 31, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Equity
Contracts |
Purchased options contracts | | $(1,541,772) |
Written options contracts | | 2,520,551 |
| | | | | |
Total | | $ 978,779 |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Equity
Contracts |
Purchased options contracts | | $ 166,915 |
Written options contracts | | 154,131 |
| | | | | |
Total | | $ 321,046 |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson European Focus Fund
Schedule of Investments (unaudited)
March 31, 2022
| | |
Average Ending Monthly Value of Derivative Instruments During the Period Ended March 31, 2022 |
| |
| |
Options: | |
Average value of option contracts purchased | $143,301 |
Average value of option contracts written | 405,818 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI Europe IndexSM | MSCI Europe IndexSM reflects the equity market performance of developed markets in Europe. |
| | |
LLC | Limited Liability Company |
OTC | Over-the-Counter |
PC | Participation Certificate |
PLC | Public Limited Company |
REG | Registered |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $9,612,861, which represents 2.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | - | $ | 459,910,121 | $ | - |
Investment Companies | | - | | 2,073,250 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 6,883,385 | | - |
OTC Purchased Options – Puts | | - | | 796,390 | | - |
Total Assets | $ | - | $ | 469,663,146 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Options Written, at Value | $ | - | $ | 406,326 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures 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. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson European Focus Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $419,073,661)(1) | | $ | 461,286,798 | |
| Affiliated investments, at value (cost $7,579,958) | | | 7,579,958 | |
| Purchased options, at value (premiums paid $629,475) | | | 796,390 | |
| Deposits with brokers for OTC derivatives | | | 700,000 | |
| Non-interested Trustees' deferred compensation | | | 12,764 | |
| Receivables: | | | | |
| | Investments sold | | | 6,731,346 | |
| | Dividends | | | 2,164,737 | |
| | Foreign tax reclaims | | | 1,983,260 | |
| | Fund shares sold | | | 386,499 | |
| | Dividends from affiliates | | | 381 | |
| Other assets | | | 634,399 | |
Total Assets | | | 482,276,532 | |
Liabilities: | | | | |
| Due to custodian | | | 320 | |
| Foreign cash due to custodian (cost $22,777) | | | 22,777 | |
| Collateral for securities loaned (Note 3) | | | 6,883,385 | |
| Options written, at value (premiums received $728,454) | | | 406,326 | |
| Payables: | | | — | |
| | Investments purchased | | | 8,478,659 | |
| | Fund shares repurchased | | | 644,840 | |
| | Advisory fees | | | 337,011 | |
| | Transfer agent fees and expenses | | | 76,706 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 41,435 | |
| | Professional fees | | | 32,055 | |
| | Non-interested Trustees' deferred compensation fees | | | 12,764 | |
| | Custodian fees | | | 10,966 | |
| | Non-interested Trustees' fees and expenses | | | 1,770 | |
| | Affiliated fund administration fees payable | | | 955 | |
| | Accrued expenses and other payables | | | 85,199 | |
Total Liabilities | | | 17,035,168 | |
Net Assets | | $ | 465,241,364 | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 848,968,579 | |
| Total distributable earnings (loss) | | | (383,727,215) | |
Total Net Assets | | $ | 465,241,364 | |
Net Assets - Class A Shares | | $ | 131,275,707 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,116,659 | |
Net Asset Value Per Share(2) | | $ | 42.12 | |
Maximum Offering Price Per Share(3) | | $ | 44.69 | |
Net Assets - Class C Shares | | $ | 17,486,865 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 441,834 | |
Net Asset Value Per Share(2) | | $ | 39.58 | |
Net Assets - Class D Shares | | $ | 9,611,766 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 229,822 | |
Net Asset Value Per Share | | $ | 41.82 | |
Net Assets - Class I Shares | | $ | 283,484,550 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,772,724 | |
Net Asset Value Per Share | | $ | 41.86 | |
Net Assets - Class N Shares | | $ | 12,257,421 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 294,869 | |
Net Asset Value Per Share | | $ | 41.57 | |
Net Assets - Class S Shares | | $ | 92,709 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,308 | |
Net Asset Value Per Share | | $ | 40.17 | |
Net Assets - Class T Shares | | $ | 11,032,346 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 264,048 | |
Net Asset Value Per Share | | $ | 41.78 | |
| |
(1) Includes $6,606,451 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson European Focus Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 6,069,896 | |
| Non-cash dividends | | 2,072,190 | |
| Affiliated securities lending income, net | | 29,429 | |
| Dividends from affiliates | | 2,558 | |
| Unaffiliated securities lending income, net | | 193 | |
| Other income | | 606,529 | |
| Foreign tax withheld | | (251,841) | |
Total Investment Income | | 8,528,954 | |
Expenses: | | | |
| Advisory fees | | 2,471,858 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 176,323 | |
| | Class C Shares | | 103,458 | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 5,720 | |
| | Class S Shares | | 112 | |
| | Class T Shares | | 14,865 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 55,424 | |
| | Class C Shares | | 9,952 | |
| | Class I Shares | | 105,421 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 4,794 | |
| | Class C Shares | | 595 | |
| | Class D Shares | | 1,560 | |
| | Class I Shares | | 7,228 | |
| | Class N Shares | | 221 | |
| | Class S Shares | | 2 | |
| | Class T Shares | | 82 | |
| Registration fees | | 48,711 | |
| Professional fees | | 23,545 | |
| Custodian fees | | 21,379 | |
| Shareholder reports expense | | 12,329 | |
| Affiliated fund administration fees | | 6,191 | |
| Non-interested Trustees’ fees and expenses | | 4,509 | |
| Other expenses | | 52,044 | |
Total Expenses | | 3,126,323 | |
Less: Excess Expense Reimbursement and Waivers | | (261,344) | |
Net Expenses | | 2,864,979 | |
Net Investment Income/(Loss) | | 5,663,975 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (28,797,675) | |
| Purchased options contracts | | (1,541,772) | |
| Written options contracts | | 2,520,551 | |
Total Net Realized Gain/(Loss) on Investments | | (27,818,896) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (4,327,316) | |
| Purchased options contracts | | 166,915 | |
| Written options contracts | | 154,131 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (4,006,270) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (26,161,191) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson European Focus Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 5,663,975 | | $ | 2,166,450 | |
| Net realized gain/(loss) on investments | | (27,818,896) | | | 99,624,270 | |
| Change in unrealized net appreciation/depreciation | | (4,006,270) | | | 6,825,774 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (26,161,191) | | | 108,616,494 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (199,462) | | | (362,388) | |
| | Class D Shares | | (33,496) | | | (20,930) | |
| | Class I Shares | | (1,094,982) | | | (1,148,633) | |
| | Class N Shares | | (45,092) | | | (26,735) | |
| | Class S Shares | | (279) | | | (185) | |
| | Class T Shares | | (34,594) | | | (12,244) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,407,905) | | | (1,571,115) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (3,090,425) | | | (8,045,062) | |
| | Class C Shares | | (4,790,631) | | | (14,066,619) | |
| | Class D Shares | | 124,329 | | | 5,355,988 | |
| | Class I Shares | | 972,351 | | | 29,583,028 | |
| | Class N Shares | | 3,249,764 | | | 3,380,544 | |
| | Class S Shares | | 12,005 | | | 15,445 | |
| | Class T Shares | | 1,311,500 | | | 8,380,996 | |
Net Increase/(Decrease) from Capital Share Transactions | | (2,211,107) | | | 24,604,320 | |
Net Increase/(Decrease) in Net Assets | | (29,780,203) | | | 131,649,699 | |
Net Assets: | | | | | | |
| Beginning of period | | 495,021,567 | | | 363,371,868 | |
| End of period | $ | 465,241,364 | | $ | 495,021,567 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $44.48 | | | $34.23 | | | $27.21 | | | $31.73 | | | $35.02 | | | $34.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.47(3) | | | 0.16 | | | 0.11 | | | 0.41 | | | 0.46 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (2.77) | | | 10.20 | | | 7.22 | | | (3.91) | | | (3.16) | | | 0.67 | |
| Total from Investment Operations | | (2.30) | | | 10.36 | | | 7.33 | | | (3.50) | | | (2.70) | | | 0.80 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.06) | | | (0.11) | | | (0.31) | | | (1.02) | | | (0.59) | | | — | |
| Total Dividends and Distributions | | (0.06) | | | (0.11) | | | (0.31) | | | (1.02) | | | (0.59) | | | — | |
| Net Asset Value, End of Period | | $42.12 | | | $44.48 | | | $34.23 | | | $27.21 | | | $31.73 | | | $35.02 | |
| Total Return* | | (5.17)% | | | 30.31% | | | 27.04% | | | (10.61)% | | | (7.84)% | | | 2.34% | |
| Net Assets, End of Period (in thousands) | | $131,276 | | | $141,908 | | | $116,047 | | | $112,110 | | | $176,690 | | | $273,184 | |
| Average Net Assets for the Period (in thousands) | | $141,446 | | | $136,809 | | | $109,879 | | | $135,260 | | | $227,911 | | | $268,061 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.40% | | | 1.41% | | | 1.45% | | | 1.46% | | | 1.31% | | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.30% | | | 1.30% | | | 1.31% | | | 1.32% | | | 1.30% | | | 1.35% | |
| | Ratio of Net Investment Income/(Loss) | | 2.13%(3) | | | 0.37% | | | 0.38% | | | 1.49% | | | 1.37% | | | 2.29% | |
| Portfolio Turnover Rate | | 74% | | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $41.90 | | | $32.40 | | | $25.69 | | | $29.66 | | | $32.68 | | | $31.98 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.27(3) | | | (0.18) | | | (0.11) | | | 0.16 | | | 0.21 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | (2.59) | | | 9.68 | | | 6.82 | | | (3.57) | | | (2.97) | | | 0.62 | |
| Total from Investment Operations | | (2.32) | | | 9.50 | | | 6.71 | | | (3.41) | | | (2.76) | | | 0.70 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | (0.56) | | | (0.26) | | | — | |
| Total Dividends and Distributions | | — | | | — | | | — | | | (0.56) | | | (0.26) | | | — | |
| Net Asset Value, End of Period | | $39.58 | | | $41.90 | | | $32.40 | | | $25.69 | | | $29.66 | | | $32.68 | |
| Total Return* | | (5.54)% | | | 29.32% | | | 26.12% | | | (11.26)% | | | (8.51)% | | | 2.19% | |
| Net Assets, End of Period (in thousands) | | $17,487 | | | $23,302 | | | $29,652 | | | $43,110 | | | $118,408 | | | $184,366 | |
| Average Net Assets for the Period (in thousands) | | $20,943 | | | $27,919 | | | $37,468 | | | $62,633 | | | $154,929 | | | $183,018 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.17% | | | 2.17% | | | 2.19% | | | 2.19% | | | 2.04% | | | 2.22% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.05% | | | 2.05% | | | 2.06% | | | 2.06% | | | 2.02% | | | 2.22% | |
| | Ratio of Net Investment Income/(Loss) | | 1.30%(3) | | | (0.46)% | | | (0.40)% | | | 0.62% | | | 0.65% | | | 1.44% | |
| Portfolio Turnover Rate | | 74% | | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Mercedes-Benz Group AG in December 2021. 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 $0.19 and 0.42%, respectively, for Class A Shares and $0.18 and 0.42%, respectively, for Class C Shares. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.17 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.34 | |
| | Net realized and unrealized gain/(loss) | | 2.50 | |
| Total from Investment Operations | | 2.84 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.79) | |
| Total Dividends and Distributions | | (0.79) | |
| Net Asset Value, End of Period | | $34.22 | |
| Total Return* | | 9.15% | |
| Net Assets, End of Period (in thousands) | | $274,588 | |
| Average Net Assets for the Period (in thousands) | | $381,753 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.33% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.33% | |
| | Ratio of Net Investment Income/(Loss) | | 1.06% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $30.06 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 2.32 | |
| Total from Investment Operations | | 2.43 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.51) | |
| Total Dividends and Distributions | | (0.51) | |
| Net Asset Value, End of Period | | $31.98 | |
| Total Return* | | 8.32% | |
| Net Assets, End of Period (in thousands) | | $188,120 | |
| Average Net Assets for the Period (in thousands) | | $219,705 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 2.11% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.11% | |
| | Ratio of Net Investment Income/(Loss) | | 0.36% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $44.21 | | | $34.01 | | | $27.05 | | | $31.61 | | | $35.02 | | | $34.21 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.51(3) | | | 0.24 | | | 0.18 | | | 0.49 | | | 0.57 | | | 0.14 | |
| | Net realized and unrealized gain/(loss) | | (2.76) | | | 10.13 | | | 7.16 | | | (3.92) | | | (3.20) | | | 0.67 | |
| Total from Investment Operations | | (2.25) | | | 10.37 | | | 7.34 | | | (3.43) | | | (2.63) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.17) | | | (0.38) | | | (1.13) | | | (0.78) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.17) | | | (0.38) | | | (1.13) | | | (0.78) | | | — | |
| Net Asset Value, End of Period | | $41.82 | | | $44.21 | | | $34.01 | | | $27.05 | | | $31.61 | | | $35.02 | |
| Total Return* | | (5.10)% | | | 30.57% | | | 27.27% | | | (10.39)% | | | (7.67)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $9,612 | | | $10,102 | | | $3,510 | | | $2,293 | | | $2,875 | | | $2,776 | |
| Average Net Assets for the Period (in thousands) | | $10,285 | | | $6,844 | | | $2,636 | | | $2,421 | | | $3,071 | | | $2,683 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.26% | | | 1.28% | | | 1.40% | | | 1.59% | | | 1.19% | | | 1.11% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | | | 1.10% | | | 1.11% | | | 1.14% | | | 1.11% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 2.34%(3) | | | 0.57% | | | 0.60% | | | 1.81% | | | 1.71% | | | 2.52% | |
| Portfolio Turnover Rate | | 74% | | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $44.25 | | | $34.03 | | | $27.07 | | | $31.59 | | | $34.94 | | | $34.13 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.53(3) | | | 0.26 | | | 0.19 | | | 0.42 | | | 0.54 | | | 0.15 | |
| | Net realized and unrealized gain/(loss) | | (2.76) | | | 10.15 | | | 7.17 | | | (3.82) | | | (3.14) | | | 0.66 | |
| Total from Investment Operations | | (2.23) | | | 10.41 | | | 7.36 | | | (3.40) | | | (2.60) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.19) | | | (0.40) | | | (1.12) | | | (0.75) | | | — | |
| Total Dividends and Distributions | | (0.16) | | | (0.19) | | | (0.40) | | | (1.12) | | | (0.75) | | | — | |
| Net Asset Value, End of Period | | $41.86 | | | $44.25 | | | $34.03 | | | $27.07 | | | $31.59 | | | $34.94 | |
| Total Return* | | (5.06)% | | | 30.66% | | | 27.35% | | | (10.30)% | | | (7.60)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $283,485 | | | $299,272 | | | $208,159 | | | $220,722 | | | $695,302 | | | $1,234,695 | |
| Average Net Assets for the Period (in thousands) | | $300,677 | | | $263,587 | | | $204,753 | | | $353,101 | | | $1,025,799 | | | $1,231,744 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.14% | | | 1.14% | | | 1.17% | | | 1.16% | | | 1.03% | | | 1.06% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.04% | | | 1.03% | | | 1.04% | | | 1.03% | | | 1.02% | | | 1.06% | |
| | Ratio of Net Investment Income/(Loss) | | 2.42%(3) | | | 0.62% | | | 0.64% | | | 1.53% | | | 1.60% | | | 2.59% | |
| Portfolio Turnover Rate | | 74% | | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Mercedes-Benz Group AG in December 2021. 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 $0.18 and 0.42%, respectively. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $33.53 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 0.57 | |
| Total from Investment Operations | | 0.68 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $34.21 | |
| Total Return* | | 2.03% | |
| Net Assets, End of Period (in thousands) | | $2,585 | |
| Average Net Assets for the Period (in thousands) | | $2,342 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.25% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | 2.11% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.18 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | 2.47 | |
| Total from Investment Operations | | 2.91 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.96) | |
| Total Dividends and Distributions | | (0.96) | |
| Net Asset Value, End of Period | | $34.13 | |
| Total Return* | | 9.44% | |
| Net Assets, End of Period (in thousands) | | $1,277,021 | |
| Average Net Assets for the Period (in thousands) | | $1,414,519 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 1.38% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $43.95 | | | $33.80 | | | $26.86 | | | $31.64 | | | $34.89 | | | $34.10 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.57(3) | | | 0.35 | | | 0.34 | | | 0.49 | | | 0.56 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (2.76) | | | 10.01 | | | 7.01 | | | (3.91) | | | (3.14) | | | 0.66 | |
| Total from Investment Operations | | (2.19) | | | 10.36 | | | 7.35 | | | (3.42) | | | (2.58) | | | 0.79 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.21) | | | (0.41) | | | (1.36) | | | (0.67) | | | — | |
| Total Dividends and Distributions | | (0.19) | | | (0.21) | | | (0.41) | | | (1.36) | | | (0.67) | | | — | |
| Net Asset Value, End of Period | | $41.57 | | | $43.95 | | | $33.80 | | | $26.86 | | | $31.64 | | | $34.89 | |
| Total Return* | | (5.02)% | | | 30.72% | | | 27.51% | | | (10.25)% | | | (7.54)% | | | 2.32% | |
| Net Assets, End of Period (in thousands) | | $12,257 | | | $9,763 | | | $4,371 | | | $139 | | | $284 | | | $318 | |
| Average Net Assets for the Period (in thousands) | | $11,241 | | | $9,327 | | | $3,114 | | | $207 | | | $332 | | | $245 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.09% | | | 1.11% | | | 1.20% | | | 2.56% | | | 1.43% | | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | | | 0.96% | | | 0.96% | | | 0.97% | | | 0.97% | | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | 2.61%(3) | | | 0.85% | | | 1.17% | | | 1.82% | | | 1.68% | | | 2.29% | |
| Portfolio Turnover Rate | | 74% | | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $42.42 | | | $32.57 | | | $25.98 | | | $31.53 | | | $35.01 | | | $34.20 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.53(3) | | | 0.23 | | | 0.11 | | | 0.45 | | | 0.47 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (2.64) | | | 9.73 | | | 6.85 | | | (3.98) | | | (3.20) | | | 0.68 | |
| Total from Investment Operations | | (2.11) | | | 9.96 | | | 6.96 | | | (3.53) | | | (2.73) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.11) | | | (0.37) | | | (2.02) | | | (0.75) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.11) | | | (0.37) | | | (2.02) | | | (0.75) | | | — | |
| Net Asset Value, End of Period | | $40.17 | | | $42.42 | | | $32.57 | | | $25.98 | | | $31.53 | | | $35.01 | |
| Total Return* | | (5.00)% | | | 30.63% | | | 26.93% | | | (10.35)% | | | (7.96)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $93 | | | $85 | | | $54 | | | $43 | | | $48 | | | $52 | |
| Average Net Assets for the Period (in thousands) | | $90 | | | $68 | | | $48 | | | $43 | | | $50 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 4.61% | | | 5.71% | | | 7.83% | | | 8.50% | | | 4.42% | | | 1.48% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.07% | | | 1.34% | | | 1.17% | | | 1.35% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | 2.53%(3) | | | 0.58% | | | 0.40% | | | 1.73% | | | 1.42% | | | 2.34% | |
| Portfolio Turnover Rate | | 74% | | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Mercedes-Benz Group AG in December 2021. 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 $0.18 and 0.42%, respectively. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $32.18 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | 2.47 | |
| Total from Investment Operations | | 2.89 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.97) | |
| Total Dividends and Distributions | | (0.97) | |
| Net Asset Value, End of Period | | $34.10 | |
| Total Return* | | 9.36% | |
| Net Assets, End of Period (in thousands) | | $210 | |
| Average Net Assets for the Period (in thousands) | | $1,074 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.10% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | |
| | Ratio of Net Investment Income/(Loss) | | 1.34% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| | | | | | | |
Class S Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(2) | |
| Net Asset Value, Beginning of Period | | $33.53 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 0.58 | |
| Total from Investment Operations | | 0.67 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $34.20 | |
| Total Return* | | 2.00% | |
| Net Assets, End of Period (in thousands) | | $51 | |
| Average Net Assets for the Period (in thousands) | | $49 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.45% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.45% | |
| | Ratio of Net Investment Income/(Loss) | | 1.67% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* 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 or period. (2) Period from June 5, 2017 (inception date) through July 31, 2017. |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $44.17 | | | $34.02 | | | $27.06 | | | $31.57 | | | $35.03 | | | $34.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.48(3) | | | 0.20 | | | 0.12 | | | 0.47 | | | 0.54 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (2.74) | | | 10.12 | | | 7.20 | | | (3.90) | | | (3.21) | | | 0.68 | |
| Total from Investment Operations | | (2.26) | | | 10.32 | | | 7.32 | | | (3.43) | | | (2.67) | | | 0.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.17) | | | (0.36) | | | (1.08) | | | (0.79) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | (0.17) | | | (0.36) | | | (1.08) | | | (0.79) | | | — | |
| Net Asset Value, End of Period | | $41.78 | | | $44.17 | | | $34.02 | | | $27.06 | | | $31.57 | | | $35.03 | |
| Total Return* | | (5.13)% | | | 30.41% | | | 27.20% | | | (10.43)% | | | (7.79)% | | | 2.37% | |
| Net Assets, End of Period (in thousands) | | $11,032 | | | $10,590 | | | $1,579 | | | $676 | | | $929 | | | $1,275 | |
| Average Net Assets for the Period (in thousands) | | $11,924 | | | $5,237 | | | $839 | | | $762 | | | $1,598 | | | $1,077 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.34% | | | 1.38% | | | 1.70% | | | 1.76% | | | 1.31% | | | 1.22% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | | | 1.21% | | | 1.19% | | | 1.18% | | | 1.20% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 2.21%(3) | | | 0.47% | | | 0.41% | | | 1.74% | | | 1.59% | | | 2.26% | |
| Portfolio Turnover Rate | | 74% | | | 184% | | | 160% | | | 145% | | | 82% | | | 6% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Mercedes-Benz Group AG in December 2021. 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 $0.18 and 0.42%, respectively. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson European Focus Fund
Financial Highlights
| | | | | | | |
Class T Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $33.53 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 0.64 | |
| Total from Investment Operations | | 0.69 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $34.22 | |
| Total Return* | | 2.06% | |
| Net Assets, End of Period (in thousands) | | $983 | |
| Average Net Assets for the Period (in thousands) | | $63 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.51% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.21% | |
| | Ratio of Net Investment Income/(Loss) | | 1.60% | |
| Portfolio Turnover Rate | | 57% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
24 | MARCH 31, 2022 |
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson European Focus Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term capital appreciation primarily through investment in equities of European companies. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson European Focus Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. The Fund's first fiscal year end was July 31, 2017. Subsequent to July 31, 2017, the Fund changed its fiscal year end to September 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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 March 31, 2022.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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 futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
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 purposes
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
(to earn income and seek to enhance returns). 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 that 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.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – 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 – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – 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 – the risk related 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 – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC 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. Additionally, the Fund may deposit cash and/or treasuries 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 contracts with a particular counterparty. All liquid securities and restricted cash are considered to
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
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 on or before a specified date. The purchaser pays a premium to the seller for this right. The seller has the corresponding obligation to sell or buy a financial instrument if the purchaser (owner) "exercises" the option. When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid. Upon expiration, or closing of the option transaction, a realized gain or loss is reported on the Statement of Operations (if applicable). The difference between the premium paid/received and the market value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported on the Statement of Operations (if applicable). Option contracts are typically valued using an approved vendor’s option valuation model. To the extent reliable market quotations are available, option contracts are valued using market quotations. In cases when an approved vendor cannot provide coverage for an option and there is no reliable market quotation, a broker quotation or an internal valuation using the Black-Scholes model, the Cox-Rubinstein Binomial Option Pricing Model, or other appropriate option pricing model is used. Certain options contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statement of Assets and Liabilities as “Variation margin receivable” or “Variation margin payable” (if applicable).
The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings. 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. The Fund may be subject to counterparty risk, interest rate risk, liquidity risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts.
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.
The Fund may purchase put options to hedge against a decline in the value of its portfolio. By using put options in this way, the Fund will reduce any profit it might otherwise have realized in the underlying security by the amount of the premium paid for the put option and by transaction costs. The Fund may purchase call options to hedge against an increase in the price of securities that it may buy in the future. The premium paid for the call option plus any transaction costs will reduce the benefit, if any, realized by the Fund upon exercise of the option, and, unless the price of the underlying security rises sufficiently, the option may expire worthless to the Fund. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. Options purchased are reported in the Schedule of Investments (if applicable).
During the period, the Fund purchased call options on various equity index securities for the purpose of increasing exposure to broad equity risk.
During the period, the Fund purchased call options on various equity index securities for the purpose of increasing exposure to individual equity risk.
In writing an option, the Fund bears the risk of an unfavorable change in the price of the security underlying the written option. 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. Options written are reported as a liability on the Statement of Assets and Liabilities as “Options written, at value” (if applicable). The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Fund pays a premium whether or not the options are exercised.
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
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.
During the period, the Fund wrote put options on various equity securities for the purpose of increasing exposure to individual equity risk and/or generating income.
During the period, the Fund wrote put options on various equity indices for the purpose of increasing exposure to broad equity risk.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 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 has entered 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.
The following table presents gross amounts of recognized assets and/or 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 the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022” table located in the Fund’s Schedule of Investments.
| | | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets | |
| | |
| | | Gross Amounts | | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount | |
| | | | | | | | | | |
Citigroup | $ | 796,390 | $ | (406,326) | $ | — | $ | 390,064 | |
JPMorgan Chase Bank, National Association | | 6,606,451 | | — | | (6,606,451) | | — | |
| | | | | | | | | | |
Total | $ | 7,402,841 | $ | (406,326) | $ | (6,606,451) | $ | 390,064 | |
Offsetting of Financial Liabilities and Derivative Liabilities | |
| | |
| | | Gross Amounts | | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount | |
| | | | | | | | | | |
Citigroup | $ | 406,326 | $ | (406,326) | $ | — | $ | — | |
| | | | | | | | | | |
(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. | |
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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 contracts 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.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $6,606,451. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $6,883,385, resulting in the net amount due to the counterparty of $276,934.
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 contracts 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.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $500 Million | 1.00 |
Next $1 Billion | 0.90 |
Next $1 Billion | 0.85 |
Over $2.5 Billion | 0.80 |
The Fund’s actual investment advisory fee rate for the reporting period was 1.00% of average annual net assets before any applicable waivers.
The Adviser has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.96% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $2,707.
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. Any applicable CDSC will be 1.00%
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $413.
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 66 | | 2 | | |
Class S Shares | 73 | | -* | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended September 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(190,648,870) | $(211,454,235) | $(402,103,105) | | |
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 429,197,753 | $52,817,057 | $(12,351,664) | $ 40,465,393 |
Information on the tax components of derivatives as of March 31, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ (728,454) | $ 403,521 | $ (81,393) | $ 322,128 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 168,373 | $ 7,500,846 | | 416,402 | $ 17,599,243 |
Reinvested dividends and distributions | 3,908 | 175,228 | | 8,199 | 321,149 |
Shares repurchased | (245,777) | (10,766,499) | | (624,419) | (25,965,454) |
Net Increase/(Decrease) | (73,496) | $ (3,090,425) | | (199,818) | $ (8,045,062) |
Class C Shares: | | | | | |
Shares sold | 19,893 | $ 824,242 | | 78,064 | $ 2,985,510 |
Reinvested dividends and distributions | - | - | | - | - |
Shares repurchased | (134,224) | (5,614,873) | | (437,142) | (17,052,129) |
Net Increase/(Decrease) | (114,331) | $ (4,790,631) | | (359,078) | $(14,066,619) |
Class D Shares: | | | | | |
Shares sold | 54,810 | $ 2,470,295 | | 181,755 | $ 7,699,475 |
Reinvested dividends and distributions | 731 | 32,517 | | 523 | 20,335 |
Shares repurchased | (54,207) | (2,378,483) | | (56,979) | (2,363,822) |
Net Increase/(Decrease) | 1,334 | $ 124,329 | | 125,299 | $ 5,355,988 |
Class I Shares: | | | | | |
Shares sold | 712,644 | $31,580,414 | | 1,698,263 | $ 73,365,880 |
Reinvested dividends and distributions | 22,853 | 1,017,664 | | 28,012 | 1,089,119 |
Shares repurchased | (726,653) | (31,625,727) | | (1,079,177) | (44,871,971) |
Net Increase/(Decrease) | 8,844 | $ 972,351 | | 647,098 | $ 29,583,028 |
Class N Shares: | | | | | |
Shares sold | 90,346 | $ 4,007,654 | | 201,165 | $ 8,001,484 |
Reinvested dividends and distributions | 1,020 | 45,092 | | 693 | 26,735 |
Shares repurchased | (18,642) | (802,982) | | (109,036) | (4,647,675) |
Net Increase/(Decrease) | 72,724 | $ 3,249,764 | | 92,822 | $ 3,380,544 |
Class S Shares: | | | | | |
Shares sold | 286 | $ 11,726 | | 339 | $ 15,260 |
Reinvested dividends and distributions | 7 | 279 | | 5 | 185 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 293 | $ 12,005 | | 344 | $ 15,445 |
Class T Shares: | | | | | |
Shares sold | 169,730 | $ 7,542,222 | | 280,176 | $ 12,166,569 |
Reinvested dividends and distributions | 773 | 34,381 | | 310 | 12,060 |
Shares repurchased | (146,187) | (6,265,103) | | (87,171) | (3,797,633) |
Net Increase/(Decrease) | 24,316 | $ 1,311,500 | | 193,315 | $ 8,380,996 |
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$365,102,719 | $ 356,857,619 | $ - | $ - |
Janus Henderson European Focus Fund
Notes to Financial Statements (unaudited)
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson European Focus Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson European Focus Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson European Focus Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson European Focus Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson European Focus Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson European Focus Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson European Focus Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson European Focus Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson European Focus Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson European Focus Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson European Focus Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson European Focus Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson European Focus Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson European Focus Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson European Focus Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson European Focus Fund
Notes
NotesPage1
Janus Henderson European Focus Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93080 05-22 |
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| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Forty Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Forty Fund
| | | | | | |
FUND SNAPSHOT Forty Fund is a concentrated large-cap growth fund, leveraging Janus Henderson’s three decades of experience in high-conviction investing. By investing in our best wide-moat ideas, the Fund seeks to add excess return over the long term. Given its concentrated nature, the Fund may exhibit moderately higher volatility than its benchmark. | | | 
Brian Recht co-portfolio manager | 
Doug Rao co-portfolio manager | 
Nick Schommer co-portfolio manager |
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Janus Henderson Forty Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Deere & Co | 2.26% | | 0.46% | | Snap Inc - Class A | 2.85% | | -2.09% |
| NVIDIA Corp | 2.38% | | 0.36% | | Twilio Inc | 1.85% | | -1.13% |
| Blackstone Group Inc | 3.80% | | 0.33% | | Align Technology Inc | 2.86% | | -1.08% |
| UnitedHealth Group Inc | 1.38% | | 0.32% | | Apple Inc | 5.90% | | -1.02% |
| Freeport-McMoRan Inc | 0.87% | | 0.32% | | Netflix Inc | 2.14% | | -0.52% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 0.21% | | 3.03% | 0.99% |
| Financials | | 0.08% | | 4.15% | 2.46% |
| Other** | | -0.07% | | 1.86% | 0.00% |
| Energy | | -0.14% | | 0.00% | 0.37% |
| Real Estate | | -0.14% | | 2.49% | 1.70% |
| | | | | | |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | -3.31% | | 15.87% | 11.56% |
| Consumer Discretionary | | -1.75% | | 16.28% | 18.49% |
| Information Technology | | -1.56% | | 36.57% | 45.74% |
| Health Care | | -0.99% | | 13.26% | 8.66% |
| Industrials | | -0.39% | | 4.59% | 5.99% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Forty Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 10.1% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 8.8% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 6.1% |
Mastercard Inc | |
Information Technology Services | 5.1% |
Alphabet Inc - Class C | |
Interactive Media & Services | 4.8% |
| | 34.9% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.0% | |
Investment Companies | | 1.8% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.4% | |
Warrants | | 0.0% | |
Other | | (0.2)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Forty Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -6.77% | 6.60% | 19.42% | 16.29% | 12.52% | | | 1.02% |
Class A Shares at MOP | | -12.13% | 0.47% | 18.02% | 15.61% | 12.25% | | | |
Class C Shares at NAV | | -7.04% | 5.93% | 18.67% | 15.55% | 11.82% | | | 1.77% |
Class C Shares at CDSC | | -7.85% | 5.00% | 18.67% | 15.55% | 11.82% | | | |
Class D Shares | | -6.67% | 6.83% | 19.69% | 16.40% | 12.48% | | | 0.82% |
Class I Shares | | -6.64% | 6.88% | 19.77% | 16.64% | 12.71% | | | 0.77% |
Class N Shares | | -6.59% | 6.95% | 19.84% | 16.72% | 12.61% | | | 0.70% |
Class R Shares | | -6.95% | 6.17% | 18.96% | 15.86% | 12.13% | | | 1.45% |
Class S Shares | | -6.84% | 6.41% | 19.26% | 16.18% | 12.40% | | | 1.20% |
Class T Shares | | -6.71% | 6.71% | 19.57% | 16.45% | 12.53% | | | 0.95% |
Russell 1000 Growth Index | | 1.54% | 14.98% | 20.88% | 17.04% | 9.65% | | | |
S&P 500 Index | | 5.92% | 15.65% | 15.99% | 14.64% | 9.23% | | | |
Morningstar Quartile - Class S Shares | | - | 3rd | 2nd | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | - | 690/1,252 | 333/1,126 | 199/1,024 | 22/510 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Forty Fund (unaudited)
Performance
Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 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 D Shares commenced operations on January 27, 2017. Performance shown for Class D Shares reflects the performance of the Fund's Class S Shares from July 6, 2009 to January 27, 2017, 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 D 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 D 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 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
See important disclosures on the next page.
Janus Henderson Forty Fund (unaudited)
Performance
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 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
Effective March 1, 2022, A. Douglas Rao, Brian Recht, and Nick Schommer are Co-Portfolio Managers of the Fund.
*The Predecessor Fund’s inception date – May 1, 1997
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Forty 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $932.30 | $4.53 | | $1,000.00 | $1,020.24 | $4.73 | 0.94% |
Class C Shares | $1,000.00 | $929.60 | $7.31 | | $1,000.00 | $1,017.35 | $7.64 | 1.52% |
Class D Shares | $1,000.00 | $933.30 | $3.52 | | $1,000.00 | $1,021.29 | $3.68 | 0.73% |
Class I Shares | $1,000.00 | $933.60 | $3.33 | | $1,000.00 | $1,021.49 | $3.48 | 0.69% |
Class N Shares | $1,000.00 | $934.10 | $2.94 | | $1,000.00 | $1,021.89 | $3.07 | 0.61% |
Class R Shares | $1,000.00 | $930.50 | $6.45 | | $1,000.00 | $1,018.25 | $6.74 | 1.34% |
Class S Shares | $1,000.00 | $931.60 | $5.30 | | $1,000.00 | $1,019.45 | $5.54 | 1.10% |
Class T Shares | $1,000.00 | $932.90 | $4.00 | | $1,000.00 | $1,020.79 | $4.18 | 0.83% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Forty Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.0% | | | |
Automobiles – 0.5% | | | |
| | Rivian Automotive Inc - Class A*,# | | 2,075,481 | | | $104,272,165 | |
Biotechnology – 2.2% | | | |
| | AbbVie Inc | | 2,617,222 | | | 424,277,858 | |
Capital Markets – 3.3% | | | |
| | Blackstone Group Inc | | 5,153,837 | | | 654,228,069 | |
Chemicals – 1.4% | | | |
| | Sherwin-Williams Co | | 1,134,616 | | | 283,222,846 | |
Entertainment – 3.5% | | | |
| | Netflix Inc* | | 862,215 | | | 322,977,117 | |
| | Walt Disney Co* | | 2,638,370 | | | 361,878,829 | |
| | | 684,855,946 | |
Equity Real Estate Investment Trusts (REITs) – 2.6% | | | |
| | American Tower Corp | | 2,061,724 | | | 517,946,303 | |
Health Care Equipment & Supplies – 9.8% | | | |
| | Align Technology Inc* | | 1,113,692 | | | 485,569,712 | |
| | Danaher Corp | | 2,570,017 | | | 753,863,087 | |
| | DexCom Inc* | | 750,666 | | | 384,040,726 | |
| | Edwards Lifesciences Corp* | | 2,648,892 | | | 311,827,566 | |
| | | 1,935,301,091 | |
Health Care Providers & Services – 2.7% | | | |
| | UnitedHealth Group Inc | | 1,022,505 | | | 521,446,875 | |
Hotels, Restaurants & Leisure – 0.9% | | | |
| | Caesars Entertainment Inc* | | 2,271,526 | | | 175,725,251 | |
Household Products – 1.9% | | | |
| | Procter & Gamble Co | | 2,402,120 | | | 367,043,936 | |
Information Technology Services – 7.5% | | | |
| | Mastercard Inc | | 2,819,799 | | | 1,007,739,767 | |
| | Square Inc* | | 973,024 | | | 131,942,054 | |
| | Twilio Inc* | | 1,966,590 | | | 324,113,698 | |
| | | 1,463,795,519 | |
Interactive Media & Services – 11.4% | | | |
| | Alphabet Inc - Class C* | | 334,604 | | | 934,545,626 | |
| | Facebook Inc* | | 1,635,570 | | | 363,685,345 | |
| | Match Group Inc* | | 3,109,763 | | | 338,155,629 | |
| | Snap Inc - Class A* | | 16,845,728 | | | 606,277,751 | |
| | | 2,242,664,351 | |
Internet & Direct Marketing Retail – 11.4% | | | |
| | Amazon.com Inc* | | 532,306 | | | 1,735,290,945 | |
| | Booking Holdings Inc* | | 174,422 | | | 409,621,346 | |
| | Farfetch Ltd - Class A* | | 5,689,381 | | | 86,023,441 | |
| | | 2,230,935,732 | |
Machinery – 3.1% | | | |
| | Deere & Co | | 1,483,540 | | | 616,351,528 | |
Metals & Mining – 1.1% | | | |
| | Freeport-McMoRan Inc | | 4,441,763 | | | 220,933,292 | |
Professional Services – 2.1% | | | |
| | CoStar Group Inc* | | 6,149,386 | | | 409,610,602 | |
Semiconductor & Semiconductor Equipment – 7.5% | | | |
| | ASML Holding NV | | 909,866 | | | 607,726,797 | |
| | NVIDIA Corp | | 941,728 | | | 256,959,902 | |
| | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | | 2,283,055 | | | 238,031,314 | |
| | Texas Instruments Inc | | 2,000,925 | | | 367,129,719 | |
| | | 1,469,847,732 | |
Software – 14.2% | | | |
| | Atlassian Corp PLC - Class A* | | 557,400 | | | 163,780,842 | |
| | Microsoft Corp | | 6,432,481 | | | 1,983,198,217 | |
| | Unity Software Inc* | | 1,398,232 | | | 138,718,597 | |
| | Workday Inc - Class A* | | 2,119,582 | | | 507,555,106 | |
| | | 2,793,252,762 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Forty Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail – 1.8% | | | |
| | TJX Cos Inc | | 5,877,333 | | | $356,048,833 | |
Technology Hardware, Storage & Peripherals – 6.1% | | | |
| | Apple Inc | | 6,876,084 | | | 1,200,633,027 | |
Textiles, Apparel & Luxury Goods – 3.0% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 466,506 | | | 332,138,766 | |
| | NIKE Inc - Class B | | 1,866,804 | | | 251,197,146 | |
| | | 583,335,912 | |
Total Common Stocks (cost $11,462,920,344) | | 19,255,729,630 | |
Warrants– 0% | | | |
Internet & Direct Marketing Retail – 0% | | | |
| | Grab Holdings Ltd, expires 12/1/26*((cost $2,749,708) | | 860,268 | | | 662,406 | |
Investment Companies– 1.8% | | | |
Money Markets – 1.8% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $346,691,519) | | 346,666,424 | | | 346,701,091 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.4% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 66,276,288 | | | 66,276,288 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $16,569,072 | | | 16,569,072 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $82,845,360) | | 82,845,360 | |
Total Investments (total cost $11,895,206,931) – 100.2% | | 19,685,938,487 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | | (38,874,207) | |
Net Assets – 100% | | $19,647,064,280 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $18,257,574,921 | | 92.8 | % |
Netherlands | | 607,726,797 | | 3.1 | |
France | | 332,138,766 | | 1.7 | |
Taiwan | | 238,031,314 | | 1.2 | |
Australia | | 163,780,842 | | 0.8 | |
United Kingdom | | 86,023,441 | | 0.4 | |
Singapore | | 662,406 | | 0.0 | |
| | | | | | |
| | | | | | |
Total | | $19,685,938,487 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Forty Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 3/31/22 |
Common Stocks - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp | $ | - | $ | - | $ | (918,158) | $ | - |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp* | | - | | - | | (2,215,938) | | - |
Warrants - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp - Class A | | - | | - | | 970,572 | | - |
Investment Companies - 1.8% |
Money Markets - 1.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 181,531 | | 2,772 | | (2,772) | | 346,701,091 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 1,006,403∆ | | - | | - | | 66,276,288 |
Total Affiliated Investments - 2.1% | $ | 1,187,934 | $ | 2,772 | $ | (2,166,296) | $ | 412,977,379 |
(1) For securities that were affiliated for a portion of the period ended March 31, 2022, this column reflects amounts for the entire period ended March 31, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Common Stocks - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp | | 50,283,167 | | - | | (49,365,009)Ð | | - |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp* | | 102,940,398 | | - | | (100,724,460)Ð | | - |
Warrants - N/A |
Diversified Financial Services - N/A | |
| | Altimeter Growth Corp - Class A | | 2,174,673 | | - | | (3,145,245)Ð | | - |
Investment Companies - 1.8% |
Money Markets - 1.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 491,130,492 | | 2,698,116,750 | | (2,842,546,151) | | 346,701,091 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 30,214,439 | | 314,647,190 | | (278,585,341) | | 66,276,288 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Forty Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
Russell 1000® Growth Index | Russell 1000® Growth Index reflects the performance of U.S. large-cap equities with higher price-to-book ratios and higher forecasted growth values. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | |
Ð | All or a portion is the result of a corporate action. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Textiles, Apparel & Luxury Goods | $ | 251,197,146 | $ | 332,138,766 | $ | - |
All Other | | 18,672,393,718 | | - | | - |
Warrants | | 662,406 | | - | | - |
Investment Companies | | - | | 346,701,091 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 82,845,360 | | - |
Total Assets | $ | 18,924,253,270 | $ | 761,685,217 | $ | - |
| | | | | | | |
Janus Henderson Forty Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $11,482,239,124)(1) | | $ | 19,272,961,108 | |
| Affiliated investments, at value (cost $412,967,807) | | | 412,977,379 | |
| Non-interested Trustees' deferred compensation | | | 541,464 | |
| Receivables: | | | | |
| | Investments sold | | | 56,115,856 | |
| | Fund shares sold | | | 18,910,848 | |
| | Dividends | | | 3,859,844 | |
| | Foreign tax reclaims | | | 374,177 | |
| | Dividends from affiliates | | | 55,955 | |
| Other assets | | | 460,109 | |
Total Assets | | | 19,766,256,740 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 82,845,360 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 24,011,548 | |
| | Advisory fees | | | 8,127,380 | |
| | Transfer agent fees and expenses | | | 2,539,424 | |
| | Non-interested Trustees' deferred compensation fees | | | 541,464 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 348,377 | |
| | Non-interested Trustees' fees and expenses | | | 77,335 | |
| | Affiliated fund administration fees payable | | | 40,100 | |
| | Professional fees | | | 34,751 | |
| | Custodian fees | | | 28,222 | |
| | Accrued expenses and other payables | | | 598,499 | |
Total Liabilities | | | 119,192,460 | |
Net Assets | | $ | 19,647,064,280 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Forty Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 10,580,454,848 | |
| Total distributable earnings (loss) | | | 9,066,609,432 | |
Total Net Assets | | $ | 19,647,064,280 | |
Net Assets - Class A Shares | | $ | 481,141,998 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,144,365 | |
Net Asset Value Per Share(2) | | $ | 47.43 | |
Maximum Offering Price Per Share(3) | | $ | 50.32 | |
Net Assets - Class C Shares | | $ | 133,981,873 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,784,724 | |
Net Asset Value Per Share(2) | | $ | 35.40 | |
Net Assets - Class D Shares | | $ | 11,652,163,689 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 255,167,780 | |
Net Asset Value Per Share | | $ | 45.66 | |
Net Assets - Class I Shares | | $ | 2,209,240,994 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 44,091,135 | |
Net Asset Value Per Share | | $ | 50.11 | |
Net Assets - Class N Shares | | $ | 548,979,895 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,891,680 | |
Net Asset Value Per Share | | $ | 50.40 | |
Net Assets - Class R Shares | | $ | 88,252,971 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,197,087 | |
Net Asset Value Per Share | | $ | 40.17 | |
Net Assets - Class S Shares | | $ | 503,722,585 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,262,877 | |
Net Asset Value Per Share | | $ | 44.72 | |
Net Assets - Class T Shares | | $ | 4,029,580,275 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 86,977,016 | |
Net Asset Value Per Share | | $ | 46.33 | |
| |
(1) Includes $78,204,086 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Forty Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 61,958,910 | |
| Affiliated securities lending income, net | | 1,006,403 | |
| Dividends from affiliates | | 181,531 | |
| Unaffiliated securities lending income, net | | 3,140 | |
| Foreign tax withheld | | (1,094,421) | |
Total Investment Income | | 62,055,563 | |
Expenses: | | | |
| Advisory fees | | 63,238,161 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 651,477 | |
| | Class C Shares | | 633,222 | |
| | Class R Shares | | 237,042 | |
| | Class S Shares | | 698,344 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 6,995,281 | |
| | Class R Shares | | 123,176 | |
| | Class S Shares | | 698,344 | |
| | Class T Shares | | 5,443,615 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 186,421 | |
| | Class C Shares | | 51,672 | |
| | Class I Shares | | 879,400 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 15,993 | |
| | Class C Shares | | 3,635 | |
| | Class D Shares | | 378,845 | |
| | Class I Shares | | 50,349 | |
| | Class N Shares | | 9,946 | |
| | Class R Shares | | 458 | |
| | Class S Shares | | 4,353 | |
| | Class T Shares | | 14,370 | |
| Shareholder reports expense | | 285,831 | |
| Affiliated fund administration fees | | 264,527 | |
| Non-interested Trustees’ fees and expenses | | 192,278 | |
| Registration fees | | 137,373 | |
| Professional fees | | 71,795 | |
| Custodian fees | | 59,332 | |
| Other expenses | | 575,005 | |
Total Expenses | | 81,900,245 | |
Less: Excess Expense Reimbursement and Waivers | | (643,282) | |
Net Expenses | | 81,256,963 | |
Net Investment Income/(Loss) | | (19,201,400) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Forty Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 1,517,124,115 | |
| Investments in affiliates | | 2,772 | |
Total Net Realized Gain/(Loss) on Investments | | 1,517,126,887 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (2,993,061,460) | |
| Investments in affiliates | | (2,166,296) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (2,995,227,756) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (1,497,302,269) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Forty Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (19,201,400) | | $ | (66,820,716) | |
| Net realized gain/(loss) on investments | | 1,517,126,887 | | | 2,250,876,617 | |
| Change in unrealized net appreciation/depreciation | | (2,995,227,756) | | | 2,909,573,043 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (1,497,302,269) | | | 5,093,628,944 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (48,616,877) | | | (33,598,159) | |
| | Class C Shares | | (18,893,463) | | | (14,455,246) | |
| | Class D Shares | | (1,230,067,488) | | | (866,959,615) | |
| | Class I Shares | | (212,301,037) | | | (141,602,894) | |
| | Class N Shares | | (53,508,841) | | | (39,775,852) | |
| | Class R Shares | | (10,782,896) | | | (9,043,233) | |
| | Class S Shares | | (54,847,467) | | | (43,872,591) | |
| | Class T Shares | | (420,959,121) | | | (302,858,400) | |
Net Decrease from Dividends and Distributions to Shareholders | | (2,049,977,190) | | | (1,452,165,990) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 41,124,358 | | | 25,051,230 | |
| | Class C Shares | | 4,196,012 | | | (1,600,042) | |
| | Class D Shares | | 916,143,469 | | | 396,508,500 | |
| | Class I Shares | | 233,748,557 | | | 183,240,069 | |
| | Class N Shares | | 65,598,382 | | | (27,031,815) | |
| | Class R Shares | | 2,520,355 | | | (15,860,764) | |
| | Class S Shares | | 11,478,674 | | | (60,632,171) | |
| | Class T Shares | | 291,238,096 | | | 86,098,289 | |
Net Increase/(Decrease) from Capital Share Transactions | | 1,566,047,903 | | | 585,773,296 | |
Net Increase/(Decrease) in Net Assets | | (1,981,231,556) | | | 4,227,236,250 | |
Net Assets: | | | | | | |
| Beginning of period | | 21,628,295,836 | | | 17,401,059,586 | |
| End of period | $ | 19,647,064,280 | | $ | 21,628,295,836 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $56.20 | | | $46.81 | | | $37.16 | | | $37.42 | | | $33.03 | | | $30.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.26) | | | (0.08) | | | 0.02 | | | (0.04) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | (3.47) | | | 13.50 | | | 12.27 | | | 2.25 | | | 7.38 | | | 6.13 | |
| Total from Investment Operations | | (3.56) | | | 13.24 | | | 12.19 | | | 2.27 | | | 7.34 | | | 6.10 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.01) | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.54) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $47.43 | | | $56.20 | | | $46.81 | | | $37.16 | | | $37.42 | | | $33.03 | |
| Total Return* | | (7.08)% | | | 29.72% | | | 34.62% | | | 7.77% | | | 23.77% | | | 22.03% | |
| Net Assets, End of Period (in thousands) | | $481,142 | | | $525,208 | | | $411,899 | | | $303,070 | | | $237,547 | | | $211,197 | |
| Average Net Assets for the Period (in thousands) | | $522,613 | | | $483,419 | | | $339,815 | | | $268,921 | | | $220,973 | | | $219,728 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.94% | | | 1.02% | | | 1.01% | | | 1.01% | | | 1.04% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 1.02% | | | 1.01% | | | 0.98% | | | 0.98% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | (0.35)% | | | (0.50)% | | | (0.21)% | | | 0.05% | | | (0.13)% | | | (0.11)% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.38 | | | $37.15 | | | $30.17 | | | $31.11 | | | $28.08 | | | $26.27 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.19) | | | (0.47) | | | (0.28) | | | (0.16) | | | (0.21) | | | (0.19) | |
| | Net realized and unrealized gain/(loss) | | (2.58) | | | 10.55 | | | 9.79 | | | 1.75 | | | 6.19 | | | 5.24 | |
| Total from Investment Operations | | (2.77) | | | 10.08 | | | 9.51 | | | 1.59 | | | 5.98 | | | 5.05 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $35.40 | | | $43.38 | | | $37.15 | | | $30.17 | | | $31.11 | | | $28.08 | |
| Total Return* | | (7.38)% | | | 28.88% | | | 33.67% | | | 7.11% | | | 23.05% | | | 21.24% | |
| Net Assets, End of Period (in thousands) | | $133,982 | | | $160,133 | | | $137,952 | | | $126,726 | | | $227,488 | | | $235,992 | |
| Average Net Assets for the Period (in thousands) | | $152,732 | | | $153,590 | | | $128,357 | | | $154,535 | | | $235,933 | | | $245,129 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.52% | | | 1.68% | | | 1.68% | | | 1.63% | | | 1.66% | | | 1.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.52% | | | 1.68% | | | 1.68% | | | 1.58% | | | 1.59% | | | 1.64% | |
| | Ratio of Net Investment Income/(Loss) | | (0.93)% | | | (1.15)% | | | (0.87)% | | | (0.58)% | | | (0.74)% | | | (0.72)% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | | |
| Net Asset Value, Beginning of Period | | $54.28 | | | $45.24 | | | $35.99 | | | $36.25 | | | $32.02 | | | $28.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.04) | | | (0.15) | | | —(3) | | | 0.09 | | | 0.04 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | (3.34) | | | 13.04 | | | 11.86 | | | 2.18 | | | 7.15 | | | 4.62 | |
| Total from Investment Operations | | (3.38) | | | 12.89 | | | 11.86 | | | 2.27 | | | 7.19 | | | 4.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | — | | | (0.08) | | | — | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (1.46) | |
| Total Dividends and Distributions | | (5.24) | | | (3.85) | | | (2.61) | | | (2.53) | | | (2.96) | | | (1.46) | |
| Net Asset Value, End of Period | | $45.66 | | | $54.28 | | | $45.24 | | | $35.99 | | | $36.25 | | | $32.02 | |
| Total Return* | | (7.00)% | | | 30.00% | | | 34.88% | | | 8.03% | | | 24.06% | | | 16.71% | |
| Net Assets, End of Period (in thousands) | | $11,652,164 | | | $12,846,210 | | | $10,287,828 | | | $8,018,389 | | | $7,842,180 | | | $6,646,830 | |
| Average Net Assets for the Period (in thousands) | | $12,587,618 | | | $11,890,281 | | | $8,759,841 | | | $7,517,796 | | | $7,241,280 | | | $4,012,697 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.73% | | | 0.82% | | | 0.80% | | | 0.79% | | | 0.79% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.73% | | | 0.82% | | | 0.80% | | | 0.75% | | | 0.73% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | (0.14)% | | | (0.29)% | | | 0.00%(4) | | | 0.27% | | | 0.13% | | | 0.25% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.06 | | | $48.89 | | | $38.69 | | | $38.74 | | | $34.00 | | | $30.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.03) | | | (0.13) | | | 0.03 | | | 0.12 | | | 0.07 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | (3.66) | | | 14.15 | | | 12.80 | | | 2.36 | | | 7.63 | | | 6.30 | |
| Total from Investment Operations | | (3.69) | | | 14.02 | | | 12.83 | | | 2.48 | | | 7.70 | | | 6.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.05) | | | — | | | (0.10) | | | — | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (5.26) | | | (3.85) | | | (2.63) | | | (2.53) | | | (2.96) | | | (3.24) | |
| Net Asset Value, End of Period | | $50.11 | | | $59.06 | | | $48.89 | | | $38.69 | | | $38.74 | | | $34.00 | |
| Total Return* | | (6.95)% | | | 30.07% | | | 34.97% | | | 8.06% | | | 24.19% | | | 22.43% | |
| Net Assets, End of Period (in thousands) | | $2,209,241 | | | $2,360,269 | | | $1,783,057 | | | $1,178,733 | | | $1,125,445 | | | $935,002 | |
| Average Net Assets for the Period (in thousands) | | $2,343,501 | | | $2,119,223 | | | $1,416,287 | | | $1,081,498 | | | $1,024,982 | | | $820,856 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.69% | | | 0.76% | | | 0.74% | | | 0.72% | | | 0.72% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.69% | | | 0.76% | | | 0.74% | | | 0.68% | | | 0.66% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | (0.10)% | | | (0.24)% | | | 0.06% | | | 0.34% | | | 0.19% | | | 0.22% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from January 27, 2017 (inception date) through September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. (4) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.38 | | | $49.11 | | | $38.85 | | | $38.86 | | | $34.08 | | | $30.92 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | (0.10) | | | 0.05 | | | 0.15 | | | 0.09 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | (3.68) | | | 14.22 | | | 12.86 | | | 2.37 | | | 7.66 | | | 6.31 | |
| Total from Investment Operations | | (3.69) | | | 14.12 | | | 12.91 | | | 2.52 | | | 7.75 | | | 6.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.08) | | | — | | | (0.12) | | | — | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (5.29) | | | (3.85) | | | (2.65) | | | (2.53) | | | (2.97) | | | (3.24) | |
| Net Asset Value, End of Period | | $50.40 | | | $59.38 | | | $49.11 | | | $38.85 | | | $38.86 | | | $34.08 | |
| Total Return* | | (6.93)% | | | 30.15% | | | 35.06% | | | 8.15% | | | 24.27% | | | 22.49% | |
| Net Assets, End of Period (in thousands) | | $548,980 | | | $581,225 | | | $511,465 | | | $273,438 | | | $199,929 | | | $148,223 | |
| Average Net Assets for the Period (in thousands) | | $588,031 | | | $533,647 | | | $384,360 | | | $212,223 | | | $178,576 | | | $147,902 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.61% | | | 0.70% | | | 0.67% | | | 0.65% | | | 0.66% | | | 0.68% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.61% | | | 0.70% | | | 0.67% | | | 0.62% | | | 0.60% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | (0.03)% | | | (0.17)% | | | 0.12% | | | 0.40% | | | 0.26% | | | 0.30% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $48.48 | | | $41.01 | | | $32.97 | | | $33.65 | | | $30.08 | | | $27.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.17) | | | (0.40) | | | (0.21) | | | (0.10) | | | (0.15) | | | (0.13) | |
| | Net realized and unrealized gain/(loss) | | (2.93) | | | 11.72 | | | 10.78 | | | 1.95 | | | 6.67 | | | 5.61 | |
| Total from Investment Operations | | (3.10) | | | 11.32 | | | 10.57 | | | 1.85 | | | 6.52 | | | 5.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $40.17 | | | $48.48 | | | $41.01 | | | $32.97 | | | $33.65 | | | $30.08 | |
| Total Return* | | (7.27)% | | | 29.21% | | | 34.05% | | | 7.36% | | | 23.34% | | | 21.62% | |
| Net Assets, End of Period (in thousands) | | $88,253 | | | $103,653 | | | $101,440 | | | $106,843 | | | $127,954 | | | $119,259 | |
| Average Net Assets for the Period (in thousands) | | $98,812 | | | $106,256 | | | $101,751 | | | $113,204 | | | $123,528 | | | $115,657 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.35% | | | 1.43% | | | 1.41% | | | 1.40% | | | 1.40% | | | 1.43% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.34% | | | 1.42% | | | 1.41% | | | 1.36% | | | 1.34% | | | 1.37% | |
| | Ratio of Net Investment Income/(Loss) | | (0.76)% | | | (0.90)% | | | (0.60)% | | | (0.34)% | | | (0.49)% | | | (0.46)% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Forty Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $53.33 | | | $44.67 | | | $35.61 | | | $36.02 | | | $31.93 | | | $29.29 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.13) | | | (0.33) | | | (0.13) | | | (0.03) | | | (0.08) | | | (0.06) | |
| | Net realized and unrealized gain/(loss) | | (3.27) | | | 12.84 | | | 11.72 | | | 2.15 | | | 7.12 | | | 5.94 | |
| Total from Investment Operations | | (3.40) | | | 12.51 | | | 11.59 | | | 2.12 | | | 7.04 | | | 5.88 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $44.72 | | | $53.33 | | | $44.67 | | | $35.61 | | | $36.02 | | | $31.93 | |
| Total Return* | | (7.17)% | | | 29.50% | | | 34.40% | | | 7.65% | | | 23.63% | | | 21.93% | |
| Net Assets, End of Period (in thousands) | | $503,723 | | | $586,481 | | | $546,341 | | | $475,553 | | | $516,748 | | | $517,623 | |
| Average Net Assets for the Period (in thousands) | | $560,210 | | | $571,789 | | | $491,995 | | | $468,610 | | | $525,707 | | | $512,584 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.11% | | | 1.20% | | | 1.17% | | | 1.15% | | | 1.15% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.10% | | | 1.19% | | | 1.16% | | | 1.10% | | | 1.08% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | (0.51)% | | | (0.66)% | | | (0.36)% | | | (0.08)% | | | (0.23)% | | | (0.20)% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $54.99 | | | $45.83 | | | $36.44 | | | $36.70 | | | $32.40 | | | $29.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.06) | | | (0.21) | | | (0.04) | | | 0.06 | | | 0.01 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | (3.39) | | | 13.22 | | | 12.01 | | | 2.21 | | | 7.24 | | | 5.98 | |
| Total from Investment Operations | | (3.45) | | | 13.01 | | | 11.97 | | | 2.27 | | | 7.25 | | | 6.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.05) | | | — | | | —(2) | | | — | |
| | Distributions (from capital gains) | | (5.21) | | | (3.85) | | | (2.53) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Total Dividends and Distributions | | (5.21) | | | (3.85) | | | (2.58) | | | (2.53) | | | (2.95) | | | (3.24) | |
| Net Asset Value, End of Period | | $46.33 | | | $54.99 | | | $45.83 | | | $36.44 | | | $36.70 | | | $32.40 | |
| Total Return* | | (7.04)% | | | 29.86% | | | 34.71% | | | 7.93% | | | 23.96% | | | 22.22% | |
| Net Assets, End of Period (in thousands) | | $4,029,580 | | | $4,465,117 | | | $3,621,078 | | | $2,914,481 | | | $2,935,096 | | | $2,529,514 | |
| Average Net Assets for the Period (in thousands) | | $4,366,856 | | | $4,169,739 | | | $3,138,440 | | | $2,750,999 | | | $2,727,557 | | | $1,084,741 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.86% | | | 0.95% | | | 0.92% | | | 0.90% | | | 0.91% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 0.93% | | | 0.91% | | | 0.85% | | | 0.83% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | (0.25)% | | | (0.41)% | | | (0.10)% | | | 0.17% | | | 0.02% | | | 0.15% | |
| Portfolio Turnover Rate | | 20% | | | 31% | | | 42% | | | 44% | | | 37% | | | 56% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Forty Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as nondiversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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.
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or 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 the Fund's Schedule of Investments.
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 78,204,086 | $ | — | $ | (78,204,086) | $ | — |
| | | | | | | | | |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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, corporate bonds, 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.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $78,204,086. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $82,845,360, resulting in the net amount due to the counterparty of $4,641,274.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The investment advisory fee rate paid to the Adviser 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 (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.64%, and the Fund’s benchmark index used in the calculation is the Russell 1000® Growth Index.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±8.50%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectus and statement(s) 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. For the period ended March 31, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.60%.
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees (if applicable), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.68% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $45,372.
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. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class A Shares paid CDSCs of $9 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $11,168.
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 11,935,424,220 | $8,352,549,594 | $(602,035,327) | $ 7,750,514,267 |
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,264,062 | $ 66,998,760 | | 1,923,980 | $ 98,440,290 |
Reinvested dividends and distributions | 753,582 | 38,854,683 | | 553,577 | 26,449,919 |
Shares repurchased | (1,218,860) | (64,729,085) | | (1,931,980) | (99,838,979) |
Net Increase/(Decrease) | 798,784 | $ 41,124,358 | | 545,577 | $ 25,051,230 |
Class C Shares: | | | | | |
Shares sold | 366,142 | $ 14,751,506 | | 827,558 | $ 32,934,290 |
Reinvested dividends and distributions | 436,951 | 16,848,831 | | 342,199 | 12,685,302 |
Shares repurchased | (709,949) | (27,404,325) | | (1,191,802) | (47,219,634) |
Net Increase/(Decrease) | 93,144 | $ 4,196,012 | | (22,045) | $ (1,600,042) |
Class D Shares: | | | | | |
Shares sold | 3,720,066 | $ 188,225,667 | | 7,868,804 | $ 392,766,804 |
Reinvested dividends and distributions | 23,777,109 | 1,179,582,360 | | 18,092,686 | 833,530,050 |
Shares repurchased | (9,003,809) | (451,664,558) | | (16,696,195) | (829,788,354) |
Net Increase/(Decrease) | 18,493,366 | $ 916,143,469 | | 9,265,295 | $ 396,508,500 |
Class I Shares: | | | | | |
Shares sold | 8,077,414 | $ 440,959,584 | | 11,693,146 | $ 638,016,744 |
Reinvested dividends and distributions | 3,292,138 | 179,158,152 | | 2,333,899 | 116,951,685 |
Shares repurchased | (7,244,005) | (386,369,179) | | (10,531,626) | (571,728,360) |
Net Increase/(Decrease) | 4,125,547 | $ 233,748,557 | | 3,495,419 | $ 183,240,069 |
Class N Shares: | | | | | |
Shares sold | 1,553,529 | $ 88,250,634 | | 3,128,306 | $ 171,897,432 |
Reinvested dividends and distributions | 907,966 | 49,702,045 | | 756,748 | 38,109,828 |
Shares repurchased | (1,357,309) | (72,354,297) | | (4,511,737) | (237,039,075) |
Net Increase/(Decrease) | 1,104,186 | $ 65,598,382 | | (626,683) | $ (27,031,815) |
Class R Shares: | | | | | |
Shares sold | 161,490 | $ 7,099,017 | | 403,015 | $ 18,154,560 |
Reinvested dividends and distributions | 242,433 | 10,599,178 | | 211,734 | 8,755,197 |
Shares repurchased | (344,919) | (15,177,840) | | (950,263) | (42,770,521) |
Net Increase/(Decrease) | 59,004 | $ 2,520,355 | | (335,514) | $ (15,860,764) |
Class S Shares: | | | | | |
Shares sold | 717,966 | $ 35,652,667 | | 1,477,965 | $ 72,325,291 |
Reinvested dividends and distributions | 1,123,563 | 54,650,126 | | 959,158 | 43,545,766 |
Shares repurchased | (1,575,564) | (78,824,119) | | (3,672,033) | (176,503,228) |
Net Increase/(Decrease) | 265,965 | $ 11,478,674 | | (1,234,910) | $ (60,632,171) |
Class T Shares: | | | | | |
Shares sold | 3,892,612 | $ 201,603,924 | | 7,415,102 | $ 374,476,972 |
Reinvested dividends and distributions | 8,122,878 | 408,986,887 | | 6,309,473 | 294,778,584 |
Shares repurchased | (6,240,743) | (319,352,715) | | (11,527,480) | (583,157,267) |
Net Increase/(Decrease) | 5,774,747 | $ 291,238,096 | | 2,197,095 | $ 86,098,289 |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$4,145,659,892 | $4,669,551,674 | $ - | $ - |
Janus Henderson Forty Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Forty Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Forty Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Forty Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Forty Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Forty Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Forty Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Forty Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Forty Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Forty Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Forty Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Forty Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Forty Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Forty Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Forty Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Forty Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Forty Fund
Notes
NotesPage1
Janus Henderson Forty Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93041 05-22 |
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| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Global Equity Income Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Equity Income Fund
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FUND SNAPSHOT A long-only portfolio that seeks a high level of current income and steady capital appreciation. The Fund seeks global, high-quality, income-producing equities with a focus on international companies. | | | 
Ben Lofthouse co-portfolio manager | 
Job Curtis co-portfolio manager | 
Alex Crooke co-portfolio manager |
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Janus Henderson Global Equity Income Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Nutrien Ltd | 2.05% | | 1.07% | | Unilever PLC | 2.56% | | -0.42% |
| BHP Group Ltd | 0.66% | | 0.58% | | ING Groep NV | 1.32% | | -0.33% |
| Broadcom Inc | 2.28% | | 0.48% | | Volvo AB | 1.49% | | -0.32% |
| SK Telecom Co Ltd | 0.11% | | 0.46% | | Swedbank AB | 0.94% | | -0.30% |
| BHP Group PLC | 1.26% | | 0.43% | | Carlsberg A/S | 1.15% | | -0.30% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 2.36% | | 10.03% | 4.24% |
| Communication Services | | 2.05% | | 9.01% | 8.36% |
| Health Care | | 1.45% | | 12.86% | 12.47% |
| Information Technology | | 0.50% | | 10.48% | 22.88% |
| Consumer Discretionary | | 0.34% | | 5.32% | 12.08% |
| | | | | | |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -0.88% | | 18.62% | 13.77% |
| Other** | | -0.22% | | 1.94% | 0.00% |
| Energy | | -0.21% | | 6.09% | 3.59% |
| Industrials | | -0.19% | | 6.16% | 10.21% |
| Consumer Staples | | -0.18% | | 12.57% | 6.95% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Global Equity Income Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Sanofi | |
Pharmaceuticals | 3.4% |
Total SE | |
Oil, Gas & Consumable Fuels | 3.0% |
Roche Holding AG | |
Pharmaceuticals | 3.0% |
Zurich Insurance Group AG | |
Insurance | 2.5% |
Broadcom Inc | |
Semiconductor & Semiconductor Equipment | 2.4% |
| | 14.3% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 95.1% | |
Investment Companies | | 1.9% | |
Preferred Stocks | | 1.8% | |
Other | | 1.2% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Equity Income Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 6.76% | 6.67% | 5.58% | 6.28% | 4.42% | | | 1.14% |
Class A Shares at MOP | | 0.60% | 0.49% | 4.33% | 5.66% | 4.02% | | | |
Class C Shares at NAV | | 6.41% | 6.17% | 4.88% | 5.52% | 3.66% | | | 1.76% |
Class C Shares at CDSC | | 5.41% | 5.18% | 4.88% | 5.52% | 3.66% | | | |
Class D Shares | | 6.95% | 6.99% | 5.78% | 6.38% | 4.49% | | | 0.89% |
Class I Shares | | 7.09% | 7.18% | 5.95% | 6.60% | 4.68% | | | 0.78% |
Class N Shares | | 6.98% | 7.11% | 5.98% | 6.53% | 4.58% | | | 0.70% |
Class S Shares | | 6.64% | 6.68% | 5.42% | 6.15% | 4.34% | | | 1.21% |
Class T Shares | | 6.92% | 7.07% | 5.75% | 6.37% | 4.48% | | | 0.94% |
MSCI World Index | | 2.21% | 10.12% | 12.42% | 10.88% | 7.04% | | | |
85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index | | 7.11% | 7.14% | 6.51% | 5.99% | 4.21% | | | |
Morningstar Quartile - Class A Shares | | - | 1st | 2nd | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Foreign Large Value Funds | | - | 41/349 | 83/313 | 36/258 | 20/180 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs),
Janus Henderson Global Equity Income Fund (unaudited)
Performance
Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson Global Equity Income Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class I Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class I Shares, and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares and Class C Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on November 30, 2006. Class I Shares and Class R6 Shares of the Predecessor Fund commenced operations on March 31, 2009 and November 30, 2015, respectively.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to March 31, 2009, performance for Class I Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – November 30, 2006
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Equity 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $1,067.60 | $6.60 | | $1,000.00 | $1,018.55 | $6.44 | 1.28% |
Class C Shares | $1,000.00 | $1,064.10 | $9.37 | | $1,000.00 | $1,015.86 | $9.15 | 1.82% |
Class D Shares | $1,000.00 | $1,069.50 | $4.95 | | $1,000.00 | $1,020.14 | $4.84 | 0.96% |
Class I Shares | $1,000.00 | $1,070.90 | $4.75 | | $1,000.00 | $1,020.34 | $4.63 | 0.92% |
Class N Shares | $1,000.00 | $1,069.80 | $4.28 | | $1,000.00 | $1,020.79 | $4.18 | 0.83% |
Class S Shares | $1,000.00 | $1,066.40 | $6.85 | | $1,000.00 | $1,018.30 | $6.69 | 1.33% |
Class T Shares | $1,000.00 | $1,069.20 | $5.42 | | $1,000.00 | $1,019.70 | $5.29 | 1.05% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Equity Income Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 95.1% | | | |
Aerospace & Defense – 0.7% | | | |
| | BAE Systems PLC | | 4,021,933 | | | $37,905,518 | |
Air Freight & Logistics – 0.9% | | | |
| | Deutsche Post AG | | 1,095,392 | | | 52,591,841 | |
Automobiles – 1.9% | | | |
| | Stellantis NV | | 3,499,436 | | | 56,740,698 | |
| | Toyota Motor Corp | | 2,890,000 | | | 51,778,542 | |
| | | 108,519,240 | |
Banks – 6.8% | | | |
| | BNP Paribas SA | | 509,901 | | | 29,028,343 | |
| | Citigroup Inc | | 733,689 | | | 39,178,993 | |
| | ING Groep NV | | 4,701,161 | | | 49,123,976 | |
| | Intesa Sanpaolo SpA | | 23,464,220 | | | 53,624,956 | |
| | Lloyds Banking Group PLC | | 96,395,551 | | | 59,002,170 | |
| | Nordea Bank Abp | | 3,252,409 | | | 33,508,450 | |
| | Sumitomo Mitsui Financial Group Inc | | 1,812,600 | | | 57,857,233 | |
| | Swedbank AB | | 4,220,587 | | | 63,017,545 | |
| | | 384,341,666 | |
Beverages – 2.0% | | | |
| | Carlsberg A/S | | 491,743 | | | 60,049,756 | |
| | Coca-Cola Co | | 843,190 | | | 52,277,780 | |
| | | 112,327,536 | |
Biotechnology – 1.0% | | | |
| | AbbVie Inc | | 348,987 | | | 56,574,283 | |
Capital Markets – 0% | | | |
| | Amundi SA (144A) | | 16,906 | | | 1,153,392 | |
Chemicals – 1.9% | | | |
| | Nutrien Ltd | | 1,032,230 | | | 106,707,808 | |
Communications Equipment – 1.2% | | | |
| | Cisco Systems Inc | | 1,256,688 | | | 70,072,923 | |
Construction Materials – 1.0% | | | |
| | LafargeHolcim Ltd* | | 1,206,006 | | | 58,888,697 | |
Containers & Packaging – 0.5% | | | |
| | DS Smith PLC | | 6,407,402 | | | 26,872,597 | |
Diversified Financial Services – 0.5% | | | |
| | M&G PLC | | 9,888,607 | | | 28,637,499 | |
Diversified Telecommunication Services – 4.4% | | | |
| | Deutsche Telekom AG | | 6,045,405 | | | 112,895,214 | |
| | Telenor ASA | | 1,234,864 | | | 17,756,489 | |
| | TELUS Corp | | 4,556,622 | | | 119,055,420 | |
| | | 249,707,123 | |
Electric Utilities – 3.4% | | | |
| | Endesa SA | | 1,974,111 | | | 43,074,757 | |
| | Enel SpA | | 6,348,342 | | | 42,388,656 | |
| | Iberdrola SA | | 9,646,929 | | | 104,986,044 | |
| | | 190,449,457 | |
Electrical Equipment – 1.7% | | | |
| | ABB Ltd | | 1,642,507 | | | 53,149,560 | |
| | nVent Electric PLC | | 1,199,853 | | | 41,730,887 | |
| | | 94,880,447 | |
Entertainment – 0.7% | | | |
| | Nintendo Co Ltd | | 80,300 | | | 40,523,052 | |
Food & Staples Retailing – 2.9% | | | |
| | Koninklijke Ahold Delhaize NV | | 2,594,337 | | | 83,386,636 | |
| | Tesco PLC | | 21,353,283 | | | 77,184,975 | |
| | | 160,571,611 | |
Food Products – 2.2% | | | |
| | Nestle SA (REG) | | 936,391 | | | 121,582,777 | |
Household Durables – 0.9% | | | |
| | Persimmon PLC | | 1,857,579 | | | 52,237,050 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Industrial Conglomerates – 1.0% | | | |
| | Siemens AG | | 416,524 | | | $57,706,502 | |
Insurance – 10.5% | | | |
| | AXA SA | | 3,641,676 | | | 106,336,479 | |
| | Direct Line Insurance Group PLC | | 15,699,889 | | | 56,587,994 | |
| | Legal & General Group PLC | | 21,089,947 | | | 74,768,437 | |
| | Phoenix Group Holdings PLC | | 6,571,535 | | | 52,679,326 | |
| | Sampo Oyj | | 1,502,059 | | | 73,308,272 | |
| | Swiss Re AG | | 593,021 | | | 56,439,947 | |
| | Tokio Marine Holdings Inc | | 500,000 | | | 29,085,865 | |
| | Zurich Insurance Group AG | | 290,691 | | | 143,342,248 | |
| | | 592,548,568 | |
Machinery – 2.4% | | | |
| | Sandvik AB | | 1,222,268 | | | 25,961,664 | |
| | Volvo AB | | 5,951,098 | | | 111,050,090 | |
| | | 137,011,754 | |
Marine – 0.3% | | | |
| | AP Moller - Maersk A/S - Class B | | 5,642 | | | 17,008,862 | |
Media – 1.0% | | | |
| | Publicis Groupe SA | | 889,767 | | | 54,042,739 | |
Metals & Mining – 4.9% | | | |
| | Anglo American PLC | | 2,275,823 | | | 117,357,015 | |
| | BHP Group Ltd | | 1,647,794 | | | 64,164,309 | |
| | Rio Tinto PLC | | 1,193,540 | | | 94,661,011 | |
| | | 276,182,335 | |
Multiline Retail – 0.4% | | | |
| | Next PLC | | 257,454 | | | 20,297,880 | |
Multi-Utilities – 1.0% | | | |
| | Sempra Energy | | 346,435 | | | 58,242,652 | |
Oil, Gas & Consumable Fuels – 6.1% | | | |
| | Shell PLC | | 3,777,254 | | | 104,030,116 | |
| | Total SE | | 3,379,086 | | | 171,426,850 | |
| | Williams Cos Inc | | 2,015,393 | | | 67,334,280 | |
| | | 342,791,246 | |
Paper & Forest Products – 1.5% | | | |
| | UPM-Kymmene Oyj | | 2,634,312 | | | 85,947,323 | |
Personal Products – 2.1% | | | |
| | Unilever PLC | | 2,665,666 | | | 120,643,127 | |
Pharmaceuticals – 13.6% | | | |
| | Bristol-Myers Squibb Co | | 1,559,195 | | | 113,868,011 | |
| | GlaxoSmithKline PLC | | 2,903,401 | | | 62,597,074 | |
| | Merck & Co Inc | | 1,243,586 | | | 102,036,231 | |
| | Novartis AG | | 821,675 | | | 72,073,800 | |
| | Novo Nordisk A/S | | 508,879 | | | 56,366,716 | |
| | Roche Holding AG | | 422,511 | | | 167,119,799 | |
| | Sanofi | | 1,869,333 | | | 190,616,175 | |
| | | 764,677,806 | |
Professional Services – 1.9% | | | |
| | SGS SA | | 38,588 | | | 107,238,598 | |
Real Estate Management & Development – 0.3% | | | |
| | Aroundtown SA | | 3,100,017 | | | 17,804,658 | |
Semiconductor & Semiconductor Equipment – 4.1% | | | |
| | Broadcom Inc | | 211,530 | | | 133,196,210 | |
| | SK Square Co Ltd* | | 201,342 | | | 9,312,366 | |
| | Taiwan Semiconductor Manufacturing Co Ltd (ADR) | | 832,440 | | | 86,790,194 | |
| | | 229,298,770 | |
Textiles, Apparel & Luxury Goods – 1.6% | | | |
| | Burberry Group PLC | | 2,244,472 | | | 49,003,692 | |
| | Cie Financiere Richemont SA (REG) | | 326,806 | | | 41,461,581 | |
| | | 90,465,273 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Equity Income Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Tobacco – 3.4% | | | |
| | British American Tobacco PLC | | 3,004,875 | | | $125,659,632 | |
| | Imperial Brands PLC | | 3,146,130 | | | 66,232,703 | |
| | | 191,892,335 | |
Wireless Telecommunication Services – 4.4% | | | |
| | KDDI Corp | | 1,806,500 | | | 59,346,584 | |
| | Tele2 AB | | 6,909,833 | | | 104,366,069 | |
| | Vodafone Group PLC | | 51,234,945 | | | 84,043,806 | |
| | | 247,756,459 | |
Total Common Stocks (cost $5,257,803,812) | | 5,366,101,404 | |
Preferred Stocks– 1.8% | | | |
Technology Hardware, Storage & Peripherals – 1.8% | | | |
| | Samsung Electronics Co Ltd((cost $78,415,425) | | 1,962,013 | | | 101,495,386 | |
Investment Companies– 1.9% | | | |
Money Markets – 1.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $106,650,378) | | 106,639,714 | | | 106,650,378 | |
Total Investments (total cost $5,442,869,615) – 98.8% | | 5,574,247,168 | |
Cash, Receivables and Other Assets, net of Liabilities – 1.2% | | 69,544,749 | |
Net Assets – 100% | | $5,643,791,917 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United Kingdom | | $1,085,728,379 | | 19.5 | % |
United States | | 897,602,575 | | 16.1 | |
Switzerland | | 764,857,060 | | 13.7 | |
France | | 552,603,978 | | 9.9 | |
Netherlands | | 357,183,855 | | 6.4 | |
Sweden | | 304,395,368 | | 5.5 | |
Germany | | 240,998,215 | | 4.3 | |
Japan | | 238,591,276 | | 4.3 | |
Canada | | 225,763,228 | | 4.0 | |
Finland | | 192,764,045 | | 3.5 | |
Italy | | 152,754,310 | | 2.7 | |
Spain | | 148,060,801 | | 2.7 | |
Denmark | | 133,425,334 | | 2.4 | |
South Korea | | 110,807,752 | | 2.0 | |
Taiwan | | 86,790,194 | | 1.6 | |
Australia | | 64,164,309 | | 1.1 | |
Norway | | 17,756,489 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $5,574,247,168 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 1.9% |
Money Markets - 1.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 49,348 | $ | - | $ | - | $ | 106,650,378 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 282,416∆ | | - | | - | | - |
Total Affiliated Investments - 1.9% | $ | 331,764 | $ | - | $ | - | $ | 106,650,378 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 1.9% |
Money Markets - 1.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 71,301,247 | | 1,112,438,862 | | (1,077,089,731) | | 106,650,378 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 78,584,373 | | 354,404,504 | | (432,988,877) | | - |
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
BNP Paribas: | | | | | | | | |
British Pound | 4/26/22 | (249,062,606) | $ | 329,244,565 | $ | 2,176,733 | | |
Euro | 4/26/22 | (266,366,387) | | 293,756,474 | | (1,070,391) | | |
Total | | | | | $ | 1,106,342 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Equity Income Fund
Schedule of Investments (unaudited)
March 31, 2022
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $2,176,733 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $1,070,391 |
| | | | |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended March 31, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $30,646,535 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ (7,061,290) |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Value of Derivative Instruments During the Period Ended March 31, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts sold - in USD | $636,635,472 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI World IndexSM 85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index | MSCI World IndexSM reflects the equity market performance of global developed markets. 85% MSCI ACWI ex-US High Div Yld/15% MSCI USA High Div Yld Index is an internally-calculated, hypothetical combination of total returns from the MSCI All Country World ex-USA High Dividend Yield Index (85%) and the MSCI USA High Dividend Yield Index (15%). The underlying indices reflect the performance of higher dividend yield large and mid-cap equity from (i) global developed and emerging markets excluding the U.S. and (ii) the U.S. markets. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
REG | Registered |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $1,153,392, which represents 0.0% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Global Equity Income Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Banks | $ | 39,178,993 | $ | 345,162,673 | $ | - |
Beverages | | 52,277,780 | | 60,049,756 | | - |
Biotechnology | | 56,574,283 | | - | | - |
Chemicals | | 106,707,808 | | - | | - |
Communications Equipment | | 70,072,923 | | - | | - |
Diversified Telecommunication Services | | 119,055,420 | | 130,651,703 | | - |
Electrical Equipment | | 41,730,887 | | 53,149,560 | | - |
Multi-Utilities | | 58,242,652 | | - | | - |
Oil, Gas & Consumable Fuels | | 67,334,280 | | 275,456,966 | | - |
Pharmaceuticals | | 215,904,242 | | 548,773,564 | | - |
Semiconductor & Semiconductor Equipment | | 219,986,404 | | 9,312,366 | | - |
All Other | | - | | 2,896,479,144 | | - |
Preferred Stocks | | - | | 101,495,386 | | - |
Investment Companies | | - | | 106,650,378 | | - |
Total Investments in Securities | $ | 1,047,065,672 | $ | 4,527,181,496 | $ | - |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 2,176,733 | | - |
Total Assets | $ | 1,047,065,672 | $ | 4,529,358,229 | $ | - |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 1,070,391 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures 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. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Global Equity Income Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $5,336,219,237) | | $ | 5,467,596,790 | |
| Affiliated investments, at value (cost $106,650,378) | | | 106,650,378 | |
| Forward foreign currency exchange contracts | | | 2,176,733 | |
| Cash denominated in foreign currency (cost $15,757,744) | | | 15,757,744 | |
| Non-interested Trustees' deferred compensation | | | 153,330 | |
| Receivables: | | | | |
| | Investments sold | | | 60,709,837 | |
| | Dividends | | | 50,127,732 | |
| | Foreign tax reclaims | | | 31,994,532 | |
| | Fund shares sold | | | 23,509,607 | |
| | Dividends from affiliates | | | 24,738 | |
| Other assets | | | 37,380 | |
Total Assets | | | 5,758,738,801 | |
Liabilities: | | | | |
| Forward foreign currency exchange contracts | | | 1,070,391 | |
| Payables: | | | — | |
| | Investments purchased | | | 54,813,991 | |
| | Fund shares repurchased | | | 37,615,252 | |
| | Dividends | | | 9,178,050 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 3,999,218 | |
| | Advisory fees | | | 2,885,299 | |
| | Professional fees | | | 1,552,824 | |
| | Transfer agent fees and expenses | | | 956,805 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 506,581 | |
| | Non-interested Trustees' deferred compensation fees | | | 153,330 | |
| | Custodian fees | | | 68,264 | |
| | Non-interested Trustees' fees and expenses | | | 18,138 | |
| | Affiliated fund administration fees payable | | | 11,648 | |
| | Accrued expenses and other payables | | | 2,117,093 | |
Total Liabilities | | | 114,946,884 | |
Net Assets | | $ | 5,643,791,917 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Equity Income Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 6,576,021,935 | |
| Total distributable earnings (loss) | | | (932,230,018) | |
Total Net Assets | | $ | 5,643,791,917 | |
Net Assets - Class A Shares | | $ | 695,144,917 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 102,295,029 | |
Net Asset Value Per Share(1) | | $ | 6.80 | |
Maximum Offering Price Per Share(2) | | $ | 7.21 | |
Net Assets - Class C Shares | | $ | 424,605,648 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 63,355,355 | |
Net Asset Value Per Share(1) | | $ | 6.70 | |
Net Assets - Class D Shares | | $ | 20,904,737 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,086,889 | |
Net Asset Value Per Share | | $ | 6.77 | |
Net Assets - Class I Shares | | $ | 4,107,138,092 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 603,330,402 | |
Net Asset Value Per Share | | $ | 6.81 | |
Net Assets - Class N Shares | | $ | 260,212,716 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 38,240,156 | |
Net Asset Value Per Share | | $ | 6.80 | |
Net Assets - Class S Shares | | $ | 17,346,752 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,575,507 | |
Net Asset Value Per Share | | $ | 6.74 | |
Net Assets - Class T Shares | | $ | 118,439,055 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 17,501,109 | |
Net Asset Value Per Share | | $ | 6.77 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 147,832,171 | |
| Non-cash dividends | | 13,837,938 | |
| Affiliated securities lending income, net | | 282,416 | |
| Dividends from affiliates | | 49,348 | |
| Unaffiliated securities lending income, net | | 1,442 | |
| Other income | | 1,553,330 | |
| Foreign withholding tax income (net of foreign withholding tax reclaim fee of $3,999,218 (Note 1) | | 24,294,357 | |
Total Investment Income | | 187,851,002 | |
Expenses: | | | |
| Advisory fees | | 17,610,043 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 862,300 | |
| | Class C Shares | | 2,017,381 | |
| | Class S Shares | | 21,585 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 9,142 | |
| | Class S Shares | | 21,585 | |
| | Class T Shares | | 100,032 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 702,278 | |
| | Class C Shares | | 159,956 | |
| | Class I Shares | | 1,768,421 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 21,955 | |
| | Class C Shares | | 10,886 | |
| | Class D Shares | | 1,936 | |
| | Class I Shares | | 88,208 | |
| | Class N Shares | | 4,376 | |
| | Class S Shares | | 92 | |
| | Class T Shares | | 455 | |
| Professional fees | | 4,082,697 | |
| Custodian fees | | 141,563 | |
| Shareholder reports expense | | 98,062 | |
| Registration fees | | 88,389 | |
| Affiliated fund administration fees | | 67,143 | |
| Non-interested Trustees’ fees and expenses | | 42,895 | |
| Other expenses | | 176,296 | |
Total Expenses | | 28,097,676 | |
Less: Excess Expense Reimbursement and Waivers | | (181,442) | |
Net Expenses | | 27,916,234 | |
Net Investment Income/(Loss) | | 159,934,768 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Equity Income Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 83,909,236 | |
| Forward foreign currency exchange contracts | | 30,646,535 | |
Total Net Realized Gain/(Loss) on Investments | | 114,555,771 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 80,417,916 | |
| Forward foreign currency exchange contracts | | (7,061,290) | |
Total Change in Unrealized Net Appreciation/Depreciation | | 73,356,626 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 347,847,165 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 159,934,768 | | $ | 364,393,540 | |
| Net realized gain/(loss) on investments | | 114,555,771 | | | 313,913,548 | |
| Change in unrealized net appreciation/depreciation | | 73,356,626 | | | 95,014,689 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 347,847,165 | | | 773,321,777 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (19,300,690) | | | (47,571,920) | |
| | Class C Shares | | (11,077,815) | | | (31,626,263) | |
| | Class D Shares | | (519,751) | | | (873,001) | |
| | Class I Shares | | (117,774,175) | | | (265,514,591) | |
| | Class N Shares | | (6,947,318) | | | (8,574,137) | |
| | Class S Shares | | (484,917) | | | (1,095,477) | |
| | Class T Shares | | (2,791,243) | | | (6,017,587) | |
Net Decrease from Dividends and Distributions to Shareholders | | (158,895,909) | | | (361,272,976) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 7,015,539 | | | (9,889,322) | |
| | Class C Shares | | (29,575,820) | | | (84,565,650) | |
| | Class D Shares | | 7,541,806 | | | 4,232,707 | |
| | Class I Shares | | 249,212,406 | | | 607,907,308 | |
| | Class N Shares | | 120,794,851 | | | 60,200,231 | |
| | Class S Shares | | 211,043 | | | 4,661,637 | |
| | Class T Shares | | 43,947,589 | | | (8,101,526) | |
Net Increase/(Decrease) from Capital Share Transactions | | 399,147,414 | | | 574,445,385 | |
Net Increase/(Decrease) in Net Assets | | 588,098,670 | | | 986,494,186 | |
Net Assets: | | | | | | |
| Beginning of period | | 5,055,693,247 | | | 4,069,199,061 | |
| End of period | $ | 5,643,791,917 | | $ | 5,055,693,247 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $6.54 | | | $5.90 | | | $6.58 | | | $7.16 | | | $7.80 | | | $7.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.19(3) | | | 0.49 | | | 0.51 | | | 0.46 | | | 0.49 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 0.64 | | | (0.72) | | | (0.56) | | | (0.65) | | | 0.05 | |
| Total from Investment Operations | | 0.45 | | | 1.13 | | | (0.21) | | | (0.10) | | | (0.16) | | | 0.13 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.49) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.11) | |
| Total Dividends and Distributions | | (0.19) | | | (0.49) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.80 | | | $6.54 | | | $5.90 | | | $6.58 | | | $7.16 | | | $7.80 | |
| Total Return* | | 6.92% | | | 19.08% | | | (2.98)% | | | (1.22)% | | | (2.13)% | | | 1.63% | |
| Net Assets, End of Period (in thousands) | | $695,145 | | | $662,514 | | | $610,106 | | | $684,235 | | | $818,548 | | | $856,276 | |
| Average Net Assets for the Period (in thousands) | | $691,735 | | | $666,761 | | | $639,082 | | | $695,276 | | | $878,570 | | | $854,512 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.29%(4) | | | 1.14% | | | 1.14% | | | 1.12% | | | 1.09% | | | 1.11% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.28% | | | 1.14% | | | 1.14% | | | 1.12% | | | 1.09% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | 5.64%(3) | | | 7.28% | | | 8.15% | | | 6.91% | | | 6.43% | | | 5.93% | |
| Portfolio Turnover Rate | | 36% | | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $6.46 | | | $5.83 | | | $6.53 | | | $7.11 | | | $7.75 | | | $7.73 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.17(3) | | | 0.44 | | | 0.47 | | | 0.42 | | | 0.44 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.24 | | | 0.64 | | | (0.73) | | | (0.56) | | | (0.65) | | | 0.04 | |
| Total from Investment Operations | | 0.41 | | | 1.08 | | | (0.26) | | | (0.14) | | | (0.21) | | | 0.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.45) | | | (0.44) | | | (0.44) | | | (0.43) | | | (0.09) | |
| Total Dividends and Distributions | | (0.17) | | | (0.45) | | | (0.44) | | | (0.44) | | | (0.43) | | | (0.09) | |
| Net Asset Value, End of Period | | $6.70 | | | $6.46 | | | $5.83 | | | $6.53 | | | $7.11 | | | $7.75 | |
| Total Return* | | 6.41% | | | 18.54% | | | (3.92)% | | | (1.88)% | | | (2.76)% | | | 1.46% | |
| Net Assets, End of Period (in thousands) | | $424,606 | | | $437,512 | | | $469,891 | | | $677,303 | | | $1,037,471 | | | $1,073,190 | |
| Average Net Assets for the Period (in thousands) | | $438,805 | | | $478,215 | | | $579,718 | | | $804,713 | | | $1,127,161 | | | $1,057,701 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.83%(4) | | | 1.72% | | | 1.75% | | | 1.76% | | | 1.75% | | | 1.85% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.82% | | | 1.72% | | | 1.75% | | | 1.76% | | | 1.75% | | | 1.85% | |
| | Ratio of Net Investment Income/(Loss) | | 5.04%(3) | | | 6.66% | | | 7.49% | | | 6.24% | | | 5.82% | | | 5.18% | |
| Portfolio Turnover Rate | | 36% | | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.04 and 1.21%, respectively. (4) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.18%. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.29 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | 0.50 | |
| Total from Investment Operations | | 0.97 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | |
| Net Asset Value, End of Period | | $7.78 | |
| Total Return* | | 13.90% | |
| Net Assets, End of Period (in thousands) | | $861,163 | |
| Average Net Assets for the Period (in thousands) | | $788,169 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.09% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | |
| | Ratio of Net Investment Income/(Loss) | | 6.40% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.24 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.41 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | |
| Total from Investment Operations | | 0.92 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.43) | |
| Total Dividends and Distributions | | (0.43) | |
| Net Asset Value, End of Period | | $7.73 | |
| Total Return* | | 13.18% | |
| Net Assets, End of Period (in thousands) | | $1,047,109 | |
| Average Net Assets for the Period (in thousands) | | $1,018,868 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.81% | |
| | Ratio of Net Investment Income/(Loss) | | 5.57% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.79 | | | $7.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.22(3) | | | 0.51 | | | 0.54 | | | 0.48 | | | 0.53 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.23 | | | 0.63 | | | (0.74) | | | (0.57) | | | (0.67) | | | 0.04 | |
| Total from Investment Operations | | 0.45 | | | 1.14 | | | (0.20) | | | (0.09) | | | (0.14) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.50) | | | (0.11) | |
| Total Dividends and Distributions | | (0.20) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.50) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.77 | | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.79 | |
| Total Return* | | 6.95% | | | 19.43% | | | (2.92)% | | | (1.06)% | | | (1.91)% | | | 1.56% | |
| Net Assets, End of Period (in thousands) | | $20,905 | | | $13,132 | | | $8,277 | | | $8,028 | | | $8,359 | | | $2,985 | |
| Average Net Assets for the Period (in thousands) | | $16,384 | | | $11,156 | | | $8,001 | | | $7,928 | | | $7,765 | | | $2,334 | |
| Ratios to Average Net Assets**: | | | | | | | | | �� | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01%(4) | | | 0.89% | | | 0.92% | | | 0.99% | | | 0.88% | | | 0.84% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | | | 0.89% | | | 0.92% | | | 0.99% | | | 0.88% | | | 0.84% | |
| | Ratio of Net Investment Income/(Loss) | | 6.55%(3) | | | 7.60% | | | 8.59% | | | 7.17% | | | 7.02% | | | 6.30% | |
| Portfolio Turnover Rate | | 36% | | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | | | $7.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.21(3) | | | 0.52 | | | 0.54 | | | 0.49 | | | 0.53 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.25 | | | 0.63 | | | (0.73) | | | (0.57) | | | (0.66) | | | 0.04 | |
| Total from Investment Operations | | 0.46 | | | 1.15 | | | (0.19) | | | (0.08) | | | (0.13) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.51) | | | (0.50) | | | (0.50) | | | (0.50) | | | (0.11) | |
| Total Dividends and Distributions | | (0.20) | | | (0.51) | | | (0.50) | | | (0.50) | | | (0.50) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.81 | | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | |
| Total Return* | | 7.09% | | | 19.43% | | | (2.78)% | | | (0.89)% | | | (1.68)% | | | 1.58% | |
| Net Assets, End of Period (in thousands) | | $4,107,138 | | | $3,719,987 | | | $2,830,699 | | | $3,008,858 | | | $3,509,735 | | | $3,075,563 | |
| Average Net Assets for the Period (in thousands) | | $3,928,854 | | | $3,469,535 | | | $2,946,792 | | | $2,998,950 | | | $3,534,302 | | | $2,981,623 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.93%(4) | | | 0.78% | | | 0.78% | | | 0.79% | | | 0.76% | | | 0.78% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.92% | | | 0.78% | | | 0.78% | | | 0.79% | | | 0.76% | | | 0.78% | |
| | Ratio of Net Investment Income/(Loss) | | 6.08%(3) | | | 7.70% | | | 8.62% | | | 7.30% | | | 6.88% | | | 6.26% | |
| Portfolio Turnover Rate | | 36% | | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.04 and 1.21%, respectively. (4) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.18%. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $7.83 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.07 | |
| Total from Investment Operations | | 0.14 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.19) | |
| Total Dividends and Distributions | | (0.19) | |
| Net Asset Value, End of Period | | $7.78 | |
| Total Return* | | 1.86% | |
| Net Assets, End of Period (in thousands) | | $1,941 | |
| Average Net Assets for the Period (in thousands) | | $1,027 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | |
| | Ratio of Net Investment Income/(Loss) | | 5.97% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.30 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | 0.51 | |
| Total from Investment Operations | | 1.00 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.50) | |
| Total Dividends and Distributions | | (0.50) | |
| Net Asset Value, End of Period | | $7.80 | |
| Total Return* | | 14.32% | |
| Net Assets, End of Period (in thousands) | | $2,866,944 | |
| Average Net Assets for the Period (in thousands) | | $2,411,600 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | 6.67% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | | | $7.80 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.22(3) | | | 0.53 | | | 0.51 | | | 0.50 | | | 0.52 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.24 | | | 0.62 | | | (0.70) | | | (0.57) | | | (0.64) | | | 0.04 | |
| Total from Investment Operations | | 0.46 | | | 1.15 | | | (0.19) | | | (0.07) | | | (0.12) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.21) | | | (0.51) | | | (0.50) | | | (0.51) | | | (0.51) | | | (0.11) | |
| Total Dividends and Distributions | | (0.21) | | | (0.51) | | | (0.50) | | | (0.51) | | | (0.51) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.80 | | | $6.55 | | | $5.91 | | | $6.60 | | | $7.18 | | | $7.81 | |
| Total Return* | | 6.98% | | | 19.51% | | | (2.71)% | | | (0.82)% | | | (1.64)% | | | 1.59% | |
| Net Assets, End of Period (in thousands) | | $260,213 | | | $134,486 | | | $68,993 | | | $12,886 | | | $6,841 | | | $5,099 | |
| Average Net Assets for the Period (in thousands) | | $212,803 | | | $106,437 | | | $27,720 | | | $10,817 | | | $5,880 | | | $4,537 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.83%(4) | | | 0.70% | | | 0.72% | | | 0.75% | | | 0.72% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.83% | | | 0.70% | | | 0.72% | | | 0.75% | | | 0.72% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | 6.39%(3) | | | 7.85% | | | 8.37% | | | 7.53% | | | 6.83% | | | 6.40% | |
| Portfolio Turnover Rate | | 36% | | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $6.49 | | | $5.86 | | | $6.56 | | | $7.15 | | | $7.79 | | | $7.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.19(3) | | | 0.49 | | | 0.59 | | | 0.49 | | | 0.54 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.25 | | | 0.62 | | | (0.82) | | | (0.60) | | | (0.70) | | | 0.04 | |
| Total from Investment Operations | | 0.44 | | | 1.11 | | | (0.23) | | | (0.11) | | | (0.16) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.48) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.10) | |
| Total Dividends and Distributions | | (0.19) | | | (0.48) | | | (0.47) | | | (0.48) | | | (0.48) | | | (0.10) | |
| Net Asset Value, End of Period | | $6.74 | | | $6.49 | | | $5.86 | | | $6.56 | | | $7.15 | | | $7.79 | |
| Total Return* | | 6.80% | | | 19.01% | | | (3.30)% | | | (1.31)% | | | (2.16)% | | | 1.58% | |
| Net Assets, End of Period (in thousands) | | $17,347 | | | $16,510 | | | $10,825 | | | $2,470 | | | $232 | | | $51 | |
| Average Net Assets for the Period (in thousands) | | $17,315 | | | $14,755 | | | $6,983 | | | $1,805 | | | $127 | | | $51 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.35%(4) | | | 1.21% | | | 1.25% | | | 1.38% | | | 2.37% | | | 1.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.33% | | | 1.21% | | | 1.25% | | | 1.34% | | | 1.27% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 5.59%(3) | | | 7.31% | | | 9.83% | | | 7.35% | | | 7.23% | | | 6.01% | |
| Portfolio Turnover Rate | | 36% | | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.04 and 1.21%, respectively. (4) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.18%. |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $7.30 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.54 | |
| | Net realized and unrealized gain/(loss) | | 0.47 | |
| Total from Investment Operations | | 1.01 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.51) | |
| Total Dividends and Distributions | | (0.51) | |
| Net Asset Value, End of Period | | $7.80 | |
| Total Return* | | 14.39% | |
| Net Assets, End of Period (in thousands) | | $4,156 | |
| Average Net Assets for the Period (in thousands) | | $2,945 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | 7.26% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| | | | | | | |
Class S Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(2) | |
| Net Asset Value, Beginning of Period | | $7.83 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | 0.06 | |
| Total from Investment Operations | | 0.13 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.19) | |
| Total Dividends and Distributions | | (0.19) | |
| Net Asset Value, End of Period | | $7.77 | |
| Total Return* | | 1.71% | |
| Net Assets, End of Period (in thousands) | | $51 | |
| Average Net Assets for the Period (in thousands) | | $50 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | 5.89% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* 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 or period. (2) Period from June 5, 2017 (inception date) through July 31, 2017. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.78 | | | $7.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.22(3) | | | 0.52 | | | 0.52 | | | 0.49 | | | 0.54 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 0.23 | | | 0.62 | | | (0.72) | | | (0.58) | | | (0.68) | | | 0.04 | |
| Total from Investment Operations | | 0.45 | | | 1.14 | | | (0.20) | | | (0.09) | | | (0.14) | | | 0.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.49) | | | (0.11) | |
| Total Dividends and Distributions | | (0.20) | | | (0.50) | | | (0.49) | | | (0.49) | | | (0.49) | | | (0.11) | |
| Net Asset Value, End of Period | | $6.77 | | | $6.52 | | | $5.88 | | | $6.57 | | | $7.15 | | | $7.78 | |
| Total Return* | | 6.92% | | | 19.35% | | | (2.94)% | | | (1.04)% | | | (1.84)% | | | 1.56% | |
| Net Assets, End of Period (in thousands) | | $118,439 | | | $71,551 | | | $70,408 | | | $70,735 | | | $53,548 | | | $30,421 | |
| Average Net Assets for the Period (in thousands) | | $80,245 | | | $85,441 | | | $71,828 | | | $65,061 | | | $55,040 | | | $17,484 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.09%(4) | | | 0.94% | | | 0.95% | | | 0.97% | | | 0.94% | | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | | | 0.94% | | | 0.94% | | | 0.95% | | | 0.93% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 6.48%(3) | | | 7.70% | | | 8.29% | | | 7.41% | | | 7.12% | | | 6.52% | |
| Portfolio Turnover Rate | | 36% | | | 123% | | | 227% | | | 142% | | | 137% | | | 21% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.04 and 1.21%, respectively. (4) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.18%. |
| | |
See Notes to Financial Statements. |
| |
24 | MARCH 31, 2022 |
Janus Henderson Global Equity Income Fund
Financial Highlights
| | | | | | | |
Class T Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $7.83 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | 0.07 | |
| Total from Investment Operations | | 0.13 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.19) | |
| Total Dividends and Distributions | | (0.19) | |
| Net Asset Value, End of Period | | $7.77 | |
| Total Return* | | 1.74% | |
| Net Assets, End of Period (in thousands) | | $8,619 | |
| Average Net Assets for the Period (in thousands) | | $4,061 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.96% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.96% | |
| | Ratio of Net Investment Income/(Loss) | | 5.03% | |
| Portfolio Turnover Rate | | 127% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Global Equity Income Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks to achieve a high level of current income and, as a secondary objective, steady growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson Global Equity Income Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. The Fund's first fiscal year end was July 31, 2017. Subsequent to July 31, 2017, the Fund changed its fiscal year end to September 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
Estimates
The preparation of financial statements in conformity with US GAAP 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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
Foreign Taxes
The Fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the Fund filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. The Statement of Operations reflects $41,553,869 of tax reclaims received as well as $4,965,423 of professional fees and $3,999,218 of certain fees assessed by the Internal Revenue Service due to the recovery of foreign withholding taxes after such amounts were previously passed through to Fund shareholders as foreign tax credits.
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 futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
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 purposes (to earn income and seek to enhance returns). 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 that 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.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – 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 – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – 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 – the risk related 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 – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC 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. Additionally, the Fund may deposit cash and/or treasuries 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 contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE are used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The realized 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 forward currency contract is reported on the Statement of Operations (if applicable).
During the period, the Fund entered into forward currency 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.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 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 has entered 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
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
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.
The following table presents gross amounts of recognized assets and/or 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 the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022” table located in the Fund’s Schedule of Investments.
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
BNP Paribas | $ | 2,176,733 | $ | (1,070,391) | $ | — | $ | 1,106,342 |
| | | | | | | | | |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
BNP Paribas | $ | 1,070,391 | $ | (1,070,391) | $ | — | $ | — |
| | | | | | | | | |
(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. |
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
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, corporate bonds, 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.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
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 Securities and Exchange Commission (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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations.
There were no securities on loan as of March 31, 2022.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $1 Billion | 0.85 |
Next $1 Billion | 0.65 |
Over $2 Billion | 0.60 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.66% of average annual net assets before any applicable waivers.
The Adviser has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.84% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $113,055.
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. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class A Shares paid CDSCs of $1,283 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $15,333.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended September 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(894,291,612) | $(258,782,218) | $(1,153,073,830) | | |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 5,486,376,684 | $522,730,017 | $(434,859,533) | $ 87,870,484 |
Information on the tax components of derivatives as of March 31, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ - | $ 2,176,733 | $ (1,070,391) | $ 1,106,342 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 12,982,307 | $ 88,934,958 | | 30,176,328 | $ 204,549,615 |
Reinvested dividends and distributions | 2,243,563 | 15,278,618 | | 5,608,120 | 37,672,140 |
Shares repurchased | (14,186,572) | (97,198,037) | | (37,899,973) | (252,111,077) |
Net Increase/(Decrease) | 1,039,298 | $ 7,015,539 | | (2,115,525) | $ (9,889,322) |
Class C Shares: | | | | | |
Shares sold | 4,748,115 | $ 32,165,445 | | 10,026,600 | $ 67,608,705 |
Reinvested dividends and distributions | 1,547,750 | 10,401,445 | | 4,419,518 | 29,312,763 |
Shares repurchased | (10,708,691) | (72,142,710) | | (27,235,267) | (181,487,118) |
Net Increase/(Decrease) | (4,412,826) | $ (29,575,820) | | (12,789,149) | $ (84,565,650) |
Class D Shares: | | | | | |
Shares sold | 1,845,075 | $ 12,727,921 | | 929,926 | $ 6,382,496 |
Reinvested dividends and distributions | 73,010 | 495,458 | | 122,986 | 823,397 |
Shares repurchased | (845,246) | (5,681,573) | | (446,174) | (2,973,186) |
Net Increase/(Decrease) | 1,072,839 | $ 7,541,806 | | 606,738 | $ 4,232,707 |
Class I Shares: | | | | | |
Shares sold | 105,007,706 | $724,722,838 | | 180,870,695 | $1,227,854,603 |
Reinvested dividends and distributions | 15,803,572 | 107,853,077 | | 35,370,434 | 237,791,085 |
Shares repurchased | (85,109,369) | (583,363,509) | | (127,740,329) | (857,738,380) |
Net Increase/(Decrease) | 35,701,909 | $249,212,406 | | 88,500,800 | $ 607,907,308 |
Class N Shares: | | | | | |
Shares sold | 22,555,900 | $154,178,537 | | 13,748,966 | $ 92,754,224 |
Reinvested dividends and distributions | 520,439 | 3,547,511 | | 732,139 | 4,925,185 |
Shares repurchased | (5,363,152) | (36,931,197) | | (5,636,693) | (37,479,178) |
Net Increase/(Decrease) | 17,713,187 | $120,794,851 | | 8,844,412 | $ 60,200,231 |
Class S Shares: | | | | | |
Shares sold | 234,687 | $ 1,595,380 | | 808,110 | $ 5,403,626 |
Reinvested dividends and distributions | 71,837 | 484,917 | | 164,475 | 1,095,477 |
Shares repurchased | (276,249) | (1,869,254) | | (275,737) | (1,837,466) |
Net Increase/(Decrease) | 30,275 | $ 211,043 | | 696,848 | $ 4,661,637 |
Class T Shares: | | | | | |
Shares sold | 8,672,641 | $ 58,613,181 | | 8,813,926 | $ 59,293,455 |
Reinvested dividends and distributions | 402,280 | 2,728,299 | | 882,872 | 5,914,028 |
Shares repurchased | (2,551,168) | (17,393,891) | | (10,697,705) | (73,309,009) |
Net Increase/(Decrease) | 6,523,753 | $ 43,947,589 | | (1,000,907) | $ (8,101,526) |
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$2,289,371,014 | $1,897,564,533 | $ - | $ - |
Janus Henderson Global Equity Income Fund
Notes to Financial Statements (unaudited)
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Global Equity Income Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Equity Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Equity Income Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Global Equity Income Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Equity Income Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Global Equity Income Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Global Equity Income Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Global Equity Income Fund
Notes
NotesPage1
Janus Henderson Global Equity Income Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93081 05-22 |
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| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Global Life Sciences Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Life Sciences Fund
| | | | | | |
FUND SNAPSHOT The Fund seeks to harness the rapid innovation in health care to generate returns by investing in companies addressing unmet medical needs or those that seek to make the health care system more efficient. | | | | | 
Andy Acker Portfolio Manager |
| | | |
Janus Henderson Global Life Sciences Fund (unaudited)
Fund At A Glance
March 31, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Moderna Inc | 0.37% | | 0.71% | | Pfizer Inc | 0.51% | | -0.70% |
| Vertex Pharmaceuticals Inc | 2.00% | | 0.43% | | Allakos Inc | 0.25% | | -0.66% |
| Arena Pharmaceuticals Inc | 0.55% | | 0.41% | | Align Technology Inc | 1.84% | | -0.54% |
| Amunix Pharmaceuticals Inc PP | 0.15% | | 0.25% | | Ascendis Pharma A/S (ADR) | 1.31% | | -0.48% |
| Centene Corp | 1.59% | | 0.23% | | NeoGenomics Inc | 0.31% | | -0.39% |
| | | | | | | |
| 2 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Devices & Medical Tech. | | 0.84% | | 29.33% | 33.44% |
| Other** | | 0.02% | | 0.42% | 0.00% |
| | | | | | |
| | | | | | |
| 3 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Health Care Index |
| | | Contribution | | Average Weight | Average Weight |
| Biotechnology | | -5.17% | | 29.63% | 12.65% |
| Pharmaceuticals | | -1.28% | | 27.74% | 38.40% |
| Health Care Services | | -0.59% | | 12.88% | 15.51% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Global Life Sciences Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
UnitedHealth Group Inc | |
Health Care Providers & Services | 5.9% |
AstraZeneca PLC | |
Pharmaceuticals | 4.5% |
AbbVie Inc | |
Biotechnology | 3.9% |
Roche Holding AG | |
Pharmaceuticals | 2.9% |
Thermo Fisher Scientific Inc | |
Life Sciences Tools & Services | 2.7% |
| | 19.9% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.1% | |
Preferred Stocks | | 2.0% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.6% | |
Investment Companies | | 0.3% | |
Rights | | 0.0% | |
Warrants | | 0.0% | |
Other | | (0.0)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Life Sciences Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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| | | | | | | | | | |
Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -2.14% | 3.82% | 13.23% | 16.14% | 11.55% | | | 0.97% |
Class A Shares at MOP | | -7.77% | -2.14% | 11.89% | 15.45% | 11.27% | | | |
Class C Shares at NAV | | -2.45% | 3.09% | 12.42% | 15.28% | 10.74% | | | 1.75% |
Class C Shares at CDSC | | -3.34% | 2.15% | 12.42% | 15.28% | 10.74% | | | |
Class D Shares | | -2.06% | 4.00% | 13.42% | 16.35% | 11.73% | | | 0.80% |
Class I Shares | | -2.04% | 4.05% | 13.49% | 16.41% | 11.77% | | | 0.75% |
Class N Shares | | -1.98% | 4.14% | 13.53% | 16.36% | 11.73% | | | 0.67% |
Class S Shares | | -2.24% | 3.61% | 13.01% | 15.95% | 11.38% | | | 1.18% |
Class T Shares | | -2.10% | 3.89% | 13.31% | 16.24% | 11.68% | | | 0.91% |
MSCI World Health Care Index | | 4.28% | 14.94% | 12.90% | 13.26% | 7.18% | | | |
S&P 500 Index | | 5.92% | 15.65% | 15.99% | 14.64% | 7.78% | | | |
Morningstar Quartile - Class T Shares | | - | 2nd | 2nd | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Health Funds | | - | 74/167 | 42/138 | 16/124 | 8/57 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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
Janus Henderson Global Life Sciences Fund (unaudited)
Performance
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 (renamed Class T Shares effective February 16, 2010), 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 former 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 of the Fund commenced operations on January 26, 2018. Performance shown for Class N Shares for periods prior to January 26, 2018, reflects the historical 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – December 31, 1998
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $978.60 | $4.83 | | $1,000.00 | $1,020.04 | $4.94 | 0.98% |
Class C Shares | $1,000.00 | $975.50 | $7.98 | | $1,000.00 | $1,016.85 | $8.15 | 1.62% |
Class D Shares | $1,000.00 | $979.40 | $3.95 | | $1,000.00 | $1,020.94 | $4.03 | 0.80% |
Class I Shares | $1,000.00 | $979.60 | $3.75 | | $1,000.00 | $1,021.14 | $3.83 | 0.76% |
Class N Shares | $1,000.00 | $980.20 | $3.31 | | $1,000.00 | $1,021.59 | $3.38 | 0.67% |
Class S Shares | $1,000.00 | $977.60 | $5.77 | | $1,000.00 | $1,019.10 | $5.89 | 1.17% |
Class T Shares | $1,000.00 | $979.00 | $4.44 | | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Life Sciences Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.1% | | | |
Biotechnology – 24.9% | | | |
| | 4D Molecular Therapeutics Inc* | | 338,006 | | | $5,110,651 | |
| | AbbVie Inc | | 1,094,753 | | | 177,470,409 | |
| | ACADIA Pharmaceuticals Inc* | | 664,542 | | | 16,095,207 | |
| | Akero Therapeutics Inc* | | 959,014 | | | 13,608,409 | |
| | Aligos Therapeutics Inc*,# | | 607,559 | | | 1,306,252 | |
| | Alnylam Pharmaceuticals Inc* | | 142,803 | | | 23,318,302 | |
| | Amicus Therapeutics Inc* | | 3,431,519 | | | 32,496,485 | |
| | Argenx SE (ADR)* | | 179,873 | | | 56,715,756 | |
| | Ascendis Pharma A/S (ADR)* | | 468,616 | | | 54,996,774 | |
| | Bicycle Therapeutics Ltd (ADR)* | | 450,657 | | | 19,774,829 | |
| | BioAtla LLC* | | 507,984 | | | 2,539,920 | |
| | Biohaven Pharmaceutical Holding Co Ltd* | | 343,899 | | | 40,776,104 | |
| | BioMarin Pharmaceutical Inc* | | 671,925 | | | 51,805,417 | |
| | Biomea Fusion Inc*,# | | 649,276 | | | 2,895,771 | |
| | C4 Therapeutics Inc* | | 332,405 | | | 8,064,145 | |
| | Cardiff Oncology Inc* | | 505,272 | | | 1,253,075 | |
| | Centessa Pharmacuticals PLC (ADR)*,# | | 783,129 | | | 7,024,667 | |
| | Cyteir Therapeutics Inc*,# | | 607,517 | | | 2,290,339 | |
| | Day One Biopharmaceuticals Inc*,# | | 400,350 | | | 3,971,472 | |
| | Design Therapeutics Inc*,# | | 415,049 | | | 6,703,041 | |
| | DiCE Molecules Holdings LLC*,§ | | 192,261 | | | 3,677,953 | |
| | ESSA Pharma Inc*,# | | 432,102 | | | 2,670,390 | |
| | Fate Therapeutics Inc* | | 212,718 | | | 8,247,077 | |
| | Gilead Sciences Inc | | 570,577 | | | 33,920,803 | |
| | Global Blood Therapeutics Inc* | | 976,272 | | | 33,818,062 | |
| | Graphite Bio Inc*,# | | 268,815 | | | 1,370,956 | |
| | Icosavax Inc*,# | | 337,717 | | | 2,377,528 | |
| | Insmed Inc* | | 1,739,487 | | | 40,877,944 | |
| | IVERIC bio Inc* | | 232,238 | | | 3,908,566 | |
| | Janux Therapeutics Inc* | | 680,032 | | | 9,751,659 | |
| | Mirati Therapeutics Inc* | | 99,767 | | | 8,202,843 | |
| | Moderna Inc* | | 81,683 | | | 14,070,714 | |
| | Myovant Sciences Ltd*,# | | 1,372,942 | | | 18,287,587 | |
| | Neurocrine Biosciences Inc* | | 762,718 | | | 71,504,812 | |
| | Nuvalent Inc* | | 310,897 | | | 4,318,359 | |
| | Nuvalent Inc - Class A*,# | | 227,129 | | | 3,154,822 | |
| | Olema Pharmaceuticals Inc*,# | | 760,463 | | | 3,239,572 | |
| | Praxis Precision Medicines Inc* | | 735,004 | | | 7,504,391 | |
| | PTC Therapeutics Inc* | | 617,747 | | | 23,048,141 | |
| | Pyxis Oncology Inc*,§ | | 286,086 | | | 1,097,998 | |
| | Pyxis Oncology Inc*,# | | 152,536 | | | 616,245 | |
| | Regeneron Pharmaceuticals Inc* | | 42,625 | | | 29,770,152 | |
| | Rhythm Pharmaceuticals Inc* | | 959,517 | | | 11,053,636 | |
| | Sage Therapeutics Inc* | | 284,603 | | | 9,420,359 | |
| | Sarepta Therapeutics Inc* | | 1,132,655 | | | 88,483,009 | |
| | Seres Therapeutics Inc* | | 1,431,729 | | | 10,193,910 | |
| | Travere Therapeutics Inc* | | 1,003,363 | | | 25,856,665 | |
| | United Therapeutics Corp* | | 154,087 | | | 27,644,749 | |
| | Vaxcyte Inc* | | 439,590 | | | 10,616,098 | |
| | Vertex Pharmaceuticals Inc* | | 392,297 | | | 102,377,748 | |
| | Verve Therapeutics Inc*,# | | 213,251 | | | 4,866,388 | |
| | | 1,144,166,161 | |
Health Care Equipment & Supplies – 21.6% | | | |
| | Abbott Laboratories | | 981,610 | | | 116,183,360 | |
| | Align Technology Inc* | | 171,418 | | | 74,738,248 | |
| | Boston Scientific Corp* | | 2,460,851 | | | 108,991,091 | |
| | Cooper Cos Inc | | 115,404 | | | 48,191,556 | |
| | Danaher Corp | | 367,328 | | | 107,748,322 | |
| | Dentsply Sirona Inc | | 808,136 | | | 39,776,454 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies– (continued) | | | |
| | DexCom Inc* | | 100,160 | | | $51,241,856 | |
| | Edwards Lifesciences Corp* | | 598,319 | | | 70,434,113 | |
| | Globus Medical Inc* | | 492,723 | | | 36,353,103 | |
| | ICU Medical Inc* | | 92,146 | | | 20,515,385 | |
| | Insulet Corp* | | 117,839 | | | 31,391,131 | |
| | Intuitive Surgical Inc* | | 144,230 | | | 43,511,306 | |
| | Medtronic PLC | | 575,884 | | | 63,894,330 | |
| | Silk Road Medical Inc* | | 291,669 | | | 12,043,013 | |
| | STERIS PLC | | 173,189 | | | 41,871,905 | |
| | Stryker Corp | | 182,795 | | | 48,870,243 | |
| | Tandem Diabetes Care Inc* | | 116,287 | | | 13,523,015 | |
| | Teleflex Inc | | 177,366 | | | 62,934,778 | |
| | | 992,213,209 | |
Health Care Providers & Services – 13.2% | | | |
| | AmerisourceBergen Corp | | 293,416 | | | 45,394,389 | |
| | Anthem Inc | | 175,278 | | | 86,100,059 | |
| | Centene Corp* | | 940,903 | | | 79,214,624 | |
| | Humana Inc | | 197,793 | | | 86,073,580 | |
| | LifeStance Health Group Inc*,# | | 1,178,329 | | | 11,912,906 | |
| | Privia Health Group Inc* | | 465,226 | | | 12,435,491 | |
| | Quest Diagnostics Inc | | 123,967 | | | 16,966,124 | |
| | UnitedHealth Group Inc | | 528,565 | | | 269,552,293 | |
| | | 607,649,466 | |
Health Care Technology – 0.5% | | | |
| | Accolade Inc* | | 528,284 | | | 9,276,667 | |
| | Health Catalyst Inc* | | 418,647 | | | 10,939,246 | |
| | | 20,215,913 | |
Life Sciences Tools & Services – 5.6% | | | |
| | ICON PLC* | | 97,694 | | | 23,761,135 | |
| | Illumina Inc* | | 122,372 | | | 42,756,777 | |
| | IQVIA Holdings Inc* | | 176,954 | | | 40,913,534 | |
| | NeoGenomics Inc* | | 479,501 | | | 5,825,937 | |
| | SomaLogic Inc* | | 1,009,436 | | | 8,095,677 | |
| | Sotera Health Co* | | 448,390 | | | 9,712,127 | |
| | Thermo Fisher Scientific Inc | | 210,037 | | | 124,058,354 | |
| | | 255,123,541 | |
Pharmaceuticals – 31.3% | | | |
| | Astellas Pharma Inc | | 2,972,400 | | | 46,603,956 | |
| | AstraZeneca PLC | | 1,558,525 | | | 206,639,278 | |
| | Bristol-Myers Squibb Co | | 1,513,391 | | | 110,522,945 | |
| | Canbridge Cornerstone*,§ | | 1,323,714 | | | 978,825 | |
| | CANbridge Pharmaceuticals Inc*,§ | | 2,960,030 | | | 2,079,365 | |
| | Catalent Inc* | | 228,951 | | | 25,390,666 | |
| | Collegium Pharmaceutical Inc* | | 744,331 | | | 15,154,579 | |
| | DICE Therapeutics Inc*,# | | 374,293 | | | 7,160,225 | |
| | Edgewise Therapeutics Inc*,# | | 418,884 | | | 4,063,175 | |
| | Elanco Animal Health Inc* | | 1,333,035 | | | 34,778,883 | |
| | Eli Lilly & Co | | 404,436 | | | 115,818,337 | |
| | Everest Medicines Ltd (144A)* | | 1,346,919 | | | 4,415,132 | |
| | Harmony Biosciences Holdings Inc* | | 459,007 | | | 22,330,691 | |
| | Horizon Therapeutics PLC* | | 642,086 | | | 67,553,868 | |
| | Jazz Pharmaceuticals PLC* | | 342,248 | | | 53,277,746 | |
| | Johnson & Johnson | | 260,423 | | | 46,154,768 | |
| | Merck & Co Inc | | 1,233,322 | | | 101,194,070 | |
| | Novartis AG (ADR) | | 1,131,195 | | | 99,262,361 | |
| | Novo Nordisk A/S | | 630,460 | | | 69,833,811 | |
| | Organon & Co | | 1,314,106 | | | 45,901,723 | |
| | Pfizer Inc | | 1,039,008 | | | 53,789,444 | |
| | Phathom Pharmaceuticals Inc* | | 428,421 | | | 5,830,810 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Pharmaceuticals– (continued) | | | |
| | Roche Holding AG | | 334,801 | | | $132,427,028 | |
| | Royalty Pharma PLC - Class A | | 826,706 | | | 32,208,466 | |
| | Sanofi | | 945,001 | | | 96,361,896 | |
| | Takeda Pharmaceutical Co Ltd | | 973,636 | | | 27,869,886 | |
| | Ventyx Biosciences Inc*,§ | | 297,621 | | | 3,836,781 | |
| | Ventyx Biosciences Inc*,# | | 240,596 | | | 3,264,888 | |
| | | 1,434,703,603 | |
Total Common Stocks (cost $3,045,377,189) | | 4,454,071,893 | |
Preferred Stocks– 2.0% | | | |
Biotechnology – 1.2% | | | |
| | Arbor Biotechnologies Inc PP*,¢,§ | | 156,426 | | | 2,591,979 | |
| | Asher Biotherapeutics Inc PP*,¢,§ | | 1,214,301 | | | 2,438,924 | |
| | Attralus Inc PP*,¢,§ | | 669,935 | | | 5,198,696 | |
| | Disc Medicine Inc PP*,¢,§ | | 1,084,584 | | | 2,603,002 | |
| | Element Biosciences Inc PP*,¢,§ | | 425,023 | | | 8,737,070 | |
| | Flame Biosciences PP*,¢,§ | | 919,200 | | | 3,018,653 | |
| | HemoShear Therapeutics LLC PP*,¢,§ | | 289,280 | | | 3,839,396 | |
| | LEXEO Therapeutics Inc - Series A PP*,¢,§ | | 3,643,715 | | | 6,268,975 | |
| | LEXEO Therapeutics Inc - Series B PP*,¢,§ | | 883,469 | | | 1,520,000 | |
| | Shoreline Biosciences Inc PP*,¢,§ | | 747,187 | | | 7,522,230 | |
| | Sonoma Biotherapeutics Inc PP*,¢,§ | | 1,255,200 | | | 2,480,652 | |
| | Synthekine Inc PP*,¢,§ | | 2,192,937 | | | 6,290,001 | |
| | TwinStrand Biosciences Inc PP*,¢,§ | | 344,314 | | | 2,750,001 | |
| | | 55,259,579 | |
Health Care Providers & Services – 0.4% | | | |
| | Bigfoot Biomedical Inc - Series B PP*,¢,§ | | 1,035,873 | | | 9,808,940 | |
| | Bigfoot Biomedical Inc - Series C-1 PP*,¢,§ | | 168,418 | | | 1,594,792 | |
| | Freenome Holdings Inc PP*,¢,§ | | 342,803 | | | 4,000,511 | |
| | Freenome Inc PP*,¢,§ | | 337,474 | | | 3,938,322 | |
| | | 19,342,565 | |
Health Care Technology – 0.1% | | | |
| | Magnolia Medical Technologies Inc PP - Series D*,¢,§ | | 1,821,717 | | | 3,092,693 | |
Pharmaceuticals – 0.3% | | | |
| | Neurogene Inc PP*,¢,§ | | 1,336,317 | | | 3,260,613 | |
| | Neurogene Inc PP - Series B*,¢,§ | | 1,486,727 | | | 3,627,614 | |
| | VALENZABio Series A PP*,¢,§ | | 700,559 | | | 6,235,276 | |
| | | 13,123,503 | |
Total Preferred Stocks (cost $87,834,582) | | 90,818,340 | |
Rights– 0% | | | |
Biotechnology – 0% | | | |
| | Clementia Pharmaceuticals Inc CVR*,¢((cost $1,180,320) | | 874,311 | | | 0 | |
Warrants– 0% | | | |
Health Care Technology – 0% | | | |
| | Magnolia Medical Technologies Inc - Series D, expires 12/31/22*,¢,§((cost $0) | | 1 | | | 0 | |
Investment Companies– 0.3% | | | |
Money Markets – 0.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $14,797,064) | | 14,795,584 | | | 14,797,064 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.6% | | | |
Investment Companies – 0.5% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 23,420,779 | | | 23,420,779 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $5,855,195 | | | 5,855,195 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $29,275,974) | | 29,275,974 | |
Total Investments (total cost $3,178,465,129) – 100.0% | | 4,588,963,271 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 611,690 | |
Net Assets – 100% | | $4,589,574,961 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,744,572,849 | | 81.6 | % |
Switzerland | | 231,689,389 | | 5.1 | |
United Kingdom | | 226,414,107 | | 4.9 | |
Denmark | | 124,830,585 | | 2.7 | |
France | | 96,361,896 | | 2.1 | |
Japan | | 74,473,842 | | 1.6 | |
Belgium | | 56,715,756 | | 1.2 | |
Ireland | | 23,761,135 | | 0.5 | |
China | | 4,415,132 | | 0.1 | |
Hong Kong | | 3,058,190 | | 0.1 | |
Canada | | 2,670,390 | | 0.1 | |
| | | | | | |
| | | | | | |
Total | | $4,588,963,271 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Life Sciences Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 5,509 | $ | - | $ | - | $ | 14,797,064 |
Investments Purchased with Cash Collateral from Securities Lending - 0.5% |
Investment Companies - 0.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 213,851∆ | | - | | - | | 23,420,779 |
Total Affiliated Investments - 0.8% | $ | 219,360 | $ | - | $ | - | $ | 38,217,843 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 13,474,132 | | 237,526,697 | | (236,203,765) | | 14,797,064 |
Investments Purchased with Cash Collateral from Securities Lending - 0.5% |
Investment Companies - 0.5% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 14,830,192 | | 159,746,267 | | (151,155,680) | | 23,420,779 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI World Health Care IndexSM | MSCI World Health Care IndexSM reflects the performance of health care stocks from global developed markets. |
| | |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $4,415,132, which represents 0.1% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $90,818,340, which represents 2.0% of net assets. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
Janus Henderson Global Life Sciences Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Arbor Biotechnologies Inc PP | 10/29/21 | $ | 2,591,979 | $ | 2,591,979 | | 0.1 | % |
Asher Biotherapeutics Inc PP | 8/23/21 | | 2,438,924 | | 2,438,924 | | 0.0 | |
Attralus Inc PP | 8/31/21 | | 5,198,696 | | 5,198,696 | | 0.1 | |
Bigfoot Biomedical Inc - Series B PP | 11/21/17 | | 9,808,940 | | 9,808,940 | | 0.2 | |
Bigfoot Biomedical Inc - Series C-1 PP | 12/27/19 | | 1,355,580 | | 1,594,792 | | 0.0 | |
Canbridge Cornerstone | 12/6/21 | | 2,087,699 | | 978,825 | | 0.0 | |
CANbridge Pharmaceuticals Inc | 4/27/21 | | 4,371,964 | | 2,079,365 | | 0.0 | |
DiCE Molecules Holdings LLC | 8/20/21 | | 2,594,601 | | 3,677,953 | | 0.1 | |
Disc Medicine Inc PP | 8/23/21 | | 2,603,002 | | 2,603,002 | | 0.1 | |
Element Biosciences Inc PP | 6/21/21 | | 8,737,070 | | 8,737,070 | | 0.2 | |
Flame Biosciences PP | 9/28/20 | | 6,020,760 | | 3,018,653 | | 0.1 | |
Freenome Holdings Inc PP | 11/22/21 | | 2,585,523 | | 4,000,511 | | 0.1 | |
Freenome Inc PP | 8/14/20 | | 2,231,817 | | 3,938,322 | | 0.1 | |
HemoShear Therapeutics LLC PP | 2/5/21 | | 3,839,496 | | 3,839,396 | | 0.1 | |
LEXEO Therapeutics Inc - Series A PP | 11/20/20 - 7/30/21 | | 3,643,715 | | 6,268,975 | | 0.1 | |
LEXEO Therapeutics Inc - Series B PP | 8/10/21 | | 1,520,000 | | 1,520,000 | | 0.0 | |
Magnolia Medical Technologies Inc - Series D | 1/10/22 | | 0 | | 0 | | 0.0 | |
Magnolia Medical Technologies Inc PP - Series D | 1/10/22 | | 3,092,693 | | 3,092,693 | | 0.1 | |
Neurogene Inc PP | 3/4/22 | | 3,260,613 | | 3,260,613 | | 0.1 | |
Neurogene Inc PP - Series B | 12/15/20 - 9/22/21 | | 3,627,614 | | 3,627,614 | | 0.1 | |
Pyxis Oncology Inc | 3/5/21 | | 2,994,084 | | 1,097,998 | | 0.0 | |
Shoreline Biosciences Inc PP | 10/28/21 | | 7,522,230 | | 7,522,230 | | 0.2 | |
Sonoma Biotherapeutics Inc PP | 7/23/21 | | 2,480,652 | | 2,480,652 | | 0.0 | |
Synthekine Inc PP | 6/3/21 | | 6,290,001 | | 6,290,001 | | 0.1 | |
TwinStrand Biosciences Inc PP | 4/30/21 | | 2,750,001 | | 2,750,001 | | 0.1 | |
VALENZABio Series A PP | 3/25/21 | | 6,235,276 | | 6,235,276 | | 0.1 | |
Ventyx Biosciences Inc | 2/26/21 - 10/15/21 | | 2,923,730 | | 3,836,781 | | 0.1 | |
Total | | $ | 102,806,660 | $ | 102,489,262 | | 2.2 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Global Life Sciences Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Biotechnology | $ | 1,139,390,210 | $ | 4,775,951 | $ | - |
Pharmaceuticals | | 844,636,470 | | 590,067,133 | | - |
All Other | | 1,875,202,129 | | - | | - |
Preferred Stocks | | - | | - | | 90,818,340 |
Rights | | - | | - | | 0 |
Warrants | | - | | - | | 0 |
Investment Companies | | - | | 14,797,064 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 29,275,974 | | - |
Total Assets | $ | 3,859,228,809 | $ | 638,916,122 | $ | 90,818,340 |
| | | | | | | |
| | | | | | | | |
Level 3 Valuation Reconciliation of Assets (for the period ended March 31, 2022) |
| | | | | | | |
| Balance
as of
September 30, 2021 | Realized
Gain/(Loss) | Change in
Unrealized
Appreciation/
Depreciation(a) | Gross
Purchases | Gross
Sales | Transfers In
and/or
Out of Level 3 | Balance
as of
March 31, 2022 |
Investment in Securities: | | | | | | | |
Common Stocks | | | | | | | |
Biotechnology | $ 2,994,084 | $ - | $ - | $ - | $ - | $ (2,994,084) | $ - |
Pharmaceuticals | 3,017,138 | - | - | - | - | (3,017,138) | - |
Preferred Stocks | | | | | | | |
Biotechnology | 48,897,489 | - | (3,002,118) | 10,114,209 | (750,001)(b) | - | 55,259,579 |
Health Care Providers & Services | 13,635,549 | - | 3,121,493 | 2,585,523 | - | - | 19,342,565 |
Health Care Technology | - | - | - | 3,092,693 | - | - | 3,092,693 |
Pharmaceuticals | 19,317,934 | 10,032,062 | - | 3,627,614 | (19,854,107)(b) | - | 13,123,503 |
Rights | | | | | | | |
Biotechnology | 0 | - | - | - | - | - | 0 |
Warrants | | | | | | | |
Health Care Technology | - | - | - | 0 | - | - | 0 |
Total | $ 87,862,194 | $10,032,062 | $119,375 | $19,420,039 | $(20,604,108) | $(6,011,222) | $ 90,818,340 |
(a) Included in "Change in unrealized net appreciation/depreciation of investments, foreign currency translations and non-interested Trustees' deferred compensation" on the Statement of Operations. |
(b) All or a portion is the result of a corporate action. |
Janus Henderson Global Life Sciences Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,140,247,286)(1) | | $ | 4,550,745,428 | |
| Affiliated investments, at value (cost $38,217,843) | | | 38,217,843 | |
| Non-interested Trustees' deferred compensation | | | 126,002 | |
| Receivables: | | | | |
| | Investments sold | | | 28,050,696 | |
| | Foreign tax reclaims | | | 8,147,233 | |
| | Dividends | | | 3,677,016 | |
| | Fund shares sold | | | 3,656,822 | |
| | Dividends from affiliates | | | 1,607 | |
| Other assets | | | 190,320 | |
Total Assets | | | 4,632,812,967 | |
Liabilities: | | | | |
| Due to custodian | | | 176 | |
| Collateral for securities loaned (Note 2) | | | 29,275,974 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 4,874,512 | |
| | Investments purchased | | | 4,540,700 | |
| | Advisory fees | | | 2,435,793 | |
| | Transfer agent fees and expenses | | | 686,662 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 176,036 | |
| | Non-interested Trustees' deferred compensation fees | | | 126,002 | |
| | Professional fees | | | 35,609 | |
| | Non-interested Trustees' fees and expenses | | | 17,464 | |
| | Custodian fees | | | 14,826 | |
| | Affiliated fund administration fees payable | | | 9,515 | |
| | Accrued expenses and other payables | | | 1,044,737 | |
Total Liabilities | | | 43,238,006 | |
Net Assets | | $ | 4,589,574,961 | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,164,500,941 | |
| Total distributable earnings (loss) | | | 1,425,074,020 | |
Total Net Assets | | $ | 4,589,574,961 | |
Net Assets - Class A Shares | | $ | 264,153,886 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,114,912 | |
Net Asset Value Per Share(2) | | $ | 64.19 | |
Maximum Offering Price Per Share(3) | | $ | 68.11 | |
Net Assets - Class C Shares | | $ | 138,490,031 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,423,090 | |
Net Asset Value Per Share(2) | | $ | 57.15 | |
Net Assets - Class D Shares | | $ | 1,740,348,317 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 26,510,386 | |
Net Asset Value Per Share | | $ | 65.65 | |
Net Assets - Class I Shares | | $ | 978,821,154 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 14,880,592 | |
Net Asset Value Per Share | | $ | 65.78 | |
Net Assets - Class N Shares | | $ | 170,563,501 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,603,004 | |
Net Asset Value Per Share | | $ | 65.53 | |
Net Assets - Class S Shares | | $ | 27,868,328 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 443,953 | |
Net Asset Value Per Share | | $ | 62.77 | |
Net Assets - Class T Shares | | $ | 1,269,329,744 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 19,448,256 | |
Net Asset Value Per Share | | $ | 65.27 | |
| |
(1) Includes $28,274,822 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Life Sciences Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 27,274,369 | |
| Affiliated securities lending income, net | | 213,851 | |
| Dividends from affiliates | | 5,509 | |
| Unaffiliated securities lending income, net | | 2,089 | |
| Other income | | 13,571 | |
| Foreign tax withheld | | (1,264,889) | |
Total Investment Income | | 26,244,500 | |
Expenses: | | | |
| Advisory fees | | 15,175,907 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 340,058 | |
| | Class C Shares | | 636,027 | |
| | Class S Shares | | 34,934 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 991,827 | |
| | Class S Shares | | 34,934 | |
| | Class T Shares | | 1,642,343 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 73,036 | |
| | Class C Shares | | 64,888 | |
| | Class I Shares | | 467,513 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 8,867 | |
| | Class C Shares | | 3,753 | |
| | Class D Shares | | 116,461 | |
| | Class I Shares | | 24,227 | |
| | Class N Shares | | 3,412 | |
| | Class S Shares | | 184 | |
| | Class T Shares | | 6,768 | |
| Custodian fees | | 151,815 | |
| Shareholder reports expense | | 127,670 | |
| Registration fees | | 91,811 | |
| Affiliated fund administration fees | | 59,280 | |
| Non-interested Trustees’ fees and expenses | | 39,894 | |
| Professional fees | | 37,294 | |
| Other expenses | | 161,173 | |
Total Expenses | | 20,294,076 | |
Less: Excess Expense Reimbursement and Waivers | | (108,158) | |
Net Expenses | | 20,185,918 | |
Net Investment Income/(Loss) | | 6,058,582 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 78,743,716 | |
Total Net Realized Gain/(Loss) on Investments | | 78,743,716 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (185,611,092) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (185,611,092) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (100,808,794) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Life Sciences Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 6,058,582 | | $ | 10,762,121 | |
| Net realized gain/(loss) on investments | | 78,743,716 | | | 471,576,883 | |
| Change in unrealized net appreciation/depreciation | | (185,611,092) | | | 292,698,976 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (100,808,794) | | | 775,037,980 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (26,218,234) | | | (18,584,738) | |
| | Class C Shares | | (14,503,583) | | | (12,865,282) | |
| | Class D Shares | | (168,341,359) | | | (135,531,132) | |
| | Class I Shares | | (98,682,706) | | | (75,698,067) | |
| | Class N Shares | | (17,490,827) | | | (15,855,433) | |
| | Class S Shares | | (2,696,809) | | | (2,041,558) | |
| | Class T Shares | | (124,306,069) | | | (103,625,067) | |
Net Decrease from Dividends and Distributions to Shareholders | | (452,239,587) | | | (364,201,277) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 10,719,363 | | | 35,581,878 | |
| | Class C Shares | | (290,891) | | | (11,323,552) | |
| | Class D Shares | | 96,451,634 | | | 37,946,936 | |
| | Class I Shares | | 20,636,892 | | | 79,042,566 | |
| | Class N Shares | | 15,737,735 | | | 21,543,883 | |
| | Class S Shares | | 3,676,836 | | | 1,021,030 | |
| | Class T Shares | | 42,785,050 | | | (8,784,551) | |
Net Increase/(Decrease) from Capital Share Transactions | | 189,716,619 | | | 155,028,190 | |
Net Increase/(Decrease) in Net Assets | | (363,331,762) | | | 565,864,893 | |
Net Assets: | | | | | | |
| Beginning of period | | 4,952,906,723 | | | 4,387,041,830 | |
| End of period | $ | 4,589,574,961 | | $ | 4,952,906,723 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $72.24 | | | $66.20 | | | $53.89 | | | $64.96 | | | $55.76 | | | $49.16 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.04 | | | 0.07 | | | 0.41(2) | | | 0.17 | | | 0.01 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | (1.38) | | | 11.44 | | | 15.62 | | | (4.52) | | | 9.74 | | | 7.01 | |
| Total from Investment Operations | | (1.34) | | | 11.51 | | | 16.03 | | | (4.35) | | | 9.75 | | | 7.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.76) | | | (0.66) | | | (0.40) | | | — | | | (0.07) | | | (0.03) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (6.71) | | | (5.47) | | | (3.72) | | | (6.72) | | | (0.55) | | | (0.46) | |
| Net Asset Value, End of Period | | $64.19 | | | $72.24 | | | $66.20 | | | $53.89 | | | $64.96 | | | $55.76 | |
| Total Return* | | (2.11)% | | | 17.70% | | | 30.58% | | | (5.85)% | | | 17.70% | | | 14.58% | |
| Net Assets, End of Period (in thousands) | | $264,154 | | | $285,239 | | | $228,005 | | | $177,862 | | | $195,674 | | | $188,407 | |
| Average Net Assets for the Period (in thousands) | | $272,793 | | | $264,335 | | | $198,807 | | | $182,919 | | | $181,464 | | | $206,577 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.98% | | | 0.97% | | | 0.98% | | | 1.00% | | | 0.99% | | | 1.02% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.98% | | | 0.97% | | | 0.98% | | | 1.00% | | | 0.99% | | | 1.02% | |
| | Ratio of Net Investment Income/(Loss) | | 0.13% | | | 0.10% | | | 0.69%(2) | | | 0.30% | | | 0.02% | | | 0.10% | |
| Portfolio Turnover Rate | | 11% | | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $64.73 | | | $59.83 | | | $49.00 | | | $60.16 | | | $52.00 | | | $46.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.16) | | | (0.39) | | | —(2)(3) | | | (0.21) | | | (0.40) | | | (0.27) | |
| | Net realized and unrealized gain/(loss) | | (1.22) | | | 10.32 | | | 14.15 | | | (4.23) | | | 9.04 | | | 6.52 | |
| Total from Investment Operations | | (1.38) | | | 9.93 | | | 14.15 | | | (4.44) | | | 8.64 | | | 6.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.22) | | | —(3) | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (6.20) | | | (5.03) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Net Asset Value, End of Period | | $57.15 | | | $64.73 | | | $59.83 | | | $49.00 | | | $60.16 | | | $52.00 | |
| Total Return* | | (2.42)% | | | 16.86% | | | 29.66% | | | (6.53)% | | | 16.81% | | | 13.76% | |
| Net Assets, End of Period (in thousands) | | $138,490 | | | $157,110 | | | $155,599 | | | $148,147 | | | $182,894 | | | $180,251 | |
| Average Net Assets for the Period (in thousands) | | $147,471 | | | $165,379 | | | $156,935 | | | $163,407 | | | $173,167 | | | $175,301 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.62% | | | 1.69% | | | 1.69% | | | 1.71% | | | 1.75% | | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.62% | | | 1.69% | | | 1.69% | | | 1.71% | | | 1.75% | | | 1.76% | |
| | Ratio of Net Investment Income/(Loss) | | (0.53)% | | | (0.61)% | | | (0.01)%(2) | | | (0.42)% | | | (0.74)% | | | (0.59)% | |
| Portfolio Turnover Rate | | 11% | | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. 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 $0.29 and 0.49%, respectively, for Class A Shares and $0.27 and 0.49%, respectively, for Class C Shares. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $73.77 | | | $67.47 | | | $54.86 | | | $65.89 | | | $56.59 | | | $49.90 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.11 | | | 0.20 | | | 0.53(2) | | | 0.27 | | | 0.12 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | (1.41) | | | 11.66 | | | 15.90 | | | (4.58) | | | 9.86 | | | 7.07 | |
| Total from Investment Operations | | (1.30) | | | 11.86 | | | 16.43 | | | (4.31) | | | 9.98 | | | 7.25 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.87) | | | (0.75) | | | (0.50) | | | — | | | (0.20) | | | (0.13) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (6.82) | | | (5.56) | | | (3.82) | | | (6.72) | | | (0.68) | | | (0.56) | |
| Net Asset Value, End of Period | | $65.65 | | | $73.77 | | | $67.47 | | | $54.86 | | | $65.89 | | | $56.59 | |
| Total Return* | | (2.01)% | | | 17.91% | | | 30.80% | | | (5.69)% | | | 17.91% | | | 14.81% | |
| Net Assets, End of Period (in thousands) | | $1,740,348 | | | $1,848,983 | | | $1,653,849 | | | $1,372,808 | | | $1,549,599 | | | $1,406,708 | |
| Average Net Assets for the Period (in thousands) | | $1,783,813 | | | $1,837,079 | | | $1,526,148 | | | $1,449,521 | | | $1,404,624 | | | $1,315,724 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.80% | | | 0.81% | | | 0.82% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.80% | | | 0.81% | | | 0.82% | | | 0.82% | | | 0.82% | |
| | Ratio of Net Investment Income/(Loss) | | 0.31% | | | 0.28% | | | 0.87%(2) | | | 0.48% | | | 0.20% | | | 0.36% | |
| Portfolio Turnover Rate | | 11% | | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $73.93 | | | $67.61 | | | $54.96 | | | $65.96 | | | $56.66 | | | $49.96 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.12 | | | 0.23 | | | 0.57(2) | | | 0.30 | | | 0.15 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | (1.41) | | | 11.69 | | | 15.93 | | | (4.58) | | | 9.87 | | | 7.08 | |
| Total from Investment Operations | | (1.29) | | | 11.92 | | | 16.50 | | | (4.28) | | | 10.02 | | | 7.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.91) | | | (0.79) | | | (0.53) | | | — | | | (0.24) | | | (0.17) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (6.86) | | | (5.60) | | | (3.85) | | | (6.72) | | | (0.72) | | | (0.60) | |
| Net Asset Value, End of Period | | $65.78 | | | $73.93 | | | $67.61 | | | $54.96 | | | $65.96 | | | $56.66 | |
| Total Return* | | (2.00)% | | | 17.96% | | | 30.89% | | | (5.63)% | | | 17.97% | | | 14.90% | |
| Net Assets, End of Period (in thousands) | | $978,821 | | | $1,079,081 | | | $911,963 | | | $692,575 | | | $762,127 | | | $629,650 | |
| Average Net Assets for the Period (in thousands) | | $1,027,639 | | | $1,033,591 | | | $790,645 | | | $719,800 | | | $688,302 | | | $493,309 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.75% | | | 0.77% | | | 0.76% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.75% | | | 0.77% | | | 0.76% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.34% | | | 0.32% | | | 0.93%(2) | | | 0.53% | | | 0.26% | | | 0.43% | |
| Portfolio Turnover Rate | | 11% | | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. 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 $0.30 and 0.49%, respectively. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $73.69 | | | $67.41 | | | $54.81 | | | $65.76 | | | $59.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.15 | | | 0.31 | | | 0.66(3) | | | 0.36 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | (1.39) | | | 11.62 | | | 15.85 | | | (4.59) | | | 6.01 | |
| Total from Investment Operations | | (1.24) | | | 11.93 | | | 16.51 | | | (4.23) | | | 6.17 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.97) | | | (0.84) | | | (0.59) | | | — | | | — | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | — | |
| Total Dividends and Distributions | | (6.92) | | | (5.65) | | | (3.91) | | | (6.72) | | | — | |
| Net Asset Value, End of Period | | $65.53 | | | $73.69 | | | $67.41 | | | $54.81 | | | $65.76 | |
| Total Return* | | (1.94)% | | | 18.04% | | | 30.99% | | | (5.57)% | | | 10.35% | |
| Net Assets, End of Period (in thousands) | | $170,564 | | | $176,576 | | | $144,543 | | | $90,958 | | | $104,903 | |
| Average Net Assets for the Period (in thousands) | | $178,274 | | | $176,137 | | | $110,308 | | | $99,924 | | | $24,212 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.67% | | | 0.67% | | | 0.68% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.67% | | | 0.67% | | | 0.68% | | | 0.70% | |
| | Ratio of Net Investment Income/(Loss) | | 0.44% | | | 0.43% | | | 1.08%(3) | | | 0.63% | | | 0.39% | |
| Portfolio Turnover Rate | | 11% | | | 32% | | | 43% | | | 36% | | | 46% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $70.72 | | | $64.93 | | | $52.94 | | | $64.07 | | | $55.09 | | | $48.62 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.02) | | | (0.07) | | | 0.31(3) | | | 0.07 | | | (0.08) | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (1.35) | | | 11.21 | | | 15.31 | | | (4.48) | | | 9.60 | | | 6.90 | |
| Total from Investment Operations | | (1.37) | | | 11.14 | | | 15.62 | | | (4.41) | | | 9.52 | | | 6.91 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.63) | | | (0.54) | | | (0.31) | | | — | | | (0.06) | | | (0.01) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (6.58) | | | (5.35) | | | (3.63) | | | (6.72) | | | (0.54) | | | (0.44) | |
| Net Asset Value, End of Period | | $62.77 | | | $70.72 | | | $64.93 | | | $52.94 | | | $64.07 | | | $55.09 | |
| Total Return* | | (2.20)% | | | 17.46% | | | 30.33% | | | (6.04)% | | | 17.49% | | | 14.43% | |
| Net Assets, End of Period (in thousands) | | $27,868 | | | $27,575 | | | $24,287 | | | $18,981 | | | $20,113 | | | $17,189 | |
| Average Net Assets for the Period (in thousands) | | $28,024 | | | $27,694 | | | $22,312 | | | $19,870 | | | $18,269 | | | $15,685 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.17% | | | 1.18% | | | 1.19% | | | 1.18% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.17% | | | 1.18% | | | 1.18% | | | 1.17% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | (0.06)% | | | (0.09)% | | | 0.52%(3) | | | 0.14% | | | (0.14)% | | | 0.02% | |
| Portfolio Turnover Rate | | 11% | | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from January 26, 2018 (inception date) through September 30, 2018. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. 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 $0.30 and 0.49%, respectively, for Class N Shares and $0.29 and 0.49%, respectively, for Class S Shares. (4) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Life Sciences Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $73.33 | | | $67.11 | | | $54.59 | | | $65.66 | | | $56.39 | | | $49.71 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.12 | | | 0.46(2) | | | 0.22 | | | 0.06 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (1.39) | | | 11.60 | | | 15.82 | | | (4.57) | | | 9.84 | | | 7.06 | |
| Total from Investment Operations | | (1.32) | | | 11.72 | | | 16.28 | | | (4.35) | | | 9.90 | | | 7.19 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.79) | | | (0.69) | | | (0.44) | | | — | | | (0.15) | | | (0.08) | |
| | Distributions (from capital gains) | | (5.95) | | | (4.81) | | | (3.32) | | | (6.72) | | | (0.48) | | | (0.43) | |
| Total Dividends and Distributions | | (6.74) | | | (5.50) | | | (3.76) | | | (6.72) | | | (0.63) | | | (0.51) | |
| Net Asset Value, End of Period | | $65.27 | | | $73.33 | | | $67.11 | | | $54.59 | | | $65.66 | | | $56.39 | |
| Total Return* | | (2.06)% | | | 17.78% | | | 30.66% | | | (5.78)% | | | 17.80% | | | 14.71% | |
| Net Assets, End of Period (in thousands) | | $1,269,330 | | | $1,378,342 | | | $1,268,796 | | | $1,102,667 | | | $1,293,953 | | | $1,323,853 | |
| Average Net Assets for the Period (in thousands) | | $1,317,484 | | | $1,394,446 | | | $1,191,342 | | | $1,180,068 | | | $1,230,729 | | | $1,282,363 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.91% | | | 0.92% | | | 0.92% | | | 0.92% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 0.21% | | | 0.17% | | | 0.76%(2) | | | 0.38% | | | 0.10% | | | 0.26% | |
| Portfolio Turnover Rate | | 11% | | | 32% | | | 43% | | | 36% | | | 46% | | | 38% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Allergan PLC in May 2020. 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 $0.30 and 0.49%, respectively. |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Global Life Sciences Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. For private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under ASC 820. These are categorized as Level 3 in the hierarchy.
For significant fair value measurements categorized within Level 3 of the fair value hierarchy, the table below summarizes the valuation techniques and provides quantitative information about the significant unobservable inputs. In addition, the table provides a narrative description of the uncertainty of the fair value measurement based on the use of significant unobservable inputs that have been different, or that reasonable could have been different, at the reporting date.
| | | | | | | |
Asset | Fair Value at March 31, 2022 | Valuation Technique | Unobservable Input | Input Amount or Range | Weighted Average(1) | Impact to Valuation from an Increase in Input |
Preferred Stock | | | | | | |
Biotechnology | $52,240,926 | Market Approach | Transaction Price | $1.72 - $20.56 | $8.79 | Increase |
Biotechnology | $3,018,653 | Income Approach | Liquidation Basis | $3.28 | $3.28 | Increase |
Health Care Providers & Services | $19,342,565 | Market Approach | Transaction Price | $9.47-$11.67 | $10.37 | Increase |
Health Care Technology | $3,092,693 | Market Approach | Transaction Price | $1.70 | $1.70 | Increase |
Pharmaceuticals | $13,123,504 | Market Approach | Transaction Price | $2.44-$8.90 | $5.51 | Increase |
| | | | | | | |
(1) Unobservable inputs were weighted by the relative fair value of securities.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” and "Level 3 Valuation Reconciliation of Assets" in the Notes to Schedule of Investments and Other Information.
The following describes the amounts of transfers into or out of Level 3 of the fair value hierarchy during the period.
Financial assets of $6,011,222 were transferred out of Level 3 to Level 2 since certain securities prices were determined using other significant observable inputs at the end of the current fiscal year and significant unobservable inputs at the end of the prior fiscal year.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
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
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
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.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 28,274,822 | $ | �� | $ | (28,274,822) | $ | — |
| | | | | | | | | |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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 certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $28,274,822. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $29,275,974, resulting in the net amount due to the counterparty of $1,001,152.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.64% of its average daily net assets.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $16,791.
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. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class A Shares paid CDSCs of $268 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $5,018.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the period ended March 31, 2022, the Fund engaged in cross trades amounting to $656,024 in purchases.
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 3,235,742,590 | $ 1,515,699,745 | $(162,479,064) | $ 1,353,220,681 |
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 370,227 | $ 24,640,039 | | 987,440 | $ 69,959,356 |
Reinvested dividends and distributions | 283,164 | 18,688,820 | | 185,271 | 12,904,091 |
Shares repurchased | (487,147) | (32,609,496) | | (668,185) | (47,281,569) |
Net Increase/(Decrease) | 166,244 | $ 10,719,363 | | 504,526 | $ 35,581,878 |
Class C Shares: | | | | | |
Shares sold | 80,086 | $ 4,858,325 | | 318,940 | $ 20,349,513 |
Reinvested dividends and distributions | 229,759 | 13,525,931 | | 189,458 | 11,894,185 |
Shares repurchased | (313,790) | (18,675,147) | | (682,174) | (43,567,250) |
Net Increase/(Decrease) | (3,945) | $ (290,891) | | (173,776) | $ (11,323,552) |
Class D Shares: | | | | | |
Shares sold | 388,696 | $ 26,477,476 | | 1,219,273 | $ 87,819,205 |
Reinvested dividends and distributions | 2,417,153 | 163,061,184 | | 1,852,297 | 131,568,627 |
Shares repurchased | (1,360,730) | (93,087,026) | | (2,518,669) | (181,440,896) |
Net Increase/(Decrease) | 1,445,119 | $ 96,451,634 | | 552,901 | $ 37,946,936 |
Class I Shares: | | | | | |
Shares sold | 1,940,692 | $132,553,531 | | 3,555,786 | $257,040,480 |
Reinvested dividends and distributions | 1,185,696 | 80,141,190 | | 863,183 | 61,415,492 |
Shares repurchased | (2,842,693) | (192,057,829) | | (3,310,779) | (239,413,406) |
Net Increase/(Decrease) | 283,695 | $ 20,636,892 | | 1,108,190 | $ 79,042,566 |
Class N Shares: | | | | | |
Shares sold | 487,072 | $ 34,032,678 | | 2,265,994 | $162,865,089 |
Reinvested dividends and distributions | 259,287 | 17,452,575 | | 223,607 | 15,851,522 |
Shares repurchased | (539,405) | (35,747,518) | | (2,237,919) | (157,172,728) |
Net Increase/(Decrease) | 206,954 | $ 15,737,735 | | 251,682 | $ 21,543,883 |
Class S Shares: | | | | | |
Shares sold | 63,970 | $ 4,360,377 | | 87,091 | $ 6,027,153 |
Reinvested dividends and distributions | 41,766 | 2,696,809 | | 29,891 | 2,041,558 |
Shares repurchased | (51,709) | (3,380,350) | | (101,125) | (7,047,681) |
Net Increase/(Decrease) | 54,027 | $ 3,676,836 | | 15,857 | $ 1,021,030 |
Class T Shares: | | | | | |
Shares sold | 572,452 | $ 38,873,205 | | 1,915,324 | $137,627,328 |
Reinvested dividends and distributions | 1,809,837 | 121,421,995 | | 1,432,638 | 101,244,513 |
Shares repurchased | (1,729,773) | (117,510,150) | | (3,457,768) | (247,656,392) |
Net Increase/(Decrease) | 652,516 | $ 42,785,050 | | (109,806) | $ (8,784,551) |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$524,443,111 | $ 770,250,313 | $ - | $ - |
Janus Henderson Global Life Sciences Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Global Life Sciences Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Life Sciences Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Life Sciences Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Global Life Sciences Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Life Sciences Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Global Life Sciences Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Global Life Sciences Fund
Useful Information About Your Fund Report (unaudited)
portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93043 05-22 |
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| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Global Real Estate Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Real Estate Fund
| | | | | | |
FUND SNAPSHOT A global equity fund that seeks total return through a combination of capital appreciation and current income. The Fund invests in REITs and real estate-related businesses. Our emphasis on local property market knowledge combined with a repeatable, disciplined investment process seeks to provide diversification from traditional asset classes for investors. | | | 
Greg Kuhl co-portfolio manager | 
Tim Gibson co-portfolio manager | 
Guy Barnard co-portfolio manager |
| | | |
Janus Henderson Global Real Estate Fund (unaudited)
Fund At A Glance
March 31, 2022
| | | | | | | | | | |
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| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Rexford Industrial Realty Inc | 2.36% | | 0.51% | | Shimao Property Holdings Ltd | 0.40% | | -0.65% |
| Duke Realty Corp | 1.70% | | 0.48% | | Instone Real Estate Group AG | 0.89% | | -0.49% |
| Prologis Inc | 7.01% | | 0.43% | | GDS Holdings Ltd - Class A | 0.76% | | -0.30% |
| Hilton Worldwide Holdings Inc | 2.05% | | 0.31% | | Sun Communities Inc | 3.93% | | -0.29% |
| Life Storage Inc | 2.29% | | 0.26% | | Cellnex Telecom SA | 0.84% | | -0.27% |
| | | | | | | |
| 1 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 0.31% | | 2.05% | 0.12% |
| | | | | | |
| | | | | | |
| 4 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | FTSE EPRA Nareit Global Index |
| | | Contribution | | Average Weight | Average Weight |
| Real Estate | | -1.45% | | 93.88% | 99.73% |
| Communication Services | | -0.43% | | 1.47% | 0.00% |
| Information Technology | | -0.30% | | 0.76% | 0.00% |
| Other** | | -0.21% | | 1.84% | 0.00% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Global Real Estate Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Prologis Inc | |
Equity Real Estate Investment Trusts (REITs) | 7.6% |
Alexandria Real Estate Equities Inc | |
Equity Real Estate Investment Trusts (REITs) | 4.1% |
Sun Communities Inc | |
Equity Real Estate Investment Trusts (REITs) | 3.9% |
UDR Inc | |
Equity Real Estate Investment Trusts (REITs) | 3.4% |
Welltower Inc | |
Equity Real Estate Investment Trusts (REITs) | 3.2% |
| | 22.2% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.2% | |
Investment Companies | | 2.9% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.4% | |
Other | | (0.5)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Real Estate Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 2.54% | 11.44% | 10.72% | 9.18% | 6.53% | | | 1.23% |
Class A Shares at MOP | | -3.33% | 5.02% | 9.42% | 8.54% | 6.09% | | | |
Class C Shares at NAV | | 2.14% | 10.60% | 9.86% | 8.34% | 5.78% | | | 2.04% |
Class C Shares at CDSC | | 1.16% | 9.60% | 9.86% | 8.34% | 5.78% | | | |
Class D Shares | | 2.61% | 11.62% | 10.90% | 9.37% | 6.04% | | | 1.06% |
Class I Shares | | 2.64% | 11.67% | 11.00% | 9.46% | 6.81% | | | 1.00% |
Class N Shares | | 2.69% | 11.81% | 11.09% | 9.51% | 6.84% | | | 0.90% |
Class S Shares | | 2.46% | 11.20% | 10.50% | 9.00% | 6.37% | | | 1.43% |
Class T Shares | | 2.50% | 11.50% | 10.84% | 9.30% | 6.26% | | | 1.14% |
FTSE EPRA Nareit Global Index | | 5.51% | 12.21% | 7.00% | 7.33% | 4.16% | | | |
FTSE EPRA Nareit Global Net Index | | 5.14% | 11.37% | 6.08% | 6.47% | N/A** | | | |
Morningstar Quartile - Class I Shares | | - | 3rd | 1st | 1st | 1st | | | |
Morningstar Ranking - based on total returns for Global Real Estate Funds | | - | 133/198 | 17/193 | 13/156 | 5/117 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Janus Henderson Global Real Estate Fund (unaudited)
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, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of Janus Adviser Global Real Estate Fund (“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 of the Fund commenced operations on January 26, 2018. Performance shown for Class N Shares reflects the historical performance of the Fund's Class I Shares from July 6, 2009 to January 26, 2018, calculated using the fees and expenses of Class I Shares, net of any applicable fee and expense limitations or waivers. Performance shown for Class N 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 I Shares of the predecessor fund, 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – November 28, 2007
**Since inception index return is not available for indices created subsequent to fund inception.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
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| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $1,025.40 | $6.31 | | $1,000.00 | $1,018.70 | $6.29 | 1.25% |
Class C Shares | $1,000.00 | $1,021.40 | $9.83 | | $1,000.00 | $1,015.21 | $9.80 | 1.95% |
Class D Shares | $1,000.00 | $1,026.10 | $5.35 | | $1,000.00 | $1,019.65 | $5.34 | 1.06% |
Class I Shares | $1,000.00 | $1,026.40 | $5.15 | | $1,000.00 | $1,019.85 | $5.14 | 1.02% |
Class N Shares | $1,000.00 | $1,026.90 | $4.60 | | $1,000.00 | $1,020.39 | $4.58 | 0.91% |
Class S Shares | $1,000.00 | $1,024.60 | $7.22 | | $1,000.00 | $1,017.80 | $7.19 | 1.43% |
Class T Shares | $1,000.00 | $1,025.00 | $5.81 | | $1,000.00 | $1,019.20 | $5.79 | 1.15% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Real Estate Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 97.2% | | | |
Diversified Telecommunication Services – 1.9% | | | |
| | Cellnex Telecom SA (144A)* | | 141,193 | | | $6,766,734 | |
| | Radius Global Infrastructure Inc* | | 715,736 | | | 10,220,710 | |
| | | 16,987,444 | |
Equity Real Estate Investment Trusts (REITs) – 73.6% | | | |
| | Activia Properties Inc | | 1,758 | | | 6,124,162 | |
| | Advance Residence Investment Corp | | 2,242 | | | 6,340,361 | |
| | Alexandria Real Estate Equities Inc | | 184,728 | | | 37,176,510 | |
| | CapitaLand Mall Trust | | 6,759,326 | | | 11,196,777 | |
| | CubeSmart | | 497,171 | | | 25,867,807 | |
| | Dexus | | 988,147 | | | 8,039,594 | |
| | Douglas Emmett Inc | | 372,911 | | | 12,462,686 | |
| | Equity LifeStyle Properties Inc | | 312,878 | | | 23,928,909 | |
| | Essex Property Trust Inc | | 67,652 | | | 23,372,413 | |
| | Gecina SA | | 67,000 | | | 8,429,060 | |
| | Goodman Group | | 1,173,830 | | | 19,931,885 | |
| | Hulic Inc | | 5,163 | | | 7,060,337 | |
| | Industrial & Infrastructure Fund Investment Corp | | 3,938 | | | 5,964,190 | |
| | Invitation Homes Inc | | 704,003 | | | 28,286,841 | |
| | Japan Hotel Investment Corp | | 17,352 | | | 8,849,300 | |
| | Japan Retail Fund Investment Corp | | 8,648 | | | 7,308,792 | |
| | Land Securities Group PLC | | 800,000 | | | 8,211,314 | |
| | LaSalle Logiport | | 4,173 | | | 6,003,238 | |
| | Life Storage Inc | | 198,030 | | | 27,809,353 | |
| | Mapletree Logistics Trust | | 4,639,745 | | | 6,314,012 | |
| | Merlin Properties Socimi SA | | 780,000 | | | 9,051,793 | |
| | MGM Growth Properties LLC | | 439,772 | | | 17,019,176 | |
| | National Retail Properties Inc | | 487,518 | | | 21,909,059 | |
| | Park Hotels & Resorts Inc | | 1,308,919 | | | 25,563,188 | |
| | Prologis Inc | | 422,046 | | | 68,086,506 | |
| | Rexford Industrial Realty Inc | | 374,099 | | | 27,904,044 | |
| | Safestore Holdings PLC | | 380,000 | | | 6,668,194 | |
| | SBA Communications Corp | | 56,878 | | | 19,571,720 | |
| | Segro PLC | | 810,000 | | | 14,266,368 | |
| | SITE Centers Corp | | 373,022 | | | 6,233,198 | |
| | Spirit Realty Capital Inc | | 574,387 | | | 26,433,290 | |
| | Sun Communities Inc | | 197,699 | | | 34,654,658 | |
| | UDR Inc | | 533,533 | | | 30,608,788 | |
| | UNITE Group PLC | | 435,000 | | | 6,589,298 | |
| | VICI Properties Inc | | 593,018 | | | 16,877,292 | |
| | Vicinity Centres | | 5,397,263 | | | 7,460,670 | |
| | Welltower Inc | | 298,418 | | | 28,689,907 | |
| | Workspace Group PLC | | 358,759 | | | 3,215,290 | |
| | | 659,479,980 | |
Information Technology Services – 0.6% | | | |
| | GDS Holdings Ltd - Class A* | | 1,056,256 | | | 5,276,715 | |
Real Estate Management & Development – 21.1% | | | |
| | Ayala Land Inc | | 10,516,500 | | | 7,110,681 | |
| | Capitaland Investment Ltd/Singapore* | | 3,739,300 | | | 10,964,935 | |
| | China Resources Land Ltd | | 2,736,000 | | | 12,682,562 | |
| | China Vanke Co Ltd | | 6,517,800 | | | 14,665,933 | |
| | CK Asset Holdings Ltd | | 1,819,000 | | | 12,432,833 | |
| | CTP NV (144A) | | 417,530 | | | 6,983,130 | |
| | Fastighets AB Balder* | | 217,000 | | | 14,206,587 | |
| | Hang Lung Properties Ltd | | 4,699,000 | | | 9,454,453 | |
| | Helical PLC | | 1,120,670 | | | 6,029,632 | |
| | Instone Real Estate Group AG (144A) | | 330,000 | | | 6,179,017 | |
| | LEG Immobilien AG# | | 86,000 | | | 9,820,015 | |
| | Mitsui Fudosan Co Ltd | | 863,400 | | | 18,475,468 | |
| | Swire Properties Ltd | | 4,590,000 | | | 11,380,730 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Global Real Estate Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Real Estate Management & Development– (continued) | | | |
| | Tokyu Fudosan Holdings Corp | | 1,098,600 | | | $6,030,832 | |
| | Tricon Capital Group Inc | | 637,676 | | | 10,136,498 | |
| | VGP NV | | 46,096 | | | 11,826,938 | |
| | Vonovia SE | | 446,470 | | | 20,872,809 | |
| | | 189,253,053 | |
Total Common Stocks (cost $735,942,110) | | 870,997,192 | |
Investment Companies– 2.9% | | | |
Money Markets – 2.9% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $26,341,038) | | 26,338,404 | | | 26,341,038 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.4% | | | |
Investment Companies – 0.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 2,485,644 | | | 2,485,644 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $621,411 | | | 621,411 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $3,107,055) | | 3,107,055 | |
Total Investments (total cost $765,390,203) – 100.5% | | 900,445,285 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.5)% | | (4,219,233) | |
Net Assets – 100% | | $896,226,052 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $542,124,148 | | 60.2 | % |
Japan | | 72,156,680 | | 8.0 | |
United Kingdom | | 44,980,096 | | 5.0 | |
Germany | | 36,871,841 | | 4.1 | |
Australia | | 35,432,149 | | 3.9 | |
Hong Kong | | 33,268,016 | | 3.7 | |
China | | 32,625,210 | | 3.6 | |
Singapore | | 28,475,724 | | 3.2 | |
Spain | | 15,818,527 | | 1.8 | |
Sweden | | 14,206,587 | | 1.6 | |
Belgium | | 11,826,938 | | 1.3 | |
Canada | | 10,136,498 | | 1.1 | |
France | | 8,429,060 | | 0.9 | |
Philippines | | 7,110,681 | | 0.8 | |
Netherlands | | 6,983,130 | | 0.8 | |
| | | | | | |
| | | | | | |
Total | | $900,445,285 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Real Estate Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 2.9% |
Money Markets - 2.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 6,680 | $ | - | $ | - | $ | 26,341,038 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 4,858∆ | | - | | - | | 2,485,644 |
Total Affiliated Investments - 3.2% | $ | 11,538 | $ | - | $ | - | $ | 28,826,682 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 2.9% |
Money Markets - 2.9% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 18,131,688 | | 91,910,132 | | (83,700,782) | | 26,341,038 |
Investments Purchased with Cash Collateral from Securities Lending - 0.3% |
Investment Companies - 0.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 3,032,104 | | 7,357,622 | | (7,904,082) | | 2,485,644 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Global Real Estate Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
FTSE EPRA Nareit Global Index | FTSE EPRA Nareit Global Index tracks the performance of real estate companies and real estate investment trusts (REITs) from developed and emerging markets, and is shown gross or net of foreign withholding taxes. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $19,928,881, which represents 2.2% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Diversified Telecommunication Services | $ | 10,220,710 | $ | 6,766,734 | $ | - |
Equity Real Estate Investment Trusts (REITs) | | 502,455,345 | | 157,024,635 | | - |
Real Estate Management & Development | | 10,136,498 | | 179,116,555 | | - |
All Other | | - | | 5,276,715 | | - |
Investment Companies | | - | | 26,341,038 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 3,107,055 | | - |
Total Assets | $ | 522,812,553 | $ | 377,632,732 | $ | - |
| | | | | | | |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $736,563,521)(1) | | $ | 871,618,603 | |
| Affiliated investments, at value (cost $28,826,682) | | | 28,826,682 | |
| Cash denominated in foreign currency (cost $6,720) | | | 6,720 | |
| Non-interested Trustees' deferred compensation | | | 24,599 | |
| Receivables: | | | | |
| | Investments sold | | | 3,720,300 | |
| | Dividends | | | 3,536,505 | |
| | Fund shares sold | | | 1,176,112 | |
| | Foreign tax reclaims | | | 206,324 | |
| | Dividends from affiliates | | | 2,433 | |
| Other assets | | | 7,189 | |
Total Assets | | | 909,125,467 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 2) | | | 3,107,055 | |
| Payables: | | | — | |
| | Investments purchased | | | 7,173,500 | |
| | Fund shares repurchased | | | 1,525,069 | |
| | Advisory fees | | | 632,779 | |
| | Transfer agent fees and expenses | | | 146,794 | |
| | Dividends | | | 104,399 | |
| | Professional fees | | | 40,681 | |
| | Non-interested Trustees' deferred compensation fees | | | 24,599 | |
| | Custodian fees | | | 12,346 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 11,085 | |
| | Non-interested Trustees' fees and expenses | | | 3,128 | |
| | Affiliated fund administration fees payable | | | 1,845 | |
| | Accrued expenses and other payables | | | 116,135 | |
Total Liabilities | | | 12,899,415 | |
Net Assets | | $ | 896,226,052 | |
| | |
See Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Global Real Estate Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 770,898,588 | |
| Total distributable earnings (loss) | | | 125,327,464 | |
Total Net Assets | | $ | 896,226,052 | |
Net Assets - Class A Shares | | $ | 16,187,344 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,131,373 | |
Net Asset Value Per Share(2) | | $ | 14.31 | |
Maximum Offering Price Per Share(3) | | $ | 15.18 | |
Net Assets - Class C Shares | | $ | 6,892,671 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 493,392 | |
Net Asset Value Per Share(2) | | $ | 13.97 | |
Net Assets - Class D Shares | | $ | 62,660,348 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,342,479 | |
Net Asset Value Per Share | | $ | 14.43 | |
Net Assets - Class I Shares | | $ | 569,002,720 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 39,484,462 | |
Net Asset Value Per Share | | $ | 14.41 | |
Net Assets - Class N Shares | | $ | 111,258,051 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 7,717,235 | |
Net Asset Value Per Share | | $ | 14.42 | |
Net Assets - Class S Shares | | $ | 10,121,536 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 710,414 | |
Net Asset Value Per Share | | $ | 14.25 | |
Net Assets - Class T Shares | | $ | 120,103,382 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,338,456 | |
Net Asset Value Per Share | | $ | 14.40 | |
| |
(1) Includes $3,034,385 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Real Estate Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 8,749,138 | |
| Dividends from affiliates | | 6,680 | |
| Affiliated securities lending income, net | | 4,858 | |
| Unaffiliated securities lending income, net | | 308 | |
| Other income | | 1,728 | |
| Foreign tax withheld | | (193,396) | |
Total Investment Income | | 8,569,316 | |
Expenses: | | | |
| Advisory fees | | 3,808,086 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 19,854 | |
| | Class C Shares | | 31,188 | |
| | Class S Shares | | 12,083 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 34,214 | |
| | Class S Shares | | 12,083 | |
| | Class T Shares | | 153,275 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 5,417 | |
| | Class C Shares | | 3,103 | |
| | Class I Shares | | 316,580 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 563 | |
| | Class C Shares | | 187 | |
| | Class D Shares | | 7,961 | |
| | Class I Shares | | 13,399 | |
| | Class N Shares | | 2,188 | |
| | Class S Shares | | 148 | |
| | Class T Shares | | 760 | |
| Registration fees | | 118,045 | |
| Professional fees | | 32,261 | |
| Custodian fees | | 22,457 | |
| Shareholder reports expense | | 20,878 | |
| Affiliated fund administration fees | | 11,214 | |
| Non-interested Trustees’ fees and expenses | | 8,227 | |
| Other expenses | | 60,293 | |
Total Expenses | | 4,694,464 | |
Less: Excess Expense Reimbursement and Waivers | | (3,780) | |
Net Expenses | | 4,690,684 | |
Net Investment Income/(Loss) | | 3,878,632 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Global Real Estate Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 7,369,502 | |
Total Net Realized Gain/(Loss) on Investments | | 7,369,502 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 12,149,971 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 12,149,971 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 23,398,105 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Real Estate Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 3,878,632 | | $ | 18,589,076 | |
| Net realized gain/(loss) on investments | | 7,369,502 | | | 58,759,905 | |
| Change in unrealized net appreciation/depreciation | | 12,149,971 | | | 68,822,681 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 23,398,105 | | | 146,171,662 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (780,651) | | | (218,230) | |
| | Class C Shares | | (328,347) | | | (87,047) | |
| | Class D Shares | | (3,009,289) | | | (873,853) | |
| | Class I Shares | | (28,326,244) | | | (8,514,426) | |
| | Class N Shares | | (5,825,587) | | | (1,821,131) | |
| | Class S Shares | | (457,128) | | | (125,581) | |
| | Class T Shares | | (6,058,463) | | | (1,837,581) | |
Net Decrease from Dividends and Distributions to Shareholders | | (44,785,709) | | | (13,477,849) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 1,280,614 | | | 3,314,454 | |
| | Class C Shares | | 306,954 | | | (230,118) | |
| | Class D Shares | | 5,376,024 | | | 8,121,071 | |
| | Class I Shares | | 31,393,839 | | | 58,822,137 | |
| | Class N Shares | | (1,097,025) | | | 8,064,462 | |
| | Class S Shares | | 1,190,356 | | | 1,261,319 | |
| | Class T Shares | | 1,258,668 | | | 12,025,332 | |
Net Increase/(Decrease) from Capital Share Transactions | | 39,709,430 | | | 91,378,657 | |
Net Increase/(Decrease) in Net Assets | | 18,321,826 | | | 224,072,470 | |
Net Assets: | | | | | | |
| Beginning of period | | 877,904,226 | | | 653,831,756 | |
| End of period | $ | 896,226,052 | | $ | 877,904,226 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $14.65 | | | $12.18 | | | $13.00 | | | $11.68 | | | $11.28 | | | $10.88 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.32 | | | 0.18 | | | 0.18 | | | 0.18 | | | 0.19 | |
| | Net realized and unrealized gain/(loss) | | 0.34 | | | 2.38 | | | (0.49) | | | 1.72 | | | 0.68 | | | 0.65 | |
| Total from Investment Operations | | 0.39 | | | 2.70 | | | (0.31) | | | 1.90 | | | 0.86 | | | 0.84 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.33) | | | (0.23) | | | (0.37) | | | (0.36) | | | (0.46) | | | (0.33) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.73) | | | (0.23) | | | (0.51) | | | (0.58) | | | (0.46) | | | (0.44) | |
| Net Asset Value, End of Period | | $14.31 | | | $14.65 | | | $12.18 | | | $13.00 | | | $11.68 | | | $11.28 | |
| Total Return* | | 2.54% | | | 22.32% | | | (2.53)% | | | 17.12% | | | 7.76% | | | 8.16% | |
| Net Assets, End of Period (in thousands) | | $16,187 | | | $15,294 | | | $9,857 | | | $9,167 | | | $5,828 | | | $4,675 | |
| Average Net Assets for the Period (in thousands) | | $15,927 | | | $12,864 | | | $11,509 | | | $7,245 | | | $5,093 | | | $7,879 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.25% | | | 1.23% | | | 1.25% | | | 1.36% | | | 1.26% | | | 1.15% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.25% | | | 1.23% | | | 1.25% | | | 1.35% | | | 1.26% | | | 1.15% | |
| | Ratio of Net Investment Income/(Loss) | | 0.67% | | | 2.25% | | | 1.42% | | | 1.46% | | | 1.60% | | | 1.77% | |
| Portfolio Turnover Rate | | 32% | | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $14.34 | | | $11.98 | | | $12.81 | | | $11.53 | | | $11.14 | | | $10.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | 0.18 | | | 0.08 | | | 0.09 | | | 0.10 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | 0.32 | | | 2.37 | | | (0.49) | | | 1.69 | | | 0.67 | | | 0.64 | |
| Total from Investment Operations | | 0.32 | | | 2.55 | | | (0.41) | | | 1.78 | | | 0.77 | | | 0.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.29) | | | (0.19) | | | (0.28) | | | (0.28) | | | (0.38) | | | (0.27) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.69) | | | (0.19) | | | (0.42) | | | (0.50) | | | (0.38) | | | (0.38) | |
| Net Asset Value, End of Period | | $13.97 | | | $14.34 | | | $11.98 | | | $12.81 | | | $11.53 | | | $11.14 | |
| Total Return* | | 2.14% | | | 21.34% | | | (3.33)% | | | 16.19% | | | 7.01% | | | 7.34% | |
| Net Assets, End of Period (in thousands) | | $6,893 | | | $6,766 | | | $5,908 | | | $8,020 | | | $6,970 | | | $6,432 | |
| Average Net Assets for the Period (in thousands) | | $6,921 | | | $6,420 | | | $7,522 | | | $7,211 | | | $6,717 | | | $6,520 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.95% | | | 2.03% | | | 2.03% | | | 2.09% | | | 2.00% | | | 1.88% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.95% | | | 2.03% | | | 2.03% | | | 2.09% | | | 2.00% | | | 1.88% | |
| | Ratio of Net Investment Income/(Loss) | | (0.04)% | | | 1.31% | | | 0.65% | | | 0.73% | | | 0.84% | | | 1.01% | |
| Portfolio Turnover Rate | | 32% | | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $14.77 | | | $12.26 | | | $13.09 | | | $11.76 | | | $11.35 | | | $10.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.34 | | | 0.20 | | | 0.20 | | | 0.20 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 0.34 | | | 2.41 | | | (0.50) | | | 1.73 | | | 0.69 | | | 0.66 | |
| Total from Investment Operations | | 0.40 | | | 2.75 | | | (0.30) | | | 1.93 | | | 0.89 | | | 0.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.34) | | | (0.24) | | | (0.39) | | | (0.38) | | | (0.48) | | | (0.37) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.74) | | | (0.24) | | | (0.53) | | | (0.60) | | | (0.48) | | | (0.48) | |
| Net Asset Value, End of Period | | $14.43 | | | $14.77 | | | $12.26 | | | $13.09 | | | $11.76 | | | $11.35 | |
| Total Return* | | 2.61% | | | 22.59% | | | (2.39)% | | | 17.31% | | | 7.98% | | | 8.26% | |
| Net Assets, End of Period (in thousands) | | $62,660 | | | $58,872 | | | $42,584 | | | $46,239 | | | $36,579 | | | $35,330 | |
| Average Net Assets for the Period (in thousands) | | $61,493 | | | $49,730 | | | $47,764 | | | $39,590 | | | $35,963 | | | $36,226 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.06% | | | 1.06% | | | 1.08% | | | 1.16% | | | 1.08% | | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | | | 1.06% | | | 1.08% | | | 1.16% | | | 1.08% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | 0.86% | | | 2.41% | | | 1.62% | | | 1.65% | | | 1.75% | | | 1.87% | |
| Portfolio Turnover Rate | | 32% | | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.33 | | | $10.95 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.34 | | | 0.22 | | | 0.20 | | | 0.22 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | 0.34 | | | 2.41 | | | (0.51) | | | 1.74 | | | 0.69 | | | 0.65 | |
| Total from Investment Operations | | 0.41 | | | 2.75 | | | (0.29) | | | 1.94 | | | 0.91 | | | 0.87 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.25) | | | (0.40) | | | (0.39) | | | (0.49) | | | (0.38) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.75) | | | (0.25) | | | (0.54) | | | (0.61) | | | (0.49) | | | (0.49) | |
| Net Asset Value, End of Period | | $14.41 | | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.33 | |
| Total Return* | | 2.64% | | | 22.56% | | | (2.31)% | | | 17.41% | | | 8.21% | | | 8.39% | |
| Net Assets, End of Period (in thousands) | | $569,003 | | | $551,129 | | | $408,928 | | | $211,998 | | | $147,863 | | | $114,658 | |
| Average Net Assets for the Period (in thousands) | | $567,709 | | | $484,077 | | | $291,765 | | | $186,262 | | | $120,270 | | | $110,825 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.02% | | | 1.00% | | | 1.02% | | | 1.09% | | | 0.96% | | | 0.87% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.02% | | | 1.00% | | | 1.02% | | | 1.09% | | | 0.96% | | | 0.87% | |
| | Ratio of Net Investment Income/(Loss) | | 0.89% | | | 2.44% | | | 1.83% | | | 1.68% | | | 1.91% | | | 2.00% | |
| Portfolio Turnover Rate | | 32% | | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018(1) | |
| Net Asset Value, Beginning of Period | | $14.76 | | | $12.24 | | | $13.07 | | | $11.75 | | | $11.81 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.07 | | | 0.35 | | | 0.23 | | | 0.27 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 0.34 | | | 2.42 | | | (0.51) | | | 1.67 | | | (0.10) | |
| Total from Investment Operations | | 0.41 | | | 2.77 | | | (0.28) | | | 1.94 | | | 0.07 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.25) | | | (0.41) | | | (0.40) | | | (0.13) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | |
| Total Dividends and Distributions | | (0.75) | | | (0.25) | | | (0.55) | | | (0.62) | | | (0.13) | |
| Net Asset Value, End of Period | | $14.42 | | | $14.76 | | | $12.24 | | | $13.07 | | | $11.75 | |
| Total Return* | | 2.69% | | | 22.80% | | | (2.22)% | | | 17.43% | | | 0.59% | |
| Net Assets, End of Period (in thousands) | | $111,258 | | | $114,928 | | | $88,550 | | | $71,472 | | | $35,316 | |
| Average Net Assets for the Period (in thousands) | | $114,807 | | | $104,011 | | | $80,627 | | | $34,671 | | | $28,132 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.90% | | | 0.92% | | | 0.99% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.91% | | | 0.90% | | | 0.92% | | | 0.99% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 0.98% | | | 2.49% | | | 1.84% | | | 2.28% | | | 2.14% | |
| Portfolio Turnover Rate | | 32% | | | 77% | | | 69% | | | 61% | | | 78% | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $14.59 | | | $12.15 | | | $12.97 | | | $11.66 | | | $11.26 | | | $10.88 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.04 | | | 0.29 | | | 0.16 | | | 0.15 | | | 0.16 | | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 0.34 | | | 2.37 | | | (0.49) | | | 1.72 | | | 0.67 | | | 0.65 | |
| Total from Investment Operations | | 0.38 | | | 2.66 | | | (0.33) | | | 1.87 | | | 0.83 | | | 0.82 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.32) | | | (0.22) | | | (0.35) | | | (0.34) | | | (0.43) | | | (0.33) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.72) | | | (0.22) | | | (0.49) | | | (0.56) | | | (0.43) | | | (0.44) | |
| Net Asset Value, End of Period | | $14.25 | | | $14.59 | | | $12.15 | | | $12.97 | | | $11.66 | | | $11.26 | |
| Total Return* | | 2.46% | | | 22.03% | | | (2.69)% | | | 16.86% | | | 7.56% | | | 7.95% | |
| Net Assets, End of Period (in thousands) | | $10,122 | | | $9,178 | | | $6,692 | | | $5,177 | | | $2,464 | | | $2,662 | |
| Average Net Assets for the Period (in thousands) | | $9,693 | | | $7,647 | | | $6,265 | | | $3,433 | | | $2,615 | | | $2,928 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.44% | | | 1.43% | | | 1.46% | | | 1.57% | | | 1.45% | | | 1.30% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.43% | | | 1.43% | | | 1.46% | | | 1.53% | | | 1.45% | | | 1.30% | |
| | Ratio of Net Investment Income/(Loss) | | 0.50% | | | 2.06% | | | 1.30% | | | 1.28% | | | 1.35% | | | 1.56% | |
| Portfolio Turnover Rate | | 32% | | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from January 26, 2018 (inception date) through September 30, 2018. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Real Estate Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.34 | | | $10.95 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.32 | | | 0.19 | | | 0.19 | | | 0.19 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 0.34 | | | 2.42 | | | (0.50) | | | 1.74 | | | 0.69 | | | 0.66 | |
| Total from Investment Operations | | 0.39 | | | 2.74 | | | (0.31) | | | 1.93 | | | 0.88 | | | 0.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.34) | | | (0.24) | | | (0.38) | | | (0.38) | | | (0.47) | | | (0.36) | |
| | Distributions (from capital gains) | | (0.40) | | | — | | | (0.14) | | | (0.22) | | | — | | | (0.11) | |
| Total Dividends and Distributions | | (0.74) | | | (0.24) | | | (0.52) | | | (0.60) | | | (0.47) | | | (0.47) | |
| Net Asset Value, End of Period | | $14.40 | | | $14.75 | | | $12.25 | | | $13.08 | | | $11.75 | | | $11.34 | |
| Total Return* | | 2.50% | | | 22.49% | | | (2.47)% | | | 17.27% | | | 7.90% | | | 8.29% | |
| Net Assets, End of Period (in thousands) | | $120,103 | | | $121,737 | | | $91,313 | | | $80,573 | | | $43,490 | | | $53,339 | |
| Average Net Assets for the Period (in thousands) | | $122,957 | | | $107,523 | | | $95,019 | | | $54,353 | | | $51,128 | | | $55,685 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.14% | | | 1.16% | | | 1.23% | | | 1.14% | | | 1.04% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.15% | | | 1.14% | | | 1.16% | | | 1.23% | | | 1.14% | | | 1.04% | |
| | Ratio of Net Investment Income/(Loss) | | 0.74% | | | 2.30% | | | 1.57% | | | 1.59% | | | 1.64% | | | 1.84% | |
| Portfolio Turnover Rate | | 32% | | | 77% | | | 69% | | | 61% | | | 78% | | | 72% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Global Real Estate Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks total return through a combination of capital appreciation and current income. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or 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 the Fund's Schedule of Investments.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 3,034,385 | $ | — | $ | (3,034,385) | $ | — |
| | | | | | | | | |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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, corporate bonds, 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.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $3,034,385. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $3,107,055, resulting in the net amount due to the counterparty of $72,670.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to the Adviser 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 (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.75%, and the Fund’s benchmark index used in the calculation is the FTSE EPRA Nareit Global Index.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±4.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) 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. For the period ended March 31, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.85%.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
The Adviser has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees (if applicable), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.91% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $3,588.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $177.
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 780,446,412 | $149,094,065 | $(29,095,192) | $ 119,998,873 |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 140,293 | $ 2,046,918 | | 416,186 | $ 5,829,137 |
Reinvested dividends and distributions | 44,688 | 656,301 | | 13,023 | 180,706 |
Shares repurchased | (97,412) | (1,422,605) | | (194,664) | (2,695,389) |
Net Increase/(Decrease) | 87,569 | $ 1,280,614 | | 234,545 | $ 3,314,454 |
Class C Shares: | | | | | |
Shares sold | 40,857 | $ 585,972 | | 204,019 | $ 2,734,463 |
Reinvested dividends and distributions | 20,414 | 293,144 | | 5,850 | 79,612 |
Shares repurchased | (39,785) | (572,162) | | (231,177) | (3,044,193) |
Net Increase/(Decrease) | 21,486 | $ 306,954 | | (21,308) | $ (230,118) |
Class D Shares: | | | | | |
Shares sold | 591,287 | $ 8,762,048 | | 1,214,758 | $ 17,785,841 |
Reinvested dividends and distributions | 199,152 | 2,948,064 | | 61,609 | 859,013 |
Shares repurchased | (433,562) | (6,334,088) | | (762,784) | (10,523,783) |
Net Increase/(Decrease) | 356,877 | $ 5,376,024 | | 513,583 | $ 8,121,071 |
Class I Shares: | | | | | |
Shares sold | 6,447,740 | $94,722,558 | | 13,964,809 | $195,161,807 |
Reinvested dividends and distributions | 1,716,961 | 25,380,740 | | 547,064 | 7,610,971 |
Shares repurchased | (6,038,235) | (88,709,459) | | (10,548,274) | (143,950,641) |
Net Increase/(Decrease) | 2,126,466 | $31,393,839 | | 3,963,599 | $ 58,822,137 |
Class N Shares: | | | | | |
Shares sold | 907,448 | $13,220,407 | | 2,375,838 | $ 32,887,203 |
Reinvested dividends and distributions | 261,366 | 3,865,890 | | 76,598 | 1,077,336 |
Shares repurchased | (1,238,809) | (18,183,322) | | (1,897,809) | (25,900,077) |
Net Increase/(Decrease) | (69,995) | $ (1,097,025) | | 554,627 | $ 8,064,462 |
Class S Shares: | | | | | |
Shares sold | 132,597 | $ 1,952,066 | | 257,001 | $ 3,663,716 |
Reinvested dividends and distributions | 31,248 | 457,128 | | 9,077 | 125,581 |
Shares repurchased | (82,314) | (1,218,838) | | (188,196) | (2,527,978) |
Net Increase/(Decrease) | 81,531 | $ 1,190,356 | | 77,882 | $ 1,261,319 |
Class T Shares: | | | | | |
Shares sold | 752,556 | $11,179,332 | | 3,327,595 | $ 47,129,030 |
Reinvested dividends and distributions | 404,790 | 5,984,702 | | 130,475 | 1,816,882 |
Shares repurchased | (1,074,958) | (15,905,366) | | (2,656,538) | (36,920,580) |
Net Increase/(Decrease) | 82,388 | $ 1,258,668 | | 801,532 | $ 12,025,332 |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$280,305,019 | $ 284,986,708 | $ - | $ - |
Janus Henderson Global Real Estate Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Global Real Estate Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Real Estate Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Real Estate Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Global Real Estate Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Real Estate Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Global Real Estate Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Global Real Estate Fund
Useful Information About Your Fund Report (unaudited)
portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
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| | | SEMIANNUAL REPORT March 31, 2022 |
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| | Janus Henderson Global Research Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Research Fund
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FUND SNAPSHOT By investing in the best ideas from each global research sector team, this global large-cap growth fund seeks long-term growth of capital with volatility similar to its peers. Our analysts scour the globe to identify industry-leading companies with brand power, enduring business models and strong competitive positioning. | | | | | Team-Based Approach Led by Matthew Peron, Director of Centralized Equity Research |
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Janus Henderson Global Research Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Canadian Natural Resources Ltd | 1.11% | | 0.55% | | Netflix Inc | 1.23% | | -0.46% |
| Teck Resources Ltd | 0.98% | | 0.47% | | Roku Inc | 0.41% | | -0.41% |
| Liberty Media Corp-Liberty Formula One | 1.22% | | 0.35% | | Alstom SA | 0.76% | | -0.39% |
| ConocoPhillips | 0.96% | | 0.30% | | Entain PLC | 1.13% | | -0.37% |
| Suncor Energy Inc | 0.68% | | 0.28% | | Snap Inc | 0.44% | | -0.36% |
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| 3 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | 0.67% | | 6.43% | 6.31% |
| Healthcare | | 0.43% | | 12.76% | 12.54% |
| Other** | | 0.02% | | 0.18% | 0.00% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Communications | | -1.45% | | 9.75% | 9.93% |
| Industrials | | -1.37% | | 16.93% | 17.13% |
| Financials | | -1.29% | | 18.38% | 18.40% |
| Consumer | | -0.62% | | 15.80% | 15.85% |
| Technology | | -0.23% | | 19.77% | 19.81% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | The sectors listed above reflect those covered by the six analyst teams who comprise the Janus Henderson Research Team. |
** | Not a GICS classified sector. |
Janus Henderson Global Research Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 5.1% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 4.1% |
Alphabet Inc - Class C | |
Interactive Media & Services | 3.7% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 3.4% |
ASML Holding NV | |
Semiconductor & Semiconductor Equipment | 2.6% |
| | 18.9% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.4% | |
Investment Companies | | 0.3% | |
Preferred Stocks | | 0.3% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.0% | |
Other | | 0.0% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
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Janus Henderson Global Research Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -2.11% | 5.99% | 12.76% | 10.11% | 9.55% | | | 1.17% |
Class A Shares at MOP | | -7.73% | -0.10% | 11.43% | 9.46% | 9.18% | | | |
Class C Shares at NAV | | -2.43% | 5.31% | 12.03% | 9.33% | 8.75% | | | 1.86% |
Class C Shares at CDSC | | -3.30% | 4.37% | 12.03% | 9.33% | 8.75% | | | |
Class D Shares | | -1.96% | 6.32% | 13.11% | 10.39% | 9.74% | | | 0.86% |
Class I Shares | | -1.94% | 6.38% | 13.20% | 10.48% | 9.82% | | | 0.79% |
Class N Shares | | -1.91% | 6.45% | 13.24% | 10.42% | 9.75% | | | 0.73% |
Class R Shares | | -2.28% | 5.64% | 12.39% | 9.74% | 9.17% | | | 1.50% |
Class S Shares | | -2.16% | 5.91% | 12.71% | 10.01% | 9.39% | | | 1.22% |
Class T Shares | | -2.01% | 6.21% | 13.00% | 10.31% | 9.68% | | | 0.97% |
MSCI World Index | | 2.21% | 10.12% | 12.42% | 10.88% | 7.82% | | | |
MSCI All Country World Index | | 0.96% | 7.28% | 11.64% | 10.00% | 7.58% | | | |
Morningstar Quartile - Class T Shares | | - | 1st | 3rd | 3rd | 1st | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | - | 38/362 | 173/301 | 182/228 | 40/161 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Janus Henderson Global Research Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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 August 4, 2017. Performance shown for periods prior to August 4, 2017, reflects the performance for 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.
Class R Shares commenced operations on March 15, 2013. 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – February 25, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Research 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $978.90 | $5.38 | | $1,000.00 | $1,019.50 | $5.49 | 1.09% |
Class C Shares | $1,000.00 | $975.70 | $8.57 | | $1,000.00 | $1,016.26 | $8.75 | 1.74% |
Class D Shares | $1,000.00 | $980.40 | $3.95 | | $1,000.00 | $1,020.94 | $4.03 | 0.80% |
Class I Shares | $1,000.00 | $980.60 | $3.65 | | $1,000.00 | $1,021.24 | $3.73 | 0.74% |
Class N Shares | $1,000.00 | $980.90 | $3.31 | | $1,000.00 | $1,021.59 | $3.38 | 0.67% |
Class R Shares | $1,000.00 | $977.20 | $7.10 | | $1,000.00 | $1,017.75 | $7.24 | 1.44% |
Class S Shares | $1,000.00 | $978.40 | $5.77 | | $1,000.00 | $1,019.10 | $5.89 | 1.17% |
Class T Shares | $1,000.00 | $979.90 | $4.39 | | $1,000.00 | $1,020.49 | $4.48 | 0.89% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Research Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.4% | | | |
Aerospace & Defense – 1.0% | | | |
| | Airbus SE* | | 282,234 | | | $34,109,904 | |
Air Freight & Logistics – 1.4% | | | |
| | United Parcel Service Inc | | 212,809 | | | 45,639,018 | |
Airlines – 0.5% | | | |
| | Ryanair Holdings PLC (ADR)* | | 204,379 | | | 17,805,498 | |
Auto Components – 0.8% | | | |
| | Aptiv PLC* | | 213,232 | | | 25,526,003 | |
Banks – 4.9% | | | |
| | BNP Paribas SA | | 468,252 | | | 26,657,292 | |
| | Citigroup Inc | | 483,315 | | | 25,809,021 | |
| | HDFC Bank Ltd | | 512,908 | | | 9,900,279 | |
| | JPMorgan Chase & Co | | 505,554 | | | 68,917,121 | |
| | Toronto-Dominion Bank/The | | 366,024 | | | 29,044,736 | |
| | | 160,328,449 | |
Beverages – 3.7% | | | |
| | Constellation Brands Inc | | 294,172 | | | 67,753,695 | |
| | Pernod Ricard SA | | 243,652 | | | 53,430,867 | |
| | | 121,184,562 | |
Biotechnology – 2.5% | | | |
| | AbbVie Inc | | 268,640 | | | 43,549,230 | |
| | Ascendis Pharma A/S (ADR)* | | 63,291 | | | 7,427,832 | |
| | Sarepta Therapeutics Inc* | | 105,183 | | | 8,216,896 | |
| | Vertex Pharmaceuticals Inc* | | 84,014 | | | 21,925,134 | |
| | | 81,119,092 | |
Building Products – 1.7% | | | |
| | Assa Abloy AB | | 1,043,692 | | | 28,155,080 | |
| | Daikin Industries Ltd | | 144,800 | | | 26,368,777 | |
| | | 54,523,857 | |
Capital Markets – 4.2% | | | |
| | Blackstone Group Inc | | 237,231 | | | 30,114,103 | |
| | Charles Schwab Corp | | 356,061 | | | 30,019,503 | |
| | London Stock Exchange Group PLC | | 107,664 | | | 11,246,174 | |
| | LPL Financial Holdings Inc | | 88,663 | | | 16,196,957 | |
| | Morgan Stanley | | 376,351 | | | 32,893,077 | |
| | State Street Corp | | 220,049 | | | 19,170,669 | |
| | | 139,640,483 | |
Chemicals – 0.9% | | | |
| | Sherwin-Williams Co | | 116,920 | | | 29,185,570 | |
Consumer Finance – 1.4% | | | |
| | Capital One Financial Corp | | 147,339 | | | 19,344,137 | |
| | Nexi SpA (144A)* | | 918,537 | | | 10,608,622 | |
| | OneMain Holdings Inc | | 325,133 | | | 15,414,556 | |
| | | 45,367,315 | |
Diversified Financial Services – 0.7% | | | |
| | Apollo Global Management Inc | | 381,444 | | | 23,645,714 | |
Electric Utilities – 0.2% | | | |
| | NextEra Energy Inc | | 83,147 | | | 7,043,382 | |
Electronic Equipment, Instruments & Components – 1.3% | | | |
| | Hexagon AB - Class B | | 3,061,509 | | | 42,972,585 | |
Entertainment – 2.4% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 698,733 | | | 48,799,513 | |
| | Nintendo Co Ltd | | 29,300 | | | 14,786,120 | |
| | Sea Ltd (ADR)* | | 129,996 | | | 15,572,221 | |
| | | 79,157,854 | |
Equity Real Estate Investment Trusts (REITs) – 0.6% | | | |
| | American Tower Corp | | 77,035 | | | 19,352,733 | |
Health Care Equipment & Supplies – 3.2% | | | |
| | Abbott Laboratories | | 104,035 | | | 12,313,583 | |
| | Boston Scientific Corp* | | 655,163 | | | 29,017,169 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Global Research Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Health Care Equipment & Supplies– (continued) | | | |
| | Danaher Corp | | 34,253 | | | $10,047,432 | |
| | Dentsply Sirona Inc | | 215,966 | | | 10,629,846 | |
| | DexCom Inc* | | 23,463 | | | 12,003,671 | |
| | Edwards Lifesciences Corp* | | 156,063 | | | 18,371,736 | |
| | Stryker Corp | | 49,704 | | | 13,288,364 | |
| | | 105,671,801 | |
Health Care Providers & Services – 1.6% | | | |
| | Centene Corp* | | 237,540 | | | 19,998,493 | |
| | Humana Inc | | 51,973 | | | 22,617,090 | |
| | UnitedHealth Group Inc | | 20,532 | | | 10,470,704 | |
| | | 53,086,287 | |
Hotels, Restaurants & Leisure – 2.6% | | | |
| | Entain PLC* | | 1,635,955 | | | 35,082,244 | |
| | McDonald's Corp | | 136,589 | | | 33,775,728 | |
| | Sands China Ltd* | | 6,992,800 | | | 16,783,852 | |
| | | 85,641,824 | |
Independent Power and Renewable Electricity Producers – 1.3% | | | |
| | NRG Energy Inc | | 627,860 | | | 24,084,710 | |
| | Vistra Energy Corp | | 829,259 | | | 19,280,272 | |
| | | 43,364,982 | |
Information Technology Services – 4.6% | | | |
| | Fidelity National Information Services Inc | | 221,454 | | | 22,238,411 | |
| | Global Payments Inc | | 152,946 | | | 20,929,131 | |
| | Mastercard Inc | | 158,073 | | | 56,492,129 | |
| | Visa Inc | | 238,605 | | | 52,915,431 | |
| | | 152,575,102 | |
Insurance – 2.3% | | | |
| | AIA Group Ltd | | 1,800,700 | | | 18,853,031 | |
| | Aon PLC - Class A | | 48,680 | | | 15,851,668 | |
| | Beazley PLC | | 1,057,327 | | | 5,807,096 | |
| | Progressive Corp/The | | 202,775 | | | 23,114,322 | |
| | Prudential PLC | | 743,001 | | | 10,973,395 | |
| | | 74,599,512 | |
Interactive Media & Services – 6.0% | | | |
| | Alphabet Inc - Class C* | | 43,832 | | | 122,422,338 | |
| | Facebook Inc* | | 212,283 | | | 47,203,248 | |
| | Match Group Inc* | | 142,349 | | | 15,479,030 | |
| | Tencent Holdings Ltd | | 282,000 | | | 13,303,969 | |
| | | 198,408,585 | |
Internet & Direct Marketing Retail – 5.2% | | | |
| | Amazon.com Inc* | | 34,220 | | | 111,555,489 | |
| | Booking Holdings Inc* | | 13,710 | | | 32,197,249 | |
| | JD.Com Inc - Class A* | | 13,428 | | | 393,292 | |
| | MercadoLibre Inc* | | 22,844 | | | 27,172,481 | |
| | | 171,318,511 | |
Life Sciences Tools & Services – 0.9% | | | |
| | Thermo Fisher Scientific Inc | | 49,279 | | | 29,106,641 | |
Machinery – 3.9% | | | |
| | Alstom SA | | 1,351,267 | | | 31,495,075 | |
| | Atlas Copco AB | | 439,693 | | | 22,830,334 | |
| | Deere & Co | | 84,885 | | | 35,266,322 | |
| | Parker-Hannifin Corp | | 103,710 | | | 29,428,750 | |
| | Sany Heavy Industry Co Ltd | | 4,001,398 | | | 10,967,221 | |
| | | 129,987,702 | |
Metals & Mining – 2.7% | | | |
| | Freeport-McMoRan Inc | | 486,494 | | | 24,198,212 | |
| | Rio Tinto PLC | | 289,278 | | | 22,942,966 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Research Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Metals & Mining– (continued) | | | |
| | Teck Resources Ltd | | 1,057,981 | | | $42,725,505 | |
| | | 89,866,683 | |
Multi-Utilities – 0.2% | | | |
| | RWE AG | | 177,358 | | | 7,734,989 | |
Oil, Gas & Consumable Fuels – 5.3% | | | |
| | Canadian Natural Resources Ltd | | 712,454 | | | 44,120,851 | |
| | Cheniere Energy Inc | | 78,076 | | | 10,825,237 | |
| | ConocoPhillips | | 347,410 | | | 34,741,000 | |
| | EOG Resources Inc | | 184,306 | | | 21,974,804 | |
| | Marathon Petroleum Corp | | 371,351 | | | 31,750,510 | |
| | Suncor Energy Inc | | 784,823 | | | 25,553,837 | |
| | Total SE | | 102,081 | | | 5,178,745 | |
| | | 174,144,984 | |
Personal Products – 1.1% | | | |
| | Unilever PLC | | 832,093 | | | 37,658,995 | |
Pharmaceuticals – 5.1% | | | |
| | AstraZeneca PLC | | 348,845 | | | 46,252,116 | |
| | Catalent Inc* | | 194,170 | | | 21,533,453 | |
| | Eli Lilly & Co | | 39,010 | | | 11,171,294 | |
| | Horizon Therapeutics PLC* | | 148,154 | | | 15,587,282 | |
| | Novartis AG | | 319,825 | | | 28,053,675 | |
| | Roche Holding AG | | 76,342 | | | 30,196,278 | |
| | Sanofi | | 161,500 | | | 16,468,180 | |
| | | 169,262,278 | |
Road & Rail – 1.0% | | | |
| | Full Truck Alliance Co (ADR)*,# | | 1,161,374 | | | 7,746,365 | |
| | Uber Technologies Inc* | | 667,568 | | | 23,818,826 | |
| | | 31,565,191 | |
Semiconductor & Semiconductor Equipment – 8.0% | | | |
| | Advanced Micro Devices Inc* | | 229,170 | | | 25,057,448 | |
| | ASML Holding NV | | 128,510 | | | 85,704,238 | |
| | Lam Research Corp | | 28,434 | | | 15,286,403 | |
| | Marvell Technology Inc | | 335,563 | | | 24,063,223 | |
| | NVIDIA Corp | | 251,766 | | | 68,696,871 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 1,721,000 | | | 35,588,775 | |
| | Texas Instruments Inc | | 48,298 | | | 8,861,717 | |
| | | 263,258,675 | |
Software – 7.8% | | | |
| | Adobe Inc* | | 12,398 | | | 5,648,777 | |
| | Atlassian Corp PLC - Class A* | | 29,194 | | | 8,578,073 | |
| | Autodesk Inc* | | 47,428 | | | 10,166,192 | |
| | Microsoft Corp | | 550,467 | | | 169,714,481 | |
| | ServiceNow Inc* | | 16,655 | | | 9,275,003 | |
| | Synopsys Inc* | | 72,598 | | | 24,194,735 | |
| | Workday Inc - Class A* | | 120,612 | | | 28,881,749 | |
| | | 256,459,010 | |
Technology Hardware, Storage & Peripherals – 4.1% | | | |
| | Apple Inc | | 774,854 | | | 135,297,257 | |
Textiles, Apparel & Luxury Goods – 1.8% | | | |
| | adidas AG | | 89,788 | | | 20,964,061 | |
| | Moncler SpA | | 120,923 | | | 6,733,241 | |
| | NIKE Inc - Class B | | 226,055 | | | 30,417,961 | |
| | | 58,115,263 | |
Trading Companies & Distributors – 1.9% | | | |
| | Ferguson PLC | | 459,807 | | | 62,402,539 | |
Wireless Telecommunication Services – 0.6% | | | |
| | T-Mobile US Inc* | | 161,593 | | | 20,740,462 | |
Total Common Stocks (cost $2,197,738,253) | | 3,276,869,292 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Global Research Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Preferred Stocks– 0.3% | | | |
Health Care Providers & Services – 0.3% | | | |
| | API Holdings Private Ltd PP*,¢,§((cost $9,401,252) | | 12,941,830 | | | $9,161,380 | |
Investment Companies– 0.3% | | | |
Money Markets – 0.3% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $9,764,882) | | 9,763,906 | | | 9,764,882 | |
Investments Purchased with Cash Collateral from Securities Lending– 0% | | | |
Time Deposits – 0% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22((cost $458,025) | | $458,025 | | | 458,025 | |
Total Investments (total cost $2,217,362,412) – 100.0% | | 3,296,253,579 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 1,240,715 | |
Net Assets – 100% | | $3,297,494,294 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $2,293,143,332 | | 69.6 | % |
France | | 167,340,063 | | 5.1 | |
Canada | | 141,444,929 | | 4.3 | |
United Kingdom | | 132,303,991 | | 4.0 | |
Netherlands | | 123,363,233 | | 3.7 | |
Sweden | | 93,957,999 | | 2.8 | |
Switzerland | | 58,249,953 | | 1.8 | |
Taiwan | | 51,160,996 | | 1.6 | |
Japan | | 41,154,897 | | 1.2 | |
Hong Kong | | 35,636,883 | | 1.1 | |
China | | 32,410,847 | | 1.0 | |
Germany | | 28,699,050 | | 0.9 | |
Argentina | | 27,172,481 | | 0.8 | |
India | | 19,061,659 | | 0.6 | |
Ireland | | 17,805,498 | | 0.5 | |
Italy | | 17,341,863 | | 0.5 | |
Australia | | 8,578,073 | | 0.3 | |
Denmark | | 7,427,832 | | 0.2 | |
| | | | | | |
| | | | | | |
Total | | $3,296,253,579 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Research Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 3,123 | $ | - | $ | - | $ | 9,764,882 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 15,331∆ | | - | | - | | - |
Total Affiliated Investments - 0.3% | $ | 18,454 | $ | - | $ | - | $ | 9,764,882 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 0.3% |
Money Markets - 0.3% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | - | | 115,103,951 | | (105,339,069) | | 9,764,882 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 8,814,292 | | 125,368,824 | | (134,183,116) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Global Research Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $10,608,622, which represents 0.3% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $9,161,380, which represents 0.3% of net assets. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
API Holdings Private Ltd PP | 9/27/21 | $ | 9,401,252 | $ | 9,161,380 | | 0.3 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Global Research Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Aerospace & Defense | $ | - | $ | 34,109,904 | $ | - |
Banks | | 123,770,878 | | 36,557,571 | | - |
Beverages | | 67,753,695 | | 53,430,867 | | - |
Building Products | | - | | 54,523,857 | | - |
Capital Markets | | 128,394,309 | | 11,246,174 | | - |
Consumer Finance | | 34,758,693 | | 10,608,622 | | - |
Electronic Equipment, Instruments & Components | | - | | 42,972,585 | | - |
Entertainment | | 64,371,734 | | 14,786,120 | | - |
Hotels, Restaurants & Leisure | | 33,775,728 | | 51,866,096 | | - |
Insurance | | 38,965,990 | | 35,633,522 | | - |
Interactive Media & Services | | 185,104,616 | | 13,303,969 | | - |
Internet & Direct Marketing Retail | | 170,925,219 | | 393,292 | | - |
Machinery | | 64,695,072 | | 65,292,630 | | - |
Metals & Mining | | 66,923,717 | | 22,942,966 | | - |
Multi-Utilities | | - | | 7,734,989 | | - |
Oil, Gas & Consumable Fuels | | 168,966,239 | | 5,178,745 | | - |
Personal Products | | - | | 37,658,995 | | - |
Pharmaceuticals | | 48,292,029 | | 120,970,249 | | - |
Semiconductor & Semiconductor Equipment | | 141,965,662 | | 121,293,013 | | - |
Textiles, Apparel & Luxury Goods | | 30,417,961 | | 27,697,302 | | - |
Trading Companies & Distributors | | - | | 62,402,539 | | - |
All Other | | 1,077,183,743 | | - | | - |
Preferred Stocks | | - | | - | | 9,161,380 |
Investment Companies | | - | | 9,764,882 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 458,025 | | - |
Total Assets | $ | 2,446,265,285 | $ | 840,826,914 | $ | 9,161,380 |
| | | | | | | |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,207,597,530)(1) | | $ | 3,286,488,697 | |
| Affiliated investments, at value (cost $9,764,882) | | | 9,764,882 | |
| Cash denominated in foreign currency (cost $5) | | | 5 | |
| Non-interested Trustees' deferred compensation | | | 90,556 | |
| Receivables: | | | | |
| | Investments sold | | | 13,261,811 | |
| | Fund shares sold | | | 4,866,805 | |
| | Dividends | | | 3,218,268 | |
| | Foreign tax reclaims | | | 1,409,349 | |
| | Dividends from affiliates | | | 1,993 | |
| Other assets | | | 29,028 | |
Total Assets | | | 3,319,131,394 | |
Liabilities: | | | | |
| Due to custodian | | | 340 | |
| Collateral for securities loaned (Note 2) | | | 458,025 | |
| Payables: | | | — | |
| | Investments purchased | | | 13,368,661 | |
| | Fund shares repurchased | | | 5,411,623 | |
| | Advisory fees | | | 1,501,253 | |
| | Transfer agent fees and expenses | | | 495,338 | |
| | Non-interested Trustees' deferred compensation fees | | | 90,556 | |
| | Professional fees | | | 35,647 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 15,902 | |
| | Non-interested Trustees' fees and expenses | | | 12,438 | |
| | Affiliated fund administration fees payable | | | 6,795 | |
| | Foreign tax liability | | | 2,934 | |
| | Custodian fees | | | 829 | |
| | Accrued expenses and other payables | | | 236,759 | |
Total Liabilities | | | 21,637,100 | |
Net Assets | | $ | 3,297,494,294 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Research Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 2,052,212,274 | |
| Total distributable earnings (loss) (includes $2,934 of foreign capital gains tax) | | | 1,245,282,020 | |
Total Net Assets | | $ | 3,297,494,294 | |
Net Assets - Class A Shares | | $ | 21,533,352 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 222,890 | |
Net Asset Value Per Share(2) | | $ | 96.61 | |
Maximum Offering Price Per Share(3) | | $ | 102.50 | |
Net Assets - Class C Shares | | $ | 4,254,386 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 45,792 | |
Net Asset Value Per Share(2) | | $ | 92.91 | |
Net Assets - Class D Shares | | $ | 1,863,184,437 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 19,545,188 | |
Net Asset Value Per Share | | $ | 95.33 | |
Net Assets - Class I Shares | | $ | 131,151,127 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,350,511 | |
Net Asset Value Per Share | | $ | 97.11 | |
Net Assets - Class N Shares | | $ | 36,488,503 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 383,473 | |
Net Asset Value Per Share | | $ | 95.15 | |
Net Assets - Class R Shares | | $ | 9,937,598 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 104,464 | |
Net Asset Value Per Share | | $ | 95.13 | |
Net Assets - Class S Shares | | $ | 19,150,600 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 197,683 | |
Net Asset Value Per Share | | $ | 96.88 | |
Net Assets - Class T Shares | | $ | 1,211,794,291 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,733,114 | |
Net Asset Value Per Share | | $ | 95.17 | |
| |
(1) Includes $394,197 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Global Research Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 23,318,326 | |
| Non-cash dividends | | 489,557 | |
| Affiliated securities lending income, net | | 15,331 | |
| Dividends from affiliates | | 3,123 | |
| Unaffiliated securities lending income, net | | 790 | |
| Other income | | 3 | |
| Foreign tax withheld | | (866,908) | |
Total Investment Income | | 22,960,222 | |
Expenses: | | | |
| Advisory fees | | 11,043,437 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 29,484 | |
| | Class C Shares | | 20,794 | |
| | Class R Shares | | 24,884 | |
| | Class S Shares | | 26,510 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,087,664 | |
| | Class R Shares | | 12,433 | |
| | Class S Shares | | 26,577 | |
| | Class T Shares | | 1,602,150 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 18,265 | |
| | Class C Shares | | 1,640 | |
| | Class I Shares | | 48,295 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 772 | |
| | Class C Shares | | 121 | |
| | Class D Shares | | 145,356 | |
| | Class I Shares | | 3,273 | |
| | Class N Shares | | 761 | |
| | Class R Shares | | 66 | |
| | Class S Shares | | 167 | |
| | Class T Shares | | 6,801 | |
| Shareholder reports expense | | 123,465 | |
| Registration fees | | 91,617 | |
| Custodian fees | | 60,909 | |
| Affiliated fund administration fees | | 43,416 | |
| Professional fees | | 35,396 | |
| Non-interested Trustees’ fees and expenses | | 29,932 | |
| Other expenses | | 130,301 | |
Total Expenses | | 14,614,486 | |
Less: Excess Expense Reimbursement and Waivers | | (109,094) | |
Net Expenses | | 14,505,392 | |
Net Investment Income/(Loss) | | 8,454,830 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Research Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 173,689,044 | |
Total Net Realized Gain/(Loss) on Investments | | 173,689,044 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (net of decrease in deferred foreign taxes of $484,984) | | (246,134,471) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (246,134,471) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (63,990,597) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Global Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 8,454,830 | | $ | 16,954,198 | |
| Net realized gain/(loss) on investments | | 173,689,044 | | | 366,009,950 | |
| Change in unrealized net appreciation/depreciation | | (246,134,471) | | | 411,833,902 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (63,990,597) | | | 794,798,050 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,432,950) | | | (837,329) | |
| | Class C Shares | | (478,940) | | | (183,533) | |
| | Class D Shares | | (212,599,273) | | | (65,556,809) | |
| | Class I Shares | | (15,452,023) | | | (5,229,791) | |
| | Class N Shares | | (4,330,870) | | | (1,659,352) | |
| | Class R Shares | | (1,035,016) | | | (268,840) | |
| | Class S Shares | | (2,106,969) | | | (752,697) | |
| | Class T Shares | | (139,551,040) | | | (43,456,205) | |
Net Decrease from Dividends and Distributions to Shareholders | | (377,987,081) | | | (117,944,556) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 153,730 | | | (4,020,585) | |
| | Class C Shares | | 346,815 | | | (1,534,613) | |
| | Class D Shares | | 153,246,899 | | | (21,083,449) | |
| | Class I Shares | | 3,227,521 | | | (19,497,565) | |
| | Class N Shares | | (2,146,166) | | | (6,237,164) | |
| | Class R Shares | | 1,482,062 | | | 228,904 | |
| | Class S Shares | | (2,685,303) | | | (111,942,696) | |
| | Class T Shares | | 67,180,659 | | | (2,733,097) | |
Net Increase/(Decrease) from Capital Share Transactions | | 220,806,217 | | | (166,820,265) | |
Net Increase/(Decrease) in Net Assets | | (221,171,461) | | | 510,033,229 | |
Net Assets: | | | | | | |
| Beginning of period | | 3,518,665,755 | | | 3,008,632,526 | |
| End of period | $ | 3,297,494,294 | | $ | 3,518,665,755 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $110.18 | | | $89.60 | | | $81.67 | | | $85.80 | | | $76.26 | | | $64.32 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.12 | | | 0.23 | | | 0.31 | | | 0.65 | | | 0.57 | | | 0.44 | |
| | Net realized and unrealized gain/(loss) | | (2.10) | | | 23.77 | | | 11.47 | | | (0.20) | | | 9.25 | | | 11.82 | |
| Total from Investment Operations | | (1.98) | | | 24.00 | | | 11.78 | | | 0.45 | | | 9.82 | | | 12.26 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.16) | | | (0.16) | | | (0.61) | | | (0.46) | | | (0.28) | | | (0.32) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (11.59) | | | (3.42) | | | (3.85) | | | (4.58) | | | (0.28) | | | (0.32) | |
| Net Asset Value, End of Period | | $96.61 | | | $110.18 | | | $89.60 | | | $81.67 | | | $85.80 | | | $76.26 | |
| Total Return* | | (2.11)% | | | 27.28% | | | 14.71% | | | 1.43% | | | 12.90% | | | 19.16% | |
| Net Assets, End of Period (in thousands) | | $21,533 | | | $24,310 | | | $23,470 | | | $18,247 | | | $16,478 | | | $15,642 | |
| Average Net Assets for the Period (in thousands) | | $23,652 | | | $24,438 | | | $19,926 | | | $17,274 | | | $15,685 | | | $16,679 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.09% | | | 1.17% | | | 1.21% | | | 1.32% | | | 1.14% | | | 1.14% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | | | 1.17% | | | 1.20% | | | 1.16% | | | 1.00% | | | 1.04% | |
| | Ratio of Net Investment Income/(Loss) | | 0.23% | | | 0.23% | | | 0.37% | | | 0.83% | | | 0.70% | | | 0.64% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $106.56 | | | $87.19 | | | $79.50 | | | $83.65 | | | $74.57 | | | $62.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.21) | | | (0.45) | | | (0.22) | | | 0.13 | | | 0.04 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (2.01) | | | 23.08 | | | 11.15 | | | (0.16) | | | 9.04 | | | 11.56 | |
| Total from Investment Operations | | (2.22) | | | 22.63 | | | 10.93 | | | (0.03) | | | 9.08 | | | 11.60 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Net Asset Value, End of Period | | $92.91 | | | $106.56 | | | $87.19 | | | $79.50 | | | $83.65 | | | $74.57 | |
| Total Return* | | (2.42)% | | | 26.42% | | | 13.98% | | | 0.78% | | | 12.18% | | | 18.42% | |
| Net Assets, End of Period (in thousands) | | $4,254 | | | $4,491 | | | $5,005 | | | $5,564 | | | $7,746 | | | $8,954 | |
| Average Net Assets for the Period (in thousands) | | $4,463 | | | $4,880 | | | $5,323 | | | $6,303 | | | $8,343 | | | $9,330 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.74% | | | 1.85% | | | 1.84% | | | 1.80% | | | 1.64% | | | 1.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.74% | | | 1.85% | | | 1.84% | | | 1.80% | | | 1.64% | | | 1.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.42)% | | | (0.45)% | | | (0.27)% | | | 0.17% | | | 0.05% | | | 0.06% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $109.10 | | | $88.69 | | | $80.85 | | | $84.93 | | | $75.50 | | | $63.68 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.27 | | | 0.56 | | | 0.55 | | | 0.88 | | | 0.82 | | | 0.69 | |
| | Net realized and unrealized gain/(loss) | | (2.06) | | | 23.50 | | | 11.36 | | | (0.21) | | | 9.14 | | | 11.65 | |
| Total from Investment Operations | | (1.79) | | | 24.06 | | | 11.91 | | | 0.67 | | | 9.96 | | | 12.34 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.55) | | | (0.39) | | | (0.83) | | | (0.63) | | | (0.53) | | | (0.52) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (11.98) | | | (3.65) | | | (4.07) | | | (4.75) | | | (0.53) | | | (0.52) | |
| Net Asset Value, End of Period | | $95.33 | | | $109.10 | | | $88.69 | | | $80.85 | | | $84.93 | | | $75.50 | |
| Total Return* | | (1.96)% | | | 27.68% | | | 15.06% | | | 1.76% | | | 13.25% | | | 19.54% | |
| Net Assets, End of Period (in thousands) | | $1,863,184 | | | $1,959,177 | | | $1,607,701 | | | $1,493,928 | | | $1,564,083 | | | $1,461,778 | |
| Average Net Assets for the Period (in thousands) | | $1,956,272 | | | $1,873,058 | | | $1,511,011 | | | $1,463,525 | | | $1,527,522 | | | $1,362,959 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.86% | | | 0.89% | | | 0.83% | | | 0.69% | | | 0.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.86% | | | 0.89% | | | 0.83% | | | 0.69% | | | 0.74% | |
| | Ratio of Net Investment Income/(Loss) | | 0.53% | | | 0.54% | | | 0.68% | | | 1.13% | | | 1.02% | | | 1.01% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $110.96 | | | $90.13 | | | $82.10 | | | $86.16 | | | $76.57 | | | $64.58 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.30 | | | 0.64 | | | 0.63 | | | 0.95 | | | 0.91 | | | 0.78 | |
| | Net realized and unrealized gain/(loss) | | (2.10) | | | 23.90 | | | 11.54 | | | (0.20) | | | 9.27 | | | 11.79 | |
| Total from Investment Operations | | (1.80) | | | 24.54 | | | 12.17 | | | 0.75 | | | 10.18 | | | 12.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.62) | | | (0.45) | | | (0.90) | | | (0.69) | | | (0.59) | | | (0.58) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (12.05) | | | (3.71) | | | (4.14) | | | (4.81) | | | (0.59) | | | (0.58) | |
| Net Asset Value, End of Period | | $97.11 | | | $110.96 | | | $90.13 | | | $82.10 | | | $86.16 | | | $76.57 | |
| Total Return* | | (1.94)% | | | 27.78% | | | 15.15% | | | 1.85% | | | 13.36% | | | 19.64% | |
| Net Assets, End of Period (in thousands) | | $131,151 | | | $145,610 | | | $135,394 | | | $139,584 | | | $179,093 | | | $162,788 | |
| Average Net Assets for the Period (in thousands) | | $141,384 | | | $145,201 | | | $132,597 | | | $146,672 | | | $167,007 | | | $157,847 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.74% | | | 0.79% | | | 0.81% | | | 0.74% | | | 0.60% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.74% | | | 0.79% | | | 0.81% | | | 0.74% | | | 0.60% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.58% | | | 0.61% | | | 0.76% | | | 1.21% | | | 1.11% | | | 1.13% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $109.00 | | | $88.60 | | | $80.77 | | | $84.85 | | | $75.44 | | | $73.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.33 | | | 0.69 | | | 0.66 | | | 1.02 | | | 0.96 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | (2.07) | | | 23.48 | | | 11.36 | | | (0.25) | | | 9.11 | | | 1.46 | |
| Total from Investment Operations | | (1.74) | | | 24.17 | | | 12.02 | | | 0.77 | | | 10.07 | | | 1.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.68) | | | (0.51) | | | (0.95) | | | (0.73) | | | (0.66) | | | — | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (12.11) | | | (3.77) | | | (4.19) | | | (4.85) | | | (0.66) | | | — | |
| Net Asset Value, End of Period | | $95.15 | | | $109.00 | | | $88.60 | | | $80.77 | | | $84.85 | | | $75.44 | |
| Total Return* | | (1.91)% | | | 27.85% | | | 15.23% | | | 1.91% | | | 13.42% | | | 2.13% | |
| Net Assets, End of Period (in thousands) | | $36,489 | | | $43,521 | | | $40,607 | | | $31,393 | | | $38,195 | | | $28,326 | |
| Average Net Assets for the Period (in thousands) | | $40,502 | | | $44,557 | | | $30,617 | | | $37,778 | | | $36,802 | | | $17,865 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.73% | | | 0.76% | | | 0.68% | | | 0.54% | | | 0.63% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.73% | | | 0.76% | | | 0.68% | | | 0.54% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | 0.64% | | | 0.67% | | | 0.81% | | | 1.32% | | | 1.19% | | | 1.01% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $108.69 | | | $88.57 | | | $80.78 | | | $84.95 | | | $75.55 | | | $63.73 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.06) | | | (0.10) | | | 0.02 | | | 0.39 | | | 0.32 | | | 0.30 | |
| | Net realized and unrealized gain/(loss) | | (2.07) | | | 23.48 | | | 11.34 | | | (0.18) | | | 9.15 | | | 11.67 | |
| Total from Investment Operations | | (2.13) | | | 23.38 | | | 11.36 | | | 0.21 | | | 9.47 | | | 11.97 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.33) | | | (0.26) | | | (0.07) | | | (0.15) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (11.43) | | | (3.26) | | | (3.57) | | | (4.38) | | | (0.07) | | | (0.15) | |
| Net Asset Value, End of Period | | $95.13 | | | $108.69 | | | $88.57 | | | $80.78 | | | $84.95 | | | $75.55 | |
| Total Return* | | (2.28)% | | | 26.87% | | | 14.33% | | | 1.11% | | | 12.55% | | | 18.84% | |
| Net Assets, End of Period (in thousands) | | $9,938 | | | $9,736 | | | $7,802 | | | $6,574 | | | $6,417 | | | $6,196 | |
| Average Net Assets for the Period (in thousands) | | $9,974 | | | $8,777 | | | $6,410 | | | $6,232 | | | $6,245 | | | $5,724 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.44% | | | 1.50% | | | 1.54% | | | 1.47% | | | 1.31% | | | 1.32% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.44% | | | 1.50% | | | 1.54% | | | 1.47% | | | 1.31% | | | 1.32% | |
| | Ratio of Net Investment Income/(Loss) | | (0.11)% | | | (0.10)% | | | 0.03% | | | 0.50% | | | 0.40% | | | 0.44% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 4, 2017 (inception date) through September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Global Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $110.34 | | | $89.62 | | | $81.85 | | | $85.96 | | | $76.40 | | | $64.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.28 | | | 0.27 | | | 0.61 | | | 0.51 | | | 0.45 | |
| | Net realized and unrealized gain/(loss) | | (2.11) | | | 23.70 | | | 11.48 | | | (0.18) | | | 9.30 | | | 11.82 | |
| Total from Investment Operations | | (2.03) | | | 23.98 | | | 11.75 | | | 0.43 | | | 9.81 | | | 12.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.74) | | | (0.42) | | | (0.25) | | | (0.28) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (11.43) | | | (3.26) | | | (3.98) | | | (4.54) | | | (0.25) | | | (0.28) | |
| Net Asset Value, End of Period | | $96.88 | | | $110.34 | | | $89.62 | | | $81.85 | | | $85.96 | | | $76.40 | |
| Total Return* | | (2.15)% | | | 27.23% | | | 14.66% | | | 1.40% | | | 12.86% | | | 19.14% | |
| Net Assets, End of Period (in thousands) | | $19,151 | | | $24,088 | | | $131,161 | | | $109,878 | | | $62,331 | | | $81,729 | |
| Average Net Assets for the Period (in thousands) | | $21,320 | | | $25,744 | | | $128,108 | | | $64,355 | | | $67,144 | | | $68,266 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.18% | | | 1.21% | | | 1.24% | | | 1.18% | | | 1.04% | | | 1.07% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.21% | | | 1.24% | | | 1.18% | | | 1.04% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | 0.14% | | | 0.27% | | | 0.33% | | | 0.77% | | | 0.63% | | | 0.66% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $108.88 | | | $88.54 | | | $80.73 | | | $84.82 | | | $75.41 | | | $63.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.22 | | | 0.45 | | | 0.48 | | | 0.82 | | | 0.75 | | | 0.64 | |
| | Net realized and unrealized gain/(loss) | | (2.07) | | | 23.47 | | | 11.34 | | | (0.21) | | | 9.13 | | | 11.63 | |
| Total from Investment Operations | | (1.85) | | | 23.92 | | | 11.82 | | | 0.61 | | | 9.88 | | | 12.27 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.43) | | | (0.32) | | | (0.77) | | | (0.58) | | | (0.47) | | | (0.47) | |
| | Distributions (from capital gains) | | (11.43) | | | (3.26) | | | (3.24) | | | (4.12) | | | — | | | — | |
| Total Dividends and Distributions | | (11.86) | | | (3.58) | | | (4.01) | | | (4.70) | | | (0.47) | | | (0.47) | |
| Net Asset Value, End of Period | | $95.17 | | | $108.88 | | | $88.54 | | | $80.73 | | | $84.82 | | | $75.41 | |
| Total Return* | | (2.01)% | | | 27.55% | | | 14.96% | | | 1.67% | | | 13.16% | | | 19.44% | |
| Net Assets, End of Period (in thousands) | | $1,211,794 | | | $1,307,732 | | | $1,057,492 | | | $1,014,552 | | | $1,054,640 | | | $997,013 | |
| Average Net Assets for the Period (in thousands) | | $1,285,241 | | | $1,262,884 | | | $1,009,337 | | | $988,429 | | | $1,033,780 | | | $932,646 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.97% | | | 0.99% | | | 0.93% | | | 0.79% | | | 0.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.96% | | | 0.99% | | | 0.92% | | | 0.78% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | 0.43% | | | 0.44% | | | 0.59% | | | 1.05% | | | 0.93% | | | 0.93% | |
| Portfolio Turnover Rate | | 17% | | | 25% | | | 34% | | | 35% | | | 32% | | | 48% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
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See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Global Research Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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 March 31, 2022.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or 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 the Fund's Schedule of Investments.
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 394,197 | $ | — | $ | (394,197) | $ | — |
| | | | | | | | | |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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.
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, corporate bonds, 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.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $394,197. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $458,025, resulting in the net amount due to the counterparty of $63,828.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to the Adviser 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 (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.60%, and the Fund’s benchmark index used in the calculation is the MSCI World IndexSM.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±6.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) 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. For the period ended March 31, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.64%.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees (if applicable), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.86% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
exceed the 0.25% of net assets charged to Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 are included in “Non-interested Trustees’ fees
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $237.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended March 31, 2022.
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 41 | | -* | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 2,212,899,767 | $1,180,911,853 | $(97,558,041) | $ 1,083,353,812 |
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 22,514 | $ 2,437,467 | | 47,006 | $ 4,813,707 |
Reinvested dividends and distributions | 18,870 | 1,879,233 | | 5,588 | 545,222 |
Shares repurchased | (39,129) | (4,162,970) | | (93,896) | (9,379,514) |
Net Increase/(Decrease) | 2,255 | $ 153,730 | | (41,302) | $ (4,020,585) |
Class C Shares: | | | | | |
Shares sold | 2,793 | $ 275,782 | | 5,609 | $ 557,392 |
Reinvested dividends and distributions | 4,695 | 450,451 | | 1,836 | 174,183 |
Shares repurchased | (3,837) | (379,418) | | (22,710) | (2,266,188) |
Net Increase/(Decrease) | 3,651 | $ 346,815 | | (15,265) | $ (1,534,613) |
Class D Shares: | | | | | |
Shares sold | 175,883 | $ 17,975,143 | | 390,481 | $ 39,919,687 |
Reinvested dividends and distributions | 2,058,031 | 202,078,044 | | 647,933 | 62,447,782 |
Shares repurchased | (645,960) | (66,806,288) | | (1,208,431) | (123,450,918) |
Net Increase/(Decrease) | 1,587,954 | $ 153,246,899 | | (170,017) | $ (21,083,449) |
Class I Shares: | | | | | |
Shares sold | 146,115 | $ 15,763,895 | | 261,600 | $ 27,657,572 |
Reinvested dividends and distributions | 146,533 | 14,654,763 | | 42,943 | 4,206,664 |
Shares repurchased | (254,406) | (27,191,137) | | (494,413) | (51,361,801) |
Net Increase/(Decrease) | 38,242 | $ 3,227,521 | | (189,870) | $ (19,497,565) |
Class N Shares: | | | | | |
Shares sold | 26,277 | $ 2,689,520 | | 70,228 | $ 7,347,983 |
Reinvested dividends and distributions | 42,847 | 4,197,755 | | 16,998 | 1,634,877 |
Shares repurchased | (84,947) | (9,033,441) | | (146,269) | (15,220,024) |
Net Increase/(Decrease) | (15,823) | $ (2,146,166) | | (59,043) | $ (6,237,164) |
Class R Shares: | | | | | |
Shares sold | 15,996 | $ 1,664,825 | | 23,033 | $ 2,418,306 |
Reinvested dividends and distributions | 10,544 | 1,035,016 | | 2,767 | 266,998 |
Shares repurchased | (11,656) | (1,217,779) | | (24,314) | (2,456,400) |
Net Increase/(Decrease) | 14,884 | $ 1,482,062 | | 1,486 | $ 228,904 |
Class S Shares: | | | | | |
Shares sold | 17,493 | $ 1,853,482 | | 38,545 | $ 3,945,043 |
Reinvested dividends and distributions | 21,077 | 2,105,395 | | 7,697 | 752,260 |
Shares repurchased | (59,199) | (6,644,180) | | (1,291,417) | (116,639,999) |
Net Increase/(Decrease) | (20,629) | $ (2,685,303) | | (1,245,175) | $(111,942,696) |
Class T Shares: | | | | | |
Shares sold | 315,174 | $ 32,576,521 | | 2,228,564 | $ 213,989,572 |
Reinvested dividends and distributions | 1,390,985 | 136,386,095 | | 441,931 | 42,540,264 |
Shares repurchased | (983,779) | (101,781,957) | | (2,603,434) | (259,262,933) |
Net Increase/(Decrease) | 722,380 | $ 67,180,659 | | 67,061 | $ (2,733,097) |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$600,530,818 | $ 771,511,159 | $ - | $ - |
Janus Henderson Global Research Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Global Research Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Research Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Research Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Research Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Research Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Global Research Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Research Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Global Research Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Global Research Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Research Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Global Research Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Research Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Global Research Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Global Research Fund
Useful Information About Your Fund Report (unaudited)
portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93045 05-22 |
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| | | SEMIANNUAL REPORT March 31, 2022 |
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| | Janus Henderson Global Select Fund |
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| | Janus Investment Fund |
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| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Select Fund
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FUND SNAPSHOT A global equity fund seeking to grow capital by investing with conviction in companies worldwide where the portfolio managers believe the market underestimates free-cash-flow growth. The Fund considers both growth and value criteria as it seeks to deliver strong, risk-adjusted returns over the long term, regardless of prevailing market conditions. | | | | 
Julian McManus co-portfolio manager | 
George Maris co-portfolio manager |
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Janus Henderson Global Select Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Teck Resources Ltd | 4.03% | | 2.09% | | Citigroup Inc | 3.38% | | -0.83% |
| Canadian Natural Resources Ltd | 2.57% | | 1.41% | | Caesars Entertainment Inc | 2.14% | | -0.80% |
| Marathon Petroleum Corp | 2.52% | | 0.88% | | Entain PLC | 2.20% | | -0.67% |
| Liberty Media Corp-Liberty Formula One | 1.91% | | 0.58% | | Under Armour Inc | 3.49% | | -0.44% |
| United Parcel Service Inc | 3.22% | | 0.48% | | Sea Ltd (ADR) | 0.51% | | -0.40% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 2.06% | | 7.31% | 4.76% |
| Energy | | 1.45% | | 5.08% | 3.81% |
| Communication Services | | 1.03% | | 8.98% | 8.62% |
| Health Care | | 0.82% | | 10.08% | 11.51% |
| Industrials | | 0.50% | | 12.29% | 9.61% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -1.55% | | 17.62% | 14.51% |
| Consumer Discretionary | | -1.50% | | 15.31% | 12.27% |
| Utilities | | -0.51% | | 4.76% | 2.69% |
| Consumer Staples | | -0.51% | | 3.20% | 6.82% |
| Information Technology | | -0.35% | | 14.61% | 22.73% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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. |
Janus Henderson Global Select Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 4.9% |
NRG Energy Inc | |
Independent Power and Renewable Electricity Producers | 4.8% |
Teck Resources Ltd | |
Metals & Mining | 4.8% |
AstraZeneca PLC | |
Pharmaceuticals | 3.5% |
Under Armour Inc | |
Textiles, Apparel & Luxury Goods | 3.5% |
| | 21.5% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.5% | |
Investment Companies | | 0.4% | |
Preferred Stocks | | 0.0% | |
Other | | 0.1% |
| | | 100.0% |
Emerging markets comprised 8.4% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
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Janus Henderson Global Select Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 1.99% | 7.96% | 12.68% | 8.78% | 4.79% | | | 1.03% | 1.03% |
Class A Shares at MOP | | -3.87% | 1.73% | 11.35% | 8.13% | 4.50% | | | | |
Class C Shares at NAV | | 1.53% | 7.05% | 11.74% | 7.87% | 3.96% | | | 2.20% | 1.94% |
Class C Shares at CDSC | | 0.64% | 6.10% | 11.74% | 7.87% | 3.96% | | | | |
Class D Shares | | 2.11% | 8.18% | 12.92% | 8.99% | 4.92% | | | 0.82% | 0.82% |
Class I Shares | | 2.11% | 8.27% | 12.99% | 9.09% | 4.97% | | | 0.77% | 0.77% |
Class N Shares | | 2.14% | 8.32% | 13.07% | 9.03% | 4.93% | | | 0.68% | 0.68% |
Class R Shares | | 1.74% | 7.34% | 12.08% | 8.27% | 4.32% | | | 3.97% | 1.64% |
Class S Shares | | 1.78% | 7.56% | 12.36% | 8.56% | 4.60% | | | 2.76% | 1.38% |
Class T Shares | | 2.07% | 8.13% | 12.83% | 8.92% | 4.88% | | | 0.92% | 0.92% |
MSCI All Country World Index | | 0.96% | 7.28% | 11.64% | 10.00% | 5.57% | | | | |
Morningstar Quartile - Class T Shares | | - | 2nd | 1st | 3rd | 4th | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | - | 102/325 | 26/283 | 153/205 | 64/77 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
Janus Henderson Global Select Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), 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 former 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 August 4, 2017. Performance shown for periods prior to August 4, 2017, 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
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – June 30, 2000
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Select Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $1,019.90 | $5.19 | | $1,000.00 | $1,019.80 | $5.19 | 1.03% |
Class C Shares | $1,000.00 | $1,015.30 | $9.50 | | $1,000.00 | $1,015.51 | $9.50 | 1.89% |
Class D Shares | $1,000.00 | $1,021.10 | $4.08 | | $1,000.00 | $1,020.89 | $4.08 | 0.81% |
Class I Shares | $1,000.00 | $1,021.10 | $3.88 | | $1,000.00 | $1,021.09 | $3.88 | 0.77% |
Class N Shares | $1,000.00 | $1,021.40 | $3.43 | | $1,000.00 | $1,021.54 | $3.43 | 0.68% |
Class R Shares | $1,000.00 | $1,017.40 | $8.10 | | $1,000.00 | $1,016.90 | $8.10 | 1.61% |
Class S Shares | $1,000.00 | $1,017.80 | $6.79 | | $1,000.00 | $1,018.20 | $6.79 | 1.35% |
Class T Shares | $1,000.00 | $1,020.70 | $4.53 | | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Select Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 99.5% | | | |
Aerospace & Defense – 3.5% | | | |
| | Airbus SE* | | 386,091 | | | $46,661,731 | |
| | L3Harris Technologies Inc | | 165,098 | | | 41,021,900 | |
| | | 87,683,631 | |
Air Freight & Logistics – 3.3% | | | |
| | United Parcel Service Inc | | 387,905 | | | 83,190,106 | |
Banks – 4.5% | | | |
| | China Construction Bank Corp | | 50,696,000 | | | 38,084,104 | |
| | Citigroup Inc | | 1,227,498 | | | 65,548,393 | |
| | Permanent TSB Group Holdings PLC* | | 5,262,077 | | | 9,707,817 | |
| | | 113,340,314 | |
Beverages – 3.1% | | | |
| | Heineken NV | | 383,135 | | | 36,522,620 | |
| | Monster Beverage Corp* | | 513,460 | | | 41,025,454 | |
| | | 77,548,074 | |
Biotechnology – 2.8% | | | |
| | AbbVie Inc | | 209,636 | | | 33,984,092 | |
| | Ascendis Pharma A/S (ADR)* | | 88,178 | | | 10,348,570 | |
| | Neurocrine Biosciences Inc* | | 271,920 | | | 25,492,500 | |
| | | 69,825,162 | |
Capital Markets – 2.8% | | | |
| | Morgan Stanley | | 807,255 | | | 70,554,087 | |
Containers & Packaging – 2.4% | | | |
| | Crown Holdings Inc | | 478,386 | | | 59,841,305 | |
Electronic Equipment, Instruments & Components – 1.0% | | | |
| | Hexagon AB - Class B | | 1,788,621 | | | 25,105,812 | |
Entertainment – 3.3% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 810,667 | | | 56,616,983 | |
| | Nintendo Co Ltd | | 53,100 | | | 26,796,688 | |
| | | 83,413,671 | |
Health Care Providers & Services – 1.7% | | | |
| | Humana Inc | | 94,314 | | | 41,042,623 | |
Hotels, Restaurants & Leisure – 4.1% | | | |
| | Caesars Entertainment Inc* | | 664,092 | | | 51,374,157 | |
| | Entain PLC* | | 2,408,997 | | | 51,659,746 | |
| | | 103,033,903 | |
Household Durables – 1.8% | | | |
| | PulteGroup Inc | | 1,087,174 | | | 45,552,591 | |
Independent Power and Renewable Electricity Producers – 4.8% | | | |
| | NRG Energy Inc | | 3,151,987 | | | 120,910,221 | |
Information Technology Services – 1.3% | | | |
| | Fidelity National Information Services Inc | | 330,934 | | | 33,232,392 | |
Insurance – 6.2% | | | |
| | AIA Group Ltd | | 1,860,000 | | | 19,473,892 | |
| | Beazley PLC | | 4,371,108 | | | 24,007,183 | |
| | NN Group NV | | 666,986 | | | 33,611,961 | |
| | Prudential PLC | | 1,658,214 | | | 24,490,192 | |
| | WR Berkley Corp | | 811,773 | | | 54,055,964 | |
| | | 155,639,192 | |
Interactive Media & Services – 4.2% | | | |
| | Alphabet Inc - Class A* | | 19,532 | | | 54,325,328 | |
| | NAVER Corp | | 70,134 | | | 19,613,524 | |
| | Tencent Holdings Ltd | | 644,200 | | | 30,391,549 | |
| | | 104,330,401 | |
Internet & Direct Marketing Retail – 2.1% | | | |
| | Alibaba Group Holding Ltd* | | 1,889,884 | | | 25,868,366 | |
| | Amazon.com Inc* | | 7,479 | | | 24,381,166 | |
| | JD.Com Inc - Class A* | | 30,676 | | | 898,468 | |
| | | 51,148,000 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Global Select Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Machinery – 1.7% | | | |
| | Wabtec Corp | | 433,069 | | | $41,648,246 | |
Metals & Mining – 4.8% | | | |
| | Teck Resources Ltd | | 2,968,870 | | | 119,894,846 | |
Oil, Gas & Consumable Fuels – 6.1% | | | |
| | Canadian Natural Resources Ltd | | 1,164,702 | | | 72,188,230 | |
| | Marathon Petroleum Corp | | 925,733 | | | 79,150,172 | |
| | | 151,338,402 | |
Pharmaceuticals – 7.1% | | | |
| | AstraZeneca PLC | | 658,512 | | | 87,309,760 | |
| | Merck & Co Inc | | 262,382 | | | 21,528,443 | |
| | Organon & Co | | 1,952,756 | | | 68,209,767 | |
| | | 177,047,970 | |
Road & Rail – 1.6% | | | |
| | Central Japan Railway Co | | 312,600 | | | 40,750,297 | |
Semiconductor & Semiconductor Equipment – 4.1% | | | |
| | ASML Holding NV | | 56,456 | | | 37,650,910 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 3,116,000 | | | 64,436,155 | |
| | | 102,087,065 | |
Software – 7.5% | | | |
| | Microsoft Corp | | 400,660 | | | 123,527,485 | |
| | Workday Inc - Class A* | | 133,816 | | | 32,043,579 | |
| | Zendesk Inc* | | 262,535 | | | 31,580,335 | |
| | | 187,151,399 | |
Specialty Retail – 0.8% | | | |
| | TJX Cos Inc | | 308,227 | | | 18,672,392 | |
Technology Hardware, Storage & Peripherals – 1.2% | | | |
| | Samsung Electronics Co Ltd | | 532,675 | | | 30,434,234 | |
Textiles, Apparel & Luxury Goods – 5.9% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 35,939 | | | 25,587,528 | |
| | Samsonite International SA (144A)* | | 15,071,400 | | | 33,871,083 | |
| | Under Armour Inc* | | 5,592,703 | | | 87,022,459 | |
| | | 146,481,070 | |
Thrifts & Mortgage Finance – 2.1% | | | |
| | MGIC Investment Corp | | 3,777,702 | | | 51,187,862 | |
Trading Companies & Distributors – 2.4% | | | |
| | Ferguson PLC | | 439,563 | | | 59,655,132 | |
Wireless Telecommunication Services – 1.3% | | | |
| | T-Mobile US Inc* | | 260,036 | | | 33,375,621 | |
Total Common Stocks (cost $1,768,363,084) | | 2,485,116,021 | |
Preferred Stocks– 0% | | | |
Software – 0% | | | |
| | Magic Leap Inc PP - Class A private equity common shares*,¢,§((cost $9,254,547) | | 19,041 | | | 0 | |
Investment Companies– 0.4% | | | |
Money Markets – 0.4% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $10,207,764) | | 10,206,743 | | | 10,207,764 | |
Total Investments (total cost $1,787,825,395) – 99.9% | | 2,495,323,785 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | | 1,767,018 | |
Net Assets – 100% | | $2,497,090,803 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Select Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $1,559,958,519 | | 62.5 | % |
Canada | | 192,083,076 | | 7.7 | |
United Kingdom | | 187,466,881 | | 7.5 | |
Netherlands | | 107,785,491 | | 4.3 | |
China | | 95,242,487 | | 3.8 | |
France | | 72,249,259 | | 2.9 | |
Japan | | 67,546,985 | | 2.7 | |
Taiwan | | 64,436,155 | | 2.6 | |
Hong Kong | | 53,344,975 | | 2.2 | |
South Korea | | 50,047,758 | | 2.0 | |
Sweden | | 25,105,812 | | 1.0 | |
Denmark | | 10,348,570 | | 0.4 | |
Ireland | | 9,707,817 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $2,495,323,785 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Global Select Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 0.4% |
Money Markets - 0.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 7,068 | $ | - | $ | - | $ | 10,207,764 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 110,551∆ | | - | | - | | - |
Total Affiliated Investments - 0.4% | $ | 117,619 | $ | - | $ | - | $ | 10,207,764 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 0.4% |
Money Markets - 0.4% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 30,836,984 | | 90,172,452 | | (110,801,672) | | 10,207,764 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | - | | 135,303,483 | | (135,303,483) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Global Select Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI All Country World IndexSM | MSCI All Country World IndexSM reflects the equity market performance of global developed and emerging markets. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $33,871,083, which represents 1.4% of net assets. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $0 which represents 0.0% of net assets. |
£ | 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. |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Magic Leap Inc PP - Class A private equity common shares | 10/5/17 | $ | 9,254,547 | $ | 0 | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Global Select Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Aerospace & Defense | $ | 41,021,900 | $ | 46,661,731 | $ | - |
Banks | | 65,548,393 | | 47,791,921 | | - |
Beverages | | 41,025,454 | | 36,522,620 | | - |
Electronic Equipment, Instruments & Components | | - | | 25,105,812 | | - |
Entertainment | | 56,616,983 | | 26,796,688 | | - |
Hotels, Restaurants & Leisure | | 51,374,157 | | 51,659,746 | | - |
Insurance | | 54,055,964 | | 101,583,228 | | - |
Interactive Media & Services | | 54,325,328 | | 50,005,073 | | - |
Internet & Direct Marketing Retail | | 24,381,166 | | 26,766,834 | | - |
Pharmaceuticals | | 89,738,210 | | 87,309,760 | | - |
Road & Rail | | - | | 40,750,297 | | - |
Semiconductor & Semiconductor Equipment | | - | | 102,087,065 | | - |
Technology Hardware, Storage & Peripherals | | - | | 30,434,234 | | - |
Textiles, Apparel & Luxury Goods | | 87,022,459 | | 59,458,611 | | - |
Trading Companies & Distributors | | - | | 59,655,132 | | - |
All Other | | 1,127,417,255 | | - | | - |
Preferred Stocks | | - | | - | | 0 |
Investment Companies | | - | | 10,207,764 | | - |
Total Assets | $ | 1,692,527,269 | $ | 802,796,516 | $ | 0 |
| | | | | | | |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,777,617,631) | | $ | 2,485,116,021 | |
| Affiliated investments, at value (cost $10,207,764) | | | 10,207,764 | |
| Non-interested Trustees' deferred compensation | | | 68,574 | |
| Receivables: | | | | |
| | Dividends | | | 3,292,676 | |
| | Fund shares sold | | | 1,853,707 | |
| | Foreign tax reclaims | | | 419,091 | |
| | Dividends from affiliates | | | 1,955 | |
| Other assets | | | 285,584 | |
Total Assets | | | 2,501,245,372 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 2,080,067 | |
| | Advisory fees | | | 1,335,252 | |
| | Transfer agent fees and expenses | | | 356,702 | |
| | Non-interested Trustees' deferred compensation fees | | | 68,574 | |
| | Professional fees | | | 42,055 | |
| | Custodian fees | | | 21,073 | |
| | Non-interested Trustees' fees and expenses | | | 8,850 | |
| | Affiliated fund administration fees payable | | | 5,217 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 2,063 | |
| | Accrued expenses and other payables | | | 234,716 | |
Total Liabilities | | | 4,154,569 | |
Net Assets | | $ | 2,497,090,803 | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Global Select Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 1,700,157,955 | |
| Total distributable earnings (loss) | | | 796,932,848 | |
Total Net Assets | | $ | 2,497,090,803 | |
Net Assets - Class A Shares | | $ | 7,028,710 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 396,569 | |
Net Asset Value Per Share(1) | | $ | 17.72 | |
Maximum Offering Price Per Share(2) | | $ | 18.80 | |
Net Assets - Class C Shares | | $ | 650,312 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 38,591 | |
Net Asset Value Per Share(1) | | $ | 16.85 | |
Net Assets - Class D Shares | | $ | 1,864,003,356 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 105,923,217 | |
Net Asset Value Per Share | | $ | 17.60 | |
Net Assets - Class I Shares | | $ | 23,105,970 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,307,676 | |
Net Asset Value Per Share | | $ | 17.67 | |
Net Assets - Class N Shares | | $ | 25,087,153 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,423,705 | |
Net Asset Value Per Share | | $ | 17.62 | |
Net Assets - Class R Shares | | $ | 142,705 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 8,199 | |
Net Asset Value Per Share | | $ | 17.41 | |
Net Assets - Class S Shares | | $ | 101,645 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,708 | |
Net Asset Value Per Share | | $ | 17.81 | |
Net Assets - Class T Shares | | $ | 576,970,952 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 32,716,111 | |
Net Asset Value Per Share | | $ | 17.64 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Select Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 19,583,552 | |
| Non-cash dividends | | 1,118,384 | |
| Affiliated securities lending income, net | | 110,551 | |
| Dividends from affiliates | | 7,068 | |
| Unaffiliated securities lending income, net | | 460 | |
| Other income | | 3,024 | |
| Foreign tax withheld | | (613,479) | |
Total Investment Income | | 20,209,560 | |
Expenses: | | | |
| Advisory fees | | 8,110,876 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 8,968 | |
| | Class C Shares | | 2,819 | |
| | Class R Shares | | 335 | |
| | Class S Shares | | 154 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,054,266 | |
| | Class R Shares | | 171 | |
| | Class S Shares | | 154 | |
| | Class T Shares | | 734,467 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 2,314 | |
| | Class C Shares | | 207 | |
| | Class I Shares | | 9,923 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 251 | |
| | Class C Shares | | 24 | |
| | Class D Shares | | 200,449 | |
| | Class I Shares | | 567 | |
| | Class N Shares | | 505 | |
| | Class R Shares | | 12 | |
| | Class S Shares | | 8 | |
| | Class T Shares | | 4,039 | |
| Shareholder reports expense | | 147,001 | |
| Registration fees | | 77,587 | |
| Custodian fees | | 41,734 | |
| Professional fees | | 35,839 | |
| Affiliated fund administration fees | | 31,683 | |
| Non-interested Trustees’ fees and expenses | | 21,195 | |
| Other expenses | | 103,206 | |
Total Expenses | | 10,588,754 | |
Less: Excess Expense Reimbursement and Waivers | | (63,918) | |
Net Expenses | | 10,524,836 | |
Net Investment Income/(Loss) | | 9,684,724 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Global Select Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $8) | $ | 98,080,478 | |
Total Net Realized Gain/(Loss) on Investments | | 98,080,478 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (55,302,828) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (55,302,828) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 52,462,374 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Select Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 9,684,724 | | $ | 18,127,933 | |
| Net realized gain/(loss) on investments | | 98,080,478 | | | 270,669,430 | |
| Change in unrealized net appreciation/depreciation | | (55,302,828) | | | 363,289,877 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 52,462,374 | | | 652,087,240 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (826,160) | | | (314,417) | |
| | Class C Shares | | (68,065) | | | (33,972) | |
| | Class D Shares | | (220,714,191) | | | (84,743,417) | |
| | Class I Shares | | (2,697,365) | | | (862,095) | |
| | Class N Shares | | (3,114,836) | | | (1,453,322) | |
| | Class R Shares | | (16,669) | | | (4,979) | |
| | Class S Shares | | (15,445) | | | (12,027) | |
| | Class T Shares | | (68,619,381) | | | (26,126,702) | |
Net Decrease from Dividends and Distributions to Shareholders | | (296,072,112) | | | (113,550,931) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 685,145 | | | (246,769) | |
| | Class C Shares | | 123,565 | | | (251,299) | |
| | Class D Shares | | 168,839,202 | | | (19,243,397) | |
| | Class I Shares | | 3,008,737 | | | 3,345,265 | |
| | Class N Shares | | 1,496,416 | | | (4,477,743) | |
| | Class R Shares | | 34,222 | | | (10,727) | |
| | Class S Shares | | (25,195) | | | (141,920) | |
| | Class T Shares | | 46,642,795 | | | (2,542,605) | |
Net Increase/(Decrease) from Capital Share Transactions | | 220,804,887 | | | (23,569,195) | |
Net Increase/(Decrease) in Net Assets | | (22,804,851) | | | 514,967,114 | |
Net Assets: | | | | | | |
| Beginning of period | | 2,519,895,654 | | | 2,004,928,540 | |
| End of period | $ | 2,497,090,803 | | $ | 2,519,895,654 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $19.70 | | | $15.56 | | | $15.01 | | | $17.64 | | | $16.16 | | | $12.97 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.05 | | | 0.10 | | | 0.10 | | | 0.14 | | | 0.09 | | | 0.10 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 4.91 | | | 1.10 | | | (0.58) | | | 1.52 | | | 3.21 | |
| Total from Investment Operations | | 0.31 | | | 5.01 | | | 1.20 | | | (0.44) | | | 1.61 | | | 3.31 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.10) | | | (0.12) | | | (0.13) | | | (0.06) | | | (0.13) | | | (0.12) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.29) | | | (0.87) | | | (0.65) | | | (2.19) | | | (0.13) | | | (0.12) | |
| Net Asset Value, End of Period | | $17.72 | | | $19.70 | | | $15.56 | | | $15.01 | | | $17.64 | | | $16.16 | |
| Total Return* | | 1.99% | | | 32.96% | | | 7.96% | | | (0.72)% | | | 9.99% | | | 25.74% | |
| Net Assets, End of Period (in thousands) | | $7,029 | | | $7,039 | | | $5,788 | | | $5,380 | | | $4,666 | | | $3,951 | |
| Average Net Assets for the Period (in thousands) | | $7,194 | | | $6,717 | | | $5,354 | | | $4,885 | | | $4,885 | | | $4,294 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.03% | | | 1.03% | | | 1.06% | | | 1.08% | | | 1.03% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.03% | | | 1.06% | | | 1.08% | | | 1.03% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | 0.57% | | | 0.56% | | | 0.70% | | | 0.97% | | | 0.54% | | | 0.67% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $18.82 | | | $14.92 | | | $14.42 | | | $17.10 | | | $15.69 | | | $12.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.03) | | | (0.06) | | | (0.04) | | | —(2) | | | (0.05) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | 0.25 | | | 4.71 | | | 1.06 | | | (0.55) | | | 1.49 | | | 3.13 | |
| Total from Investment Operations | | 0.22 | | | 4.65 | | | 1.02 | | | (0.55) | | | 1.44 | | | 3.11 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.03) | | | (0.01) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | (0.03) | | | (0.01) | |
| Net Asset Value, End of Period | | $16.85 | | | $18.82 | | | $14.92 | | | $14.42 | | | $17.10 | | | $15.69 | |
| Total Return* | | 1.53% | | | 31.84% | | | 7.00% | | | (1.55)% | | | 9.15% | | | 24.76% | |
| Net Assets, End of Period (in thousands) | | $650 | | | $586 | | | $676 | | | $1,197 | | | $2,229 | | | $2,521 | |
| Average Net Assets for the Period (in thousands) | | $597 | | | $650 | | | $1,005 | | | $1,534 | | | $2,591 | | | $2,738 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.19% | | | 2.14% | | | 2.01% | | | 1.94% | | | 1.84% | | | 1.82% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.89% | | | 1.88% | | | 1.91% | | | 1.94% | | | 1.84% | | | 1.82% | |
| | Ratio of Net Investment Income/(Loss) | | (0.31)% | | | (0.33)% | | | (0.26)% | | | (0.01)% | | | (0.27)% | | | (0.13)% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $19.60 | | | $15.47 | | | $14.93 | | | $17.55 | | | $16.06 | | | $12.90 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.07 | | | 0.14 | | | 0.13 | | | 0.17 | | | 0.13 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 4.88 | | | 1.10 | | | (0.57) | | | 1.51 | | | 3.19 | |
| Total from Investment Operations | | 0.33 | | | 5.02 | | | 1.23 | | | (0.40) | | | 1.64 | | | 3.31 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.14) | | | (0.14) | | | (0.17) | | | (0.09) | | | (0.15) | | | (0.15) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.33) | | | (0.89) | | | (0.69) | | | (2.22) | | | (0.15) | | | (0.15) | |
| Net Asset Value, End of Period | | $17.60 | | | $19.60 | | | $15.47 | | | $14.93 | | | $17.55 | | | $16.06 | |
| Total Return* | | 2.11% | | | 33.28% | | | 8.18% | | | (0.51)% | | | 10.22% | | | 25.91% | |
| Net Assets, End of Period (in thousands) | | $1,864,003 | | | $1,876,374 | | | $1,494,051 | | | $1,493,415 | | | $1,615,089 | | | $1,560,200 | |
| Average Net Assets for the Period (in thousands) | | $1,895,353 | | | $1,803,402 | | | $1,455,934 | | | $1,479,323 | | | $1,629,405 | | | $1,427,056 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.81% | | | 0.82% | | | 0.84% | | | 0.85% | | | 0.84% | | | 0.86% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.81% | | | 0.82% | | | 0.84% | | | 0.85% | | | 0.84% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.78% | | | 0.77% | | | 0.91% | | | 1.15% | | | 0.75% | | | 0.87% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $19.68 | | | $15.53 | | | $14.99 | | | $17.61 | | | $16.12 | | | $12.94 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.08 | | | 0.16 | | | 0.14 | | | 0.19 | | | 0.15 | | | 0.16 | |
| | Net realized and unrealized gain/(loss) | | 0.25 | | | 4.89 | | | 1.10 | | | (0.58) | | | 1.49 | | | 3.18 | |
| Total from Investment Operations | | 0.33 | | | 5.05 | | | 1.24 | | | (0.39) | | | 1.64 | | | 3.34 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.15) | | | (0.15) | | | (0.18) | | | (0.10) | | | (0.15) | | | (0.16) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.34) | | | (0.90) | | | (0.70) | | | (2.23) | | | (0.15) | | | (0.16) | |
| Net Asset Value, End of Period | | $17.67 | | | $19.68 | | | $15.53 | | | $14.99 | | | $17.61 | | | $16.12 | |
| Total Return* | | 2.11% | | | 33.31% | | | 8.25% | | | (0.39)% | | | 10.22% | | | 26.13% | |
| Net Assets, End of Period (in thousands) | | $23,106 | | | $22,347 | | | $14,853 | | | $17,024 | | | $17,043 | | | $16,745 | |
| Average Net Assets for the Period (in thousands) | | $22,874 | | | $19,681 | | | $16,194 | | | $16,875 | | | $15,444 | | | $28,860 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.77% | | | 0.77% | | | 0.78% | | | 0.80% | | | 0.77% | | | 0.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.77% | | | 0.77% | | | 0.78% | | | 0.80% | | | 0.77% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | 0.83% | | | 0.83% | | | 0.91% | | | 1.27% | | | 0.86% | | | 1.09% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $19.64 | | | $15.50 | | | $14.96 | | | $17.58 | | | $16.09 | | | $15.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.08 | | | 0.17 | | | 0.14 | | | 0.19 | | | 0.16 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | 0.26 | | | 4.88 | | | 1.12 | | | (0.56) | | | 1.50 | | | 0.45 | |
| Total from Investment Operations | | 0.34 | | | 5.05 | | | 1.26 | | | (0.37) | | | 1.66 | | | 0.49 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.17) | | | (0.16) | | | (0.20) | | | (0.12) | | | (0.17) | | | — | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.36) | | | (0.91) | | | (0.72) | | | (2.25) | | | (0.17) | | | — | |
| Net Asset Value, End of Period | | $17.62 | | | $19.64 | | | $15.50 | | | $14.96 | | | $17.58 | | | $16.09 | |
| Total Return* | | 2.14% | | | 33.41% | | | 8.38% | | | (0.28)% | | | 10.34% | | | 3.14% | |
| Net Assets, End of Period (in thousands) | | $25,087 | | | $26,130 | | | $24,271 | | | $37,810 | | | $33,278 | | | $29,133 | |
| Average Net Assets for the Period (in thousands) | | $26,146 | | | $27,543 | | | $29,294 | | | $31,647 | | | $33,126 | | | $18,338 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.68% | | | 0.68% | | | 0.68% | | | 0.69% | | | 0.68% | | | 0.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.68% | | | 0.68% | | | 0.68% | | | 0.69% | | | 0.68% | | | 0.74% | |
| | Ratio of Net Investment Income/(Loss) | | 0.90% | | | 0.90% | | | 0.97% | | | 1.32% | | | 0.92% | | | 1.61% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $19.36 | | | $15.29 | | | $14.76 | | | $17.39 | | | $15.99 | | | $12.84 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | —(3) | | | —(3) | | | 0.01 | | | 0.05 | | | —(3) | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | 0.27 | | | 4.82 | | | 1.08 | | | (0.55) | | | 1.49 | | | 3.18 | |
| Total from Investment Operations | | 0.27 | | | 4.82 | | | 1.09 | | | (0.50) | | | 1.49 | | | 3.23 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | — | | | (0.04) | | | — | | | (0.09) | | | (0.08) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.22) | | | (0.75) | | | (0.56) | | | (2.13) | | | (0.09) | | | (0.08) | |
| Net Asset Value, End of Period | | $17.41 | | | $19.36 | | | $15.29 | | | $14.76 | | | $17.39 | | | $15.99 | |
| Total Return* | | 1.74% | | | 32.19% | | | 7.29% | | | (1.21)% | | | 9.32% | | | 25.25% | |
| Net Assets, End of Period (in thousands) | | $143 | | | $123 | | | $107 | | | $188 | | | $230 | | | $484 | |
| Average Net Assets for the Period (in thousands) | | $137 | | | $118 | | | $170 | | | $198 | | | $459 | | | $366 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.62% | | | 3.94% | | | 3.20% | | | 2.95% | | | 1.76% | | | 1.45% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.61% | | | 1.60% | | | 1.63% | | | 1.63% | | | 1.56% | | | 1.45% | |
| | Ratio of Net Investment Income/(Loss) | | 0.01% | | | (0.02)% | | | 0.05% | | | 0.37% | | | 0.01% | | | 0.35% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 4, 2017 (inception date) through September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Select Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $19.71 | | | $15.57 | | | $15.02 | | | $17.74 | | | $16.24 | | | $13.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.02 | | | 0.03 | | | 0.06 | | | 0.10 | | | 0.04 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | 0.27 | | | 4.93 | | | 1.09 | | | (0.58) | | | 1.53 | | | 3.21 | |
| Total from Investment Operations | | 0.29 | | | 4.96 | | | 1.15 | | | (0.48) | | | 1.57 | | | 3.30 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.07) | | | (0.08) | | | (0.11) | | | (0.07) | | | (0.10) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.19) | | | (0.82) | | | (0.60) | | | (2.24) | | | (0.07) | | | (0.10) | |
| Net Asset Value, End of Period | | $17.81 | | | $19.71 | | | $15.57 | | | $15.02 | | | $17.74 | | | $16.24 | |
| Total Return* | | 1.84% | | | 32.57% | | | 7.61% | | | (0.97)% | | | 9.69% | | | 25.51% | |
| Net Assets, End of Period (in thousands) | | $102 | | | $139 | | | $227 | | | $248 | | | $251 | | | $379 | |
| Average Net Assets for the Period (in thousands) | | $123 | | | $189 | | | $231 | | | $234 | | | $259 | | | $349 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.61% | | | 2.76% | | | 2.48% | | | 2.47% | | | 1.75% | | | 1.19% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.35% | | | 1.36% | | | 1.37% | | | 1.36% | | | 1.29% | | | 1.16% | |
| | Ratio of Net Investment Income/(Loss) | | 0.16% | | | 0.16% | | | 0.38% | | | 0.66% | | | 0.25% | | | 0.60% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $19.63 | | | $15.50 | | | $14.96 | | | $17.57 | | | $16.08 | | | $12.91 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.06 | | | 0.13 | | | 0.12 | | | 0.16 | | | 0.12 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | 0.27 | | | 4.88 | | | 1.10 | | | (0.57) | | | 1.51 | | | 3.19 | |
| Total from Investment Operations | | 0.33 | | | 5.01 | | | 1.22 | | | (0.41) | | | 1.63 | | | 3.31 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.13) | | | (0.13) | | | (0.16) | | | (0.07) | | | (0.14) | | | (0.14) | |
| | Distributions (from capital gains) | | (2.19) | | | (0.75) | | | (0.52) | | | (2.13) | | | — | | | — | |
| Total Dividends and Distributions | | (2.32) | | | (0.88) | | | (0.68) | | | (2.20) | | | (0.14) | | | (0.14) | |
| Net Asset Value, End of Period | | $17.64 | | | $19.63 | | | $15.50 | | | $14.96 | | | $17.57 | | | $16.08 | |
| Total Return* | | 2.07% | | | 33.15% | | | 8.08% | | | (0.54)% | | | 10.17% | | | 25.89% | |
| Net Assets, End of Period (in thousands) | | $576,971 | | | $587,159 | | | $464,956 | | | $484,175 | | | $533,974 | | | $518,679 | |
| Average Net Assets for the Period (in thousands) | | $589,188 | | | $561,617 | | | $464,019 | | | $481,731 | | | $539,796 | | | $478,930 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.92% | | | 0.92% | | | 0.93% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.91% | | | 0.91% | | | 0.92% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | 0.70% | | | 0.68% | | | 0.83% | | | 1.08% | | | 0.68% | | | 0.81% | |
| Portfolio Turnover Rate | | 13% | | | 37% | | | 31% | | | 30% | | | 41% | | | 42% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Global Select Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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 March 31, 2022.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or 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
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
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. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. 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 the Fund invests in Chinese local market securities.
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 certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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 Securities and Exchange Commission (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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations.
There were no securities on loan as of March 31, 2022.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.64% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.87% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least one-year period ending January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent expects to
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,”
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $905.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended March 31, 2022.
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 78 | | 1 | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, straddle deferrals, and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,794,261,102 | $770,712,170 | $(69,649,487) | $ 701,062,683 |
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 31,867 | $ 591,071 | | 26,042 | $ 483,191 |
Reinvested dividends and distributions | 43,875 | 750,710 | | 16,436 | 285,002 |
Shares repurchased | (36,421) | (656,636) | | (57,117) | (1,014,962) |
Net Increase/(Decrease) | 39,321 | $ 685,145 | | (14,639) | $ (246,769) |
Class C Shares: | | | | | |
Shares sold | 5,157 | $ 86,506 | | 3,454 | $ 64,583 |
Reinvested dividends and distributions | 4,173 | 68,065 | | 2,038 | 33,972 |
Shares repurchased | (1,873) | (31,006) | | (19,642) | (349,854) |
Net Increase/(Decrease) | 7,457 | $ 123,565 | | (14,150) | $ (251,299) |
Class D Shares: | | | | | |
Shares sold | 936,863 | $ 17,134,032 | | 2,203,328 | $ 41,284,931 |
Reinvested dividends and distributions | 12,616,979 | 214,236,297 | | 4,780,532 | 82,320,764 |
Shares repurchased | (3,372,834) | (62,531,127) | | (7,797,820) | (142,849,092) |
Net Increase/(Decrease) | 10,181,008 | $168,839,202 | | (813,960) | $(19,243,397) |
Class I Shares: | | | | | |
Shares sold | 163,630 | $ 3,007,578 | | 273,675 | $ 5,140,916 |
Reinvested dividends and distributions | 151,400 | 2,581,372 | | 47,200 | 815,610 |
Shares repurchased | (143,086) | (2,580,213) | | (141,642) | (2,611,261) |
Net Increase/(Decrease) | 171,944 | $ 3,008,737 | | 179,233 | $ 3,345,265 |
Class N Shares: | | | | | |
Shares sold | 36,130 | $ 675,717 | | 193,821 | $ 3,594,074 |
Reinvested dividends and distributions | 183,226 | 3,114,836 | | 84,348 | 1,453,322 |
Shares repurchased | (126,411) | (2,294,137) | | (513,747) | (9,525,139) |
Net Increase/(Decrease) | 92,945 | $ 1,496,416 | | (235,578) | $ (4,477,743) |
Class R Shares: | | | | | |
Shares sold | 1,303 | $ 24,958 | | 255 | $ 4,687 |
Reinvested dividends and distributions | 977 | 16,461 | | 287 | 4,911 |
Shares repurchased | (427) | (7,197) | | (1,204) | (20,325) |
Net Increase/(Decrease) | 1,853 | $ 34,222 | | (662) | $ (10,727) |
Class S Shares: | | | | | |
Shares sold | 92 | $ 1,693 | | 248 | $ 4,464 |
Reinvested dividends and distributions | 897 | 15,445 | | 692 | 12,027 |
Shares repurchased | (2,323) | (42,333) | | (8,458) | (158,411) |
Net Increase/(Decrease) | (1,334) | $ (25,195) | | (7,518) | $ (141,920) |
Class T Shares: | | | | | |
Shares sold | 1,070,907 | $ 19,835,628 | | 1,900,455 | $ 35,428,430 |
Reinvested dividends and distributions | 3,930,772 | 66,901,743 | | 1,481,771 | 25,560,543 |
Shares repurchased | (2,202,141) | (40,094,576) | | (3,460,887) | (63,531,578) |
Net Increase/(Decrease) | 2,799,538 | $ 46,642,795 | | (78,661) | $ (2,542,605) |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$320,230,602 | $ 370,393,616 | $ - | $ - |
Janus Henderson Global Select Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Global Select Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Select Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Select Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Select Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Select Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Global Select Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Select Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Select Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Global Select Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Global Select Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Select Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Global Select Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Select Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Global Select Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Global Select Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Global Select Fund
Notes
NotesPage1
Janus Henderson Global Select Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93046 05-22 |
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| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Global Sustainable Equity Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Sustainable Equity Fund
| | | | | | |
FUND SNAPSHOT We believe there is a strong link between sustainable development, innovation and long-term compounding growth. Our investment framework seeks to invest in companies that have a positive impact on the environment and society, while at the same time helping us stay on the right side of disruption. We believe this approach will provide clients with a persistent return source, deliver future compound growth and help mitigate downside risk. | | | | 
Aaron Scully co-portfolio manager | 
Hamish Chamberlayne co-portfolio manager |
| | | |
Janus Henderson Global Sustainable Equity Fund (unaudited)
Fund At A Glance
March 31, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Evoqua Water Technologies Corp | 3.11% | | 0.62% | | Autodesk Inc | 3.26% | | -0.94% |
| NVIDIA Corp | 3.64% | | 0.61% | | Avalara Inc | 1.54% | | -0.91% |
| Progressive Corp/The | 1.56% | | 0.32% | | IPG Photonics Corp | 1.61% | | -0.56% |
| Aon PLC - Class A | 2.78% | | 0.31% | | Adobe Inc | 2.61% | | -0.53% |
| Walker & Dunlop Inc | 2.31% | | 0.26% | | Atlassian Corp PLC - Class A | 1.64% | | -0.51% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | 1.34% | | 2.27% | 8.36% |
| Financials | | 1.19% | | 12.78% | 13.77% |
| Real Estate | | 0.18% | | 3.89% | 2.73% |
| Other** | | 0.05% | | 3.51% | 0.00% |
| Utilities | | 0.04% | | 4.32% | 2.74% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI World Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -4.03% | | 42.55% | 22.88% |
| Energy | | -1.09% | | 0.00% | 3.59% |
| Health Care | | -0.85% | | 6.14% | 12.47% |
| Materials | | -0.81% | | 1.65% | 4.24% |
| Industrials | | -0.69% | | 15.49% | 10.21% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Global Sustainable Equity Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 6.2% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 3.9% |
Evoqua Water Technologies Corp | |
Machinery | 3.5% |
Aon PLC - Class A | |
Insurance | 3.2% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 3.0% |
| | 19.8% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.5% | |
Investment Companies | | 3.5% | |
Other | | 0.0% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Sustainable Equity Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -4.02% | 3.59% | 19.20% | | | 4.53% | 1.16% |
Class A Shares at MOP | | -9.51% | -2.36% | 15.27% | | | | |
Class C Shares at NAV | | -3.79% | 3.77% | 19.16% | | | 7.33% | 1.87% |
Class C Shares at CDSC | | -4.75% | 2.77% | 19.16% | | | | |
Class D Shares | | -4.04% | 3.70% | 19.24% | | | 1.97% | 1.00% |
Class I Shares | | -3.95% | 3.80% | 19.42% | | | 1.86% | 0.87% |
Class N Shares | | -3.92% | 3.89% | 19.47% | | | 2.14% | 0.86% |
Class R Shares | | -3.72% | 3.77% | 19.02% | | | 8.11% | 1.61% |
Class S Shares | | -3.93% | 3.77% | 19.21% | | | 6.82% | 1.37% |
Class T Shares | | -4.05% | 3.62% | 19.17% | | | 2.82% | 1.11% |
MSCI World Index | | 2.21% | 10.12% | 22.33% | | | | |
Morningstar Quartile - Class I Shares | | - | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for World Large Stock Funds | | - | 99/362 | 57/354 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
Until the earlier of three years from inception or the Fund’s assets meeting the first fee breakpoint, expenses previously waived or reimbursed may be recovered if the expense ratio falls below certain limits.
Janus Henderson Global Sustainable Equity Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 R Shares commenced operations on January 28, 2021. Performance shown for periods prior to January 28, 2021, reflects the historical performance of the Funds’s Class I Shares, calculated using the fees and expenses of Class R Shares, net of any applicable fee and expense limitations or waivers.
If Class R Shares of the Fund had been available during periods prior to January 28, 2021, the performance shown may have been different. The performance shown for periods following the Fund's commencement of Class R Shares reflects the fees and expenses of Class R Shares, net of any applicable fee and expense limitations or waivers.
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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – June 25, 2020
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Sustainable Equity 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $959.80 | $4.89 | | $1,000.00 | $1,019.95 | $5.04 | 1.00% |
Class C Shares | $1,000.00 | $962.10 | $2.54 | | $1,000.00 | $1,022.34 | $2.62 | 0.52% |
Class D Shares | $1,000.00 | $959.60 | $4.89 | | $1,000.00 | $1,019.95 | $5.04 | 1.00% |
Class I Shares | $1,000.00 | $960.50 | $4.35 | | $1,000.00 | $1,020.49 | $4.48 | 0.89% |
Class N Shares | $1,000.00 | $960.80 | $4.20 | | $1,000.00 | $1,020.64 | $4.33 | 0.86% |
Class R Shares | $1,000.00 | $962.80 | $1.81 | | $1,000.00 | $1,023.09 | $1.87 | 0.37% |
Class S Shares | $1,000.00 | $960.70 | $3.81 | | $1,000.00 | $1,021.04 | $3.93 | 0.78% |
Class T Shares | $1,000.00 | $959.50 | $5.33 | | $1,000.00 | $1,019.50 | $5.49 | 1.09% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Sustainable Equity Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 96.5% | | | |
Auto Components – 1.6% | | | |
| | Aptiv PLC* | | 4,689 | | | $561,320 | |
Building Products – 1.0% | | | |
| | Advanced Drainage Systems Inc | | 2,946 | | | 350,014 | |
Containers & Packaging – 1.2% | | | |
| | DS Smith PLC | | 95,599 | | | 400,942 | |
Diversified Financial Services – 0.4% | | | |
| | Linklogis Inc - Class B (144A)* | | 137,992 | | | 130,827 | |
Electric Utilities – 1.7% | | | |
| | SSE PLC | | 25,675 | | | 587,781 | |
Electrical Equipment – 5.2% | | | |
| | Legrand SA | | 6,708 | | | 637,621 | |
| | Nidec Corp | | 5,100 | | | 404,118 | |
| | Schneider Electric SE | | 4,587 | | | 765,723 | |
| | | 1,807,462 | |
Electronic Equipment, Instruments & Components – 6.4% | | | |
| | IPG Photonics Corp* | | 3,895 | | | 427,515 | |
| | Murata Manufacturing Co Ltd | | 7,900 | | | 522,321 | |
| | Shimadzu Corp | | 16,300 | | | 561,379 | |
| | TE Connectivity Ltd | | 5,405 | | | 707,947 | |
| | | 2,219,162 | |
Entertainment – 2.3% | | | |
| | Nintendo Co Ltd | | 1,600 | | | 807,433 | |
Equity Real Estate Investment Trusts (REITs) – 4.1% | | | |
| | Crown Castle International Corp | | 2,596 | | | 479,222 | |
| | Equinix Inc | | 660 | | | 489,469 | |
| | Prologis Inc | | 2,842 | | | 458,926 | |
| | | 1,427,617 | |
Food Products – 0.5% | | | |
| | McCormick & Co Inc/MD | | 1,741 | | | 173,752 | |
Health Care Equipment & Supplies – 0.3% | | | |
| | Nanosonics Ltd* | | 30,491 | | | 89,283 | |
Health Care Providers & Services – 3.2% | | | |
| | Encompass Health Corp | | 7,752 | | | 551,245 | |
| | Humana Inc | | 1,318 | | | 573,554 | |
| | | 1,124,799 | |
Health Care Technology – 0.2% | | | |
| | Accolade Inc* | | 3,906 | | | 68,589 | |
Independent Power and Renewable Electricity Producers – 3.6% | | | |
| | Boralex Inc - Class A | | 19,911 | | | 645,435 | |
| | Innergex Renewable Energy Inc | | 38,434 | | | 611,254 | |
| | | 1,256,689 | |
Information Technology Services – 1.9% | | | |
| | Mastercard Inc | | 1,804 | | | 644,714 | |
Insurance – 12.1% | | | |
| | AIA Group Ltd | | 59,600 | | | 624,002 | |
| | Aon PLC - Class A | | 3,389 | | | 1,103,560 | |
| | Intact Financial Corp | | 6,455 | | | 953,894 | |
| | Marsh & McLennan Cos Inc | | 4,729 | | | 805,916 | |
| | Progressive Corp/The | | 6,145 | | | 700,469 | |
| | | 4,187,841 | |
Leisure Products – 1.5% | | | |
| | Shimano Inc | | 2,300 | | | 526,177 | |
Life Sciences Tools & Services – 1.9% | | | |
| | ICON PLC* | | 2,719 | | | 661,315 | |
Machinery – 8.6% | | | |
| | Evoqua Water Technologies Corp* | | 26,023 | | | 1,222,561 | |
| | Knorr-Bremse AG | | 5,320 | | | 408,666 | |
| | Wabtec Corp | | 8,711 | | | 837,737 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Global Sustainable Equity Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Machinery– (continued) | | | |
| | Xylem Inc/NY | | 5,833 | | | $497,322 | |
| | | 2,966,286 | |
Professional Services – 1.5% | | | |
| | Wolters Kluwer NV | | 4,713 | | | 501,627 | |
Semiconductor & Semiconductor Equipment – 14.5% | | | |
| | ASML Holding NV | | 917 | | | 611,554 | |
| | Lam Research Corp | | 1,348 | | | 724,698 | |
| | Microchip Technology Inc | | 8,077 | | | 606,906 | |
| | NVIDIA Corp | | 4,992 | | | 1,362,117 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 51,000 | | | 1,054,635 | |
| | Texas Instruments Inc | | 3,627 | | | 665,482 | |
| | | 5,025,392 | |
Software – 17.8% | | | |
| | Adobe Inc* | | 1,100 | | | 501,182 | |
| | Atlassian Corp PLC - Class A* | | 2,018 | | | 592,949 | |
| | Autodesk Inc* | | 4,662 | | | 999,300 | |
| | Avalara Inc* | | 5,208 | | | 518,248 | |
| | Bill.com Holdings Inc* | | 1,468 | | | 332,928 | |
| | Cadence Design Systems Inc* | | 3,279 | | | 539,264 | |
| | Microsoft Corp | | 7,014 | | | 2,162,486 | |
| | Zendesk Inc* | | 4,380 | | | 526,870 | |
| | | 6,173,227 | |
Specialty Retail – 0.8% | | | |
| | Home Depot Inc | | 979 | | | 293,044 | |
Textiles, Apparel & Luxury Goods – 2.0% | | | |
| | adidas AG | | 1,578 | | | 368,438 | |
| | NIKE Inc - Class B | | 2,432 | | | 327,250 | |
| | | 695,688 | |
Thrifts & Mortgage Finance – 2.2% | | | |
| | Walker & Dunlop Inc | | 5,995 | | | 775,873 | |
Total Common Stocks (cost $29,306,303) | | 33,456,854 | |
Investment Companies– 3.5% | | | |
Money Markets – 3.5% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $1,223,279) | | 1,223,157 | | | 1,223,279 | |
Total Investments (total cost $30,529,582) – 100.0% | | 34,680,133 | |
Cash, Receivables and Other Assets, net of Liabilities – 0% | | 3,171 | |
Net Assets – 100% | | $34,683,304 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Sustainable Equity Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $22,212,759 | | 64.1 | % |
Japan | | 2,821,428 | | 8.1 | |
Canada | | 2,210,583 | | 6.4 | |
France | | 1,403,344 | | 4.0 | |
Netherlands | | 1,113,181 | | 3.2 | |
Taiwan | | 1,054,635 | | 3.0 | |
United Kingdom | | 988,723 | | 2.9 | |
Germany | | 777,104 | | 2.2 | |
Australia | | 682,232 | | 2.0 | |
Ireland | | 661,315 | | 1.9 | |
Hong Kong | | 624,002 | | 1.8 | |
China | | 130,827 | | 0.4 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 3.5% |
Money Markets - 3.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 627 | $ | 38 | $ | (38) | $ | 1,223,279 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 3.5% |
Money Markets - 3.5% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 1,726,214 | | 6,675,177 | | (7,178,112) | | 1,223,279 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Global Sustainable Equity Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI World IndexSM | MSCI World IndexSM reflects the equity market performance of global developed markets. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $130,827, which represents 0.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
£ | 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. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Containers & Packaging | $ | - | $ | 400,942 | $ | - |
Diversified Financial Services | | - | | 130,827 | | - |
Electric Utilities | | - | | 587,781 | | - |
Electrical Equipment | | - | | 1,807,462 | | - |
Electronic Equipment, Instruments & Components | | 1,135,462 | | 1,083,700 | | - |
Entertainment | | - | | 807,433 | | - |
Health Care Equipment & Supplies | | - | | 89,283 | | - |
Insurance | | 3,563,839 | | 624,002 | | - |
Leisure Products | | - | | 526,177 | | - |
Machinery | | 2,557,620 | | 408,666 | | - |
Professional Services | | - | | 501,627 | | - |
Semiconductor & Semiconductor Equipment | | 3,359,203 | | 1,666,189 | | - |
Textiles, Apparel & Luxury Goods | | 327,250 | | 368,438 | | - |
All Other | | 13,510,953 | | - | | - |
Investment Companies | | - | | 1,223,279 | | - |
Total Assets | $ | 24,454,327 | $ | 10,225,806 | $ | - |
| | | | | | | |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $29,306,303) | | $ | 33,456,854 | |
| Affiliated investments, at value (cost $1,223,279) | | | 1,223,279 | |
| Cash denominated in foreign currency (cost $8,944) | | | 8,944 | |
| Non-interested Trustees' deferred compensation | | | 951 | |
| Receivables: | | | | |
| | Fund shares sold | | | 45,715 | |
| | Dividends | | | 34,776 | |
| | Due from adviser | | | 28,172 | |
| | Foreign tax reclaims | | | 7,255 | |
| | Dividends from affiliates | | | 212 | |
| Other assets | | | 252 | |
Total Assets | | | 34,806,410 | |
Liabilities: | | | | |
| Payables: | | | — | |
| | Professional fees | | | 33,462 | |
| | Advisory fees | | | 21,400 | |
| | Transfer agent fees and expenses | | | 4,106 | |
| | Custodian fees | | | 2,093 | |
| | Non-interested Trustees' deferred compensation fees | | | 951 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 148 | |
| | Non-interested Trustees' fees and expenses | | | 142 | |
| | Affiliated fund administration fees payable | | | 71 | |
| | Accrued expenses and other payables | | | 60,733 | |
Total Liabilities | | | 123,106 | |
Net Assets | | $ | 34,683,304 | |
| | |
See Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Global Sustainable Equity Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 31,608,765 | |
| Total distributable earnings (loss) | | | 3,074,539 | |
Total Net Assets | | $ | 34,683,304 | |
Net Assets - Class A Shares | | $ | 239,395 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 17,781 | |
Net Asset Value Per Share(1) | | $ | 13.46 | |
Maximum Offering Price Per Share(2) | | $ | 14.28 | |
Net Assets - Class C Shares | | $ | 75,979 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,643 | |
Net Asset Value Per Share(1) | | $ | 13.46 | |
Net Assets - Class D Shares | | $ | 25,821,457 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,913,578 | |
Net Asset Value Per Share | | $ | 13.49 | |
Net Assets - Class I Shares | | $ | 6,237,463 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 462,642 | |
Net Asset Value Per Share | | $ | 13.48 | |
Net Assets - Class N Shares | | $ | 1,513,314 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 111,881 | |
Net Asset Value Per Share | | $ | 13.53 | |
Net Assets - Class R Shares | | $ | 52,462 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,890 | |
Net Asset Value Per Share | | $ | 13.49 | |
Net Assets - Class S Shares | | $ | 68,156 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,065 | |
Net Asset Value Per Share | | $ | 13.46 | |
Net Assets - Class T Shares | | $ | 675,078 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 50,079 | |
Net Asset Value Per Share | | $ | 13.48 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 181,786 | |
| Dividends from affiliates | | 627 | |
| Other income | | 91 | |
| Foreign tax withheld | | (9,280) | |
Total Investment Income | | 173,224 | |
Expenses: | | | |
| Advisory fees | | 144,384 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 103 | |
| | Class C Shares | | — | |
| | Class R Shares | | — | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 14,521 | |
| | Class R Shares | | 68 | |
| | Class S Shares | | 89 | |
| | Class T Shares | | 875 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 39 | |
| | Class C Shares | | 11 | |
| | Class I Shares | | 1,521 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 11 | |
| | Class C Shares | | 5 | |
| | Class D Shares | | 4,647 | |
| | Class I Shares | | 344 | |
| | Class N Shares | | 47 | |
| | Class R Shares | | 3 | |
| | Class S Shares | | 2 | |
| | Class T Shares | | 18 | |
| Registration fees | | 67,768 | |
| Non-affiliated fund administration fees | | 34,535 | |
| Professional fees | | 23,691 | |
| Custodian fees | | 4,548 | |
| Shareholder reports expense | | 3,952 | |
| Affiliated fund administration fees | | 482 | |
| Non-interested Trustees’ fees and expenses | | 428 | |
| Other expenses | | 6,640 | |
Total Expenses | | 308,732 | |
Less: Excess Expense Reimbursement and Waivers | | (123,307) | |
Net Expenses | | 185,425 | |
Net Investment Income/(Loss) | | (12,201) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Global Sustainable Equity Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | (912,228) | |
| Investments in affiliates | | 38 | |
Total Net Realized Gain/(Loss) on Investments | | (912,190) | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (1,005,338) | |
| Investments in affiliates | | (38) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,005,376) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (1,929,767) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Sustainable Equity Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021(1) | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (12,201) | | $ | 55,853 | |
| Net realized gain/(loss) on investments | | (912,190) | | | 234,173 | |
| Change in unrealized net appreciation/depreciation | | (1,005,376) | | | 4,375,106 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (1,929,767) | | | 4,665,132 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (1,797) | | | (237) | |
| | Class C Shares | | (778) | | | (149) | |
| | Class D Shares | | (270,032) | | | (12,247) | |
| | Class I Shares | | (131,214) | | | (21,225) | |
| | Class N Shares | | (16,196) | | | (466) | |
| | Class R Shares | | (510) | | | — | |
| | Class S Shares | | (721) | | | (186) | |
| | Class T Shares | | (6,829) | | | (251) | |
Net Decrease from Dividends and Distributions to Shareholders | | (428,077) | | | (34,761) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 71,549 | | | 91,700 | |
| | Class C Shares | | 3,315 | | | 6,149 | |
| | Class D Shares | | 3,373,902 | | | 15,901,862 | |
| | Class I Shares | | (4,355,607) | | | 4,421,540 | |
| | Class N Shares | | 130,174 | | | 1,137,369 | |
| | Class R Shares | | 510 | | | 50,000 | |
| | Class S Shares | | 721 | | | 186 | |
| | Class T Shares | | 14,407 | | | 550,080 | |
Net Increase/(Decrease) from Capital Share Transactions | | (761,029) | | | 22,158,886 | |
Net Increase/(Decrease) in Net Assets | | (3,118,873) | | | 26,789,257 | |
Net Assets: | | | | | | |
| Beginning of period | | 37,802,177 | | | 11,012,920 | |
| End of period | $ | 34,683,304 | | $ | 37,802,177 | |
| | | | | | | | |
| |
(1) Period from January 28, 2021 (inception date) through September 30, 2021 for Class R Shares. |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class A Shares | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.16 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | — | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (0.56) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | (0.56) | | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.01) | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $13.46 | | | $14.16 | | | $11.18 | |
| Total Return* | | (4.02)% | | | 27.05% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $239 | | | $181 | | | $67 | |
| Average Net Assets for the Period (in thousands) | | $208 | | | $123 | | | $63 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 3.04% | | | 4.43% | | | 15.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.06% | | | 1.13% | |
| | Ratio of Net Investment Income/(Loss) | | (0.05)% | | | 0.12% | | | 0.27% | |
| Portfolio Turnover Rate | | 18% | | | 12% | | | 11% | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class C Shares | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.13 | | | $11.16 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.03 | | | (0.01) | | | (0.01) | |
| | Net realized and unrealized gain/(loss) | | (0.57) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (0.54) | | | 3.00 | | | 1.16 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | —(3) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $13.46 | | | $14.13 | | | $11.16 | |
| Total Return* | | (3.87)% | | | 26.91% | | | 11.60% | |
| Net Assets, End of Period (in thousands) | | $76 | | | $77 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $79 | | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 4.88% | | | 6.64% | | | 17.28% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.52% | | | 1.19% | | | 1.87% | |
| | Ratio of Net Investment Income/(Loss) | | 0.39% | | | (0.04)% | | | (0.46)% | |
| Portfolio Turnover Rate | | 18% | | | 12% | | | 11% | |
| | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class D Shares | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.20 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.01) | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (0.56) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (0.57) | | | 3.03 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.01) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $13.49 | | | $14.20 | | | $11.18 | |
| Total Return* | | (4.04)% | | | 27.15% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $25,821 | | | $23,921 | | | $5,226 | |
| Average Net Assets for the Period (in thousands) | | $26,108 | | | $16,804 | | | $2,485 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.60% | | | 1.97% | | | 10.52% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.00% | | | 1.00% | | | 0.98% | |
| | Ratio of Net Investment Income/(Loss) | | (0.08)% | | | 0.18% | | | 0.50% | |
| Portfolio Turnover Rate | | 18% | | | 12% | | | 11% | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class I Shares | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.19 | | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | —(3) | | | 0.04 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (0.55) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | (0.55) | | | 3.04 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.16) | | | (0.04) | | | — | |
| Net Asset Value, End of Period | | $13.48 | | | $14.19 | | | $11.19 | |
| Total Return* | | (3.95)% | | | 27.25% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $6,237 | | | $11,353 | | | $5,317 | |
| Average Net Assets for the Period (in thousands) | | $9,891 | | | $7,780 | | | $5,071 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.45% | | | 1.86% | | | 10.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.87% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | (0.03)% | | | 0.29% | | | 0.55% | |
| Portfolio Turnover Rate | | 18% | | | 12% | | | 11% | |
| | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class N Shares | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.23 | | | $11.19 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | —(3) | | | 0.05 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (0.55) | | | 3.00 | | | 1.17 | |
| Total from Investment Operations | | (0.55) | | | 3.05 | | | 1.19 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.02) | | | — | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.15) | | | (0.01) | | | — | |
| Net Asset Value, End of Period | | $13.53 | | | $14.23 | | | $11.19 | |
| Total Return* | | (3.92)% | | | 27.30% | | | 11.90% | |
| Net Assets, End of Period (in thousands) | | $1,513 | | | $1,449 | | | $192 | |
| Average Net Assets for the Period (in thousands) | | $1,493 | | | $831 | | | $83 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.64% | | | 2.14% | | | 14.24% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.86% | | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.06% | | | 0.33% | | | 0.73% | |
| Portfolio Turnover Rate | | 18% | | | 12% | | | 11% | |
| | | | | | | | | | | | | |
| | | | | | | | | | |
Class R Shares | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the period ended September 30, 2021 | 2022 | | | 2021(4) | |
| Net Asset Value, Beginning of Period | | $14.13 | | | $13.08 | |
| Income/(Loss) from Investment Operations: | | | | | | |
| | Net investment income/(loss)(2) | | 0.04 | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | (0.55) | | | 1.08 | |
| Total from Investment Operations | | (0.51) | | | 1.05 | |
| Less Dividends and Distributions: | | | | | | |
| | Dividends (from net investment income) | | — | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | — | |
| Net Asset Value, End of Period | | $13.49 | | | $14.13 | |
| Total Return* | | (3.65)% | | | 8.03% | |
| Net Assets, End of Period (in thousands) | | $52 | | | $54 | |
| Average Net Assets for the Period (in thousands) | | $55 | | | $53 | |
| Ratios to Average Net Assets**: | | | | | | |
| | Ratio of Gross Expenses | | 6.60% | | | 7.99% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.37% | | | 1.46% | |
| | Ratio of Net Investment Income/(Loss) | | 0.54% | | | (0.27)% | |
| Portfolio Turnover Rate | | 18% | | | 12% | |
| | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. (4) Period from January 28, 2021 (inception date) through September 30, 2021. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Sustainable Equity Fund
Financial Highlights
| | | | | | | | | | | | | |
Class S Shares | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.15 | | | $11.17 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.01 | | | —(3) | | | —(3) | |
| | Net realized and unrealized gain/(loss) | | (0.56) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (0.55) | | | 3.01 | | | 1.17 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | (0.01) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.14) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $13.46 | | | $14.15 | | | $11.17 | |
| Total Return* | | (3.93)% | | | 27.05% | | | 11.70% | |
| Net Assets, End of Period (in thousands) | | $68 | | | $71 | | | $56 | |
| Average Net Assets for the Period (in thousands) | | $71 | | | $67 | | | $54 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.75% | | | 6.65% | | | 16.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.78% | | | 1.11% | | | 1.37% | |
| | Ratio of Net Investment Income/(Loss) | | 0.12% | | | 0.03% | | | 0.04% | |
| Portfolio Turnover Rate | | 18% | | | 12% | | | 11% | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Class T Shares | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020(1) | |
| Net Asset Value, Beginning of Period | | $14.18 | | | $11.18 | | | $10.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.01) | | | 0.01 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (0.56) | | | 3.01 | | | 1.17 | |
| Total from Investment Operations | | (0.57) | | | 3.02 | | | 1.18 | |
| Less Dividends and Distributions: | | | | | | | | | |
| | Dividends (from net investment income) | | —(3) | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (0.13) | | | (0.01) | | | — | |
| Total Dividends and Distributions | | (0.13) | | | (0.02) | | | — | |
| Net Asset Value, End of Period | | $13.48 | | | $14.18 | | | $11.18 | |
| Total Return* | | (4.05)% | | | 27.02% | | | 11.80% | |
| Net Assets, End of Period (in thousands) | | $675 | | | $697 | | | $99 | |
| Average Net Assets for the Period (in thousands) | | $702 | | | $387 | | | $77 | |
| Ratios to Average Net Assets**: | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.10% | | | 2.82% | | | 14.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.09% | | | 1.09% | | | 1.11% | |
| | Ratio of Net Investment Income/(Loss) | | (0.18)% | | | 0.10% | | | 0.33% | |
| Portfolio Turnover Rate | | 18% | | | 12% | | | 11% | |
| | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 25, 2020 (inception date) through September 30, 2020. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Global Sustainable Equity Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 period.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $2 Billion | 0.75 |
Over $2 Billion | 0.70 |
The Fund’s actual investment advisory fee rate for the reporting period was 0.75% of average annual net assets before any applicable waivers.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.85% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
For the period of three years subsequent to the Fund’s commencement of operations, or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio including recovered expenses, falls below the expense limit. If applicable, this amount is disclosed as “Recoupment expense” on the Statement of Operations. During the year ended March 31, 2022, Janus Capital reimbursed the Fund $123,138 of fees and expense that are eligible for recoupment. As of March 31, 2022, the aggregate amount of recoupment that may potentially be made to Janus Capital is $605,696. The recoupment of such reimbursements expires at the latest June 25, 2023.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $524.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended March 31, 2022.
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | 28 | % | - | %* | |
Class C Shares | 90 | | -* | | |
Class D Shares | -* | | -* | | |
Class I Shares | - | | - | | |
Class N Shares | 5 | | -* | | |
Class R Shares | 100 | | -* | | |
Class S Shares | 100 | | -* | | |
Class T Shares | 10 | | -* | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 30,908,540 | $ 5,612,011 | $ (1,840,418) | $ 3,771,593 |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021(1) |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 5,741 | $ 82,252 | | 6,778 | $ 91,463 |
Reinvested dividends and distributions | 125 | 1,797 | | 18 | 237 |
Shares repurchased | (862) | (12,500) | | - | - |
Net Increase/(Decrease) | 5,004 | $ 71,549 | | 6,796 | $ 91,700 |
Class C Shares: | | | | | |
Shares sold | 539 | $ 8,063 | | 409 | $ 6,000 |
Reinvested dividends and distributions | 54 | 778 | | 12 | 149 |
Shares repurchased | (371) | (5,526) | | - | - |
Net Increase/(Decrease) | 222 | $ 3,315 | | 421 | $ 6,149 |
Class D Shares: | | | | | |
Shares sold | 359,927 | $ 5,170,933 | | 1,554,605 | $20,408,231 |
Reinvested dividends and distributions | 18,393 | 265,600 | | 932 | 11,975 |
Shares repurchased | (149,550) | (2,062,631) | | (338,219) | (4,518,344) |
Net Increase/(Decrease) | 228,770 | $ 3,373,902 | | 1,217,318 | $15,901,862 |
Class I Shares: | | | | | |
Shares sold | 135,290 | $ 1,870,957 | | 329,386 | $ 4,483,536 |
Reinvested dividends and distributions | 9,099 | 131,214 | | 1,654 | 21,224 |
Shares repurchased | (481,864) | (6,357,778) | | (6,170) | (83,220) |
Net Increase/(Decrease) | (337,475) | $(4,355,607) | | 324,870 | $ 4,421,540 |
Class N Shares: | | | | | |
Shares sold | 17,384 | $ 238,381 | | 92,900 | $ 1,247,113 |
Reinvested dividends and distributions | 1,119 | 16,196 | | 36 | 466 |
Shares repurchased | (8,436) | (124,403) | | (8,291) | (110,210) |
Net Increase/(Decrease) | 10,067 | $ 130,174 | | 84,645 | $ 1,137,369 |
Class R Shares: | | | | | |
Shares sold | - | $ - | | 3,855 | $ 50,000 |
Reinvested dividends and distributions | 35 | 510 | | - | - |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 35 | $ 510 | | 3,855 | $ 50,000 |
Class S Shares: | | | | | |
Shares sold | - | $ - | | - | $ - |
Reinvested dividends and distributions | 51 | 721 | | 14 | 186 |
Shares repurchased | - | - | | - | - |
Net Increase/(Decrease) | 51 | $ 721 | | 14 | $ 186 |
Class T Shares: | | | | | |
Shares sold | 5,350 | $ 74,660 | | 51,435 | $ 699,859 |
Reinvested dividends and distributions | 473 | 6,829 | | 19 | 250 |
Shares repurchased | (4,880) | (67,082) | | (11,190) | (150,029) |
Net Increase/(Decrease) | 943 | $ 14,407 | | 40,264 | $ 550,080 |
(1) | Period from January 28, 2021 (inception date) through September 30, 2021 for Class R Shares. |
Janus Henderson Global Sustainable Equity Fund
Notes to Financial Statements (unaudited)
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$ 6,553,770 | $ 7,900,595 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Global Sustainable Equity Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Sustainable Equity Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Global Sustainable Equity Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Sustainable Equity Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Global Sustainable Equity Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Global Sustainable Equity Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Global Sustainable Equity Fund
Notes
NotesPage1
Janus Henderson Global Sustainable Equity Fund
Notes
NotesPage2
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| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93086 05-22 |
| | | | |
| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Global Technology and Innovation Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Global Technology and Innovation Fund
| | | | | | |
FUND SNAPSHOT This global growth fund invests in companies that create and benefit from advances in technology. We invest in companies we believe to be resilient and also take smaller positions in companies that have optionality – meaning large potential upside under a specific scenario. The Fund seeks long-term growth of capital. | | | | 
Jonathan Cofsky co-portfolio manager | 
Denny Fish co-portfolio manager |
| | | |
Janus Henderson Global Technology and Innovation Fund (unaudited)
Fund At A Glance
March 31, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| NVIDIA Corp | 3.49% | | 0.30% | | Apple Inc | 7.52% | | -1.82% |
| Alphabet Inc - Class C | 4.94% | | 0.15% | | Sea Ltd (ADR) | 1.16% | | -1.15% |
| Cadence Design Systems Inc | 1.84% | | 0.13% | | Snap Inc - Class A | 1.03% | | -0.77% |
| Atlassian Corp PLC - Class A | 1.43% | | -0.38% | | Twilio Inc | 1.42% | | -0.73% |
| ASML Holding NV | 5.77% | | -0.40% | | Global-E Online Ltd | 0.81% | | -0.61% |
| | | | | | | |
| 5 Top Detractors - Sectors*a | | | | | |
| | | Relative | | Fund | MSCI All Country World Information Technology Index |
| | | Contribution | | Average Weight | Average Weight |
| Information Technology | | -4.75% | | 74.71% | 100.00% |
| Communication Services | | -3.51% | | 10.24% | 0.00% |
| Consumer Discretionary | | -2.32% | | 8.87% | 0.00% |
| Industrials | | -0.86% | | 3.24% | 0.00% |
| Real Estate | | -0.37% | | 1.54% | 0.00% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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. |
a | During the reporting period no sectors contributed on a relative basis. |
Janus Henderson Global Technology and Innovation Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 12.0% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 9.1% |
ASML Holding NV | |
Semiconductor & Semiconductor Equipment | 6.0% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 5.4% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 4.9% |
| | 37.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 98.9% | |
Preferred Stocks | | 0.8% | |
Private Investment in Public Equity (PIPES) | | 0.4% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.2% | |
Investment Companies | | 0.0% | |
Warrants | | 0.0% | |
Other | | (0.3)% |
| | | 100.0% |
Emerging markets comprised 7.7% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Global Technology and Innovation Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | |
Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -11.46% | -1.80% | 22.88% | 18.65% | 10.68% | | | 0.98% |
Class A Shares at MOP | | -16.55% | -7.46% | 21.43% | 17.95% | 10.40% | | | |
Class C Shares at NAV | | -11.72% | -2.43% | 22.04% | 17.84% | 9.90% | | | 1.74% |
Class C Shares at CDSC | | -12.46% | -3.24% | 22.04% | 17.84% | 9.90% | | | |
Class D Shares | | -11.37% | -1.61% | 23.10% | 18.88% | 10.86% | | | 0.79% |
Class I Shares | | -11.35% | -1.58% | 23.18% | 18.97% | 10.91% | | | 0.75% |
Class N Shares | | -11.32% | -1.49% | 23.28% | 18.94% | 10.88% | | | 0.67% |
Class S Shares | | -11.53% | -1.99% | 22.65% | 18.48% | 10.52% | | | 1.17% |
Class T Shares | | -11.42% | -1.72% | 22.98% | 18.80% | 10.82% | | | 0.91% |
S&P 500 Index | | 5.92% | 15.65% | 15.99% | 14.64% | 7.78% | | | |
MSCI All Country World Information Technology Index | | 1.02% | 12.27% | 23.63% | 18.12% | 8.22% | | | |
Morningstar Quartile - Class T Shares | | - | 3rd | 2nd | 2nd | 2nd | | | |
Morningstar Ranking - based on total returns for Technology Funds | | - | 152/254 | 77/194 | 63/178 | 37/96 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, holdings and other details.
Janus Henderson Global Technology and Innovation Fund (unaudited)
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 (renamed Class T Shares effective February 16, 2010), 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 former 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 January 27, 2017. Performance shown for periods prior to January 27, 2017, reflects the historical 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
Effective March 1, 2022, Jonathan Cofsky and Denny Fish are Co-Portfolio Managers of the Fund.
*The Fund’s inception date – December 31, 1998.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Global Technology and Innovation 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $885.40 | $4.65 | | $1,000.00 | $1,020.00 | $4.99 | 0.99% |
Class C Shares | $1,000.00 | $882.80 | $7.32 | | $1,000.00 | $1,017.15 | $7.85 | 1.56% |
Class D Shares | $1,000.00 | $886.30 | $3.72 | | $1,000.00 | $1,020.99 | $3.98 | 0.79% |
Class I Shares | $1,000.00 | $886.50 | $3.57 | | $1,000.00 | $1,021.14 | $3.83 | 0.76% |
Class N Shares | $1,000.00 | $886.80 | $3.10 | | $1,000.00 | $1,021.64 | $3.33 | 0.66% |
Class S Shares | $1,000.00 | $884.70 | $5.50 | | $1,000.00 | $1,019.10 | $5.89 | 1.17% |
Class T Shares | $1,000.00 | $885.80 | $4.23 | | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 98.9% | | | |
Aerospace & Defense – 0.4% | | | |
| | Axon Enterprise Inc* | | 172,678 | | | $23,782,941 | |
Entertainment – 0.9% | | | |
| | Sea Ltd (ADR)* | | 426,587 | | | 51,100,857 | |
Equity Real Estate Investment Trusts (REITs) – 1.4% | | | |
| | Equinix Inc | | 105,315 | | | 78,103,710 | |
Household Durables – 0.7% | | | |
| | Roku Inc* | | 295,192 | | | 36,978,702 | |
Information Technology Services – 10.7% | | | |
| | Adyen NV (144A)* | | 10,830 | | | 21,392,469 | |
| | Marqeta Inc - Class A* | | 2,136,553 | | | 23,587,545 | |
| | Mastercard Inc | | 755,213 | | | 269,898,022 | |
| | MongoDB Inc* | | 70,758 | | | 31,387,541 | |
| | Okta Inc* | | 354,575 | | | 53,526,642 | |
| | Shopify Inc* | | 17,238 | | | 11,652,198 | |
| | Snowflake Inc - Class A* | | 249,889 | | | 57,257,067 | |
| | Square Inc* | | 231,689 | | | 31,417,028 | |
| | Toast Inc - Class A* | | 589,271 | | | 12,804,859 | |
| | Twilio Inc* | | 436,376 | | | 71,919,129 | |
| | Visa Inc | | 131,917 | | | 29,255,233 | |
| | | 614,097,733 | |
Interactive Media & Services – 6.5% | | | |
| | Alphabet Inc - Class C* | | 91,277 | | | 254,935,748 | |
| | Match Group Inc* | | 597,123 | | | 64,931,155 | |
| | Snap Inc - Class A* | | 1,523,590 | | | 54,834,004 | |
| | | 374,700,907 | |
Internet & Direct Marketing Retail – 8.5% | | | |
| | Amazon.com Inc* | | 94,888 | | | 309,330,136 | |
| | Coupang Inc* | | 834,721 | | | 14,757,867 | |
| | Farfetch Ltd - Class A* | | 1,131,681 | | | 17,111,017 | |
| | Global-E Online Ltd* | | 1,091,068 | | | 36,856,277 | |
| | Grab Holdings Ltd - Class A*,# | | 5,211,922 | | | 18,241,727 | |
| | MercadoLibre Inc* | | 77,793 | | | 92,533,218 | |
| | | 488,830,242 | |
Professional Services – 2.1% | | | |
| | CoStar Group Inc* | | 1,809,264 | | | 120,515,075 | |
Road & Rail – 1.1% | | | |
| | Uber Technologies Inc* | | 1,821,368 | | | 64,986,410 | |
Semiconductor & Semiconductor Equipment – 26.6% | | | |
| | Advanced Micro Devices Inc* | | 827,582 | | | 90,487,816 | |
| | Analog Devices Inc | | 610,250 | | | 100,801,095 | |
| | Applied Materials Inc | | 470,095 | | | 61,958,521 | |
| | ASML Holding NV | | 516,119 | | | 344,203,454 | |
| | KLA Corp | | 330,465 | | | 120,970,018 | |
| | Lam Research Corp | | 280,545 | | | 150,823,797 | |
| | Marvell Technology Inc | | 1,148,760 | | | 82,377,580 | |
| | NVIDIA Corp | | 675,723 | | | 184,377,778 | |
| | NXP Semiconductors NV | | 204,075 | | | 37,770,201 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 13,703,000 | | | 283,366,056 | |
| | Texas Instruments Inc | | 359,791 | | | 66,014,453 | |
| | | 1,523,150,769 | |
Software – 30.9% | | | |
| | Adobe Inc* | | 121,813 | | | 55,500,439 | |
| | Atlassian Corp PLC - Class A* | | 347,853 | | | 102,209,647 | |
| | Autodesk Inc* | | 136,627 | | | 29,285,997 | |
| | Avalara Inc* | | 945,174 | | | 94,054,265 | |
| | Cadence Design Systems Inc* | | 594,239 | | | 97,728,546 | |
| | CCC Intelligent Solutions Holdings Inc* | | 4,444,041 | | | 49,062,213 | |
| | Ceridian HCM Holding Inc* | | 659,107 | | | 45,056,554 | |
| | Coupa Software Inc* | | 340,271 | | | 34,581,742 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | Datadog Inc - Class A* | | 79,635 | | | $12,062,313 | |
| | Dynatrace Inc* | | 1,271,538 | | | 59,889,440 | |
| | Gitlab Inc - Class A* | | 130,057 | | | 7,081,604 | |
| | Microsoft Corp | | 2,228,623 | | | 687,106,757 | |
| | Momentive Global Inc* | | 1,647,303 | | | 26,785,147 | |
| | Nice Ltd (ADR)* | | 145,148 | | | 31,787,412 | |
| | Olo Inc - Class A* | | 967,292 | | | 12,816,619 | |
| | Paylocity Holding Corp* | | 100,315 | | | 20,641,818 | |
| | ServiceNow Inc* | | 67,503 | | | 37,591,746 | |
| | Synopsys Inc* | | 121,288 | | | 40,421,652 | |
| | Tyler Technologies Inc* | | 82,929 | | | 36,894,283 | |
| | Unity Software Inc* | | 455,297 | | | 45,170,015 | |
| | Workday Inc - Class A* | | 740,825 | | | 177,397,954 | |
| | Zendesk Inc* | | 579,935 | | | 69,760,381 | |
| | | 1,772,886,544 | |
Technology Hardware, Storage & Peripherals – 9.1% | | | |
| | Apple Inc | | 2,973,544 | | | 519,210,518 | |
Total Common Stocks (cost $3,851,058,156) | | 5,668,344,408 | |
Private Investment in Public Equity (PIPES)– 0.4% | | | |
Diversified Financial Services – 0.4% | | | |
| | Altimeter Growth Corp*,§ | | 3,269,751 | | | 11,444,128 | |
| | CCC Intelligent Solutions Holdings Inc*,§ | | 887,637 | | | 9,799,512 | |
Total Private Investment in Public Equity (PIPES) (cost $41,573,880) | | 21,243,640 | |
Preferred Stocks– 0.8% | | | |
Professional Services – 0.2% | | | |
| | Apartment List Inc PP*,¢,§ | | 3,783,673 | | | 13,821,757 | |
Software – 0.6% | | | |
| | Magic Leap Inc PP - Class A private equity common shares*,¢,§ | | 18,847 | | | 0 | |
| | Via Transportation Inc PP - Preferred shares*,¢,§ | | 657,989 | | | 29,688,507 | |
| | Via Transportation Inc PP - private equity common shares*,¢,§ | | 78,470 | | | 3,392,258 | |
| | | 33,080,765 | |
Total Preferred Stocks (cost $56,069,481) | | 46,902,522 | |
Warrants– 0% | | | |
Internet & Direct Marketing Retail – 0% | | | |
| | Grab Holdings Ltd, expires 12/1/26*((cost $992,956) | | 335,564 | | | 258,384 | |
Investment Companies– 0% | | | |
Money Markets – 0% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $908,077) | | 907,986 | | | 908,077 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.2% | | | |
Investment Companies – 0.1% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 6,302,523 | | | 6,302,523 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $3,222,255 | | | 3,222,255 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $9,524,778) | | 9,524,778 | |
Total Investments (total cost $3,960,127,328) – 100.3% | | 5,747,181,809 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.3)% | | (14,518,065) | |
Net Assets – 100% | | $5,732,663,744 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Global Technology and Innovation Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $4,721,711,226 | | 82.2 | % |
Netherlands | | 365,595,923 | | 6.4 | |
Taiwan | | 334,466,913 | | 5.8 | |
Australia | | 102,209,647 | | 1.8 | |
Argentina | | 92,533,218 | | 1.6 | |
Israel | | 68,643,689 | | 1.2 | |
Singapore | | 18,500,111 | | 0.3 | |
United Kingdom | | 17,111,017 | | 0.3 | |
South Korea | | 14,757,867 | | 0.2 | |
Canada | | 11,652,198 | | 0.2 | |
| | | | | | |
| | | | | | |
Total | | $5,747,181,809 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 0.0% |
Money Markets - 0.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 23,794 | $ | 728 | $ | (728) | $ | 908,077 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 452,991∆ | | - | | - | | 6,302,523 |
Total Affiliated Investments - 0.1% | $ | 476,785 | $ | 728 | $ | (728) | $ | 7,210,600 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 0.0% |
Money Markets - 0.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 161,740,558 | | 558,015,111 | | (718,847,592) | | 908,077 |
Investments Purchased with Cash Collateral from Securities Lending - 0.1% |
Investment Companies - 0.1% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 36,541,524 | | 310,675,207 | | (340,914,208) | | 6,302,523 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Global Technology and Innovation Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI All Country World Information Technology IndexSM | MSCI All Country World Information Technology IndexSM reflects the performance of information technology stocks from developed and emerging markets. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
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. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $21,392,469, which represents 0.4% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $46,902,522, which represents 0.8% of net assets. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Altimeter Growth Corp | 4/30/21 | $ | 32,697,510 | $ | 11,444,128 | | 0.2 | % |
Apartment List Inc PP | 11/2/20 | | 13,821,757 | | 13,821,757 | | 0.2 | |
CCC Intelligent Solutions Holdings Inc | 2/3/21 | | 8,876,370 | | 9,799,512 | | 0.2 | |
Magic Leap Inc PP - Class A private equity common shares | 10/5/17 | | 9,160,263 | | 0 | | 0.0 | |
Via Transportation Inc PP - Preferred shares | 11/4/21 | | 29,692,444 | | 29,688,507 | | 0.5 | |
Via Transportation Inc PP - private equity common shares | 12/2/21 | | 3,395,017 | | 3,392,258 | | 0.1 | |
Total | | $ | 97,643,361 | $ | 68,146,162 | | 1.2 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Global Technology and Innovation Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Information Technology Services | $ | 592,705,264 | $ | 21,392,469 | $ | - |
Semiconductor & Semiconductor Equipment | | 895,581,259 | | 627,569,510 | | - |
All Other | | 3,531,095,906 | | - | | - |
Private Investment in Public Equity (PIPES) | | - | | 21,243,640 | | - |
Preferred Stocks | | - | | - | | 46,902,522 |
Warrants | | 258,384 | | - | | - |
Investment Companies | | - | | 908,077 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 9,524,778 | | - |
Total Assets | $ | 5,019,640,813 | $ | 680,638,474 | $ | 46,902,522 |
| | | | | | | |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,952,916,728)(1) | | $ | 5,739,971,209 | |
| Affiliated investments, at value (cost $7,210,600) | | | 7,210,600 | |
| Non-interested Trustees' deferred compensation | | | 157,475 | |
| Receivables: | | | | |
| | Fund shares sold | | | 8,950,062 | |
| | Dividends | | | 1,607,925 | |
| | Foreign tax reclaims | | | 4,834 | |
| | Dividends from affiliates | | | 2,273 | |
| Other assets | | | 69,249 | |
Total Assets | | | 5,757,973,627 | |
Liabilities: | | | | |
| Due to custodian | | | 554 | |
| Collateral for securities loaned (Note 2) | | | 9,524,778 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 11,232,125 | |
| | Advisory fees | | | 3,017,637 | |
| | Transfer agent fees and expenses | | | 866,112 | |
| | Non-interested Trustees' deferred compensation fees | | | 157,475 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 129,573 | |
| | Professional fees | | | 43,627 | |
| | Custodian fees | | | 32,333 | |
| | Non-interested Trustees' fees and expenses | | | 24,254 | |
| | Affiliated fund administration fees payable | | | 11,787 | |
| | Accrued expenses and other payables | | | 269,628 | |
Total Liabilities | | | 25,309,883 | |
Net Assets | | $ | 5,732,663,744 | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Global Technology and Innovation Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,608,370,246 | |
| Total distributable earnings (loss) | | | 2,124,293,498 | |
Total Net Assets | | $ | 5,732,663,744 | |
Net Assets - Class A Shares | | $ | 269,313,325 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,020,536 | |
Net Asset Value Per Share(2) | | $ | 44.73 | |
Maximum Offering Price Per Share(3) | | $ | 47.46 | |
Net Assets - Class C Shares | | $ | 83,826,868 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,204,620 | |
Net Asset Value Per Share(2) | | $ | 38.02 | |
Net Assets - Class D Shares | | $ | 2,628,728,621 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 56,572,631 | |
Net Asset Value Per Share | | $ | 46.47 | |
Net Assets - Class I Shares | | $ | 960,054,983 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 20,405,976 | |
Net Asset Value Per Share | | $ | 47.05 | |
Net Assets - Class N Shares | | $ | 163,134,138 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,513,701 | |
Net Asset Value Per Share | | $ | 46.43 | |
Net Assets - Class S Shares | | $ | 28,221,076 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 650,541 | |
Net Asset Value Per Share | | $ | 43.38 | |
Net Assets - Class T Shares | | $ | 1,599,384,733 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 34,824,775 | |
Net Asset Value Per Share | | $ | 45.93 | |
| |
(1) Includes $9,120,864 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Global Technology and Innovation Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 14,596,264 | |
| Affiliated securities lending income, net | | 452,991 | |
| Dividends from affiliates | | 23,794 | |
| Unaffiliated securities lending income, net | | 3,223 | |
| Foreign tax withheld | | (781,099) | |
Total Investment Income | | 14,295,173 | |
Expenses: | | | |
| Advisory fees | | 20,859,795 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 380,865 | |
| | Class C Shares | | 390,767 | |
| | Class S Shares | | 38,600 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,634,241 | |
| | Class S Shares | | 38,600 | |
| | Class T Shares | | 2,310,793 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 108,318 | |
| | Class C Shares | | 35,219 | |
| | Class I Shares | | 542,042 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 9,775 | |
| | Class C Shares | | 2,420 | |
| | Class D Shares | | 160,846 | |
| | Class I Shares | | 26,040 | |
| | Class N Shares | | 3,370 | |
| | Class S Shares | | 145 | |
| | Class T Shares | | 8,130 | |
| Shareholder reports expense | | 135,685 | |
| Affiliated fund administration fees | | 81,483 | |
| Registration fees | | 72,128 | |
| Custodian fees | | 70,844 | |
| Non-interested Trustees’ fees and expenses | | 59,689 | |
| Professional fees | | 50,247 | |
| Other expenses | | 205,212 | |
Total Expenses | | 27,225,254 | |
Less: Excess Expense Reimbursement and Waivers | | (116,744) | |
Net Expenses | | 27,108,510 | |
Net Investment Income/(Loss) | | (12,813,337) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Global Technology and Innovation Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 399,436,660 | |
| Investments in affiliates | | 728 | |
Total Net Realized Gain/(Loss) on Investments | | 399,437,388 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (1,153,948,874) | |
| Investments in affiliates | | (728) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,153,949,602) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (767,325,551) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Global Technology and Innovation Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (12,813,337) | | $ | (21,218,218) | |
| Net realized gain/(loss) on investments | | 399,437,388 | | | 957,712,135 | |
| Change in unrealized net appreciation/depreciation | | (1,153,949,602) | | | 579,443,181 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (767,325,551) | | | 1,515,937,098 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (46,604,439) | | | (24,126,815) | |
| | Class C Shares | | (16,566,428) | | | (9,512,616) | |
| | Class D Shares | | (431,253,501) | | | (228,155,423) | |
| | Class I Shares | | (166,649,528) | | | (84,659,567) | |
| | Class N Shares | | (25,779,168) | | | (11,937,362) | |
| | Class S Shares | | (5,259,139) | | | (2,161,126) | |
| | Class T Shares | | (278,237,921) | | | (150,400,901) | |
Net Decrease from Dividends and Distributions to Shareholders | | (970,350,124) | | | (510,953,810) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 32,512,036 | | | 20,777,355 | |
| | Class C Shares | | 9,841,742 | | | (959,381) | |
| | Class D Shares | | 347,149,850 | | | 174,903,766 | |
| | Class I Shares | | 68,754,586 | | | 129,009,173 | |
| | Class N Shares | | 34,900,218 | | | 34,445,636 | |
| | Class S Shares | | 10,975,856 | | | 2,232,031 | |
| | Class T Shares | | 135,672,932 | | | 66,730,556 | |
Net Increase/(Decrease) from Capital Share Transactions | | 639,807,220 | | | 427,139,136 | |
Net Increase/(Decrease) in Net Assets | | (1,097,868,455) | | | 1,432,122,424 | |
Net Assets: | | | | | | |
| Beginning of period | | 6,830,532,199 | | | 5,398,409,775 | |
| End of period | $ | 5,732,663,744 | | $ | 6,830,532,199 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $59.21 | | | $50.45 | | | $36.72 | | | $36.33 | | | $29.11 | | | $24.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.14) | | | (0.27) | | | (0.11) | | | (0.05) | | | (0.05) | | | (0.05) | |
| | Net realized and unrealized gain/(loss) | | (5.69) | | | 13.83 | | | 17.17 | | | 2.33 | | | 8.45 | | | 7.29 | |
| Total from Investment Operations | | (5.83) | | | 13.56 | | | 17.06 | | | 2.28 | | | 8.40 | | | 7.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | —(2) | | | —(2) | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $44.73 | | | $59.21 | | | $50.45 | | | $36.72 | | | $36.33 | | | $29.11 | |
| Total Return* | | (11.47)% | | | 28.19% | | | 49.64% | | | 7.70% | | | 29.63% | | | 31.84% | |
| Net Assets, End of Period (in thousands) | | $269,313 | | | $319,194 | | | $252,037 | | | $172,237 | | | $136,689 | | | $107,783 | |
| Average Net Assets for the Period (in thousands) | | $305,529 | | | $299,780 | | | $204,220 | | | $151,979 | | | $125,207 | | | $44,671 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.99% | | | 0.98% | | | 0.99% | | | 1.01% | | | 1.00% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.99% | | | 0.98% | | | 0.99% | | | 1.01% | | | 1.00% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | (0.55)% | | | (0.47)% | | | (0.26)% | | | (0.14)% | | | (0.16)% | | | (0.18)% | |
| Portfolio Turnover Rate | | 28% | | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $51.77 | | | $44.91 | | | $33.24 | | | $33.31 | | | $26.96 | | | $22.63 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.25) | | | (0.56) | | | (0.36) | | | (0.26) | | | (0.27) | | | (0.23) | |
| | Net realized and unrealized gain/(loss) | | (4.85) | | | 12.22 | | | 15.36 | | | 2.08 | | | 7.80 | | | 6.80 | |
| Total from Investment Operations | | (5.10) | | | 11.66 | | | 15.00 | | | 1.82 | | | 7.53 | | | 6.57 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $38.02 | | | $51.77 | | | $44.91 | | | $33.24 | | | $33.31 | | | $26.96 | |
| Total Return* | | (11.74)% | | | 27.37% | | | 48.56% | | | 6.97% | | | 28.73% | | | 30.91% | |
| Net Assets, End of Period (in thousands) | | $83,827 | | | $101,860 | | | $89,141 | | | $64,636 | | | $89,817 | | | $70,002 | |
| Average Net Assets for the Period (in thousands) | | $95,822 | | | $98,033 | | | $75,085 | | | $66,888 | | | $79,328 | | | $27,163 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.56% | | | 1.64% | | | 1.69% | | | 1.70% | | | 1.72% | | | 1.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.56% | | | 1.64% | | | 1.69% | | | 1.70% | | | 1.72% | | | 1.77% | |
| | Ratio of Net Investment Income/(Loss) | | (1.12)% | | | (1.13)% | | | (0.96)% | | | (0.85)% | | | (0.88)% | | | (0.91)% | |
| Portfolio Turnover Rate | | 28% | | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $61.11 | | | $51.89 | | | $37.62 | | | $37.14 | | | $29.69 | | | $24.50 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.16) | | | (0.03) | | | 0.01 | | | —(2) | | | —(2) | |
| | Net realized and unrealized gain/(loss) | | (5.90) | | | 14.23 | | | 17.63 | | | 2.40 | | | 8.63 | | | 7.43 | |
| Total from Investment Operations | | (5.99) | | | 14.07 | | | 17.60 | | | 2.41 | | | 8.63 | | | 7.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.05) | | | — | | | (0.04) | | | —(2) | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (8.65) | | | (4.85) | | | (3.33) | | | (1.93) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $46.47 | | | $61.11 | | | $51.89 | | | $37.62 | | | $37.14 | | | $29.69 | |
| Total Return* | | (11.37)% | | | 28.43% | | | 49.90% | | | 7.91% | | | 29.84% | | | 32.12% | |
| Net Assets, End of Period (in thousands) | | $2,628,729 | | | $3,058,182 | | | $2,426,380 | | | $1,603,112 | | | $1,570,846 | | | $1,147,818 | |
| Average Net Assets for the Period (in thousands) | | $2,941,755 | | | $2,878,436 | | | $1,911,725 | | | $1,501,953 | | | $1,400,342 | | | $958,246 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.79% | | | 0.80% | | | 0.83% | | | 0.83% | | | 0.85% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.79% | | | 0.80% | | | 0.83% | | | 0.83% | | | 0.85% | |
| | Ratio of Net Investment Income/(Loss) | | (0.35)% | | | (0.29)% | | | (0.08)% | | | 0.03% | | | 0.01% | | | (0.01)% | |
| Portfolio Turnover Rate | | 28% | | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $61.76 | | | $52.40 | | | $37.94 | | | $37.45 | | | $29.91 | | | $24.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.09) | | | (0.14) | | | (0.01) | | | 0.04 | | | 0.04 | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | (5.97) | | | 14.38 | | | 17.80 | | | 2.41 | | | 8.69 | | | 7.47 | |
| Total from Investment Operations | | (6.06) | | | 14.24 | | | 17.79 | | | 2.45 | | | 8.73 | | | 7.50 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.08) | | | — | | | (0.07) | | | (0.01) | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (8.65) | | | (4.88) | | | (3.33) | | | (1.96) | | | (1.19) | | | (2.24) | |
| Net Asset Value, End of Period | | $47.05 | | | $61.76 | | | $52.40 | | | $37.94 | | | $37.45 | | | $29.91 | |
| Total Return* | | (11.36)% | | | 28.48% | | | 49.99% | | | 7.97% | | | 29.97% | | | 32.21% | |
| Net Assets, End of Period (in thousands) | | $960,055 | | | $1,189,917 | | | $890,656 | | | $418,834 | | | $353,236 | | | $176,639 | |
| Average Net Assets for the Period (in thousands) | | $1,131,740 | | | $1,074,031 | | | $606,085 | | | $356,404 | | | $248,537 | | | $85,627 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.75% | | | 0.76% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.75% | | | 0.76% | | | 0.75% | | | 0.75% | |
| | Ratio of Net Investment Income/(Loss) | | (0.32)% | | | (0.24)% | | | (0.02)% | | | 0.11% | | | 0.10% | | | 0.10% | |
| Portfolio Turnover Rate | | 28% | | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $61.03 | | | $51.81 | | | $37.52 | | | $37.05 | | | $29.59 | | | $24.62 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.06) | | | (0.09) | | | 0.02 | | | 0.07 | | | 0.06 | | | 0.05 | |
| | Net realized and unrealized gain/(loss) | | (5.89) | | | 14.21 | | | 17.60 | | | 2.37 | | | 8.60 | | | 6.04 | |
| Total from Investment Operations | | (5.95) | | | 14.12 | | | 17.62 | | | 2.44 | | | 8.66 | | | 6.09 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.10) | | | — | | | (0.08) | | | (0.02) | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (1.12) | |
| Total Dividends and Distributions | | (8.65) | | | (4.90) | | | (3.33) | | | (1.97) | | | (1.20) | | | (1.12) | |
| Net Asset Value, End of Period | | $46.43 | | | $61.03 | | | $51.81 | | | $37.52 | | | $37.05 | | | $29.59 | |
| Total Return* | | (11.32)% | | | 28.59% | | | 50.10% | | | 8.06% | | | 30.04% | | | 25.10% | |
| Net Assets, End of Period (in thousands) | | $163,134 | | | $175,740 | | | $117,541 | | | $41,043 | | | $20,522 | | | $6,091 | |
| Average Net Assets for the Period (in thousands) | | $177,070 | | | $158,218 | | | $70,265 | | | $28,002 | | | $11,360 | | | $3,349 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.67% | | | 0.67% | | | 0.69% | | | 0.69% | | | 0.69% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.67% | | | 0.67% | | | 0.69% | | | 0.69% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | (0.22)% | | | (0.16)% | | | 0.06% | | | 0.19% | | | 0.17% | | | 0.28% | |
| Portfolio Turnover Rate | | 28% | | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | �� | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $57.73 | | | $49.38 | | | $36.07 | | | $35.79 | | | $28.75 | | | $23.87 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | (0.19) | | | (0.36) | | | (0.19) | | | (0.12) | | | (0.12) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | (5.51) | | | 13.51 | | | 16.83 | | | 2.29 | | | 8.34 | | | 7.20 | |
| Total from Investment Operations | | (5.70) | | | 13.15 | | | 16.64 | | | 2.17 | | | 8.22 | | | 7.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $43.38 | | | $57.73 | | | $49.38 | | | $36.07 | | | $35.79 | | | $28.75 | |
| Total Return* | | (11.55)% | | | 27.95% | | | 49.35% | | | 7.49% | | | 29.36% | | | 31.65% | |
| Net Assets, End of Period (in thousands) | | $28,221 | | | $27,069 | | | $21,002 | | | $9,084 | | | $6,628 | | | $4,951 | |
| Average Net Assets for the Period (in thousands) | | $30,965 | | | $25,961 | | | $14,529 | | | $7,654 | | | $6,405 | | | $6,495 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.17% | | | 1.19% | | | 1.22% | | | 1.20% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.17% | | | 1.18% | | | 1.22% | | | 1.19% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | (0.73)% | | | (0.66)% | | | (0.46)% | | | (0.35)% | | | (0.36)% | | | (0.32)% | |
| Portfolio Turnover Rate | | 28% | | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from January 27, 2017 (inception date) through September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Global Technology and Innovation Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $60.53 | | | $51.47 | | | $37.37 | | | $36.91 | | | $29.54 | | | $24.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.12) | | | (0.23) | | | (0.08) | | | (0.02) | | | (0.03) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | (5.83) | | | 14.11 | | | 17.51 | | | 2.39 | | | 8.58 | | | 7.39 | |
| Total from Investment Operations | | (5.95) | | | 13.88 | | | 17.43 | | | 2.37 | | | 8.55 | | | 7.37 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.02) | | | — | | | (0.02) | | | — | | | — | |
| | Distributions (from capital gains) | | (8.65) | | | (4.80) | | | (3.33) | | | (1.89) | | | (1.18) | | | (2.24) | |
| Total Dividends and Distributions | | (8.65) | | | (4.82) | | | (3.33) | | | (1.91) | | | (1.18) | | | (2.24) | |
| Net Asset Value, End of Period | | $45.93 | | | $60.53 | | | $51.47 | | | $37.37 | | | $36.91 | | | $29.54 | |
| Total Return* | | (11.42)% | | | 28.26% | | | 49.77% | | | 7.82% | | | 29.70% | | | 31.99% | |
| Net Assets, End of Period (in thousands) | | $1,599,385 | | | $1,958,570 | | | $1,601,653 | | | $936,931 | | | $961,794 | | | $601,485 | |
| Average Net Assets for the Period (in thousands) | | $1,853,713 | | | $1,860,359 | | | $1,210,097 | | | $869,267 | | | $812,197 | | | $477,426 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.91% | | | 0.92% | | | 0.93% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.91% | | | 0.91% | | | 0.92% | | | 0.92% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | (0.46)% | | | (0.40)% | | | (0.18)% | | | (0.06)% | | | (0.08)% | | | (0.09)% | |
| Portfolio Turnover Rate | | 28% | | | 43% | | | 37% | | | 36% | | | 20% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Global Technology and Innovation Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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 March 31, 2022.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or 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
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
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. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. 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 the Fund invests in Chinese local market securities.
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 counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or 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 the Fund's Schedule of Investments.
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 9,120,864 | $ | — | $ | (9,120,864) | $ | — |
| | | | | | | | | |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
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.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $9,120,864. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $9,524,778, resulting in the net amount due to the counterparty of $403,914.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.64% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.71% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $31,647.
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. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class A Shares paid CDSCs of $103 to Janus Henderson Distributors.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $3,200.
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 3,991,614,649 | $2,158,478,810 | $(402,911,650) | $ 1,755,567,160 |
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 517,063 | $ 26,973,233 | | 1,549,800 | $ 87,810,243 |
Reinvested dividends and distributions | 785,445 | 39,554,989 | | 391,837 | 20,391,219 |
Shares repurchased | (673,049) | (34,016,186) | | (1,546,340) | (87,424,107) |
Net Increase/(Decrease) | 629,459 | $ 32,512,036 | | 395,297 | $ 20,777,355 |
Class C Shares: | | | | | |
Shares sold | 143,052 | $ 6,356,974 | | 392,494 | $ 19,087,641 |
Reinvested dividends and distributions | 359,888 | 15,435,591 | | 195,550 | 8,944,446 |
Shares repurchased | (266,038) | (11,950,823) | | (605,073) | (28,991,468) |
Net Increase/(Decrease) | 236,902 | $ 9,841,742 | | (17,029) | $ (959,381) |
Class D Shares: | | | | | |
Shares sold | 2,192,064 | $117,802,307 | | 5,633,990 | $321,381,945 |
Reinvested dividends and distributions | 8,016,491 | 419,182,331 | | 4,146,186 | 222,359,993 |
Shares repurchased | (3,679,138) | (189,834,788) | | (6,496,952) | (368,838,172) |
Net Increase/(Decrease) | 6,529,417 | $347,149,850 | | 3,283,224 | $174,903,766 |
Class I Shares: | | | | | |
Shares sold | 3,544,853 | $190,055,325 | | 7,875,296 | $456,468,434 |
Reinvested dividends and distributions | 2,866,657 | 151,760,832 | | 1,369,659 | 74,208,117 |
Shares repurchased | (5,272,722) | (273,061,571) | | (6,975,855) | (401,667,378) |
Net Increase/(Decrease) | 1,138,788 | $ 68,754,586 | | 2,269,100 | $129,009,173 |
Class N Shares: | | | | | |
Shares sold | 721,929 | $ 39,398,653 | | 1,460,792 | $ 83,346,222 |
Reinvested dividends and distributions | 493,570 | 25,779,168 | | 223,087 | 11,937,362 |
Shares repurchased | (581,248) | (30,277,603) | | (1,073,007) | (60,837,948) |
Net Increase/(Decrease) | 634,251 | $ 34,900,218 | | 610,872 | $ 34,445,636 |
Class S Shares: | | | | | |
Shares sold | 247,430 | $ 14,538,673 | | 142,000 | $ 7,600,543 |
Reinvested dividends and distributions | 107,615 | 5,259,139 | | 42,533 | 2,161,126 |
Shares repurchased | (173,412) | (8,821,956) | | (140,911) | (7,529,638) |
Net Increase/(Decrease) | 181,633 | $ 10,975,856 | | 43,622 | $ 2,232,031 |
Class T Shares: | | | | | |
Shares sold | 2,403,108 | $129,982,516 | | 7,511,806 | $425,071,108 |
Reinvested dividends and distributions | 5,264,764 | 272,188,274 | | 2,766,547 | 147,097,319 |
Shares repurchased | (5,198,416) | (266,497,858) | | (9,044,088) | (505,437,871) |
Net Increase/(Decrease) | 2,469,456 | $135,672,932 | | 1,234,265 | $ 66,730,556 |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$1,805,384,175 | $2,022,087,849 | $ - | $ - |
Janus Henderson Global Technology and Innovation Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Global Technology and Innovation Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Global Technology and Innovation Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Global Technology and Innovation Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Global Technology and Innovation Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Global Technology and Innovation Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Global Technology and Innovation Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Global Technology and Innovation Fund
Notes
NotesPage1
Janus Henderson Global Technology and Innovation Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93047 05-22 |
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| | | SEMIANNUAL REPORT March 31, 2022 |
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| | Janus Henderson Growth and Income Fund |
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| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Growth and Income Fund
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FUND SNAPSHOT A large-cap equity total return fund/portfolio that seeks long-term growth of capital and current income by investing in a fund/portfolio of high-quality companies – defined by revenue growth, earnings growth and dividend increases. We believe these companies tend to participate in market gains while being potentially resilient on the downside. | | | | | 
Jeremiah Buckley co-portfolio manager |
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Janus Henderson Growth and Income Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| UnitedHealth Group Inc | 2.87% | | 0.39% | | JPMorgan Chase & Co | 3.21% | | -0.48% |
| Deere & Co | 2.39% | | 0.39% | | Garmin Ltd | 1.42% | | -0.47% |
| AbbVie Inc | 1.48% | | 0.39% | | Comcast Corp | 2.37% | | -0.43% |
| CME Group Inc | 2.09% | | 0.35% | | VF Corp | 1.36% | | -0.29% |
| Eli Lilly & Co | 2.26% | | 0.32% | | Morgan Stanley | 2.19% | | -0.27% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Communication Services | | 1.13% | | 4.63% | 10.20% |
| Information Technology | | 0.75% | | 37.49% | 28.29% |
| Industrials | | 0.71% | | 11.44% | 7.95% |
| Health Care | | 0.45% | | 15.52% | 13.12% |
| Consumer Staples | | 0.39% | | 5.74% | 5.91% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | S&P 500 Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | -1.63% | | 12.49% | 12.37% |
| Energy | | -1.22% | | 0.00% | 3.16% |
| Financials | | -0.40% | | 11.53% | 11.29% |
| Utilities | | -0.30% | | 0.00% | 2.50% |
| Materials | | -0.22% | | 1.01% | 2.55% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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. |
Janus Henderson Growth and Income Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 9.1% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 8.9% |
Accenture PLC | |
Information Technology Services | 4.4% |
UnitedHealth Group Inc | |
Health Care Providers & Services | 3.1% |
JPMorgan Chase & Co | |
Banks | 2.9% |
| | 28.4% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.9% | |
Investment Companies | | 0.1% | |
Other | | (0.0)% |
| | | 100.0% |
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Growth and Income Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | 4.91% | 13.53% | 14.33% | 13.34% | 11.08% | | | 1.01% |
Class A Shares at MOP | | -1.12% | 7.00% | 12.99% | 12.68% | 10.87% | | | |
Class C Shares at NAV | | 4.58% | 12.81% | 13.55% | 12.52% | 10.32% | | | 1.69% |
Class C Shares at CDSC | | 3.59% | 11.81% | 13.55% | 12.52% | 10.32% | | | |
Class D Shares | | 5.05% | 13.84% | 14.58% | 13.56% | 11.19% | | | 0.75% |
Class I Shares | | 5.08% | 13.88% | 14.64% | 13.63% | 11.23% | | | 0.70% |
Class N Shares | | 5.10% | 13.96% | 14.70% | 13.57% | 11.19% | | | 0.62% |
Class R Shares | | 4.71% | 13.09% | 13.85% | 12.86% | 10.65% | | | 1.40% |
Class S Shares | | 4.85% | 13.39% | 14.16% | 13.16% | 10.91% | | | 1.13% |
Class T Shares | | 5.00% | 13.70% | 14.46% | 13.45% | 11.15% | | | 0.87% |
S&P 500 Index | | 5.92% | 15.65% | 15.99% | 14.64% | 10.68% | | | |
Morningstar Quartile - Class T Shares | | - | 2nd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Large Blend Funds | | - | 539/1,377 | 597/1,210 | 470/1,032 | 36/318 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Janus Henderson Growth and Income Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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 August 4, 2017. Performance shown for periods prior to August 4, 2017, 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – May 15, 1991
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $1,049.10 | $5.16 | | $1,000.00 | $1,019.90 | $5.09 | 1.01% |
Class C Shares | $1,000.00 | $1,045.80 | $8.26 | | $1,000.00 | $1,016.85 | $8.15 | 1.62% |
Class D Shares | $1,000.00 | $1,050.50 | $3.78 | | $1,000.00 | $1,021.24 | $3.73 | 0.74% |
Class I Shares | $1,000.00 | $1,050.80 | $3.58 | | $1,000.00 | $1,021.44 | $3.53 | 0.70% |
Class N Shares | $1,000.00 | $1,051.00 | $3.17 | | $1,000.00 | $1,021.84 | $3.13 | 0.62% |
Class R Shares | $1,000.00 | $1,047.10 | $7.04 | | $1,000.00 | $1,018.05 | $6.94 | 1.38% |
Class S Shares | $1,000.00 | $1,048.50 | $5.67 | | $1,000.00 | $1,019.40 | $5.59 | 1.11% |
Class T Shares | $1,000.00 | $1,050.00 | $4.34 | | $1,000.00 | $1,020.69 | $4.28 | 0.85% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Growth and Income Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 99.9% | | | |
Aerospace & Defense – 2.3% | | | |
| | General Dynamics Corp | | 524,869 | | | $126,587,905 | |
| | L3Harris Technologies Inc | | 170,511 | | | 42,366,868 | |
| | | 168,954,773 | |
Air Freight & Logistics – 2.1% | | | |
| | United Parcel Service Inc | | 703,521 | | | 150,877,114 | |
Banks – 2.9% | | | |
| | JPMorgan Chase & Co | | 1,519,069 | | | 207,079,486 | |
Beverages – 0.4% | | | |
| | Constellation Brands Inc | | 129,667 | | | 29,864,903 | |
Biotechnology – 2.9% | | | |
| | AbbVie Inc | | 870,255 | | | 141,077,038 | |
| | Gilead Sciences Inc | | 1,180,214 | | | 70,163,722 | |
| | | 211,240,760 | |
Capital Markets – 5.7% | | | |
| | Charles Schwab Corp | | 521,460 | | | 43,964,293 | |
| | CME Group Inc | | 610,103 | | | 145,119,100 | |
| | Goldman Sachs Group Inc | | 155,252 | | | 51,248,685 | |
| | Morgan Stanley | | 1,574,298 | | | 137,593,645 | |
| | S&P Global Inc | | 85,069 | | | 34,893,602 | |
| | | 412,819,325 | |
Chemicals – 0.4% | | | |
| | Air Products & Chemicals Inc | | 127,034 | | | 31,747,067 | |
Commercial Services & Supplies – 0.5% | | | |
| | Waste Management Inc | | 219,013 | | | 34,713,561 | |
Communications Equipment – 0.8% | | | |
| | Motorola Solutions Inc | | 245,052 | | | 59,351,594 | |
Consumer Finance – 2.6% | | | |
| | American Express Co | | 1,000,182 | | | 187,034,034 | |
Electrical Equipment – 0.9% | | | |
| | Rockwell Automation Inc | | 236,404 | | | 66,200,212 | |
Electronic Equipment, Instruments & Components – 2.9% | | | |
| | Corning Inc | | 2,186,513 | | | 80,704,195 | |
| | TE Connectivity Ltd | | 995,814 | | | 130,431,718 | |
| | | 211,135,913 | |
Entertainment – 1.4% | | | |
| | Electronic Arts Inc | | 382,999 | | | 48,453,203 | |
| | Warner Music Group Corp - Class A | | 1,470,117 | | | 55,643,928 | |
| | | 104,097,131 | |
Food & Staples Retailing – 2.4% | | | |
| | Costco Wholesale Corp | | 216,703 | | | 124,788,423 | |
| | Sysco Corp | | 638,043 | | | 52,096,211 | |
| | | 176,884,634 | |
Food Products – 1.5% | | | |
| | Hershey Co | | 492,284 | | | 106,643,483 | |
Health Care Equipment & Supplies – 5.2% | | | |
| | Abbott Laboratories | | 1,109,995 | | | 131,379,008 | |
| | Dentsply Sirona Inc | | 1,198,655 | | | 58,997,799 | |
| | Medtronic PLC | | 1,105,337 | | | 122,637,140 | |
| | Stryker Corp | | 224,711 | | | 60,076,486 | |
| | | 373,090,433 | |
Health Care Providers & Services – 3.4% | | | |
| | Quest Diagnostics Inc | | 143,788 | | | 19,678,826 | |
| | UnitedHealth Group Inc | | 440,240 | | | 224,509,193 | |
| | | 244,188,019 | |
Hotels, Restaurants & Leisure – 3.6% | | | |
| | McDonald's Corp | | 700,755 | | | 173,282,696 | |
| | Starbucks Corp | | 935,308 | | | 85,084,969 | |
| | | 258,367,665 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Growth and Income Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Household Durables – 1.4% | | | |
| | Garmin Ltd | | 827,996 | | | $98,208,606 | |
Household Products – 2.0% | | | |
| | Procter & Gamble Co | | 928,562 | | | 141,884,274 | |
Industrial Conglomerates – 1.8% | | | |
| | Honeywell International Inc | | 649,472 | | | 126,374,262 | |
Information Technology Services – 9.2% | | | |
| | Accenture PLC | | 940,606 | | | 317,200,561 | |
| | Automatic Data Processing Inc | | 327,909 | | | 74,612,414 | |
| | Cognizant Technology Solutions Corp | | 612,534 | | | 54,925,924 | |
| | Fidelity National Information Services Inc | | 673,872 | | | 67,670,226 | |
| | Visa Inc | | 673,815 | | | 149,431,953 | |
| | | 663,841,078 | |
Internet & Direct Marketing Retail – 0.9% | | | |
| | eBay Inc | | 1,092,238 | | | 62,541,548 | |
Leisure Products – 1.2% | | | |
| | Hasbro Inc | | 1,098,057 | | | 89,952,829 | |
Machinery – 3.3% | | | |
| | Deere & Co | | 484,099 | | | 201,123,771 | |
| | Trane Technologies PLC | | 261,908 | | | 39,993,352 | |
| | | 241,117,123 | |
Media – 3.0% | | | |
| | Comcast Corp | | 3,698,712 | | | 173,173,696 | |
| | Interpublic Group of Cos Inc | | 1,145,170 | | | 40,596,276 | |
| | | 213,769,972 | |
Multiline Retail – 1.1% | | | |
| | Target Corp | | 390,634 | | | 82,900,347 | |
Pharmaceuticals – 4.6% | | | |
| | Eli Lilly & Co | | 624,114 | | | 178,727,526 | |
| | Merck & Co Inc | | 1,131,729 | | | 92,858,364 | |
| | Zoetis Inc | | 327,385 | | | 61,741,537 | |
| | | 333,327,427 | |
Professional Services – 0.3% | | | |
| | Booz Allen Hamilton Holding Corp | | 274,162 | | | 24,082,390 | |
Road & Rail – 0.8% | | | |
| | Union Pacific Corp | | 223,207 | | | 60,982,384 | |
Semiconductor & Semiconductor Equipment – 5.3% | | | |
| | KLA Corp | | 543,084 | | | 198,801,329 | |
| | Texas Instruments Inc | | 995,685 | | | 182,688,284 | |
| | | 381,489,613 | |
Software – 11.0% | | | |
| | Intuit Inc | | 111,378 | | | 53,554,998 | |
| | Microsoft Corp | | 2,134,753 | | | 658,165,697 | |
| | Oracle Corp | | 975,498 | | | 80,702,950 | |
| | | 792,423,645 | |
Specialty Retail – 2.0% | | | |
| | Best Buy Co Inc | | 321,792 | | | 29,250,893 | |
| | Home Depot Inc | | 376,971 | | | 112,838,729 | |
| | | 142,089,622 | |
Technology Hardware, Storage & Peripherals – 8.9% | | | |
| | Apple Inc | | 3,684,119 | | | 643,284,019 | |
Textiles, Apparel & Luxury Goods – 1.2% | | | |
| | VF Corp | | 1,566,908 | | | 89,094,389 | |
Total Common Stocks (cost $3,497,360,102) | | 7,221,653,635 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Growth and Income Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Investment Companies– 0.1% | | | |
Money Markets – 0.1% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $8,152,644) | | 8,151,829 | | | $8,152,644 | |
Total Investments (total cost $3,505,512,746) – 100.0% | | 7,229,806,279 | |
Liabilities, net of Cash, Receivables and Other Assets – (0)% | | (3,580,959) | |
Net Assets – 100% | | $7,226,225,320 | |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 2,316 | $ | - | $ | - | $ | 8,152,644 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 0.1% |
Money Markets - 0.1% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 13,284,317 | | 96,554,661 | | (101,686,334) | | 8,152,644 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Growth and Income Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
£ | 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. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 7,221,653,635 | $ | - | $ | - |
Investment Companies | | - | | 8,152,644 | | - |
Total Assets | $ | 7,221,653,635 | $ | 8,152,644 | $ | - |
| | | | | | | |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $3,497,360,102) | | $ | 7,221,653,635 | |
| Affiliated investments, at value (cost $8,152,644) | | | 8,152,644 | |
| Non-interested Trustees' deferred compensation | | | 198,059 | |
| Receivables: | | | | |
| | Dividends | | | 3,440,949 | |
| | Fund shares sold | | | 2,829,898 | |
| | Investments sold | | | 945,826 | |
| | Foreign tax reclaims | | | 110,951 | |
| | Dividends from affiliates | | | 883 | |
| Other assets | | | 50,172 | |
Total Assets | | | 7,237,383,017 | |
Liabilities: | | | | |
| Due to custodian | | | 154 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 5,013,725 | |
| | Advisory fees | | | 3,593,188 | |
| | Transfer agent fees and expenses | | | 1,020,630 | |
| | Dividends | | | 592,310 | |
| | Non-interested Trustees' deferred compensation fees | | | 198,059 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 70,162 | |
| | Professional fees | | | 37,047 | |
| | Non-interested Trustees' fees and expenses | | | 25,836 | |
| | Affiliated fund administration fees payable | | | 14,971 | |
| | Custodian fees | | | 7,564 | |
| | Accrued expenses and other payables | | | 584,051 | |
Total Liabilities | | | 11,157,697 | |
Net Assets | | $ | 7,226,225,320 | |
| | |
See Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Growth and Income Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,291,862,799 | |
| Total distributable earnings (loss) | | | 3,934,362,521 | |
Total Net Assets | | $ | 7,226,225,320 | |
Net Assets - Class A Shares | | $ | 95,442,405 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,294,407 | |
Net Asset Value Per Share(1) | | $ | 73.73 | |
Maximum Offering Price Per Share(2) | | $ | 78.23 | |
Net Assets - Class C Shares | | $ | 51,841,085 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 714,860 | |
Net Asset Value Per Share(1) | | $ | 72.52 | |
Net Assets - Class D Shares | | $ | 4,413,182,457 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 59,736,791 | |
Net Asset Value Per Share | | $ | 73.88 | |
Net Assets - Class I Shares | | $ | 442,640,504 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,988,254 | |
Net Asset Value Per Share | | $ | 73.92 | |
Net Assets - Class N Shares | | $ | 74,801,157 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,013,638 | |
Net Asset Value Per Share | | $ | 73.79 | |
Net Assets - Class R Shares | | $ | 6,933,716 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 94,733 | |
Net Asset Value Per Share | | $ | 73.19 | |
Net Assets - Class S Shares | | $ | 21,418,451 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 290,598 | |
Net Asset Value Per Share | | $ | 73.70 | |
Net Assets - Class T Shares | | $ | 2,119,965,545 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 28,725,959 | |
Net Asset Value Per Share | | $ | 73.80 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Growth and Income Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 60,554,430 | |
| Dividends from affiliates | | 2,316 | |
| Foreign tax withheld | | (8,261) | |
Total Investment Income | | 60,548,485 | |
Expenses: | | | |
| Advisory fees | | 22,083,727 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 119,882 | |
| | Class C Shares | | 252,455 | |
| | Class R Shares | | 17,396 | |
| | Class S Shares | | 29,850 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 2,494,199 | |
| | Class R Shares | | 9,184 | |
| | Class S Shares | | 29,850 | |
| | Class T Shares | | 2,722,312 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 62,832 | |
| | Class C Shares | | 16,411 | |
| | Class I Shares | | 184,887 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 2,956 | |
| | Class C Shares | | 1,299 | |
| | Class D Shares | | 228,176 | |
| | Class I Shares | | 10,128 | |
| | Class N Shares | | 1,330 | |
| | Class R Shares | | 89 | |
| | Class S Shares | | 158 | |
| | Class T Shares | | 8,880 | |
| Shareholder reports expense | | 175,084 | |
| Registration fees | | 121,408 | |
| Affiliated fund administration fees | | 92,016 | |
| Non-interested Trustees’ fees and expenses | | 62,697 | |
| Professional fees | | 37,365 | |
| Custodian fees | | 18,606 | |
| Other expenses | | 221,508 | |
Total Expenses | | 29,004,685 | |
Less: Excess Expense Reimbursement and Waivers | | (200,851) | |
Net Expenses | | 28,803,834 | |
Net Investment Income/(Loss) | | 31,744,651 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Growth and Income Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments | $ | 241,657,552 | |
Total Net Realized Gain/(Loss) on Investments | | 241,657,552 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | 83,993,979 | |
Total Change in Unrealized Net Appreciation/Depreciation | | 83,993,979 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 357,396,182 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Growth and Income Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 31,744,651 | | $ | 62,891,585 | |
| Net realized gain/(loss) on investments | | 241,657,552 | | | 373,778,928 | |
| Change in unrealized net appreciation/depreciation | | 83,993,979 | | | 1,201,908,352 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | 357,396,182 | | | 1,638,578,865 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (4,921,793) | | | (3,005,988) | |
| | Class C Shares | | (2,668,912) | | | (1,593,791) | |
| | Class D Shares | | (236,171,836) | | | (147,338,668) | |
| | Class I Shares | | (24,255,138) | | | (17,034,840) | |
| | Class N Shares | | (3,961,528) | | | (2,416,858) | |
| | Class R Shares | | (374,183) | | | (286,219) | |
| | Class S Shares | | (1,232,798) | | | (800,410) | |
| | Class T Shares | | (114,505,620) | | | (72,590,111) | |
Net Decrease from Dividends and Distributions to Shareholders | | (388,091,808) | | | (245,066,885) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 4,031,451 | | | (7,064,117) | |
| | Class C Shares | | (1,063,460) | | | (7,962,136) | |
| | Class D Shares | | 148,194,433 | | | (52,885,131) | |
| | Class I Shares | | (13,435,238) | | | (63,281,156) | |
| | Class N Shares | | 1,774,666 | | | 4,488,641 | |
| | Class R Shares | | (392,251) | | | (2,644,604) | |
| | Class S Shares | | (2,362,079) | | | (3,898,946) | |
| | Class T Shares | | 19,610,806 | | | (117,933,431) | |
Net Increase/(Decrease) from Capital Share Transactions | | 156,358,328 | | | (251,180,880) | |
Net Increase/(Decrease) in Net Assets | | 125,662,702 | | | 1,142,331,100 | |
Net Assets: | | | | | | |
| Beginning of period | | 7,100,562,618 | | | 5,958,231,518 | |
| End of period | $ | 7,226,225,320 | | $ | 7,100,562,618 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $73.95 | | | $59.77 | | | $58.49 | | | $59.20 | | | $51.66 | | | $46.21 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.24 | | | 0.49 | | | 0.80 | | | 1.00 | | | 0.91 | | | 0.88 | |
| | Net realized and unrealized gain/(loss) | | 3.55 | | | 16.06 | | | 2.53 | | | 2.27 | | | 8.49 | | | 8.59 | |
| Total from Investment Operations | | 3.79 | | | 16.55 | | | 3.33 | | | 3.27 | | | 9.40 | | | 9.47 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.25) | | | (0.51) | | | (0.83) | | | (1.01) | | | (0.91) | | | (1.04) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (4.01) | | | (2.37) | | | (2.05) | | | (3.98) | | | (1.86) | | | (4.02) | |
| Net Asset Value, End of Period | | $73.73 | | | $73.95 | | | $59.77 | | | $58.49 | | | $59.20 | | | $51.66 | |
| Total Return* | | 4.91% | | | 28.28% | | | 5.81% | | | 6.53% | | | 18.48% | | | 21.54% | |
| Net Assets, End of Period (in thousands) | | $95,442 | | | $91,735 | | | $80,310 | | | $88,445 | | | $32,284 | | | $20,406 | |
| Average Net Assets for the Period (in thousands) | | $96,169 | | | $88,624 | | | $80,441 | | | $64,525 | | | $25,843 | | | $25,701 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 1.01% | | | 0.99% | | | 0.95% | | | 0.95% | | | 0.94% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.01% | | | 0.99% | | | 0.95% | | | 0.95% | | | 0.94% | |
| | Ratio of Net Investment Income/(Loss) | | 0.64% | | | 0.71% | | | 1.41% | | | 1.79% | | | 1.63% | | | 1.82% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $72.81 | | | $58.90 | | | $57.68 | | | $58.46 | | | $51.07 | | | $45.75 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.01 | | | 0.05 | | | 0.43 | | | 0.56 | | | 0.49 | | | 0.55 | |
| | Net realized and unrealized gain/(loss) | | 3.49 | | | 15.82 | | | 2.49 | | | 2.26 | | | 8.39 | | | 8.47 | |
| Total from Investment Operations | | 3.50 | | | 15.87 | | | 2.92 | | | 2.82 | | | 8.88 | | | 9.02 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.03) | | | (0.10) | | | (0.48) | | | (0.63) | | | (0.54) | | | (0.72) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (3.79) | | | (1.96) | | | (1.70) | | | (3.60) | | | (1.49) | | | (3.70) | |
| Net Asset Value, End of Period | | $72.52 | | | $72.81 | | | $58.90 | | | $57.68 | | | $58.46 | | | $51.07 | |
| Total Return* | | 4.58% | | | 27.48% | | | 5.12% | | | 5.75% | | | 17.59% | | | 20.68% | |
| Net Assets, End of Period (in thousands) | | $51,841 | | | $53,156 | | | $49,982 | | | $59,591 | | | $25,899 | | | $20,277 | |
| Average Net Assets for the Period (in thousands) | | $54,067 | | | $53,200 | | | $55,935 | | | $42,229 | | | $22,813 | | | $19,922 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.62% | | | 1.65% | | | 1.64% | | | 1.69% | | | 1.68% | | | 1.66% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.62% | | | 1.65% | | | 1.64% | | | 1.69% | | | 1.68% | | | 1.66% | |
| | Ratio of Net Investment Income/(Loss) | | 0.02% | | | 0.08% | | | 0.77% | | | 1.02% | | | 0.90% | | | 1.14% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $74.09 | | | $59.87 | | | $58.58 | | | $59.27 | | | $51.71 | | | $46.25 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.34 | | | 0.67 | | | 0.93 | | | 1.09 | | | 1.01 | | | 0.98 | |
| | Net realized and unrealized gain/(loss) | | 3.56 | | | 16.11 | | | 2.54 | | | 2.28 | | | 8.51 | | | 8.58 | |
| Total from Investment Operations | | 3.90 | | | 16.78 | | | 3.47 | | | 3.37 | | | 9.52 | | | 9.56 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.70) | | | (0.96) | | | (1.09) | | | (1.01) | | | (1.12) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (4.11) | | | (2.56) | | | (2.18) | | | (4.06) | | | (1.96) | | | (4.10) | |
| Net Asset Value, End of Period | | $73.88 | | | $74.09 | | | $59.87 | | | $58.58 | | | $59.27 | | | $51.71 | |
| Total Return* | | 5.05% | | | 28.63% | | | 6.07% | | | 6.71% | | | 18.69% | | | 21.74% | |
| Net Assets, End of Period (in thousands) | | $4,413,182 | | | $4,284,567 | | | $3,506,038 | | | $3,546,939 | | | $3,508,493 | | | $3,113,324 | |
| Average Net Assets for the Period (in thousands) | | $4,484,352 | | | $4,038,177 | | | $3,410,901 | | | $3,396,252 | | | $3,349,596 | | | $2,911,335 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.74% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.77% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.74% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.77% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | 0.90% | | | 0.97% | | | 1.64% | | | 1.95% | | | 1.80% | | | 2.04% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $74.12 | | | $59.90 | | | $58.61 | | | $59.29 | | | $51.74 | | | $46.27 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.36 | | | 0.71 | | | 0.97 | | | 1.13 | | | 1.05 | | | 1.02 | |
| | Net realized and unrealized gain/(loss) | | 3.56 | | | 16.10 | | | 2.52 | | | 2.29 | | | 8.50 | | | 8.59 | |
| Total from Investment Operations | | 3.92 | | | 16.81 | | | 3.49 | | | 3.42 | | | 9.55 | | | 9.61 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.36) | | | (0.73) | | | (0.98) | | | (1.13) | | | (1.05) | | | (1.16) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (4.12) | | | (2.59) | | | (2.20) | | | (4.10) | | | (2.00) | | | (4.14) | |
| Net Asset Value, End of Period | | $73.92 | | | $74.12 | | | $59.90 | | | $58.61 | | | $59.29 | | | $51.74 | |
| Total Return* | | 5.08% | | | 28.68% | | | 6.11% | | | 6.80% | | | 18.75% | | | 21.84% | |
| Net Assets, End of Period (in thousands) | | $442,641 | | | $458,387 | | | $429,567 | | | $537,792 | | | $175,321 | | | $99,108 | |
| Average Net Assets for the Period (in thousands) | | $455,792 | | | $443,087 | | | $500,070 | | | $359,418 | | | $129,552 | | | $75,159 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.70% | | | 0.70% | | | 0.71% | | | 0.71% | | | 0.69% | | | 0.71% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.70% | | | 0.70% | | | 0.71% | | | 0.71% | | | 0.69% | | | 0.71% | |
| | Ratio of Net Investment Income/(Loss) | | 0.94% | | | 1.03% | | | 1.70% | | | 2.02% | | | 1.88% | | | 2.11% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $74.01 | | | $59.80 | | | $58.52 | | | $59.22 | | | $51.67 | | | $50.24 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.39 | | | 0.76 | | | 1.00 | | | 1.14 | | | 1.12 | | | 0.20 | |
| | Net realized and unrealized gain/(loss) | | 3.54 | | | 16.09 | | | 2.53 | | | 2.30 | | | 8.45 | | | 1.47 | |
| Total from Investment Operations | | 3.93 | | | 16.85 | | | 3.53 | | | 3.44 | | | 9.57 | | | 1.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.39) | | | (0.78) | | | (1.03) | | | (1.17) | | | (1.07) | | | (0.24) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | — | |
| Total Dividends and Distributions | | (4.15) | | | (2.64) | | | (2.25) | | | (4.14) | | | (2.02) | | | (0.24) | |
| Net Asset Value, End of Period | | $73.79 | | | $74.01 | | | $59.80 | | | $58.52 | | | $59.22 | | | $51.67 | |
| Total Return* | | 5.10% | | | 28.81% | | | 6.20% | | | 6.85% | | | 18.83% | | | 3.33% | |
| Net Assets, End of Period (in thousands) | | $74,801 | | | $73,167 | | | $55,506 | | | $40,399 | | | $8,802 | | | $52 | |
| Average Net Assets for the Period (in thousands) | | $75,939 | | | $65,537 | | | $50,678 | | | $17,524 | | | $7,427 | | | $50 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.62% | | | 0.62% | | | 0.63% | | | 0.64% | | | 0.65% | | | 0.63% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.62% | | | 0.62% | | | 0.63% | | | 0.64% | | | 0.65% | | | 0.63% | |
| | Ratio of Net Investment Income/(Loss) | | 1.02% | | | 1.09% | | | 1.76% | | | 2.04% | | | 2.00% | | | 2.54% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $73.44 | | | $59.35 | | | $58.10 | | | $58.86 | | | $51.40 | | | $46.02 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.10 | | | 0.23 | | | 0.57 | | | 0.72 | | | 0.65 | | | 0.69 | |
| | Net realized and unrealized gain/(loss) | | 3.52 | | | 15.95 | | | 2.51 | | | 2.27 | | | 8.44 | | | 8.52 | |
| Total from Investment Operations | | 3.62 | | | 16.18 | | | 3.08 | | | 2.99 | | | 9.09 | | | 9.21 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.11) | | | (0.23) | | | (0.61) | | | (0.78) | | | (0.68) | | | (0.85) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (3.87) | | | (2.09) | | | (1.83) | | | (3.75) | | | (1.63) | | | (3.83) | |
| Net Asset Value, End of Period | | $73.19 | | | $73.44 | | | $59.35 | | | $58.10 | | | $58.86 | | | $51.40 | |
| Total Return* | | 4.71% | | | 27.82% | | | 5.38% | | | 6.03% | | | 17.92% | | | 21.01% | |
| Net Assets, End of Period (in thousands) | | $6,934 | | | $7,329 | | | $8,023 | | | $7,760 | | | $5,244 | | | $3,324 | |
| Average Net Assets for the Period (in thousands) | | $7,367 | | | $8,987 | | | $8,032 | | | $6,321 | | | $3,952 | | | $3,201 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.38% | | | 1.39% | | | 1.40% | | | 1.42% | | | 1.41% | | | 1.38% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.38% | | | 1.39% | | | 1.40% | | | 1.42% | | | 1.41% | | | 1.38% | |
| | Ratio of Net Investment Income/(Loss) | | 0.26% | | | 0.34% | | | 1.00% | | | 1.30% | | | 1.18% | | | 1.44% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 4, 2017 (inception date) through September 30, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Growth and Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $73.92 | | | $59.74 | | | $58.47 | | | $59.17 | | | $51.63 | | | $46.19 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.20 | | | 0.42 | | | 0.72 | | | 0.89 | | | 0.80 | | | 0.82 | |
| | Net realized and unrealized gain/(loss) | | 3.54 | | | 16.05 | | | 2.53 | | | 2.28 | | | 8.50 | | | 8.56 | |
| Total from Investment Operations | | 3.74 | | | 16.47 | | | 3.25 | | | 3.17 | | | 9.30 | | | 9.38 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.20) | | | (0.43) | | | (0.76) | | | (0.90) | | | (0.81) | | | (0.96) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (3.96) | | | (2.29) | | | (1.98) | | | (3.87) | | | (1.76) | | | (3.94) | |
| Net Asset Value, End of Period | | $73.70 | | | $73.92 | | | $59.74 | | | $58.47 | | | $59.17 | | | $51.63 | |
| Total Return* | | 4.85% | | | 28.15% | | | 5.67% | | | 6.34% | | | 18.27% | | | 21.34% | |
| Net Assets, End of Period (in thousands) | | $21,418 | | | $23,935 | | | $22,870 | | | $24,559 | | | $23,236 | | | $23,254 | |
| Average Net Assets for the Period (in thousands) | | $23,946 | | | $23,621 | | | $23,489 | | | $22,203 | | | $24,627 | | | $23,525 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.13% | | | 1.13% | | | 1.13% | | | 1.13% | | | 1.13% | | | 1.12% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.11% | | | 1.12% | | | 1.13% | | | 1.12% | | | 1.12% | | | 1.12% | |
| | Ratio of Net Investment Income/(Loss) | | 0.52% | | | 0.61% | | | 1.28% | | | 1.59% | | | 1.43% | | | 1.69% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $74.01 | | | $59.81 | | | $58.53 | | | $59.22 | | | $51.68 | | | $46.22 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.30 | | | 0.60 | | | 0.88 | | | 1.04 | | | 0.95 | | | 0.94 | |
| | Net realized and unrealized gain/(loss) | | 3.56 | | | 16.08 | | | 2.52 | | | 2.28 | | | 8.49 | | | 8.58 | |
| Total from Investment Operations | | 3.86 | | | 16.68 | | | 3.40 | | | 3.32 | | | 9.44 | | | 9.52 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.31) | | | (0.62) | | | (0.90) | | | (1.04) | | | (0.95) | | | (1.08) | |
| | Distributions (from capital gains) | | (3.76) | | | (1.86) | | | (1.22) | | | (2.97) | | | (0.95) | | | (2.98) | |
| Total Dividends and Distributions | | (4.07) | | | (2.48) | | | (2.12) | | | (4.01) | | | (1.90) | | | (4.06) | |
| Net Asset Value, End of Period | | $73.80 | | | $74.01 | | | $59.81 | | | $58.53 | | | $59.22 | | | $51.68 | |
| Total Return* | | 5.00% | | | 28.49% | | | 5.95% | | | 6.62% | | | 18.56% | | | 21.65% | |
| Net Assets, End of Period (in thousands) | | $2,119,966 | | | $2,108,286 | | | $1,805,935 | | | $1,996,900 | | | $1,842,777 | | | $1,594,797 | |
| Average Net Assets for the Period (in thousands) | | $2,183,833 | | | $2,025,668 | | | $1,863,456 | | | $1,852,659 | | | $1,735,754 | | | $1,489,926 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.87% | | | 0.87% | | | 0.87% | | | 0.87% | | | 0.87% | | | 0.88% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.85% | | | 0.86% | | | 0.86% | | | 0.86% | | | 0.86% | | | 0.86% | |
| | Ratio of Net Investment Income/(Loss) | | 0.80% | | | 0.87% | | | 1.54% | | | 1.86% | | | 1.71% | | | 1.95% | |
| Portfolio Turnover Rate | | 7% | | | 11% | | | 24% | | | 13% | | | 13% | | | 16% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Growth and Income Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term capital growth and current income. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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.
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.60% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.67% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $7,503.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $578.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the period ended March 31, 2022, the Fund engaged in cross trades amounting to $5,829,978 in purchases.
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 3,509,689,520 | $3,778,929,715 | $(58,812,956) | $ 3,720,116,759 |
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 205,789 | $ 15,717,792 | | 317,074 | $ 21,900,002 |
Reinvested dividends and distributions | 52,126 | 4,010,153 | | 38,554 | 2,496,983 |
Shares repurchased | (203,948) | (15,696,494) | | (458,894) | (31,461,102) |
Net Increase/(Decrease) | 53,967 | $ 4,031,451 | | (103,266) | $ (7,064,117) |
Class C Shares: | | | | | |
Shares sold | 33,040 | $ 2,492,060 | | 65,045 | $ 4,373,127 |
Reinvested dividends and distributions | 31,838 | 2,412,781 | | 22,908 | 1,440,854 |
Shares repurchased | (80,111) | (5,968,301) | | (206,455) | (13,776,117) |
Net Increase/(Decrease) | (15,233) | $ (1,063,460) | | (118,502) | $ (7,962,136) |
Class D Shares: | | | | | |
Shares sold | 1,186,519 | $ 90,420,168 | | 2,072,425 | $ 145,475,499 |
Reinvested dividends and distributions | 2,962,616 | 228,248,231 | | 2,190,254 | 142,830,614 |
Shares repurchased | (2,244,560) | (170,473,966) | | (4,993,327) | (341,191,244) |
Net Increase/(Decrease) | 1,904,575 | $ 148,194,433 | | (730,648) | $ (52,885,131) |
Class I Shares: | | | | | |
Shares sold | 688,024 | $ 52,929,567 | | 1,655,059 | $ 115,739,516 |
Reinvested dividends and distributions | 288,632 | 22,247,348 | | 235,177 | 15,341,172 |
Shares repurchased | (1,172,398) | (88,612,153) | | (2,878,102) | (194,361,844) |
Net Increase/(Decrease) | (195,742) | $ (13,435,238) | | (987,866) | $ (63,281,156) |
Class N Shares: | | | | | |
Shares sold | 118,205 | $ 8,897,360 | | 284,710 | $ 20,263,050 |
Reinvested dividends and distributions | 48,889 | 3,761,242 | | 35,695 | 2,332,353 |
Shares repurchased | (142,122) | (10,883,936) | | (259,866) | (18,106,762) |
Net Increase/(Decrease) | 24,972 | $ 1,774,666 | | 60,539 | $ 4,488,641 |
Class R Shares: | | | | | |
Shares sold | 4,656 | $ 343,650 | | 19,220 | $ 1,276,569 |
Reinvested dividends and distributions | 4,886 | 373,466 | | 4,494 | 285,834 |
Shares repurchased | (14,611) | (1,109,367) | | (59,092) | (4,207,007) |
Net Increase/(Decrease) | (5,069) | $ (392,251) | | (35,378) | $ (2,644,604) |
Class S Shares: | | | | | |
Shares sold | 22,059 | $ 1,643,269 | | 30,316 | $ 2,038,164 |
Reinvested dividends and distributions | 15,969 | 1,228,576 | | 12,366 | 797,994 |
Shares repurchased | (71,232) | (5,233,924) | | (101,712) | (6,735,104) |
Net Increase/(Decrease) | (33,204) | $ (2,362,079) | | (59,030) | $ (3,898,946) |
Class T Shares: | | | | | |
Shares sold | 771,943 | $ 59,096,226 | | 1,893,177 | $ 131,550,510 |
Reinvested dividends and distributions | 1,449,742 | 111,598,507 | | 1,088,846 | 70,761,595 |
Shares repurchased | (1,980,835) | (151,083,927) | | (4,689,839) | (320,245,536) |
Net Increase/(Decrease) | 240,850 | $ 19,610,806 | | (1,707,816) | $(117,933,431) |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$507,283,186 | $ 701,928,086 | $ - | $ - |
Janus Henderson Growth and Income Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Growth and Income Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Growth and Income Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Growth and Income Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Growth and Income Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Growth and Income Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Growth and Income Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Growth and Income Fund
Notes
NotesPage1
Janus Henderson Growth and Income Fund
Notes
NotesPage2
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93048 05-22 |
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| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson International Opportunities Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson International Opportunities Fund
| | | | | | |
FUND SNAPSHOT An international equity fund that seeks long-term growth of capital. The Fund employs a multi-sleeve approach where underlying managers can focus on their highest-conviction ideas. | | | | 
Paul O’Connor co-portfolio manager | 
Dean Cheeseman co-portfolio manager |
| | | |
Janus Henderson International Opportunities Fund (unaudited)
Fund At A Glance
March 31, 2022
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| | | | | | | | | |
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| RWE AG | 2.57% | | 0.57% | | Yandex NV | 0.42% | | -0.76% |
| Novo Nordisk A/S | 2.93% | | 0.44% | | Allfunds Group PLC | 1.10% | | -0.60% |
| Informa PLC | 1.89% | | 0.31% | | KION Group AG | 1.00% | | -0.55% |
| SK Hynix Inc | 1.05% | | 0.28% | | Worldline SA/France | 0.38% | | -0.47% |
| Ivanhoe Mines Ltd | 0.75% | | 0.27% | | Sea Ltd (ADR) | 0.70% | | -0.46% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 0.55% | | 10.56% | 12.17% |
| Utilities | | 0.32% | | 4.14% | 3.07% |
| Information Technology | | 0.28% | | 14.59% | 12.92% |
| Health Care | | 0.14% | | 11.94% | 9.21% |
| Other** | | 0.10% | | 2.31% | 0.00% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -2.16% | | 16.34% | 19.85% |
| Communication Services | | -2.08% | | 8.99% | 6.23% |
| Materials | | -1.05% | | 7.54% | 8.25% |
| Industrials | | -0.96% | | 12.34% | 12.24% |
| Consumer Staples | | -0.90% | | 8.28% | 8.49% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson International Opportunities Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 3.6% |
RWE AG | |
Multi-Utilities | 3.1% |
Housing Development Finance Corp Ltd | |
Thrifts & Mortgage Finance | 3.0% |
Samsung Electronics Co Ltd | |
Technology Hardware, Storage & Peripherals | 2.8% |
Novo Nordisk A/S | |
Pharmaceuticals | 2.7% |
| | 15.2% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 97.4% | |
Investment Companies | | 1.8% | |
Other | | 0.8% |
| | | 100.0% |
Emerging markets comprised 31.7% of total net assets.
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson International Opportunities Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -9.71% | -11.16% | 3.79% | 4.93% | 7.31% | | | 1.49% | 1.19% |
Class A Shares at MOP | | -14.89% | -16.26% | 2.57% | 4.31% | 7.00% | | | | |
Class C Shares at NAV | | -10.05% | -11.82% | 3.06% | 4.16% | 6.52% | | | 2.22% | 1.93% |
Class C Shares at CDSC | | -10.78% | -12.53% | 3.06% | 4.16% | 6.52% | | | | |
Class D Shares | | -9.57% | -10.97% | 4.00% | 5.04% | 7.36% | | | 1.44% | 0.98% |
Class I Shares | | -9.56% | -10.89% | 4.10% | 5.23% | 7.50% | | | 1.21% | 0.90% |
Class N Shares | | -9.51% | -10.85% | 4.16% | 5.15% | 7.42% | | | 1.10% | 0.83% |
Class R Shares | | -9.71% | -11.32% | 3.52% | 4.63% | 7.07% | | | 1.90% | 1.54% |
Class S Shares | | -9.50% | -10.99% | 3.79% | 4.90% | 7.29% | | | 5.99% | 1.34% |
Class T Shares | | -9.64% | -11.06% | 3.91% | 5.00% | 7.34% | | | 1.40% | 1.08% |
MSCI All Country World ex-USA Index | | -3.72% | -1.48% | 6.76% | 5.55% | 6.17% | | | | |
Morningstar Quartile - Class A Shares | | - | 4th | 4th | 4th | 1st | | | | |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds | | - | 761/775 | 637/680 | 458/550 | 23/315 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
Janus Henderson International Opportunities Fund (unaudited)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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.
Returns of the Fund shown prior to June 5, 2017, are those for Henderson International Opportunities Fund (the “Predecessor Fund”), which merged into the Fund after the close of business on June 2, 2017. The Predecessor Fund was advised by Henderson Global Investors (North America) Inc. and subadvised by Henderson Investment Management Limited. Class A Shares, Class C Shares, Class R Shares, Class I Shares, Class IF Shares, and Class R6 Shares of the Predecessor Fund were reorganized into Class A Shares, Class C Shares, Class R Shares, Class I Shares (Class I Shares and Class IF Shares of the Predecessor Fund were reorganized into Class I Shares of the Fund), and Class N Shares, respectively, of the Fund. In connection with this reorganization, certain shareholders of the Predecessor Fund who held shares directly with the Predecessor Fund and not through an intermediary had the Class A Shares, Class C Shares, Class R Shares, Class I Shares, and Class N Shares of the Fund received in the reorganization automatically exchanged for Class D Shares of the Fund following the reorganization. Class A Shares and Class C Shares of the Predecessor Fund commenced operations with the Predecessor Fund’s inception on August 31, 2001. Class R Shares, Class I Shares, Class R6 Shares, and Class IF Shares of the Predecessor Fund commenced operations on September 30, 2005, March 31, 2009, November 30, 2015, and March 31, 2016, respectively. Class D Shares, Class S Shares, and Class T Shares commenced operations on June 5, 2017.
Performance of Class A Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class C Shares shown for periods prior to June 5, 2017, reflects the performance of Class C Shares of the Predecessor Fund, calculated using the fees and expenses of Class C Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Performance of Class R Shares shown for periods prior to June 5, 2017, reflects the performance of Class R Shares of the Predecessor Fund, calculated using the fees and expenses of Class R Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to September 30, 2005, performance for Class R Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class I Shares shown for periods prior to June 5, 2017, reflects the performance of Class I Shares of the Predecessor Fund, calculated using the fees and expenses of Class I Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to March 31, 2009, performance for Class I Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class N Shares shown for periods prior to June 5, 2017, reflects the performance of Class R6 Shares of the Predecessor Fund, calculated using the fees and expenses of Class R6 Shares of the Predecessor Fund, in effect during the periods shown, net of any applicable fee and expense limitations or waivers, except that for periods prior to November 30, 2015, performance for Class N Shares reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class S Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class T Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), net of any applicable fee and expense limitations or waivers.
Performance of Class D Shares shown for periods prior to June 5, 2017, reflects the performance of Class A Shares of the Predecessor Fund, calculated using the fees and expenses of Class A Shares of the Predecessor Fund (without sales charges), 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.
© 2022 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See important disclosures on the next page.
Janus Henderson International Opportunities Fund (unaudited)
Performance
See Notes to Schedule of Investments and Other Information for index definitions.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Predecessor Fund’s inception date – August 31, 2001.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson International Opportunities 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $902.90 | $5.79 | | $1,000.00 | $1,018.85 | $6.14 | 1.22% |
Class C Shares | $1,000.00 | $899.50 | $9.33 | | $1,000.00 | $1,015.11 | $9.90 | 1.97% |
Class D Shares | $1,000.00 | $904.30 | $4.84 | | $1,000.00 | $1,019.85 | $5.14 | 1.02% |
Class I Shares | $1,000.00 | $904.40 | $4.46 | | $1,000.00 | $1,020.24 | $4.73 | 0.94% |
Class N Shares | $1,000.00 | $904.90 | $4.13 | | $1,000.00 | $1,020.59 | $4.38 | 0.87% |
Class R Shares | $1,000.00 | $902.90 | $5.93 | | $1,000.00 | $1,018.70 | $6.29 | 1.25% |
Class S Shares | $1,000.00 | $905.00 | $4.04 | | $1,000.00 | $1,020.69 | $4.28 | 0.85% |
Class T Shares | $1,000.00 | $903.60 | $5.36 | | $1,000.00 | $1,019.30 | $5.69 | 1.13% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson International Opportunities Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 97.4% | | | |
Automobiles – 4.9% | | | |
| | Daimler AG | | 219,158 | | | $15,390,792 | |
| | Stellantis NV | | 864,412 | | | 14,015,784 | |
| | Toyota Motor Corp | | 950,000 | | | 17,020,628 | |
| | | 46,427,204 | |
Banks – 7.9% | | | |
| | Bank Negara Indonesia Persero Tbk PT | | 27,771,200 | | | 15,891,242 | |
| | China Merchants Bank Co Ltd - Class A | | 3,050,277 | | | 22,390,382 | |
| | ICICI Bank Ltd | | 2,165,503 | | | 20,758,199 | |
| | UniCredit SpA | | 1,440,450 | | | 15,550,334 | |
| | | 74,590,157 | |
Beverages – 3.0% | | | |
| | Asahi Group Holdings Ltd | | 250,000 | | | 9,077,386 | |
| | Carlsberg A/S | | 115,293 | | | 14,079,136 | |
| | Pernod Ricard SA | | 24,559 | | | 5,385,585 | |
| | | 28,542,107 | |
Biotechnology – 1.4% | | | |
| | Grifols SA (ADR) | | 1,146,511 | | | 13,391,248 | |
Building Products – 1.3% | | | |
| | Cie de Saint-Gobain | | 203,109 | | | 12,085,361 | |
Capital Markets – 1.0% | | | |
| | Allfunds Group PLC* | | 854,159 | | | 9,749,853 | |
Chemicals – 4.4% | | | |
| | Akzo Nobel NV | | 101,493 | | | 8,718,681 | |
| | Koninklijke DSM NV | | 115,864 | | | 20,704,276 | |
| | Shin-Etsu Chemical Co Ltd | | 75,000 | | | 11,430,775 | |
| | | 40,853,732 | |
Commercial Services & Supplies – 1.2% | | | |
| | SPIE SA | | 488,652 | | | 11,546,647 | |
Diversified Financial Services – 0.9% | | | |
| | Linklogis Inc - Class B (144A)* | | 9,307,000 | | | 8,823,761 | |
Diversified Telecommunication Services – 2.2% | | | |
| | Saudi Telecom Co | | 730,220 | | | 20,897,189 | |
Electric Utilities – 1.2% | | | |
| | EDP - Energias de Portugal SA | | 2,234,902 | | | 11,006,280 | |
Electrical Equipment – 1.2% | | | |
| | Ming Yang Smart Engergy Group Ltd - Class A | | 3,284,950 | | | 11,367,229 | |
Electronic Equipment, Instruments & Components – 4.5% | | | |
| | Hon Hai Precision Industry Co Ltd | | 6,468,000 | | | 23,833,285 | |
| | TDK Corp | | 241,000 | | | 8,702,957 | |
| | Wingtech Technology Co Ltd - Class A | | 776,439 | | | 9,839,780 | |
| | | 42,376,022 | |
Entertainment – 0.4% | | | |
| | Netflix Inc* | | 10,268 | | | 3,846,290 | |
Food & Staples Retailing – 1.3% | | | |
| | Seven & i Holdings Co Ltd | | 255,000 | | | 12,134,950 | |
Food Products – 0.9% | | | |
| | Masan Group Corp | | 1,416,400 | | | 8,798,484 | |
Health Care Equipment & Supplies – 1.6% | | | |
| | Siemens Healthineers AG (144A) | | 246,985 | | | 15,313,081 | |
Health Care Providers & Services – 1.3% | | | |
| | Mouwasat Medical Services Co | | 209,634 | | | 11,836,065 | |
Hotels, Restaurants & Leisure – 1.3% | | | |
| | Compass Group PLC | | 244,302 | | | 5,263,986 | |
| | Yum China Holdings Inc | | 164,400 | | | 7,186,588 | |
| | | 12,450,574 | |
Household Durables – 1.6% | | | |
| | Sony Corp | | 142,600 | | | 14,720,304 | |
Independent Power and Renewable Electricity Producers – 1.4% | | | |
| | EDP Renovaveis SA | | 524,139 | | | 13,497,853 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson International Opportunities Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Industrial Conglomerates – 0.6% | | | |
| | Hitachi Ltd | | 115,000 | | | $5,763,422 | |
Information Technology Services – 0.8% | | | |
| | Mastercard Inc | | 19,689 | | | 7,036,455 | |
Insurance – 3.5% | | | |
| | ASR Nederland NV | | 445,237 | | | 20,685,132 | |
| | Tokio Marine Holdings Inc | | 215,000 | | | 12,506,922 | |
| | | 33,192,054 | |
Interactive Media & Services – 3.9% | | | |
| | Alphabet Inc - Class C* | | 2,192 | | | 6,122,234 | |
| | Tencent Holdings Ltd | | 525,000 | | | 24,768,027 | |
| | Z Holdings Corp | | 1,380,000 | | | 5,992,766 | |
| | | 36,883,027 | |
Internet & Direct Marketing Retail – 1.2% | | | |
| | JD.Com Inc - Class A* | | 17,028 | | | 498,732 | |
| | MercadoLibre Inc* | | 8,666 | | | 10,308,034 | |
| | | 10,806,766 | |
Life Sciences Tools & Services – 0.7% | | | |
| | ICON PLC* | | 25,978 | | | 6,318,369 | |
Machinery – 5.3% | | | |
| | Daimler Truck Holding AG* | | 359,248 | | | 9,978,902 | |
| | KION Group AG | | 176,593 | | | 11,742,040 | |
| | Outotec Oyj | | 1,069,146 | | | 9,018,212 | |
| | Sany Heavy Industry Co Ltd | | 4,695,815 | | | 12,870,512 | |
| | SMC Corp/Japan | | 11,500 | | | 6,423,958 | |
| | | 50,033,624 | |
Media – 2.7% | | | |
| | Informa PLC* | | 3,228,573 | | | 25,333,903 | |
Metals & Mining – 1.0% | | | |
| | Ivanhoe Mines Ltd* | | 1,043,987 | | | 9,738,311 | |
Multi-Utilities – 3.1% | | | |
| | RWE AG | | 656,767 | | | 28,643,114 | |
Oil, Gas & Consumable Fuels – 2.0% | | | |
| | Total SE | | 365,596 | | | 18,547,314 | |
Paper & Forest Products – 1.2% | | | |
| | UPM-Kymmene Oyj | | 353,243 | | | 11,524,941 | |
Personal Products – 1.1% | | | |
| | Estee Lauder Cos Inc | | 20,354 | | | 5,542,801 | |
| | Unilever PLC | | 108,312 | | | 4,902,001 | |
| | | 10,444,802 | |
Pharmaceuticals – 7.0% | | | |
| | Daiichi Sankyo Co Ltd | | 516,000 | | | 11,322,097 | |
| | Merck KGaA | | 73,871 | | | 15,468,579 | |
| | Novo Nordisk A/S | | 229,856 | | | 25,460,331 | |
| | Sanofi | | 137,012 | | | 13,971,135 | |
| | | 66,222,142 | |
Professional Services – 1.8% | | | |
| | RELX PLC | | 534,770 | | | 16,645,788 | |
Road & Rail – 1.0% | | | |
| | Full Truck Alliance Co (ADR)* | | 1,367,344 | | | 9,120,184 | |
Semiconductor & Semiconductor Equipment – 4.5% | | | |
| | Renesas Electronics Corp* | | 755,000 | | | 8,737,668 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 1,618,000 | | | 33,458,824 | |
| | | 42,196,492 | |
Software – 0.7% | | | |
| | Microsoft Corp | | 21,909 | | | 6,754,764 | |
Technology Hardware, Storage & Peripherals – 3.3% | | | |
| | FUJIFILM Holdings Corp | | 84,000 | | | 5,139,695 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Technology Hardware, Storage & Peripherals– (continued) | | | |
| | Samsung Electronics Co Ltd | | 452,356 | | | $25,845,231 | |
| | | 30,984,926 | |
Textiles, Apparel & Luxury Goods – 1.8% | | | |
| | Hugo Boss AG | | 286,537 | | | 16,677,642 | |
Thrifts & Mortgage Finance – 3.0% | | | |
| | Housing Development Finance Corp Ltd | | 909,603 | | | 28,485,236 | |
Trading Companies & Distributors – 1.4% | | | |
| | Mitsubishi Corp | | 340,000 | | | 12,812,654 | |
Wireless Telecommunication Services – 0.9% | | | |
| | SoftBank Group Corp | | 185,000 | | | 8,322,135 | |
Total Common Stocks (cost $842,629,537) | | 916,742,456 | |
Investment Companies– 1.8% | | | |
Money Markets – 1.8% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $17,493,474) | | 17,491,725 | | | 17,493,474 | |
Total Investments (total cost $860,123,011) – 99.2% | | 934,235,930 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.8% | | 7,282,592 | |
Net Assets – 100% | | $941,518,522 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
Japan | | $150,108,317 | | 16.1 | % |
Germany | | 113,214,150 | | 12.1 | |
China | | 106,865,195 | | 11.4 | |
Netherlands | | 71,655,878 | | 7.7 | |
France | | 61,536,042 | | 6.6 | |
Taiwan | | 57,292,109 | | 6.1 | |
India | | 49,243,435 | | 5.3 | |
United States | | 46,796,018 | | 5.0 | |
Denmark | | 39,539,467 | | 4.2 | |
Spain | | 36,638,954 | | 3.9 | |
Saudi Arabia | | 32,733,254 | | 3.5 | |
United Kingdom | | 30,597,889 | | 3.3 | |
Italy | | 29,566,118 | | 3.2 | |
South Korea | | 25,845,231 | | 2.8 | |
Finland | | 20,543,153 | | 2.2 | |
Indonesia | | 15,891,242 | | 1.7 | |
Portugal | | 11,006,280 | | 1.2 | |
Argentina | | 10,308,034 | | 1.1 | |
Canada | | 9,738,311 | | 1.0 | |
Vietnam | | 8,798,484 | | 0.9 | |
Ireland | | 6,318,369 | | 0.7 | |
| | | | | | |
| | | | | | |
Total | | $934,235,930 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson International Opportunities Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 1.8% |
Money Markets - 1.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 18,690 | $ | - | $ | - | $ | 17,493,474 |
| |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 1.8% |
Money Markets - 1.8% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 88,574,437 | | 301,974,629 | | (373,055,592) | | 17,493,474 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI All Country World ex-USA IndexSM | MSCI All Country World ex-USA IndexSM reflects the equity market performance of global developed and emerging markets, excluding the U.S. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $24,136,842, which represents 2.6% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
£ | 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. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Biotechnology | $ | 13,391,248 | $ | - | $ | - |
Entertainment | | 3,846,290 | | - | | - |
Information Technology Services | | 7,036,455 | | - | | - |
Interactive Media & Services | | 6,122,234 | | 30,760,793 | | - |
Internet & Direct Marketing Retail | | 10,308,034 | | 498,732 | | - |
Life Sciences Tools & Services | | 6,318,369 | | - | | - |
Metals & Mining | | 9,738,311 | | - | | - |
Personal Products | | 5,542,801 | | 4,902,001 | | - |
Road & Rail | | 9,120,184 | | - | | - |
Software | | 6,754,764 | | - | | - |
All Other | | - | | 802,402,240 | | - |
Investment Companies | | - | | 17,493,474 | | - |
Total Assets | $ | 78,178,690 | $ | 856,057,240 | $ | - |
| | | | | | | |
Janus Henderson International Opportunities Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $842,629,537) | | $ | 916,742,456 | |
| Affiliated investments, at value (cost $17,493,474) | | | 17,493,474 | |
| Non-interested Trustees' deferred compensation | | | 25,795 | |
| Receivables: | | | | |
| | Fund shares sold | | | 30,717,697 | |
| | Foreign tax reclaims | | | 4,791,725 | |
| | Investments sold | | | 3,365,572 | |
| | Dividends | | | 2,471,081 | |
| | Dividends from affiliates | | | 3,559 | |
| Other assets | | | 313,461 | |
Total Assets | | | 975,924,820 | |
Liabilities: | | | | |
| Due to custodian | | | 1,117 | |
| Foreign cash due to custodian (cost $175) | | | 175 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 32,090,290 | |
| | Advisory fees | | | 577,760 | |
| | Investments purchased | | | 560,233 | |
| | Foreign withholding tax reclaim fee (Note 1) | | | 302,895 | |
| | Foreign tax liability | | | 219,755 | |
| | Transfer agent fees and expenses | | | 179,088 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 84,711 | |
| | Professional fees | | | 68,036 | |
| | Custodian fees | | | 26,978 | |
| | Non-interested Trustees' deferred compensation fees | | | 25,795 | |
| | Non-interested Trustees' fees and expenses | | | 4,245 | |
| | Affiliated fund administration fees payable | | | 1,999 | |
| | Accrued expenses and other payables | | | 263,221 | |
Total Liabilities | | | 34,406,298 | |
Net Assets | | $ | 941,518,522 | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 882,683,164 | |
| Total distributable earnings (loss) (includes $219,755 of foreign capital gains tax) | | | 58,835,358 | |
Total Net Assets | | $ | 941,518,522 | |
Net Assets - Class A Shares | | $ | 276,072,541 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 13,080,758 | |
Net Asset Value Per Share(1) | | $ | 21.11 | |
Maximum Offering Price Per Share(2) | | $ | 22.40 | |
Net Assets - Class C Shares | | $ | 29,768,320 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,521,319 | |
Net Asset Value Per Share(1) | | $ | 19.57 | |
Net Assets - Class D Shares | | $ | 3,050,369 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 145,574 | |
Net Asset Value Per Share | | $ | 20.95 | |
Net Assets - Class I Shares | | $ | 542,614,383 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 25,886,405 | |
Net Asset Value Per Share | | $ | 20.96 | |
Net Assets - Class N Shares | | $ | 85,675,729 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 4,091,758 | |
Net Asset Value Per Share | | $ | 20.94 | |
Net Assets - Class R Shares | | $ | 2,335,462 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 112,909 | |
Net Asset Value Per Share | | $ | 20.68 | |
Net Assets - Class S Shares | | $ | 64,654 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,075 | |
Net Asset Value Per Share | | $ | 21.03 | |
Net Assets - Class T Shares | | $ | 1,937,064 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 91,797 | |
Net Asset Value Per Share | | $ | 21.10 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson International Opportunities Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 6,176,052 | |
| Non-cash dividends | | 4,195,757 | |
| Dividends from affiliates | | 18,690 | |
| Other income | | 756,645 | |
| Foreign withholding tax income (net of foreign withholding tax reclaim fee of $302,895 (Note 1) | | 3,866,418 | |
Total Investment Income | | 15,013,562 | |
Expenses: | | | |
| Advisory fees | | 5,706,068 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 391,950 | |
| | Class C Shares | | 187,189 | |
| | Class R Shares | | 2,329 | |
| | Class S Shares | | — | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,831 | |
| | Class R Shares | | 3,353 | |
| | Class S Shares | | 86 | |
| | Class T Shares | | 3,179 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 152,833 | |
| | Class C Shares | | 19,060 | |
| | Class I Shares | | 237,370 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 10,883 | |
| | Class C Shares | | 1,055 | |
| | Class D Shares | | 644 | |
| | Class I Shares | | 16,169 | |
| | Class N Shares | | 2,811 | |
| | Class R Shares | | 57 | |
| | Class S Shares | | 3 | |
| | Class T Shares | | 19 | |
| Professional fees | | 409,788 | |
| Custodian fees | | 87,279 | |
| Registration fees | | 55,439 | |
| Shareholder reports expense | | 40,243 | |
| Affiliated fund administration fees | | 13,729 | |
| Non-interested Trustees’ fees and expenses | | 7,030 | |
| Other expenses | | 80,874 | |
Total Expenses | | 7,431,271 | |
Less: Excess Expense Reimbursement and Waivers | | (1,459,939) | |
Net Expenses | | 5,971,332 | |
Net Investment Income/(Loss) | | 9,042,230 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions (net of foreign taxes of $1,041,437) | $ | 58,433,964 | |
Total Net Realized Gain/(Loss) on Investments | | 58,433,964 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation (net of increase in deferred foreign taxes of $219,755) | | (171,951,750) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (171,951,750) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (104,475,556) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson International Opportunities Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 9,042,230 | | $ | 24,473,737 | |
| Net realized gain/(loss) on investments | | 58,433,964 | | | 248,283,288 | |
| Change in unrealized net appreciation/depreciation | | (171,951,750) | | | (13,483,959) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (104,475,556) | | | 259,273,066 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (60,588,628) | | | (2,070,127) | |
| | Class C Shares | | (7,396,079) | | | — | |
| | Class D Shares | | (638,077) | | | (22,785) | |
| | Class I Shares | | (127,459,427) | | | (7,683,079) | |
| | Class N Shares | | (35,877,872) | | | (4,419,924) | |
| | Class R Shares | | (510,576) | | | (7,534) | |
| | Class S Shares | | (13,129) | | | (518) | |
| | Class T Shares | | (513,349) | | | (21,323) | |
Net Decrease from Dividends and Distributions to Shareholders | | (232,997,137) | | | (14,225,290) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 37,762,094 | | | (14,395,046) | |
| | Class C Shares | | (3,036,880) | | | (27,820,112) | |
| | Class D Shares | | 623,741 | | | 836,898 | |
| | Class I Shares | | 26,214,369 | | | (133,210,365) | |
| | Class N Shares | | (65,253,530) | | | (238,333,529) | |
| | Class R Shares | | 186,101 | | | (1,958,297) | |
| | Class S Shares | | 14,731 | | | 1,216 | |
| | Class T Shares | | (369,385) | | | (1,351,819) | |
Net Increase/(Decrease) from Capital Share Transactions | | (3,858,759) | | | (416,231,054) | |
Net Increase/(Decrease) in Net Assets | | (341,331,452) | | | (171,183,278) | |
Net Assets: | | | | | | |
| Beginning of period | | 1,282,849,974 | | | 1,454,033,252 | |
| End of period | $ | 941,518,522 | | $ | 1,282,849,974 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.82 | | | $24.77 | | | $24.08 | | | $29.10 | | | $29.50 | | | $29.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.19(3) | | | 0.44(4) | | | 0.11 | | | 0.23 | | | 0.28 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | (2.56) | | | 3.79 | | | 1.49 | | | (1.64) | | | (0.39) | | | 0.31 | |
| Total from Investment Operations | | (2.37) | | | 4.23 | | | 1.60 | | | (1.41) | | | (0.11) | | | 0.42 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.33) | | | (0.18) | | | (0.22) | | | (0.44) | | | (0.29) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.34) | | | (0.18) | | | (0.91) | | | (3.61) | | | (0.29) | | | — | |
| Net Asset Value, End of Period | | $21.11 | | | $28.82 | | | $24.77 | | | $24.08 | | | $29.10 | | | $29.50 | |
| Total Return* | | (9.55)% | | | 17.08% | | | 6.61% | | | (3.07)%(5) | | | (0.40)% | | | 1.44% | |
| Net Assets, End of Period (in thousands) | | $276,073 | | | $328,759 | | | $295,282 | | | $357,079 | | | $485,243 | | | $623,172 | |
| Average Net Assets for the Period (in thousands) | | $314,421 | | | $337,873 | | | $316,482 | | | $419,053 | | | $577,151 | | | $625,740 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.47%(6) | | | 1.49%(7) | | | 1.42% | | | 1.45% | | | 1.29% | | | 1.33% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.22% | | | 1.23% | | | 1.28% | | | 1.32% | | | 1.29% | | | 1.33% | |
| | Ratio of Net Investment Income/(Loss) | | 1.50%(3) | | | 1.53%(4) | | | 0.46% | | | 0.96% | | | 0.94% | | | 2.18% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class A Shares. (5) Total return without the effect of affiliated payments would have been (3.11)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class A Shares. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $26.95 | | | $23.17 | | | $22.53 | | | $27.13 | | | $27.46 | | | $27.11 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.07(3) | | | 0.16(4) | | | (0.05) | | | 0.02 | | | 0.06 | | | 0.06 | |
| | Net realized and unrealized gain/(loss) | | (2.37) | | | 3.62 | | | 1.38 | | | (1.45) | | | (0.36) | | | 0.29 | |
| Total from Investment Operations | | (2.30) | | | 3.78 | | | 1.33 | | | (1.43) | | | (0.30) | | | 0.35 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.07) | | | — | | | — | | | — | | | (0.03) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.08) | | | — | | | (0.69) | | | (3.17) | | | (0.03) | | | — | |
| Net Asset Value, End of Period | | $19.57 | | | $26.95 | | | $23.17 | | | $22.53 | | | $27.13 | | | $27.46 | |
| Total Return* | | (9.92)% | | | 16.31% | | | 5.86% | | | (3.64)%(5) | | | (1.09)% | | | 1.29% | |
| Net Assets, End of Period (in thousands) | | $29,768 | | | $43,690 | | | $61,292 | | | $106,863 | | | $336,880 | | | $432,601 | |
| Average Net Assets for the Period (in thousands) | | $37,624 | | | $55,342 | | | $82,679 | | | $161,985 | | | $397,796 | | | $430,739 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.23%(6) | | | 2.19%(7) | | | 2.06% | | | 2.09% | | | 2.00% | | | 2.16% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.97% | | | 1.95% | | | 1.92% | | | 1.97% | | | 2.00% | | | 2.16% | |
| | Ratio of Net Investment Income/(Loss) | | 0.59%(3) | | | 0.60%(4) | | | (0.24)% | | | 0.10% | | | 0.22% | | | 1.36% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.14 and 0.52%, respectively, for Class C Shares. (5) Total return without the effect of affiliated payments would have been (3.68)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class C Shares. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class A Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $26.05 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.17 | |
| | Net realized and unrealized gain/(loss) | | 3.25 | |
| Total from Investment Operations | | 3.42 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.39) | |
| Total Dividends and Distributions | | (0.39) | |
| Net Asset Value, End of Period | | $29.08 | |
| Total Return* | | 13.36% | |
| Net Assets, End of Period (in thousands) | | $637,250 | |
| Average Net Assets for the Period (in thousands) | | $682,656 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.31% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.31% | |
| | Ratio of Net Investment Income/(Loss) | | 0.63% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| | | | | | | |
Class C Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $24.31 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 3.04 | |
| Total from Investment Operations | | 3.01 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.21) | |
| Total Dividends and Distributions | | (0.21) | |
| Net Asset Value, End of Period | | $27.11 | |
| Total Return* | | 12.50% | |
| Net Assets, End of Period (in thousands) | | $437,418 | |
| Average Net Assets for the Period (in thousands) | | $457,115 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 2.09% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.09% | |
| | Ratio of Net Investment Income/(Loss) | | (0.13)% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.69 | | | $24.68 | | | $24.00 | | | $29.06 | | | $29.51 | | | $29.08 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.22(3) | | | 0.56(4) | | | 0.17 | | | 0.29 | | | 0.37 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (2.56) | | | 3.70 | | | 1.48 | | | (1.67) | | | (0.40) | | | 0.31 | |
| Total from Investment Operations | | (2.34) | | | 4.26 | | | 1.65 | | | (1.38) | | | (0.03) | | | 0.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.39) | | | (0.25) | | | (0.28) | | | (0.51) | | | (0.42) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.40) | | | (0.25) | | | (0.97) | | | (3.68) | | | (0.42) | | | — | |
| Net Asset Value, End of Period | | $20.95 | | | $28.69 | | | $24.68 | | | $24.00 | | | $29.06 | | | $29.51 | |
| Total Return* | | (9.50)% | | | 17.29% | | | 6.84% | | | (2.90)%(5) | | | (0.15)% | | | 1.48% | |
| Net Assets, End of Period (in thousands) | | $3,050 | | | $3,379 | | | $2,210 | | | $2,257 | | | $3,002 | | | $2,187 | |
| Average Net Assets for the Period (in thousands) | | $3,293 | | | $3,047 | | | $2,132 | | | $2,483 | | | $3,163 | | | $1,914 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.39%(6) | | | 1.44%(7) | | | 1.41% | | | 1.59% | | | 1.16% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.02% | | | 1.03% | | | 1.06% | | | 1.13% | | | 1.10% | | | 1.08% | |
| | Ratio of Net Investment Income/(Loss) | | 1.78%(3) | | | 1.93%(4) | | | 0.73% | | | 1.20% | | | 1.25% | | | 2.43% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class D Shares. (5) Total return without the effect of affiliated payments would have been (2.94)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class D Shares. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.72 | | | $24.69 | | | $24.03 | | | $29.06 | | | $29.47 | | | $29.04 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.22(3) | | | 0.50(4) | | | 0.17 | | | 0.24 | | | 0.38 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (2.56) | | | 3.81 | | | 1.49 | | | (1.58) | | | (0.39) | | | 0.31 | |
| Total from Investment Operations | | (2.34) | | | 4.31 | | | 1.66 | | | (1.34) | | | (0.01) | | | 0.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.41) | | | (0.28) | | | (0.31) | | | (0.52) | | | (0.40) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.42) | | | (0.28) | | | (1.00) | | | (3.69) | | | (0.40) | | | — | |
| Net Asset Value, End of Period | | $20.96 | | | $28.72 | | | $24.69 | | | $24.03 | | | $29.06 | | | $29.47 | |
| Total Return* | | (9.47)% | | | 17.47% | | | 6.87% | | | (2.75)%(5) | | | (0.07)% | | | 1.48% | |
| Net Assets, End of Period (in thousands) | | $542,614 | | | $703,785 | | | $720,915 | | | $1,050,061 | | | $3,021,157 | | | $3,721,310 | |
| Average Net Assets for the Period (in thousands) | | $641,511 | | | $770,690 | | | $860,681 | | | $1,621,134 | | | $3,542,904 | | | $3,644,165 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.20%(6) | | | 1.20%(7) | | | 1.12% | | | 1.12% | | | 0.99% | | | 1.00% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.94% | | | 0.95% | | | 0.98% | | | 1.01% | | | 0.99% | | | 1.00% | |
| | Ratio of Net Investment Income/(Loss) | | 1.72%(3) | | | 1.75%(4) | | | 0.71% | | | 0.99% | | | 1.27% | | | 2.51% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class I Shares. (5) Total return without the effect of affiliated payments would have been (2.79)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class I Shares. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class D Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.47 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | 0.58 | |
| Total from Investment Operations | | 0.61 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $29.08 | |
| Total Return* | | 2.14% | |
| Net Assets, End of Period (in thousands) | | $1,723 | |
| Average Net Assets for the Period (in thousands) | | $1,119 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.39% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.06% | |
| | Ratio of Net Investment Income/(Loss) | | 0.59% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| | | | | | | |
Class I Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $26.06 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.25 | |
| | Net realized and unrealized gain/(loss) | | 3.21 | |
| Total from Investment Operations | | 3.46 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.48) | |
| Total Dividends and Distributions | | (0.48) | |
| Net Asset Value, End of Period | | $29.04 | |
| Total Return* | | 13.58% | |
| Net Assets, End of Period (in thousands) | | $3,642,386 | |
| Average Net Assets for the Period (in thousands) | | $2,966,203 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.05% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | |
| | Ratio of Net Investment Income/(Loss) | | 0.94% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.73 | | | $24.67 | | | $23.99 | | | $29.08 | | | $29.47 | | | $29.03 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.18(3) | | | 0.44(4) | | | 0.22 | | | 0.48 | | | 0.41 | | | 0.12 | |
| | Net realized and unrealized gain/(loss) | | (2.51) | | | 3.91 | | | 1.46 | | | (1.85) | | | (0.38) | | | 0.32 | |
| Total from Investment Operations | | (2.33) | | | 4.35 | | | 1.68 | | | (1.37) | | | 0.03 | | | 0.44 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.45) | | | (0.29) | | | (0.31) | | | (0.55) | | | (0.42) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.46) | | | (0.29) | | | (1.00) | | | (3.72) | | | (0.42) | | | — | |
| Net Asset Value, End of Period | | $20.94 | | | $28.73 | | | $24.67 | | | $23.99 | | | $29.08 | | | $29.47 | |
| Total Return* | | (9.42)% | | | 17.67% | | | 6.99% | | | (2.82)%(5) | | | 0.07% | | | 1.52% | |
| Net Assets, End of Period (in thousands) | | $85,676 | | | $197,222 | | | $366,371 | | | $280,749 | | | $43,305 | | | $10,530 | |
| Average Net Assets for the Period (in thousands) | | $142,189 | | | $337,046 | | | $315,851 | | | $128,934 | | | $12,868 | | | $10,134 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.13%(6) | | | 1.10%(7) | | | 1.05% | | | 1.07% | | | 0.96% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.87% | | | 0.88% | | | 0.90% | | | 0.91% | | | 0.94% | | | 0.93% | |
| | Ratio of Net Investment Income/(Loss) | | 1.40%(3) | | | 1.54%(4) | | | 0.95% | | | 2.02% | | | 1.41% | | | 2.57% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class N Shares. (5) Total return without the effect of affiliated payments would have been (2.86)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class N. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period end March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.28 | | | $24.21 | | | $23.51 | | | $28.42 | | | $28.81 | | | $28.41 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.16(3) | | | 0.33(4) | | | 0.01 | | | 0.15 | | | 0.16 | | | 0.09 | |
| | Net realized and unrealized gain/(loss) | | (2.53) | | | 3.79 | | | 1.47 | | | (1.59) | | | (0.36) | | | 0.31 | |
| Total from Investment Operations | | (2.37) | | | 4.12 | | | 1.48 | | | (1.44) | | | (0.20) | | | 0.40 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.22) | | | (0.05) | | | (0.09) | | | (0.30) | | | (0.19) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.23) | | | (0.05) | | | (0.78) | | | (3.47) | | | (0.19) | | | — | |
| Net Asset Value, End of Period | | $20.68 | | | $28.28 | | | $24.21 | | | $23.51 | | | $28.42 | | | $28.81 | |
| Total Return* | | (9.70)% | | | 17.01% | | | 6.27% | | | (3.35)%(5) | | | (0.71)% | | | 1.41% | |
| Net Assets, End of Period (in thousands) | | $2,335 | | | $2,905 | | | $4,147 | | | $9,168 | | | $16,214 | | | $23,122 | |
| Average Net Assets for the Period (in thousands) | | $2,690 | | | $4,093 | | | $6,096 | | | $11,867 | | | $19,820 | | | $22,887 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.62%(6) | | | 1.70%(7) | | | 1.79% | | | 1.81% | | | 1.66% | | | 1.60% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.25% | | | 1.39% | | | 1.57% | | | 1.62% | | | 1.62% | | | 1.56% | |
| | Ratio of Net Investment Income/(Loss) | | 1.27%(3) | | | 1.15%(4) | | | 0.03% | | | 0.63% | | | 0.54% | | | 1.96% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class R Shares. (5) Total return without the effect of affiliated payments would have been (3.39)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class R Shares. |
| | |
See Notes to Financial Statements. |
| |
24 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class N Shares | | | |
For a share outstanding during the year or period ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $26.05 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.42 | |
| | Net realized and unrealized gain/(loss) | | 3.05 | |
| Total from Investment Operations | | 3.47 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.49) | |
| Total Dividends and Distributions | | (0.49) | |
| Net Asset Value, End of Period | | $29.03 | |
| Total Return* | | 13.61% | |
| Net Assets, End of Period (in thousands) | | $10,041 | |
| Average Net Assets for the Period (in thousands) | | $2,895 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 0.98% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.97% | |
| | Ratio of Net Investment Income/(Loss) | | 1.55% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| | | | | | | |
Class R Shares | | | |
For a share outstanding during the year ended July 31 | | 2017 | |
| Net Asset Value, Beginning of Period | | $25.55 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(1) | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | 3.16 | |
| Total from Investment Operations | | 3.24 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | (0.38) | |
| Total Dividends and Distributions | | (0.38) | |
| Net Asset Value, End of Period | | $28.41 | |
| Total Return* | | 12.89% | |
| Net Assets, End of Period (in thousands) | | $23,071 | |
| Average Net Assets for the Period (in thousands) | | $21,398 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.72% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.71% | |
| | Ratio of Net Investment Income/(Loss) | | 0.29% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.71 | | | $24.66 | | | $23.80 | | | $29.00 | | | $29.48 | | | $29.06 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.23(3) | | | 0.52(4) | | | 0.09 | | | 0.23 | | | 0.44 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | (2.55) | | | 3.75 | | | 1.46 | | | (1.72) | | | (0.53) | | | 0.31 | |
| Total from Investment Operations | | (2.32) | | | 4.27 | | | 1.55 | | | (1.49) | | | (0.09) | | | 0.42 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.35) | | | (0.22) | | | — | | | (0.54) | | | (0.39) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.36) | | | (0.22) | | | (0.69) | | | (3.71) | | | (0.39) | | | — | |
| Net Asset Value, End of Period | | $21.03 | | | $28.71 | | | $24.66 | | | $23.80 | | | $29.00 | | | $29.48 | |
| Total Return* | | (9.39)% | | | 17.33% | | | 6.49% | | | (3.32)%(5) | | | (0.36)% | | | 1.45% | |
| Net Assets, End of Period (in thousands) | | $65 | | | $70 | | | $59 | | | $110 | | | $2,674 | | | $52 | |
| Average Net Assets for the Period (in thousands) | | $69 | | | $69 | | | $95 | | | $1,736 | | | $591 | | | $51 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 5.60%(6) | | | 5.70%(7) | | | 4.69% | | | 1.76% | | | 1.75% | | | 1.44% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.85% | | | 0.99% | | | 1.41% | | | 1.46% | | | 1.43% | | | 1.26% | |
| | Ratio of Net Investment Income/(Loss) | | 1.89%(3) | | | 1.80%(4) | | | 0.40% | | | 0.97% | | | 1.57% | | | 2.25% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class S Shares. (5) Total return without the effect of affiliated payments would have been (3.36)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class S Shares. |
| | |
See Notes to Financial Statements. |
| |
26 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.87 | | | $24.69 | | | $24.00 | | | $29.02 | | | $29.50 | | | $29.07 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(2) | | 0.14(3) | | | 0.62(4) | | | (0.01) | | | 0.57 | | | 0.30 | | | 0.11 | |
| | Net realized and unrealized gain/(loss) | | (2.56) | | | 3.70 | | | 1.63 | | | (1.95) | | | (0.37) | | | 0.32 | |
| Total from Investment Operations | | (2.42) | | | 4.32 | | | 1.62 | | | (1.38) | | | (0.07) | | | 0.43 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (1.34) | | | (0.14) | | | (0.24) | | | (0.47) | | | (0.41) | | | — | |
| | Distributions (from capital gains) | | (4.01) | | | — | | | (0.69) | | | (3.17) | | | — | | | — | |
| Total Dividends and Distributions | | (5.35) | | | (0.14) | | | (0.93) | | | (3.64) | | | (0.41) | | | — | |
| Net Asset Value, End of Period | | $21.10 | | | $28.87 | | | $24.69 | | | $24.00 | | | $29.02 | | | $29.50 | |
| Total Return* | | (9.70)% | | | 17.49% | | | 6.73% | | | (2.92)%(5) | | | (0.26)% | | | 1.48% | |
| Net Assets, End of Period (in thousands) | | $1,937 | | | $3,040 | | | $3,758 | | | $32,333 | | | $8,614 | | | $10,291 | |
| Average Net Assets for the Period (in thousands) | | $2,550 | | | $6,040 | | | $14,280 | | | $37,969 | | | $9,802 | | | $9,755 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.49%(6) | | | 1.40%(7) | | | 1.31% | | | 1.48% | | | 1.19% | | | 1.18% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.13% | | | 1.10% | | | 1.16% | | | 1.33% | | | 1.17% | | | 1.18% | |
| | Ratio of Net Investment Income/(Loss) | | 1.08%(3) | | | 2.14%(4) | | | (0.03)% | | | 2.38% | | | 1.01% | | | 2.32% | |
| Portfolio Turnover Rate | | 49% | | | 63% | | | 57% | | | 45% | | | 56% | | | 5% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from August 1, 2017 through September 30, 2017. The Fund changed its fiscal year end from July 31 to September 30. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.72%, respectively. (4) Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include foreign withholding tax reclaims received in September 2021. The impact of the foreign withholding tax reclaims received, net of the related professional fees, to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.15 and 0.52%, respectively, for Class T Shares. (5) Total return without the effect of affiliated payments would have been (2.96)%. (6) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in November 2021 and March 2022. The impact of the additional professional fees to Ratio of Gross Expenses is 0.06%. (7) Ratio of Gross Expenses includes additional professional fees related to foreign withholding tax reclaims received in September 2021. The impact of the additional professional fees to Ratio of Gross Expenses is 0.08% for Class T Shares. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 27 |
Janus Henderson International Opportunities Fund
Financial Highlights
| | | | | | | |
Class S Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.47 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | 0.57 | |
| Total from Investment Operations | | 0.59 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $29.06 | |
| Total Return* | | 2.07% | |
| Net Assets, End of Period (in thousands) | | $51 | |
| Average Net Assets for the Period (in thousands) | | $50 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.42% | |
| | Ratio of Net Investment Income/(Loss) | | 0.38% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
Class T Shares | | | |
For a share outstanding during the period ended July 31 | | 2017(1) | |
| Net Asset Value, Beginning of Period | | $28.47 | |
| Income/(Loss) from Investment Operations: | | | |
| | Net investment income/(loss)(2) | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | 0.63 | |
| Total from Investment Operations | | 0.60 | |
| Less Dividends and Distributions: | | | |
| | Dividends (from net investment income) | | — | |
| Total Dividends and Distributions | | — | |
| Net Asset Value, End of Period | | $29.07 | |
| Total Return* | | 2.11% | |
| Net Assets, End of Period (in thousands) | | $9,475 | |
| Average Net Assets for the Period (in thousands) | | $2,712 | |
| Ratios to Average Net Assets**: | | | |
| | Ratio of Gross Expenses | | 1.21% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.19% | |
| | Ratio of Net Investment Income/(Loss) | | (0.68)% | |
| Portfolio Turnover Rate | | 51% | |
| | | | | | | |
| |
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from June 5, 2017 (inception date) through July 31, 2017. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
| | |
See Notes to Financial Statements. |
| |
28 | MARCH 31, 2022 |
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson International Opportunities Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term capital appreciation primarily through investment in equities of non-U.S. companies. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
Pursuant to the Agreement and Plan of Reorganization, the Fund acquired all the assets and liabilities of the Henderson International Opportunities Fund (the “Predecessor Fund”), a series of Henderson Global Funds, in exchange for Class A, Class C, Class I and Class N Fund shares having an aggregate net asset value equal to the value of the aggregate net assets of the same share class of the Predecessor Fund (except that Class R6 Predecessor Fund shares were exchanged for Class N Fund shares) and Class IF Predecessor Fund shares were exchanged for Class I Fund shares) (the “Reorganization”). The Reorganization occurred at the close of business on June 2, 2017.
The Predecessor Fund and the Fund had identical investment objectives and substantially similar investment policies and principal risks. For financial reporting purposes, the Predecessor Fund’s financial and performance history prior to the Reorganization is carried forward and reflected in the Fund’s financial highlights.
The last fiscal year end of the Predecessor Fund was July 31, 2016. The Fund's first fiscal year end was July 31, 2017. Subsequent to July 31, 2017, the Fund changed its fiscal year end to September 30, 2017, to reflect the fiscal year end of certain funds of the Trust.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to,
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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.
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
Estimates
The preparation of financial statements in conformity with US GAAP 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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
Foreign Taxes
The Fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the Fund filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. The Statement of Operations reflects $4,757,427 of tax reclaims received as well as $332,774 of professional fees and $302,895 of certain fees assessed by the Internal Revenue Service due to the recovery of foreign withholding taxes after such amounts were previously passed through to Fund shareholders as foreign tax credits.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. Emerging market countries in which the Fund
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or 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. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. 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 the Fund invests in Chinese local market securities.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | |
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $2 Billion | 1.00 |
Next $1 Billion | 0.90 |
Next $1 Billion | 0.80 |
Next $1 Billion | 0.70 |
Next $5 Billion | 0.60 |
Over $10 Billion | 0.50 |
The Fund’s actual investment advisory fee rate for the reporting period was 1.00% of average annual net assets before any applicable waivers.
The Adviser has entered into a personnel-sharing arrangement with its foreign (non-U.S.) affiliates, Henderson Global Investors Limited, Henderson Global Investors (Japan) Ltd., and Henderson Global Investors (Singapore) Ltd. (collectively, “HGIL”), pursuant to which HGIL and certain employees of HGIL serve as “associated persons” of the Adviser. In this capacity, such employees of HGIL are subject to the oversight and supervision of the Adviser and may provide portfolio management, research, and related services to the Fund on behalf of the Adviser.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.83% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. The previous expense limit (for the one-year period commencing January 28, 2021) was 0.88%. If applicable, amounts waived and/or reimbursed to the Fund
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations. In addition, for Class R Shares of the Fund, for at least a one-year period commencing on January 28, 2022, the Adviser has agreed to reduce the administrative service fee payable by the Fund’s Class R shares pursuant to the Fund’s Transfer Agency Agreement so that such fees do not exceed 0.21% of Class R Shares’ average daily net assets.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $2,000.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $631.
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | - | | - | | |
Class R Shares | - | | - | | |
Class S Shares | 87 | | -* | | |
Class T Shares | - | | - | | |
| | | | | | |
* | Less than 0.50% | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 898,218,751 | $ 104,120,709 | $(68,103,530) | $ 36,017,179 |
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 1,011,622 | $ 25,438,312 | | 1,270,599 | $ 36,749,490 |
Reinvested dividends and distributions | 2,277,920 | 51,777,126 | | 61,958 | 1,758,986 |
Shares repurchased | (1,614,605) | (39,453,344) | | (1,847,497) | (52,903,522) |
Net Increase/(Decrease) | 1,674,937 | $ 37,762,094 | | (514,940) | $ (14,395,046) |
Class C Shares: | | | | | |
Shares sold | 47,148 | $ 1,055,616 | | 60,556 | $ 1,614,870 |
Reinvested dividends and distributions | 336,931 | 7,112,622 | | - | - |
Shares repurchased | (483,761) | (11,205,118) | | (1,084,698) | (29,434,982) |
Net Increase/(Decrease) | (99,682) | $ (3,036,880) | | (1,024,142) | $ (27,820,112) |
Class D Shares: | | | | | |
Shares sold | 27,902 | $ 663,263 | | 49,919 | $ 1,457,595 |
Reinvested dividends and distributions | 28,284 | 638,077 | | 807 | 22,785 |
Shares repurchased | (28,405) | (677,599) | | (22,515) | (643,482) |
Net Increase/(Decrease) | 27,781 | $ 623,741 | | 28,211 | $ 836,898 |
Class I Shares: | | | | | |
Shares sold | 3,137,405 | $ 74,620,190 | | 3,827,292 | $ 111,716,963 |
Reinvested dividends and distributions | 5,203,944 | 117,400,967 | | 250,868 | 7,079,499 |
Shares repurchased | (6,961,716) | (165,806,788) | | (8,765,123) | (252,006,827) |
Net Increase/(Decrease) | 1,379,633 | $ 26,214,369 | | (4,686,963) | $(133,210,365) |
Class N Shares: | | | | | |
Shares sold | 873,249 | $ 20,920,372 | | 1,633,062 | $ 46,194,658 |
Reinvested dividends and distributions | 1,099,629 | 24,741,657 | | 132,300 | 3,728,216 |
Shares repurchased | (4,746,177) | (110,915,559) | | (9,752,003) | (288,256,403) |
Net Increase/(Decrease) | (2,773,299) | $(65,253,530) | | (7,986,641) | $(238,333,529) |
Class R Shares: | | | | | |
Shares sold | 16,990 | $ 407,321 | | 21,973 | $ 615,383 |
Reinvested dividends and distributions | 15,868 | 353,708 | | 168 | 4,692 |
Shares repurchased | (22,670) | (574,928) | | (90,672) | (2,578,372) |
Net Increase/(Decrease) | 10,188 | $ 186,101 | | (68,531) | $ (1,958,297) |
Class S Shares: | | | | | |
Shares sold | 66 | $ 1,608 | | 59 | $ 1,689 |
Reinvested dividends and distributions | 580 | 13,129 | | 18 | 518 |
Shares repurchased | - | (6) | | (36) | (991) |
Net Increase/(Decrease) | 646 | $ 14,731 | | 41 | $ 1,216 |
Class T Shares: | | | | | |
Shares sold | 2,680 | $ 63,499 | | 443,166 | $ 13,160,079 |
Reinvested dividends and distributions | 22,516 | 511,333 | | 749 | 21,234 |
Shares repurchased | (38,712) | (944,217) | | (490,825) | (14,533,132) |
Net Increase/(Decrease) | (13,516) | $ (369,385) | | (46,910) | $ (1,351,819) |
Janus Henderson International Opportunities Fund
Notes to Financial Statements (unaudited)
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$534,256,637 | $ 679,570,422 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson International Opportunities Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson International Opportunities Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson International Opportunities Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson International Opportunities Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson International Opportunities Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson International Opportunities Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson International Opportunities Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson International Opportunities Fund
Notes
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Janus Henderson International Opportunities Fund
Notes
NotesPage2
Janus Henderson International Opportunities Fund
Notes
NotesPage3
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93082 05-22 |
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| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Overseas Fund |
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| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Overseas Fund
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FUND SNAPSHOT An international equity fund seeking to grow capital by investing with conviction in companies outside the U.S. where the portfolio managers believe the market underestimates free-cash-flow growth. The Fund considers both growth and value criteria as it seeks to deliver strong, risk-adjusted returns over the long term, regardless of prevailing market conditions. | | | | 
Julian McManus co-portfolio manager | 
George Maris co-portfolio manager |
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Janus Henderson Overseas Fund (unaudited)
Fund At A Glance
March 31, 2022
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| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Canadian Natural Resources Ltd | 4.08% | | 2.25% | | Entain PLC | 3.26% | | -0.81% |
| Teck Resources Ltd | 4.19% | | 2.24% | | Sea Ltd (ADR) | 0.92% | | -0.67% |
| Liberty Media Corp-Liberty Formula One | 2.04% | | 0.68% | | Alstom SA | 0.94% | | -0.50% |
| Freeport-McMoRan Inc | 1.47% | | 0.67% | | Yum China Holdings Inc | 1.85% | | -0.43% |
| AstraZeneca PLC | 4.30% | | 0.58% | | Industria de Diseno Textil SA | 1.13% | | -0.42% |
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| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Materials | | 2.21% | | 8.50% | 8.25% |
| Energy | | 1.93% | | 6.01% | 5.11% |
| Health Care | | 0.80% | | 9.93% | 9.21% |
| Information Technology | | 0.69% | | 12.42% | 12.92% |
| Other** | | 0.14% | | 3.50% | 0.00% |
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| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | MSCI All Country World ex-USA Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | -2.04% | | 20.75% | 19.85% |
| Industrials | | -0.48% | | 12.57% | 12.24% |
| Consumer Discretionary | | -0.38% | | 10.09% | 12.17% |
| Utilities | | -0.23% | | 0.00% | 3.07% |
| Communication Services | | -0.08% | | 7.91% | 6.23% |
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| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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 Henderson Overseas Fund (unaudited)
Fund At A Glance
March 31, 2022
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5 Largest Equity Holdings - (% of Net Assets) |
Teck Resources Ltd | |
Metals & Mining | 5.1% |
AstraZeneca PLC | |
Pharmaceuticals | 4.8% |
Ferguson PLC | |
Trading Companies & Distributors | 4.6% |
Canadian Natural Resources Ltd | |
Oil, Gas & Consumable Fuels | 4.5% |
Taiwan Semiconductor Manufacturing Co Ltd | |
Semiconductor & Semiconductor Equipment | 4.1% |
| | 23.1% |
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Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.1% | |
Investment Companies | | 3.6% | |
Other | | 0.3% |
| | | 100.0% |
Emerging markets comprised 18.0% of total net assets.
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Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Overseas Fund (unaudited)
Performance
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See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -1.60% | 3.45% | 9.82% | 3.06% | 7.90% | | | 1.23% | 1.23% |
Class A Shares at MOP | | -7.26% | -2.51% | 8.53% | 2.45% | 7.67% | | | | |
Class C Shares at NAV | | -2.04% | 2.55% | 8.94% | 2.24% | 7.14% | | | 2.14% | 2.12% |
Class C Shares at CDSC | | -3.02% | 1.55% | 8.94% | 2.24% | 7.14% | | | | |
Class D Shares | | -1.44% | 3.73% | 10.15% | 3.37% | 8.09% | | | 0.95% | 0.95% |
Class I Shares | | -1.44% | 3.76% | 10.19% | 3.41% | 8.12% | | | 0.90% | 0.90% |
Class N Shares | | -1.37% | 3.87% | 10.31% | 3.51% | 8.13% | | | 0.82% | 0.82% |
Class R Shares | | -1.77% | 3.09% | 9.48% | 2.75% | 7.53% | | | 1.57% | 1.57% |
Class S Shares | | -1.61% | 3.38% | 9.77% | 3.01% | 7.78% | | | 1.31% | 1.31% |
Class T Shares | | -1.49% | 3.63% | 10.05% | 3.28% | 8.05% | | | 1.06% | 1.06% |
MSCI All Country World ex-USA Index | | -3.72% | -1.48% | 6.76% | 5.55% | N/A** | | | | |
Morningstar Quartile - Class T Shares | | - | 1st | 1st | 4th | 1st | | | | |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds | | - | 47/775 | 22/680 | 539/550 | 14/125 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
Janus Henderson Overseas Fund (unaudited)
Performance
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
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.
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Overseas Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $984.00 | $5.94 | | $1,000.00 | $1,018.95 | $6.04 | 1.20% |
Class C Shares | $1,000.00 | $979.60 | $10.41 | | $1,000.00 | $1,014.41 | $10.60 | 2.11% |
Class D Shares | $1,000.00 | $985.60 | $4.60 | | $1,000.00 | $1,020.29 | $4.68 | 0.93% |
Class I Shares | $1,000.00 | $985.60 | $4.46 | | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
Class N Shares | $1,000.00 | $986.30 | $3.96 | | $1,000.00 | $1,020.94 | $4.03 | 0.80% |
Class R Shares | $1,000.00 | $982.30 | $7.66 | | $1,000.00 | $1,017.20 | $7.80 | 1.55% |
Class S Shares | $1,000.00 | $983.90 | $6.38 | | $1,000.00 | $1,018.50 | $6.49 | 1.29% |
Class T Shares | $1,000.00 | $985.10 | $5.10 | | $1,000.00 | $1,019.80 | $5.19 | 1.03% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Overseas Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– 96.1% | | | |
Aerospace & Defense – 2.9% | | | |
| | Airbus SE* | | 447,084 | | | $54,033,151 | |
Banks – 10.5% | | | |
| | BNP Paribas SA | | 1,008,603 | | | 57,419,134 | |
| | China Construction Bank Corp | | 61,712,000 | | | 46,359,599 | |
| | Erste Group Bank AG | | 1,256,946 | | | 45,581,036 | |
| | Permanent TSB Group Holdings PLC* | | 7,893,218 | | | 14,561,914 | |
| | Royal Bank of Scotland Group PLC | | 12,100,532 | | | 34,042,340 | |
| | | 197,964,023 | |
Beverages – 7.1% | | | |
| | Diageo PLC | | 1,449,953 | | | 73,271,586 | |
| | Heineken NV | | 629,796 | | | 60,035,758 | |
| | | 133,307,344 | |
Biotechnology – 0.8% | | | |
| | Ascendis Pharma A/S (ADR)* | | 129,095 | | | 15,150,589 | |
Building Products – 1.1% | | | |
| | Assa Abloy AB | | 801,355 | | | 21,617,694 | |
Electronic Equipment, Instruments & Components – 1.6% | | | |
| | Hexagon AB - Class B | | 2,168,844 | | | 30,442,776 | |
Entertainment – 4.7% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 638,509 | | | 44,593,469 | |
| | Nintendo Co Ltd | | 72,200 | | | 36,435,422 | |
| | Sea Ltd (ADR)* | | 62,251 | | | 7,457,047 | |
| | | 88,485,938 | |
Hotels, Restaurants & Leisure – 4.7% | | | |
| | Entain PLC* | | 2,688,429 | | | 57,652,027 | |
| | Yum China Holdings Inc | | 711,400 | | | 31,098,168 | |
| | | 88,750,195 | |
Insurance – 9.4% | | | |
| | AIA Group Ltd | | 4,738,600 | | | 49,612,357 | |
| | Beazley PLC | | 5,464,353 | | | 30,011,549 | |
| | NN Group NV | | 1,333,465 | | | 67,198,373 | |
| | Prudential PLC | | 1,990,460 | | | 29,397,139 | |
| | | 176,219,418 | |
Interactive Media & Services – 3.2% | | | |
| | NAVER Corp | | 83,353 | | | 23,310,321 | |
| | Tencent Holdings Ltd | | 770,700 | | | 36,359,464 | |
| | | 59,669,785 | |
Internet & Direct Marketing Retail – 1.4% | | | |
| | Alibaba Group Holding Ltd* | | 1,900,192 | | | 26,009,460 | |
| | JD.Com Inc - Class A* | | 35,161 | | | 1,029,829 | |
| | | 27,039,289 | |
Machinery – 1.4% | | | |
| | Alstom SA | | 1,162,708 | | | 27,100,178 | |
Metals & Mining – 9.1% | | | |
| | Freeport-McMoRan Inc | | 666,464 | | | 33,149,919 | |
| | Hindustan Zinc Ltd | | 8,149,485 | | | 33,258,035 | |
| | Rio Tinto Ltd | | 115,962 | | | 10,269,558 | |
| | Teck Resources Ltd | | 2,370,720 | | | 95,739,156 | |
| | | 172,416,668 | |
Oil, Gas & Consumable Fuels – 6.4% | | | |
| | Canadian Natural Resources Ltd | | 1,374,278 | | | 85,177,750 | |
| | Total SE | | 698,116 | | | 35,416,627 | |
| | | 120,594,377 | |
Personal Products – 1.1% | | | |
| | Unilever PLC | | 469,196 | | | 21,236,412 | |
Pharmaceuticals – 9.9% | | | |
| | AstraZeneca PLC | | 688,819 | | | 91,328,058 | |
| | Novartis AG | | 437,676 | | | 38,391,058 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Overseas Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares
| | | Value | |
Common Stocks– (continued) | | | |
Pharmaceuticals– (continued) | | | |
| | Sanofi | | 462,233 | | | $47,133,969 | |
| | Takeda Pharmaceutical Co Ltd | | 339,676 | | | 9,723,070 | |
| | | 186,576,155 | |
Road & Rail – 2.3% | | | |
| | Central Japan Railway Co | | 327,700 | | | 42,718,721 | |
Semiconductor & Semiconductor Equipment – 6.8% | | | |
| | ASML Holding NV | | 74,656 | | | 49,788,621 | |
| | Taiwan Semiconductor Manufacturing Co Ltd | | 3,751,000 | | | 77,567,400 | |
| | | 127,356,021 | |
Specialty Retail – 0.8% | | | |
| | Industria de Diseno Textil SA | | 661,644 | | | 14,394,617 | |
Technology Hardware, Storage & Peripherals – 3.0% | | | |
| | Samsung Electronics Co Ltd | | 977,847 | | | 55,869,009 | |
Textiles, Apparel & Luxury Goods – 3.3% | | | |
| | LVMH Moet Hennessy Louis Vuitton SE | | 26,968 | | | 19,200,435 | |
| | Samsonite International SA (144A)* | | 19,213,800 | | | 43,180,608 | |
| | | 62,381,043 | |
Trading Companies & Distributors – 4.6% | | | |
| | Ferguson PLC | | 633,121 | | | 85,923,785 | |
Total Common Stocks (cost $1,476,442,470) | | 1,809,247,188 | |
Investment Companies– 3.6% | | | |
Money Markets – 3.6% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $68,010,369) | | 68,003,834 | | | 68,010,634 | |
Total Investments (total cost $1,544,452,839) – 99.7% | | 1,877,257,822 | |
Cash, Receivables and Other Assets, net of Liabilities – 0.3% | | 6,242,499 | |
Net Assets – 100% | | $1,883,500,321 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United Kingdom | | $336,939,111 | | 18.0 | % |
France | | 240,303,494 | | 12.8 | |
United States | | 231,677,807 | | 12.3 | |
Canada | | 180,916,906 | | 9.6 | |
Netherlands | | 177,022,752 | | 9.4 | |
China | | 140,856,520 | | 7.5 | |
Hong Kong | | 92,792,965 | | 4.9 | |
Japan | | 88,877,213 | | 4.7 | |
Taiwan | | 85,024,447 | | 4.5 | |
South Korea | | 79,179,330 | | 4.2 | |
Sweden | | 52,060,470 | | 2.8 | |
Austria | | 45,581,036 | | 2.4 | |
Switzerland | | 38,391,058 | | 2.1 | |
India | | 33,258,035 | | 1.8 | |
Denmark | | 15,150,589 | | 0.8 | |
Ireland | | 14,561,914 | | 0.8 | |
Spain | | 14,394,617 | | 0.8 | |
Australia | | 10,269,558 | | 0.6 | |
| | | | | | |
| | | | | | |
Total | | $1,877,257,822 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Overseas Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income | Realized Gain/(Loss) | Change in Unrealized Appreciation/ Depreciation | Value at 3/31/22 |
Investment Companies - 3.6% |
Money Markets - 3.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | $ | 30,008 | $ | - | $ | - | $ | 68,010,634 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 281,324∆ | | - | | - | | - |
Total Affiliated Investments - 3.6% | $ | 311,332 | $ | - | $ | - | $ | 68,010,634 |
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Investment Companies - 3.6% |
Money Markets - 3.6% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 74,344,941 | | 165,590,737 | | (171,925,044) | | 68,010,634 |
Investments Purchased with Cash Collateral from Securities Lending - N/A |
Investment Companies - N/A | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | - | | 81,235,260 | | (81,235,260) | | - |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Overseas Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
MSCI All Country World ex-USA IndexSM | MSCI All Country World ex-USA IndexSM reflects the equity market performance of global developed and emerging markets, excluding the U.S. |
| | |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
| | |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. Unless otherwise noted, these securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2022 is $43,180,608, which represents 2.3% of net assets. |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Biotechnology | $ | 15,150,589 | $ | - | $ | - |
Entertainment | | 52,050,516 | | 36,435,422 | | - |
Metals & Mining | | 128,889,075 | | 43,527,593 | | - |
Oil, Gas & Consumable Fuels | | 85,177,750 | | 35,416,627 | | - |
All Other | | - | | 1,412,599,616 | | - |
Investment Companies | | - | | 68,010,634 | | - |
Total Assets | $ | 281,267,930 | $ | 1,595,989,892 | $ | - |
| | | | | | | |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $1,476,442,470) | | $ | 1,809,247,188 | |
| Affiliated investments, at value (cost $68,010,369) | | | 68,010,634 | |
| Cash denominated in foreign currency (cost $38,982) | | | 38,982 | |
| Non-interested Trustees' deferred compensation | | | 51,710 | |
| Receivables: | | | | |
| | Fund shares sold | | | 7,775,092 | |
| | Dividends | | | 6,271,578 | |
| | Foreign tax reclaims | | | 1,420,736 | |
| | Dividends from affiliates | | | 11,458 | |
| Other assets | | | 13,995 | |
Total Assets | | | 1,892,841,373 | |
Liabilities: | | | | |
| Due to custodian | | | 61 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 7,555,417 | |
| | Advisory fees | | | 1,178,495 | |
| | Transfer agent fees and expenses | | | 286,972 | |
| | Non-interested Trustees' deferred compensation fees | | | 51,710 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 41,580 | |
| | Custodian fees | | | 32,588 | |
| | Professional fees | | | 31,830 | |
| | Non-interested Trustees' fees and expenses | | | 6,428 | |
| | Affiliated fund administration fees payable | | | 3,903 | |
| | Accrued expenses and other payables | | | 152,068 | |
Total Liabilities | | | 9,341,052 | |
Net Assets | | $ | 1,883,500,321 | |
| | |
See Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Overseas Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 3,036,658,922 | |
| Total distributable earnings (loss) | | | (1,153,158,601) | |
Total Net Assets | | $ | 1,883,500,321 | |
Net Assets - Class A Shares | | $ | 20,371,685 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 475,266 | |
Net Asset Value Per Share(1) | | $ | 42.86 | |
Maximum Offering Price Per Share(2) | | $ | 45.47 | |
Net Assets - Class C Shares | | $ | 1,623,019 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 38,401 | |
Net Asset Value Per Share(1) | | $ | 42.27 | |
Net Assets - Class D Shares | | $ | 690,965,824 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 16,297,487 | |
Net Asset Value Per Share | | $ | 42.40 | |
Net Assets - Class I Shares | | $ | 427,478,607 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,050,203 | |
Net Asset Value Per Share | | $ | 42.53 | |
Net Assets - Class N Shares | | $ | 76,998,459 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,820,035 | |
Net Asset Value Per Share | | $ | 42.31 | |
Net Assets - Class R Shares | | $ | 23,009,729 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 545,869 | |
Net Asset Value Per Share | | $ | 42.15 | |
Net Assets - Class S Shares | | $ | 126,053,571 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,968,348 | |
Net Asset Value Per Share | | $ | 42.47 | |
Net Assets - Class T Shares | | $ | 516,999,427 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12,176,755 | |
Net Asset Value Per Share | | $ | 42.46 | |
| |
(1) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (2) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Overseas Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 19,206,950 | |
| Non-cash dividends | | 1,281,897 | |
| Affiliated securities lending income, net | | 281,324 | |
| Dividends from affiliates | | 30,008 | |
| Unaffiliated securities lending income, net | | 265 | |
| Other income | | 3,092 | |
| Foreign tax withheld | | (1,808,217) | |
Total Investment Income | | 18,995,319 | |
Expenses: | | | |
| Advisory fees | | 7,018,800 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 25,972 | |
| | Class C Shares | | 7,202 | |
| | Class R Shares | | 59,175 | |
| | Class S Shares | | 162,560 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 400,086 | |
| | Class R Shares | | 30,048 | |
| | Class S Shares | | 162,820 | |
| | Class T Shares | | 665,609 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 14,705 | |
| | Class C Shares | | 742 | |
| | Class I Shares | | 189,512 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 788 | |
| | Class C Shares | | 49 | |
| | Class D Shares | | 63,456 | |
| | Class I Shares | | 9,356 | |
| | Class N Shares | | 1,383 | |
| | Class R Shares | | 230 | |
| | Class S Shares | | 970 | |
| | Class T Shares | | 3,688 | |
| Registration fees | | 118,279 | |
| Custodian fees | | 72,955 | |
| Shareholder reports expense | | 68,268 | |
| Professional fees | | 33,554 | |
| Affiliated fund administration fees | | 23,318 | |
| Non-interested Trustees’ fees and expenses | | 16,245 | |
| Other expenses | | 86,911 | |
Total Expenses | | 9,236,681 | |
Less: Excess Expense Reimbursement and Waivers | | (38,151) | |
Net Expenses | | 9,198,530 | |
Net Investment Income/(Loss) | | 9,796,789 | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Overseas Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 25,737,903 | |
Total Net Realized Gain/(Loss) on Investments | | 25,737,903 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (66,681,361) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (66,681,361) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (31,146,669) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Overseas Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | 9,796,789 | | $ | 18,837,707 | |
| Net realized gain/(loss) on investments | | 25,737,903 | | | 186,233,897 | |
| Change in unrealized net appreciation/depreciation | | (66,681,361) | | | 193,777,063 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (31,146,669) | | | 398,848,667 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (163,941) | | | (107,051) | |
| | Class D Shares | | (7,514,426) | | | (5,967,635) | |
| | Class I Shares | | (4,194,570) | | | (517,002) | |
| | Class N Shares | | (764,172) | | | (284,437) | |
| | Class R Shares | | (103,612) | | | (79,393) | |
| | Class S Shares | | (907,459) | | | (691,150) | |
| | Class T Shares | | (5,080,049) | | | (3,930,037) | |
Net Decrease from Dividends and Distributions to Shareholders | | (18,728,229) | | | (11,576,705) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | (281,997) | | | 922,662 | |
| | Class C Shares | | 357,886 | | | (2,078,020) | |
| | Class D Shares | | (18,411,154) | | | (31,046,777) | |
| | Class I Shares | | 127,492,864 | | | 254,653,679 | |
| | Class N Shares | | 18,446,254 | | | 28,902,097 | |
| | Class R Shares | | (637,662) | | | (3,865,001) | |
| | Class S Shares | | (999,137) | | | (11,238,460) | |
| | Class T Shares | | (4,279,707) | | | (11,754,047) | |
Net Increase/(Decrease) from Capital Share Transactions | | 121,687,347 | | | 224,496,133 | |
Net Increase/(Decrease) in Net Assets | | 71,812,449 | | | 611,768,095 | |
Net Assets: | | | | | | |
| Beginning of period | | 1,811,687,872 | | | 1,199,919,777 | |
| End of period | $ | 1,883,500,321 | | $ | 1,811,687,872 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.91 | | | $33.08 | | | $30.94 | | | $32.42 | | | $32.21 | | | $26.77 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.18 | | | 0.43 | | | 0.21 | | | 0.53 | | | 0.37 | | | 0.38 | |
| | Net realized and unrealized gain/(loss) | | (0.88) | | | 10.64 | | | 2.51 | | | (1.77) | | | 0.34 | | | 5.27 | |
| Total from Investment Operations | | (0.70) | | | 11.07 | | | 2.72 | | | (1.24) | | | 0.71 | | | 5.65 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.35) | | | (0.24) | | | (0.58) | | | (0.24) | | | (0.50) | | | (0.21) | |
| Total Dividends and Distributions | | (0.35) | | | (0.24) | | | (0.58) | | | (0.24) | | | (0.50) | | | (0.21) | |
| Net Asset Value, End of Period | | $42.86 | | | $43.91 | | | $33.08 | | | $30.94 | | | $32.42 | | | $32.21 | |
| Total Return* | | (1.60)% | | | 33.54% | | | 8.74% | | | (3.74)% | | | 2.18% | | | 21.32% | |
| Net Assets, End of Period (in thousands) | | $20,372 | | | $21,130 | | | $15,231 | | | $17,470 | | | $16,739 | | | $18,652 | |
| Average Net Assets for the Period (in thousands) | | $20,954 | | | $19,864 | | | $15,904 | | | $17,537 | | | $18,900 | | | $19,582 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.20% | | | 1.22% | | | 1.17% | | | 1.11% | | | 1.01% | | | 0.97% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.20% | | | 1.22% | | | 1.17% | | | 1.10% | | | 0.99% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | 0.81% | | | 1.03% | | | 0.66% | | | 1.78% | | | 1.12% | | | 1.34% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.14 | | | $32.58 | | | $30.34 | | | $31.76 | | | $31.52 | | | $26.17 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | (0.02) | | | (0.06) | | | 0.28 | | | 0.10 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | (0.87) | | | 10.58 | | | 2.43 | | | (1.70) | | | 0.35 | | | 5.17 | |
| Total from Investment Operations | | (0.87) | | | 10.56 | | | 2.37 | | | (1.42) | | | 0.45 | | | 5.35 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.13) | | | — | | | (0.21) | | | — | |
| Total Dividends and Distributions | | — | | | — | | | (0.13) | | | — | | | (0.21) | | | — | |
| Net Asset Value, End of Period | | $42.27 | | | $43.14 | | | $32.58 | | | $30.34 | | | $31.76 | | | $31.52 | |
| Total Return* | | (2.04)% | | | 32.41% | | | 7.79% | | | (4.47)% | | | 1.42% | | | 20.44% | |
| Net Assets, End of Period (in thousands) | | $1,623 | | | $1,295 | | | $2,665 | | | $3,693 | | | $10,244 | | | $15,088 | |
| Average Net Assets for the Period (in thousands) | | $1,402 | | | $1,910 | | | $3,305 | | | $5,809 | | | $13,589 | | | $16,539 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 2.15% | | | 2.06% | | | 2.02% | | | 1.90% | | | 1.72% | | | 1.74% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 2.11% | | | 2.06% | | | 1.99% | | | 1.87% | | | 1.71% | | | 1.65% | |
| | Ratio of Net Investment Income/(Loss) | | 0.01% | | | (0.04)% | | | (0.19)% | | | 0.95% | | | 0.31% | | | 0.65% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.49 | | | $32.77 | | | $30.66 | | | $32.12 | | | $31.92 | | | $26.57 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.23 | | | 0.53 | | | 0.30 | | | 0.63 | | | 0.47 | | | 0.49 | |
| | Net realized and unrealized gain/(loss) | | (0.86) | | | 10.54 | | | 2.50 | | | (1.78) | | | 0.34 | | | 5.19 | |
| Total from Investment Operations | | (0.63) | | | 11.07 | | | 2.80 | | | (1.15) | | | 0.81 | | | 5.68 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.46) | | | (0.35) | | | (0.69) | | | (0.31) | | | (0.61) | | | (0.33) | |
| Total Dividends and Distributions | | (0.46) | | | (0.35) | | | (0.69) | | | (0.31) | | | (0.61) | | | (0.33) | |
| Net Asset Value, End of Period | | $42.40 | | | $43.49 | | | $32.77 | | | $30.66 | | | $32.12 | | | $31.92 | |
| Total Return* | | (1.44)% | | | 33.89% | | | 9.06% | | | (3.46)% | | | 2.52% | | | 21.72% | |
| Net Assets, End of Period (in thousands) | | $690,966 | | | $726,916 | | | $572,590 | | | $587,147 | | | $687,846 | | | $731,578 | |
| Average Net Assets for the Period (in thousands) | | $719,288 | | | $704,107 | | | $570,593 | | | $605,377 | | | $738,059 | | | $677,837 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.93% | | | 0.95% | | | 0.89% | | | 0.79% | | | 0.68% | | | 0.62% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.93% | | | 0.95% | | | 0.89% | | | 0.79% | | | 0.68% | | | 0.62% | |
| | Ratio of Net Investment Income/(Loss) | | 1.07% | | | 1.28% | | | 0.98% | | | 2.11% | | | 1.42% | | | 1.75% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.68 | | | $32.91 | | | $30.79 | | | $32.25 | | | $32.05 | | | $26.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.27 | | | 0.72 | | | 0.32 | | | 0.64 | | | 0.48 | | | 0.51 | |
| | Net realized and unrealized gain/(loss) | | (0.91) | | | 10.41 | | | 2.50 | | | (1.77) | | | 0.34 | | | 5.18 | |
| Total from Investment Operations | | (0.64) | | | 11.13 | | | 2.82 | | | (1.13) | | | 0.82 | | | 5.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.51) | | | (0.36) | | | (0.70) | | | (0.33) | | | (0.62) | | | (0.33) | |
| Total Dividends and Distributions | | (0.51) | | | (0.36) | | | (0.70) | | | (0.33) | | | (0.62) | | | (0.33) | |
| Net Asset Value, End of Period | | $42.53 | | | $43.68 | | | $32.91 | | | $30.79 | | | $32.25 | | | $32.05 | |
| Total Return* | | (1.44)% | | | 33.96% | | | 9.10% | | | (3.40)% | | | 2.54% | | | 21.62% | |
| Net Assets, End of Period (in thousands) | | $427,479 | | | $312,685 | | | $44,806 | | | $42,606 | | | $52,204 | | | $61,797 | |
| Average Net Assets for the Period (in thousands) | | $369,944 | | | $90,200 | | | $43,005 | | | $45,239 | | | $58,918 | | | $59,304 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.90% | | | 0.90% | | | 0.84% | | | 0.74% | | | 0.64% | | | 0.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.84% | | | 0.74% | | | 0.64% | | | 0.57% | |
| | Ratio of Net Investment Income/(Loss) | | 1.24% | | | 1.72% | | | 1.04% | | | 2.14% | | | 1.44% | | | 1.79% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.43 | | | $32.72 | | | $30.62 | | | $32.08 | | | $31.89 | | | $26.58 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.29 | | | 0.64 | | | 0.32 | | | 0.68 | | | 0.52 | | | 0.66 | |
| | Net realized and unrealized gain/(loss) | | (0.89) | | | 10.46 | | | 2.52 | | | (1.77) | | | 0.33 | | | 5.03 | |
| Total from Investment Operations | | (0.60) | | | 11.10 | | | 2.84 | | | (1.09) | | | 0.85 | | | 5.69 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.52) | | | (0.39) | | | (0.74) | | | (0.37) | | | (0.66) | | | (0.38) | |
| Total Dividends and Distributions | | (0.52) | | | (0.39) | | | (0.74) | | | (0.37) | | | (0.66) | | | (0.38) | |
| Net Asset Value, End of Period | | $42.31 | | | $43.43 | | | $32.72 | | | $30.62 | | | $32.08 | | | $31.89 | |
| Total Return* | | (1.37)% | | | 34.06% | | | 9.20% | | | (3.27)% | | | 2.65% | | | 21.76% | |
| Net Assets, End of Period (in thousands) | | $76,998 | | | $61,263 | | | $23,810 | | | $51,945 | | | $69,995 | | | $76,655 | |
| Average Net Assets for the Period (in thousands) | | $70,188 | | | $42,249 | | | $45,317 | | | $59,886 | | | $74,170 | | | $53,209 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.80% | | | 0.81% | | | 0.74% | | | 0.63% | | | 0.53% | | | 0.47% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.80% | | | 0.81% | | | 0.74% | | | 0.63% | | | 0.53% | | | 0.47% | |
| | Ratio of Net Investment Income/(Loss) | | 1.33% | | | 1.54% | | | 1.02% | | | 2.27% | | | 1.58% | | | 2.29% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.10 | | | $32.48 | | | $30.41 | | | $31.78 | | | $31.60 | | | $26.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.10 | | | 0.27 | | | 0.11 | | | 0.44 | | | 0.26 | | | 0.32 | |
| | Net realized and unrealized gain/(loss) | | (0.86) | | | 10.48 | | | 2.45 | | | (1.72) | | | 0.34 | | | 5.16 | |
| Total from Investment Operations | | (0.76) | | | 10.75 | | | 2.56 | | | (1.28) | | | 0.60 | | | 5.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.19) | | | (0.13) | | | (0.49) | | | (0.09) | | | (0.42) | | | (0.16) | |
| Total Dividends and Distributions | | (0.19) | | | (0.13) | | | (0.49) | | | (0.09) | | | (0.42) | | | (0.16) | |
| Net Asset Value, End of Period | | $42.15 | | | $43.10 | | | $32.48 | | | $30.41 | | | $31.78 | | | $31.60 | |
| Total Return* | | (1.77)% | | | 33.12% | | | 8.37% | | | (4.00)% | | | 1.88% | | | 20.99% | |
| Net Assets, End of Period (in thousands) | | $23,010 | | | $24,155 | | | $21,288 | | | $24,381 | | | $30,258 | | | $35,054 | |
| Average Net Assets for the Period (in thousands) | | $24,105 | | | $24,617 | | | $22,679 | | | $25,588 | | | $34,353 | | | $34,347 | �� |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.55% | | | 1.56% | | | 1.49% | | | 1.39% | | | 1.27% | | | 1.20% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.55% | | | 1.56% | | | 1.49% | | | 1.39% | | | 1.27% | | | 1.20% | |
| | Ratio of Net Investment Income/(Loss) | | 0.45% | | | 0.66% | | | 0.35% | | | 1.50% | | | 0.81% | | | 1.15% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Overseas Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.48 | | | $32.77 | | | $30.67 | | | $32.08 | | | $31.89 | | | $26.53 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.16 | | | 0.38 | | | 0.19 | | | 0.53 | | | 0.35 | | | 0.40 | |
| | Net realized and unrealized gain/(loss) | | (0.87) | | | 10.55 | | | 2.48 | | | (1.75) | | | 0.34 | | | 5.18 | |
| Total from Investment Operations | | (0.71) | | | 10.93 | | | 2.67 | | | (1.22) | | | 0.69 | | | 5.58 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.30) | | | (0.22) | | | (0.57) | | | (0.19) | | | (0.50) | | | (0.22) | |
| Total Dividends and Distributions | | (0.30) | | | (0.22) | | | (0.57) | | | (0.19) | | | (0.50) | | | (0.22) | |
| Net Asset Value, End of Period | | $42.47 | | | $43.48 | | | $32.77 | | | $30.67 | | | $32.08 | | | $31.89 | |
| Total Return* | | (1.61)% | | | 33.43% | | | 8.64% | | | (3.74)% | | | 2.16% | | | 21.26% | |
| Net Assets, End of Period (in thousands) | | $126,054 | | | $130,076 | | | $107,722 | | | $118,308 | | | $143,500 | | | $159,832 | |
| Average Net Assets for the Period (in thousands) | | $130,614 | | | $127,073 | | | $109,624 | | | $125,646 | | | $158,138 | | | $151,659 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.29% | | | 1.31% | | | 1.23% | | | 1.13% | | | 1.02% | | | 0.95% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.29% | | | 1.31% | | | 1.23% | | | 1.13% | | | 1.02% | | | 0.95% | |
| | Ratio of Net Investment Income/(Loss) | | 0.72% | | | 0.92% | | | 0.62% | | | 1.77% | | | 1.06% | | | 1.40% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $43.53 | | | $32.80 | | | $30.70 | | | $32.14 | | | $31.95 | | | $26.59 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.21 | | | 0.49 | | | 0.27 | | | 0.60 | | | 0.43 | | | 0.47 | |
| | Net realized and unrealized gain/(loss) | | (0.86) | | | 10.56 | | | 2.49 | | | (1.76) | | | 0.34 | | | 5.20 | |
| Total from Investment Operations | | (0.65) | | | 11.05 | | | 2.76 | | �� | (1.16) | | | 0.77 | | | 5.67 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | (0.42) | | | (0.32) | | | (0.66) | | | (0.28) | | | (0.58) | | | (0.31) | |
| Total Dividends and Distributions | | (0.42) | | | (0.32) | | | (0.66) | | | (0.28) | | | (0.58) | | | (0.31) | |
| Net Asset Value, End of Period | | $42.46 | | | $43.53 | | | $32.80 | | | $30.70 | | | $32.14 | | | $31.95 | |
| Total Return* | | (1.49)% | | | 33.78% | | | 8.93% | | | (3.51)% | | | 2.40% | | | 21.62% | |
| Net Assets, End of Period (in thousands) | | $516,999 | | | $534,168 | | | $411,807 | | | $444,252 | | | $532,840 | | | $605,692 | |
| Average Net Assets for the Period (in thousands) | | $533,950 | | | $511,140 | | | $422,347 | | | $462,499 | | | $589,204 | | | $580,342 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.04% | | | 1.05% | | | 0.98% | | | 0.88% | | | 0.77% | | | 0.70% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.03% | | | 1.05% | | | 0.97% | | | 0.87% | | | 0.77% | | | 0.69% | |
| | Ratio of Net Investment Income/(Loss) | | 0.98% | | | 1.19% | | | 0.88% | | | 2.03% | | | 1.32% | | | 1.65% | |
| Portfolio Turnover Rate | | 10% | | | 27% | | | 18% | | | 22% | | | 23% | | | 39% | |
| | | | | | | | | | | | | | | | | | | | | | |
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* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
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See Notes to Financial Statements. |
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18 | MARCH 31, 2022 |
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Overseas Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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 are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
Class R Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms.
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
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 the Adviser 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 the Adviser 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 United States of America generally accepted accounting principles ("US GAAP").
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
3. Other Investments and Strategies
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.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’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.
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
Emerging Market Investing
Within the parameters of its specific investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging market countries.” Such countries include but are not limited to countries included in the MSCI Emerging Markets IndexSM. Emerging market countries in which the Fund may invest include frontier market countries, the economies of which are less developed than other emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of 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. Similarly, issuers in such markets may not be subject to regulatory, accounting, auditing, and financial reporting and recordkeeping standards comparable to those to which U.S. companies are subject. There is a risk in developing countries that a current or 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. Developing countries may also experience a higher level of exposure and vulnerability to the adverse effects of climate change. This can be attributed to both the geographic location of emerging market countries and/or a country’s lack of access to technology or resources to adjust and adapt to its effects. An increased occurrence and severity of natural disasters and extreme weather events such as droughts and decreased crop yields, heat waves, flooding and rising sea levels, and increased spread of disease, could cause harmful effects to the performance of affected economies. 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 the Fund invests in Chinese local market securities.
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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 Securities and Exchange Commission (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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations.
There were no securities on loan as of March 31, 2022.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to the Adviser 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 (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.64%, and the Fund’s benchmark index used in the calculation is the MSCI All Country World ex-USA IndexSM.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±7.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) 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. For the period ended March 31, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.75%.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees (if applicable), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.82% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing January 28, 2022. The previous expense limit (for at least a one-year period commencing on January 28, 2021) was 0.87%. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $687.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended March 31, 2022.
As of March 31, 2022, shares of the Fund were owned by affiliates of Janus Henderson Investors, and/or other funds advised by Janus Henderson, as indicated in the table below:
| | | | | | |
Class | % of Class Owned | | % of Fund Owned | | |
Class A Shares | - | % | - | % | |
Class C Shares | - | | - | | |
Class D Shares | - | | - | | |
Class I Shares | - | | - | | |
Class N Shares | 38 | | 2 | | |
Class R Shares | - | | - | | |
Class S Shares | - | | - | | |
Class T Shares | - | | - | | |
| | | | | | |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with US GAAP).
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2021, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
| | | | | | |
| | | | | |
Capital Loss Carryover Schedule | | |
For the year ended September 30, 2021 | | |
| No Expiration | | | |
| Short-Term | Long-Term | Accumulated
Capital Losses | | |
| $(108,376,090) | $(1,406,175,583) | $(1,514,551,673) | | |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, straddle deferrals, and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 1,552,174,712 | $427,980,334 | $(102,897,224) | $ 325,083,110 |
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 23,869 | $ 1,043,003 | | 102,005 | $ 4,230,884 |
Reinvested dividends and distributions | 3,517 | 148,824 | | 2,396 | 94,728 |
Shares repurchased | (33,365) | (1,473,824) | | (83,593) | (3,402,950) |
Net Increase/(Decrease) | (5,979) | $ (281,997) | | 20,808 | $ 922,662 |
Class C Shares: | | | | | |
Shares sold | 12,376 | $ 533,353 | | 8,149 | $ 348,407 |
Reinvested dividends and distributions | - | - | | - | - |
Shares repurchased | (3,999) | (175,467) | | (59,908) | (2,426,427) |
Net Increase/(Decrease) | 8,377 | $ 357,886 | | (51,759) | $ (2,078,020) |
Class D Shares: | | | | | |
Shares sold | 189,686 | $ 8,284,728 | | 498,097 | $ 20,658,885 |
Reinvested dividends and distributions | 169,001 | 7,069,316 | | 143,831 | 5,620,916 |
Shares repurchased | (775,951) | (33,765,198) | | (1,401,589) | (57,326,578) |
Net Increase/(Decrease) | (417,264) | $ (18,411,154) | | (759,661) | $ (31,046,777) |
Class I Shares: | | | | | |
Shares sold | 3,753,385 | $164,921,329 | | 6,251,378 | $273,610,269 |
Reinvested dividends and distributions | 99,055 | 4,156,347 | | 13,025 | 511,118 |
Shares repurchased | (960,719) | (41,584,812) | | (467,402) | (19,467,708) |
Net Increase/(Decrease) | 2,891,721 | $127,492,864 | | 5,797,001 | $254,653,679 |
Class N Shares: | | | | | |
Shares sold | 574,548 | $ 25,595,506 | | 797,738 | $ 33,711,854 |
Reinvested dividends and distributions | 18,317 | 764,172 | | 7,295 | 284,437 |
Shares repurchased | (183,330) | (7,913,424) | | (122,302) | (5,094,194) |
Net Increase/(Decrease) | 409,535 | $ 18,446,254 | | 682,731 | $ 28,902,097 |
Class R Shares: | | | | | |
Shares sold | 50,647 | $ 2,187,206 | | 83,917 | $ 3,412,821 |
Reinvested dividends and distributions | 2,475 | 103,109 | | 1,977 | 76,958 |
Shares repurchased | (67,756) | (2,927,977) | | (180,713) | (7,354,780) |
Net Increase/(Decrease) | (14,634) | $ (637,662) | | (94,819) | $ (3,865,001) |
Class S Shares: | | | | | |
Shares sold | 219,765 | $ 9,597,781 | | 397,104 | $ 16,471,575 |
Reinvested dividends and distributions | 21,616 | 906,569 | | 17,602 | 689,820 |
Shares repurchased | (264,575) | (11,503,487) | | (710,004) | (28,399,855) |
Net Increase/(Decrease) | (23,194) | $ (999,137) | | (295,298) | $ (11,238,460) |
Class T Shares: | | | | | |
Shares sold | 572,408 | $ 24,924,196 | | 1,432,727 | $ 58,299,796 |
Reinvested dividends and distributions | 118,113 | 4,948,931 | | 97,849 | 3,830,788 |
Shares repurchased | (784,690) | (34,152,834) | | (1,812,827) | (73,884,631) |
Net Increase/(Decrease) | (94,169) | $ (4,279,707) | | (282,251) | $ (11,754,047) |
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$287,690,260 | $ 174,227,354 | $ - | $ - |
Janus Henderson Overseas Fund
Notes to Financial Statements (unaudited)
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Overseas Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Overseas Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Overseas Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Overseas Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Overseas Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Overseas Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Overseas Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Overseas Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Overseas Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Overseas Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Overseas Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Overseas Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Overseas Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Overseas Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Overseas Fund
Useful Information About Your Fund Report (unaudited)
portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93050 05-22 |
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| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Research Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Research Fund
| | | | | | |
FUND SNAPSHOT By investing in the best ideas from each global research sector team, this U.S. large-cap growth fund seeks long-term growth of capital with volatility similar to its peers. Our analysts identify industry-leading companies with brand power, enduring business models and strong competitive positioning. | | | | | Team-Based Approach Led by Matthew Peron, Director of Research |
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Janus Henderson Research Fund (unaudited)
Fund At A Glance
March 31, 2022
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| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| NVIDIA Corp | 5.27% | | 0.61% | | Apple Inc | 5.48% | | -1.18% |
| Liberty Media Corp-Liberty Formula One | 1.07% | | 0.30% | | Caesars Entertainment Inc | 0.96% | | -0.37% |
| EOG Resources Inc | 0.39% | | 0.17% | | Wayfair Inc - Class A | 0.51% | | -0.37% |
| United Parcel Service Inc | 1.73% | | 0.16% | | Roku Inc | 0.43% | | -0.36% |
| Procter & Gamble Co | 1.63% | | 0.16% | | Avalara Inc | 0.58% | | -0.33% |
| | | | | | | |
| 4 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Financials | | 0.97% | | 8.44% | 8.13% |
| Healthcare | | 0.62% | | 8.98% | 8.66% |
| Other** | | 0.04% | | 0.20% | 0.00% |
| Energy | | 0.04% | | 0.47% | 0.39% |
| | | | | | |
| | | | | | |
| 4 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 1000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Technology | | -2.34% | | 39.76% | 40.32% |
| Industrials | | -1.47% | | 9.65% | 10.00% |
| Consumer | | -1.43% | | 18.77% | 18.92% |
| Communications | | -0.73% | | 13.73% | 13.57% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | The sectors listed above reflect those covered by the six analyst teams who comprise the Janus Henderson Research Team. |
** | Not a GICS classified sector. |
Janus Henderson Research Fund (unaudited)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Microsoft Corp | |
Software | 10.8% |
Amazon.com Inc | |
Internet & Direct Marketing Retail | 7.3% |
Alphabet Inc - Class C | |
Interactive Media & Services | 6.9% |
Apple Inc | |
Technology Hardware, Storage & Peripherals | 6.2% |
NVIDIA Corp | |
Semiconductor & Semiconductor Equipment | 5.8% |
| | 37.0% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 99.9% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.3% | |
Investment Companies | | 0.2% | |
Preferred Stocks | | 0.0% | |
Other | | (0.4)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Research Fund (unaudited)
Performance
| |
See important disclosures on the next page. |
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Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ | Net Annual Fund
Operating Expenses‡ |
Class A Shares at NAV | | -3.14% | 7.04% | 16.73% | 14.56% | 11.71% | | | 0.86% | 0.86% |
Class A Shares at MOP | | -8.70% | 0.89% | 15.36% | 13.88% | 11.48% | | | | |
Class C Shares at NAV | | -3.46% | 6.28% | 15.93% | 13.76% | 10.94% | | | 1.63% | 1.63% |
Class C Shares at CDSC | | -4.29% | 5.36% | 15.93% | 13.76% | 10.94% | | | | |
Class D Shares | | -3.03% | 7.26% | 16.97% | 14.80% | 11.95% | | | 0.66% | 0.66% |
Class I Shares | | -3.00% | 7.31% | 17.03% | 14.88% | 11.99% | | | 0.61% | 0.61% |
Class N Shares | | -2.97% | 7.39% | 17.12% | 14.97% | 12.00% | | | 0.54% | 0.54% |
Class R Shares | | -3.34% | 6.57% | 16.22% | 14.14% | 11.42% | | | 1.36% | 1.31% |
Class S Shares | | -3.22% | 6.84% | 16.54% | 14.40% | 11.56% | | | 1.05% | 1.05% |
Class T Shares | | -3.09% | 7.13% | 16.85% | 14.70% | 11.91% | | | 0.79% | 0.79% |
Russell 1000 Growth Index | | 1.54% | 14.98% | 20.88% | 17.04% | 10.87% | | | | |
S&P 500 Index | | 5.92% | 15.65% | 15.99% | 14.64% | 10.52% | | | | |
Morningstar Quartile - Class T Shares | | - | 3rd | 3rd | 2nd | 1st | | | | |
Morningstar Ranking - based on total returns for Large Growth Funds | | - | 631/1,252 | 736/1,126 | 555/1,024 | 37/362 | | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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, contractually agreed to for at least a one-year period commencing on January 28, 2022.
Janus Henderson Research Fund (unaudited)
Performance
This Fund has a performance-based management fee that may adjust up or down based on the Fund’s performance.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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.
Class R Shares commenced operations on January 27, 2017. Performance shown for periods prior to January 27, 2017, 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – May 3, 1993
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
Janus Henderson Research 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; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
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| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $968.60 | $4.17 | | $1,000.00 | $1,020.69 | $4.28 | 0.85% |
Class C Shares | $1,000.00 | $965.40 | $7.60 | | $1,000.00 | $1,017.20 | $7.80 | 1.55% |
Class D Shares | $1,000.00 | $969.70 | $3.19 | | $1,000.00 | $1,021.69 | $3.28 | 0.65% |
Class I Shares | $1,000.00 | $970.00 | $3.00 | | $1,000.00 | $1,021.89 | $3.07 | 0.61% |
Class N Shares | $1,000.00 | $970.30 | $2.60 | | $1,000.00 | $1,022.29 | $2.67 | 0.53% |
Class R Shares | $1,000.00 | $966.60 | $6.32 | | $1,000.00 | $1,018.50 | $6.49 | 1.29% |
Class S Shares | $1,000.00 | $967.80 | $5.15 | | $1,000.00 | $1,019.70 | $5.29 | 1.05% |
Class T Shares | $1,000.00 | $969.10 | $3.68 | | $1,000.00 | $1,021.19 | $3.78 | 0.75% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Research Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 99.9% | | | |
Aerospace & Defense – 1.6% | | | |
| | Howmet Aerospace Inc | | 4,189,073 | | | $150,555,284 | |
| | Teledyne Technologies Inc* | | 319,137 | | | 150,833,720 | |
| | | 301,389,004 | |
Air Freight & Logistics – 1.9% | | | |
| | United Parcel Service Inc | | 1,681,685 | | | 360,654,165 | |
Auto Components – 0.4% | | | |
| | Aptiv PLC* | | 572,363 | | | 68,517,575 | |
Automobiles – 0.4% | | | |
| | Rivian Automotive Inc - Class A*,# | | 1,492,928 | | | 75,004,703 | |
Beverages – 1.4% | | | |
| | Constellation Brands Inc | | 1,138,052 | | | 262,116,137 | |
Biotechnology – 2.8% | | | |
| | AbbVie Inc | | 2,103,074 | | | 340,929,326 | |
| | Biohaven Pharmaceutical Holding Co Ltd* | | 234,600 | | | 27,816,522 | |
| | Sarepta Therapeutics Inc* | | 957,677 | | | 74,813,727 | |
| | Vertex Pharmaceuticals Inc* | | 331,366 | | | 86,476,585 | |
| | | 530,036,160 | |
Capital Markets – 1.0% | | | |
| | Blackstone Group Inc | | 1,090,047 | | | 138,370,566 | |
| | LPL Financial Holdings Inc | | 242,319 | | | 44,266,835 | |
| | | 182,637,401 | |
Chemicals – 0.8% | | | |
| | Sherwin-Williams Co | | 623,285 | | | 155,584,402 | |
Commercial Services & Supplies – 0.7% | | | |
| | Copart Inc* | | 1,099,970 | | | 138,013,236 | |
Diversified Financial Services – 0.5% | | | |
| | Apollo Global Management Inc | | 1,432,056 | | | 88,773,151 | |
Entertainment – 1.4% | | | |
| | Liberty Media Corp-Liberty Formula One* | | 3,020,050 | | | 210,920,292 | |
| | Netflix Inc* | | 130,901 | | | 49,034,206 | |
| | | 259,954,498 | |
Equity Real Estate Investment Trusts (REITs) – 0.8% | | | |
| | American Tower Corp | | 613,588 | | | 154,145,577 | |
Health Care Equipment & Supplies – 3.1% | | | |
| | Align Technology Inc* | | 401,345 | | | 174,986,420 | |
| | Danaher Corp | | 199,750 | | | 58,592,668 | |
| | DexCom Inc* | | 112,469 | | | 57,539,140 | |
| | Edwards Lifesciences Corp* | | 1,496,569 | | | 176,176,103 | |
| | Intuitive Surgical Inc* | | 440,168 | | | 132,789,882 | |
| | | 600,084,213 | |
Health Care Providers & Services – 0.6% | | | |
| | UnitedHealth Group Inc | | 239,772 | | | 122,276,527 | |
Hotels, Restaurants & Leisure – 1.6% | | | |
| | Aramark | | 3,524,504 | | | 132,521,350 | |
| | Caesars Entertainment Inc* | | 2,351,439 | | | 181,907,321 | |
| | | 314,428,671 | |
Household Durables – 0.8% | | | |
| | Garmin Ltd | | 1,295,968 | | | 153,714,764 | |
Household Products – 1.4% | | | |
| | Procter & Gamble Co | | 1,709,944 | | | 261,279,443 | |
Industrial Conglomerates – 0.7% | | | |
| | Honeywell International Inc | | 652,089 | | | 126,883,478 | |
Information Technology Services – 7.7% | | | |
| | Fidelity National Information Services Inc | | 1,032,673 | | | 103,701,023 | |
| | Global Payments Inc | | 520,641 | | | 71,244,514 | |
| | Mastercard Inc | | 1,527,042 | | | 545,734,270 | |
| | Okta Inc* | | 591,872 | | | 89,348,997 | |
| | Snowflake Inc - Class A* | | 665,894 | | | 152,576,292 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Research Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Information Technology Services– (continued) | | | |
| | Visa Inc | | 2,288,521 | | | $507,525,302 | |
| | | 1,470,130,398 | |
Insurance – 0.5% | | | |
| | Aon PLC - Class A | | 299,203 | | | 97,429,473 | |
Interactive Media & Services – 10.3% | | | |
| | Alphabet Inc - Class C* | | 467,946 | | | 1,306,968,499 | |
| | Facebook Inc* | | 2,552,130 | | | 567,491,627 | |
| | Match Group Inc* | | 738,283 | | | 80,280,893 | |
| | | 1,954,741,019 | |
Internet & Direct Marketing Retail – 9.4% | | | |
| | Amazon.com Inc* | | 426,832 | | | 1,391,450,978 | |
| | Booking Holdings Inc* | | 146,888 | | | 344,959,124 | |
| | Wayfair Inc - Class A* | | 399,601 | | | 44,267,799 | �� |
| | | 1,780,677,901 | |
Life Sciences Tools & Services – 0.8% | | | |
| | Illumina Inc* | | 194,554 | | | 67,977,168 | |
| | Thermo Fisher Scientific Inc | | 130,749 | | | 77,226,897 | |
| | | 145,204,065 | |
Machinery – 1.6% | | | |
| | Deere & Co | | 421,370 | | | 175,062,380 | |
| | Ingersoll Rand Inc | | 2,460,643 | | | 123,893,375 | |
| | | 298,955,755 | |
Oil, Gas & Consumable Fuels – 0.6% | | | |
| | EOG Resources Inc | | 935,576 | | | 111,548,726 | |
Pharmaceuticals – 2.1% | | | |
| | AstraZeneca PLC (ADR) | | 3,017,571 | | | 200,185,660 | |
| | Eli Lilly & Co | | 447,546 | | | 128,163,748 | |
| | Horizon Therapeutics PLC* | | 606,950 | | | 63,857,210 | |
| | | 392,206,618 | |
Professional Services – 0.9% | | | |
| | CoStar Group Inc* | | 2,674,406 | | | 178,142,184 | |
Road & Rail – 1.7% | | | |
| | JB Hunt Transport Services Inc | | 790,100 | | | 158,644,179 | |
| | Uber Technologies Inc* | | 4,513,378 | | | 161,037,327 | |
| | | 319,681,506 | |
Semiconductor & Semiconductor Equipment – 12.0% | | | |
| | Advanced Micro Devices Inc* | | 2,973,627 | | | 325,136,376 | |
| | ASML Holding NV | | 381,627 | | | 254,900,122 | |
| | Lam Research Corp | | 455,609 | | | 244,939,955 | |
| | Marvell Technology Inc | | 2,185,273 | | | 156,705,927 | |
| | NVIDIA Corp | | 4,017,056 | | | 1,096,093,900 | |
| | Teradyne Inc | | 827,149 | | | 97,793,826 | |
| | Texas Instruments Inc | | 555,193 | | | 101,866,812 | |
| | | 2,277,436,918 | |
Software – 19.7% | | | |
| | Adobe Inc* | | 272,289 | | | 124,060,314 | |
| | Atlassian Corp PLC - Class A* | | 976,163 | | | 286,825,974 | |
| | Autodesk Inc* | | 296,685 | | | 63,594,430 | |
| | Avalara Inc* | | 950,832 | | | 94,617,292 | |
| | Cadence Design Systems Inc* | | 686,053 | | | 112,828,276 | |
| | Microsoft Corp | | 6,634,900 | | | 2,045,606,019 | |
| | ServiceNow Inc* | | 275,533 | | | 153,441,572 | |
| | Synopsys Inc* | | 400,235 | | | 133,386,318 | |
| | Tyler Technologies Inc* | | 360,055 | | | 160,184,869 | |
| | Workday Inc - Class A* | | 1,181,291 | | | 282,871,943 | |
| | Zendesk Inc* | | 2,430,473 | | | 292,361,597 | |
| | | 3,749,778,604 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Research Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail – 1.1% | | | |
| | Burlington Stores Inc* | | 847,411 | | | $154,372,862 | |
| | Olaplex Holdings Inc* | | 3,475,713 | | | 54,325,394 | |
| | | 208,698,256 | |
Technology Hardware, Storage & Peripherals – 6.2% | | | |
| | Apple Inc | | 6,780,581 | | | 1,183,957,248 | |
Textiles, Apparel & Luxury Goods – 2.1% | | | |
| | Deckers Outdoor Corp* | | 587,490 | | | 160,837,137 | |
| | NIKE Inc - Class B | | 1,788,857 | | | 240,708,598 | |
| | | 401,545,735 | |
Trading Companies & Distributors – 0.8% | | | |
| | Ferguson PLC | | 1,184,898 | | | 160,808,000 | |
Wireless Telecommunication Services – 0.5% | | | |
| | T-Mobile US Inc* | | 730,348 | | | 93,740,166 | |
Total Common Stocks (cost $10,577,303,257) | | 18,980,175,677 | |
Preferred Stocks– 0% | | | |
Health Care Equipment & Supplies – 0% | | | |
| | MedicaMetrix Inc PP*,¢,£,§((cost $3,000,000) | | 2,727,273 | | | 3 | |
Investment Companies– 0.2% | | | |
Money Markets – 0.2% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $28,462,874) | | 28,460,028 | | | 28,462,874 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.3% | | | |
Investment Companies – 0.2% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 47,654,171 | | | 47,654,171 | |
Time Deposits – 0.1% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $11,913,543 | | | 11,913,543 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $59,567,714) | | 59,567,714 | |
Total Investments (total cost $10,668,333,845) – 100.4% | | 19,068,206,268 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.4)% | | (70,702,878) | |
Net Assets – 100% | | $18,997,503,390 | |
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $18,326,294,512 | | 96.1 | % |
Australia | | 286,825,974 | | 1.5 | |
Netherlands | | 254,900,122 | | 1.3 | |
United Kingdom | | 200,185,660 | | 1.1 | |
| | | | | | |
| | | | | | |
Total | | $19,068,206,268 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Research Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 3/31/22 |
Preferred Stocks - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc PP*,¢,§ | $ | - | $ | - | $ | (2,999,997) | $ | 3 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 15,237 | | - | | - | | 28,462,874 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 165,941∆ | | - | | - | | 47,654,171 |
Total Affiliated Investments - 0.4% | $ | 181,178 | $ | - | $ | (2,999,997) | $ | 76,117,048 |
(1) For securities that were affiliated for a portion of the period ended March 31, 2022, this column reflects amounts for the entire period ended March 31, 2022 and not just the period in which the security was affiliated.
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Preferred Stocks - 0.0% |
Health Care Equipment & Supplies - 0.0% | |
| | MedicaMetrix Inc PP*,¢,§ | | 3,000,000 | | - | | - | | 3 |
Investment Companies - 0.2% |
Money Markets - 0.2% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | - | | 769,487,934 | | (741,025,060) | | 28,462,874 |
Investments Purchased with Cash Collateral from Securities Lending - 0.2% |
Investment Companies - 0.2% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 1,570,800 | | 435,617,744 | | (389,534,373) | | 47,654,171 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Research Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
Russell 1000® Growth Index | Russell 1000® Growth Index reflects the performance of U.S. large-cap equities with higher price-to-book ratios and higher forecasted growth values. |
S&P 500® Index | S&P 500® Index reflects U.S. large-cap equity performance and represents broad U.S. equity market performance. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $3, which represents 0.0% of net assets. |
£ | 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. |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
MedicaMetrix Inc PP | 1/26/21 | $ | 3,000,000 | $ | 3 | | 0.0 | % |
| | | | | | | | | |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Research Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Trading Companies & Distributors | $ | - | $ | 160,808,000 | $ | - |
All Other | | 18,819,367,677 | | - | | - |
Preferred Stocks | | - | | - | | 3 |
Investment Companies | | - | | 28,462,874 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 59,567,714 | | - |
Total Assets | $ | 18,819,367,677 | $ | 248,838,588 | $ | 3 |
| | | | | | | |
Janus Henderson Research Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $10,589,216,800)(1) | | $ | 18,992,089,220 | |
| Affiliated investments, at value (cost $79,117,045) | | | 76,117,048 | |
| Non-interested Trustees' deferred compensation | | | 521,715 | |
| Receivables: | | | | |
| | Fund shares sold | | | 7,489,681 | |
| | Dividends | | | 2,771,833 | |
| | Foreign tax reclaims | | | 198,205 | |
| | Dividends from affiliates | | | 4,684 | |
| Other assets | | | 289,329 | |
Total Assets | | | 19,079,481,715 | |
Liabilities: | | | | |
| Due to custodian | | | 522 | |
| Collateral for securities loaned (Note 2) | | | 59,567,714 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 10,553,876 | |
| | Advisory fees | | | 7,775,738 | |
| | Transfer agent fees and expenses | | | 2,391,288 | |
| | Non-interested Trustees' deferred compensation fees | | | 521,715 | |
| | Non-interested Trustees' fees and expenses | | | 73,110 | |
| | Affiliated fund administration fees payable | | | 38,777 | |
| | Professional fees | | | 35,117 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 28,936 | |
| | Custodian fees | | | 22,878 | |
| | Accrued expenses and other payables | | | 968,654 | |
Total Liabilities | | | 81,978,325 | |
Net Assets | | $ | 18,997,503,390 | |
| | |
See Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Research Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 10,449,972,864 | |
| Total distributable earnings (loss) | | | 8,547,530,526 | |
Total Net Assets | | $ | 18,997,503,390 | |
Net Assets - Class A Shares | | $ | 51,368,682 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 853,382 | |
Net Asset Value Per Share(2) | | $ | 60.19 | |
Maximum Offering Price Per Share(3) | | $ | 63.86 | |
Net Assets - Class C Shares | | $ | 13,849,075 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 257,474 | |
Net Asset Value Per Share(2) | | $ | 53.79 | |
Net Assets - Class D Shares | | $ | 13,829,840,547 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 226,855,279 | |
Net Asset Value Per Share | | $ | 60.96 | |
Net Assets - Class I Shares | | $ | 417,971,642 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,869,107 | |
Net Asset Value Per Share | | $ | 60.85 | |
Net Assets - Class N Shares | | $ | 394,168,377 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,471,370 | |
Net Asset Value Per Share | | $ | 60.91 | |
Net Assets - Class R Shares | | $ | 3,976,616 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 66,911 | |
Net Asset Value Per Share | | $ | 59.43 | |
Net Assets - Class S Shares | | $ | 27,876,359 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 474,473 | |
Net Asset Value Per Share | | $ | 58.75 | |
Net Assets - Class T Shares | | $ | 4,258,452,092 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 69,919,721 | |
Net Asset Value Per Share | | $ | 60.90 | |
| |
(1) Includes $56,253,527 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Research Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 61,890,956 | |
| Affiliated securities lending income, net | | 165,941 | |
| Dividends from affiliates | | 15,237 | |
| Unaffiliated securities lending income, net | | 3,040 | |
| Other income | | 29 | |
| Foreign tax withheld | | (312,461) | |
Total Investment Income | | 61,762,742 | |
Expenses: | | | |
| Advisory fees | | 52,080,197 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 68,094 | |
| | Class C Shares | | 69,844 | |
| | Class R Shares | | 10,441 | |
| | Class S Shares | | 36,424 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 8,178,039 | |
| | Class R Shares | | 5,333 | |
| | Class S Shares | | 36,492 | |
| | Class T Shares | | 5,683,863 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 16,739 | |
| | Class C Shares | | 5,704 | |
| | Class I Shares | | 179,015 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 1,688 | |
| | Class C Shares | | 379 | |
| | Class D Shares | | 586,503 | |
| | Class I Shares | | 9,675 | |
| | Class N Shares | | 7,231 | |
| | Class R Shares | | 29 | |
| | Class S Shares | | 2,437 | |
| | Class T Shares | | 16,519 | |
| Shareholder reports expense | | 404,241 | |
| Affiliated fund administration fees | | 252,464 | |
| Non-interested Trustees’ fees and expenses | | 177,264 | |
| Registration fees | | 110,610 | |
| Professional fees | | 63,596 | |
| Custodian fees | | 56,090 | |
| Other expenses | | 549,712 | |
Total Expenses | | 68,608,623 | |
Less: Excess Expense Reimbursement and Waivers | | (600,949) | |
Net Expenses | | 68,007,674 | |
Net Investment Income/(Loss) | | (6,244,932) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Research Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 346,993,838 | |
Total Net Realized Gain/(Loss) on Investments | | 346,993,838 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (921,373,065) | |
| Investments in affiliates | | (2,999,997) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (924,373,062) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (583,624,156) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Research Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (6,244,932) | | $ | (7,549,955) | |
| Net realized gain/(loss) on investments | | 346,993,838 | | | 2,429,556,331 | |
| Change in unrealized net appreciation/depreciation | | (924,373,062) | | | 1,480,355,402 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (583,624,156) | | | 3,902,361,778 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (6,911,925) | | | (1,133,031) | |
| | Class C Shares | | (2,088,374) | | | (562,873) | |
| | Class D Shares | | (1,802,485,719) | | | (398,705,851) | |
| | Class I Shares | | (55,752,162) | | | (12,258,273) | |
| | Class N Shares | | (53,166,280) | | | (12,695,033) | |
| | Class R Shares | | (537,126) | | | (132,542) | |
| | Class S Shares | | (3,541,069) | | | (840,310) | |
| | Class T Shares | | (562,781,567) | | | (121,681,672) | |
Net Decrease from Dividends and Distributions to Shareholders | | (2,487,264,222) | | | (548,009,585) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 6,270,783 | | | 9,926,159 | |
| | Class C Shares | | 488,777 | | | (5,488,086) | |
| | Class D Shares | | 1,340,381,578 | | | (355,951,384) | |
| | Class I Shares | | 37,977,676 | | | (8,686,429) | |
| | Class N Shares | | 26,275,947 | | | (36,562,362) | |
| | Class R Shares | | 435,034 | | | (772,746) | |
| | Class S Shares | | 1,062,023 | | | (650,692) | |
| | Class T Shares | | 376,665,924 | | | (117,902,220) | |
Net Increase/(Decrease) from Capital Share Transactions | | 1,789,557,742 | | | (516,087,760) | |
Net Increase/(Decrease) in Net Assets | | (1,281,330,636) | | | 2,838,264,433 | |
Net Assets: | | | | | | |
| Beginning of period | | 20,278,834,026 | | | 17,440,569,593 | |
| End of period | $ | 18,997,503,390 | | $ | 20,278,834,026 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $70.69 | | | $59.31 | | | $49.56 | | | $53.33 | | | $45.29 | | | $42.31 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.08) | | | (0.15) | | | 0.06 | | | 0.14 | | | 0.08 | | | 0.13 | |
| | Net realized and unrealized gain/(loss) | | (1.57) | | | 13.37 | | | 14.75 | | | 0.50 | | | 10.25 | | | 6.50 | |
| Total from Investment Operations | | (1.65) | | | 13.22 | | | 14.81 | | | 0.64 | | | 10.33 | | | 6.63 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | (0.13) | | | (0.06) | | | (0.03) | | | (0.01) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (5.06) | | | (4.41) | | | (2.29) | | | (3.65) | |
| Net Asset Value, End of Period | | $60.19 | | | $70.69 | | | $59.31 | | | $49.56 | | | $53.33 | | | $45.29 | |
| Total Return* | | (3.15)% | | | 22.66% | | | 32.14% | | | 2.98% | | | 23.56% | | | 16.70% | |
| Net Assets, End of Period (in thousands) | | $51,369 | | | $53,589 | | | $36,300 | | | $29,853 | | | $28,474 | | | $25,233 | |
| Average Net Assets for the Period (in thousands) | | $54,625 | | | $45,054 | | | $31,223 | | | $28,823 | | | $26,135 | | | $25,873 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.85% | | | 0.86% | | | 0.86% | | | 0.89% | | | 0.93% | | | 0.93% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.85% | | | 0.86% | | | 0.86% | | | 0.89% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Investment Income/(Loss) | | (0.24)% | | | (0.22)% | | | 0.12% | | | 0.30% | | | 0.17% | | | 0.29% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $64.28 | | | $54.45 | | | $46.06 | | | $50.18 | | | $42.99 | | | $40.60 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.28) | | | (0.53) | | | (0.27) | | | (0.18) | | | (0.23) | | | (0.16) | |
| | Net realized and unrealized gain/(loss) | | (1.36) | | | 12.20 | | | 13.59 | | | 0.41 | | | 9.68 | | | 6.19 | |
| Total from Investment Operations | | (1.64) | | | 11.67 | | | 13.32 | | | 0.23 | | | 9.45 | | | 6.03 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Net Asset Value, End of Period | | $53.79 | | | $64.28 | | | $54.45 | | | $46.06 | | | $50.18 | | | $42.99 | |
| Total Return* | | (3.47)% | | | 21.81% | | | 31.20% | | | 2.27% | | | 22.73% | | | 15.89% | |
| Net Assets, End of Period (in thousands) | | $13,849 | | | $15,910 | | | $18,502 | | | $19,109 | | | $27,515 | | | $25,527 | |
| Average Net Assets for the Period (in thousands) | | $15,234 | | | $17,155 | | | $18,763 | | | $21,832 | | | $26,463 | | | $21,993 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.55% | | | 1.54% | | | 1.55% | | | 1.58% | | | 1.61% | | | 1.60% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.55% | | | 1.54% | | | 1.55% | | | 1.57% | | | 1.58% | | | 1.60% | |
| | Ratio of Net Investment Income/(Loss) | | (0.94)% | | | (0.88)% | | | (0.57)% | | | (0.39)% | | | (0.50)% | | | (0.39)% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $71.42 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.60 | | | $42.69 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.01) | | | (0.01) | | | 0.17 | | | 0.24 | | | 0.19 | | | 0.22 | |
| | Net realized and unrealized gain/(loss) | | (1.60) | | | 13.48 | | | 14.87 | | | 0.50 | | | 10.33 | | | 6.53 | |
| Total from Investment Operations | | (1.61) | | | 13.47 | | | 15.04 | | | 0.74 | | | 10.52 | | | 6.75 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.07) | | | (0.23) | | | (0.15) | | | (0.12) | | | (0.20) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (8.85) | | | (1.91) | | | (5.16) | | | (4.50) | | | (2.38) | | | (3.84) | |
| Net Asset Value, End of Period | | $60.96 | | | $71.42 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.60 | |
| Total Return* | | (3.06)% | | | 22.89% | | | 32.40% | | | 3.20% | | | 23.85% | | | 16.90% | |
| Net Assets, End of Period (in thousands) | | $13,829,841 | | | $14,715,777 | | | $12,635,778 | | | $10,221,640 | | | $10,550,222 | | | $9,078,354 | |
| Average Net Assets for the Period (in thousands) | | $14,714,067 | | | $14,113,628 | | | $11,047,912 | | | $9,901,606 | | | $9,778,967 | | | $5,277,885 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.65% | | | 0.66% | | | 0.66% | | | 0.69% | | | 0.72% | | | 0.73% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.65% | | | 0.66% | | | 0.66% | | | 0.68% | | | 0.69% | | | 0.73% | |
| | Ratio of Net Investment Income/(Loss) | | (0.04)% | | | (0.02)% | | | 0.32% | | | 0.50% | | | 0.39% | | | 0.50% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $71.28 | | | $59.74 | | | $49.89 | | | $53.67 | | | $45.53 | | | $42.65 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | —(2) | | | 0.02 | | | 0.20 | | | 0.27 | | | 0.22 | | | 0.24 | |
| | Net realized and unrealized gain/(loss) | | (1.58) | | | 13.46 | | | 14.84 | | | 0.48 | �� | | 10.32 | | | 6.53 | |
| Total from Investment Operations | | (1.58) | | | 13.48 | | | 15.04 | | | 0.75 | | | 10.54 | | | 6.77 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.10) | | | (0.26) | | | (0.18) | | | (0.14) | | | (0.25) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (8.85) | | | (1.94) | | | (5.19) | | | (4.53) | | | (2.40) | | | (3.89) | |
| Net Asset Value, End of Period | | $60.85 | | | $71.28 | | | $59.74 | | | $49.89 | | | $53.67 | | | $45.53 | |
| Total Return* | | (3.02)% | | | 22.95% | | | 32.47% | | | 3.23% | | | 23.94% | | | 16.98% | |
| Net Assets, End of Period (in thousands) | | $417,972 | | | $448,508 | | | $383,533 | | | $340,425 | | | $387,130 | | | $372,836 | |
| Average Net Assets for the Period (in thousands) | | $447,429 | | | $428,367 | | | $349,367 | | | $339,641 | | | $382,642 | | | $285,259 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.61% | | | 0.61% | | | 0.60% | | | 0.63% | | | 0.65% | | | 0.65% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.61% | | | 0.61% | | | 0.60% | | | 0.62% | | | 0.63% | | | 0.65% | |
| | Ratio of Net Investment Income/(Loss) | | —(3) | | | 0.03% | | | 0.38% | | | 0.56% | | | 0.45% | | | 0.55% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Less than $0.005 on a per share basis. (3) Less than 0.005%. |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $71.32 | | | $59.75 | | | $49.90 | | | $53.69 | | | $45.54 | | | $42.67 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | 0.03 | | | 0.07 | | | 0.23 | | | 0.31 | | | 0.26 | | | 0.27 | |
| | Net realized and unrealized gain/(loss) | | (1.59) | | | 13.47 | | | 14.85 | | | 0.47 | | | 10.31 | | | 6.54 | |
| Total from Investment Operations | | (1.56) | | | 13.54 | | | 15.08 | | | 0.78 | | | 10.57 | | | 6.81 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.13) | | | (0.30) | | | (0.22) | | | (0.16) | | | (0.30) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (8.85) | | | (1.97) | | | (5.23) | | | (4.57) | | | (2.42) | | | (3.94) | |
| Net Asset Value, End of Period | | $60.91 | | | $71.32 | | | $59.75 | | | $49.90 | | | $53.69 | | | $45.54 | |
| Total Return* | | (2.98)% | | | 23.05% | | | 32.57% | | | 3.31% | | | 24.02% | | | 17.10% | |
| Net Assets, End of Period (in thousands) | | $394,168 | | | $432,553 | | | $394,953 | | | $308,922 | | | $311,140 | | | $266,604 | |
| Average Net Assets for the Period (in thousands) | | $428,187 | | | $426,650 | | | $350,927 | | | $296,644 | | | $278,339 | | | $231,105 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.53% | | | 0.54% | | | 0.53% | | | 0.55% | | | 0.58% | | | 0.57% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.53% | | | 0.54% | | | 0.53% | | | 0.54% | | | 0.56% | | | 0.56% | |
| | Ratio of Net Investment Income/(Loss) | | 0.08% | | | 0.11% | | | 0.45% | | | 0.64% | | | 0.53% | | | 0.63% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year or period ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017(2) | |
| Net Asset Value, Beginning of Period | | $70.04 | | | $59.04 | | | $49.46 | | | $53.37 | | | $45.47 | | | $41.78 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.22) | | | (0.42) | | | (0.18) | | | (0.05) | | | (0.12) | | | (0.03) | |
| | Net realized and unrealized gain/(loss) | | (1.54) | | | 13.26 | | | 14.69 | | | 0.49 | | | 10.28 | | | 5.23 | |
| Total from Investment Operations | | (1.76) | | | 12.84 | | | 14.51 | | | 0.44 | | | 10.16 | | | 5.20 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | (0.04) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (1.47) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (1.51) | |
| Net Asset Value, End of Period | | $59.43 | | | $70.04 | | | $59.04 | | | $49.46 | | | $53.37 | | | $45.47 | |
| Total Return* | | (3.35)% | | | 22.10% | | | 31.48% | | | 2.55% | | | 23.06% | | | 12.67% | |
| Net Assets, End of Period (in thousands) | | $3,977 | | | $4,226 | | | $4,269 | | | $4,476 | | | $5,021 | | | $5,200 | |
| Average Net Assets for the Period (in thousands) | | $4,278 | | | $4,354 | | | $4,322 | | | $4,550 | | | $4,931 | | | $3,162 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.34% | | | 1.34% | | | 1.34% | | | 1.30% | | | 1.35% | | | 1.35% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.29% | | | 1.30% | | | 1.34% | | | 1.30% | | | 1.33% | | | 1.35% | |
| | Ratio of Net Investment Income/(Loss) | | (0.68)% | | | (0.64)% | | | (0.36)% | | | (0.11)% | | | (0.25)% | | | (0.09)% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. (2) Period from January 27, 2017 (inception date) through September 30, 2017. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Research Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $69.26 | | | $58.25 | | | $48.72 | | | $52.52 | | | $44.68 | | | $41.91 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.14) | | | (0.26) | | | (0.03) | | | 0.07 | | | 0.01 | | | 0.07 | |
| | Net realized and unrealized gain/(loss) | | (1.52) | | | 13.11 | | | 14.49 | | | 0.48 | | | 10.10 | | | 6.41 | |
| Total from Investment Operations | | (1.66) | | | 12.85 | | | 14.46 | | | 0.55 | | | 10.11 | | | 6.48 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | (0.01) | | | (0.07) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.27) | | | (3.71) | |
| Net Asset Value, End of Period | | $58.75 | | | $69.26 | | | $58.25 | | | $48.72 | | | $52.52 | | | $44.68 | |
| Total Return* | | (3.24)% | | | 22.43% | | | 31.89% | | | 2.82% | | | 23.38% | | | 16.53% | |
| Net Assets, End of Period (in thousands) | | $27,876 | | | $30,909 | | | $26,600 | | | $33,835 | | | $27,788 | | | $27,354 | |
| Average Net Assets for the Period (in thousands) | | $29,274 | | | $29,786 | | | $25,562 | | | $28,972 | | | $27,937 | | | $13,782 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.06% | | | 1.05% | | | 1.03% | | | 1.06% | | | 1.08% | | | 1.08% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.05% | | | 1.04% | | | 1.03% | | | 1.05% | | | 1.06% | | | 1.07% | |
| | Ratio of Net Investment Income/(Loss) | | (0.43)% | | | (0.39)% | | | (0.06)% | | | 0.14% | | | 0.03% | | | 0.17% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $71.39 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.61 | | | $42.67 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.05) | | | (0.08) | | | 0.11 | | | 0.20 | | | 0.14 | | | 0.18 | |
| | Net realized and unrealized gain/(loss) | | (1.59) | | | 13.48 | | | 14.89 | | | 0.49 | | | 10.33 | | | 6.54 | |
| Total from Investment Operations | | (1.64) | | | 13.40 | | | 15.00 | | | 0.69 | | | 10.47 | | | 6.72 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | (0.03) | | | (0.19) | | | (0.10) | | | (0.08) | | | (0.14) | |
| | Distributions (from capital gains) | | (8.85) | | | (1.84) | | | (4.93) | | | (4.35) | | | (2.26) | | | (3.64) | |
| Total Dividends and Distributions | | (8.85) | | | (1.87) | | | (5.12) | | | (4.45) | | | (2.34) | | | (3.78) | |
| Net Asset Value, End of Period | | $60.90 | | | $71.39 | | | $59.86 | | | $49.98 | | | $53.74 | | | $45.61 | |
| Total Return* | | (3.10)% | | | 22.76% | | | 32.27% | | | 3.07% | | | 23.74% | | | 16.81% | |
| Net Assets, End of Period (in thousands) | | $4,258,452 | | | $4,577,362 | | | $3,940,635 | | | $3,319,149 | | | $3,481,882 | | | $3,082,833 | |
| Average Net Assets for the Period (in thousands) | | $4,559,582 | | | $4,384,575 | | | $3,505,134 | | | $3,219,617 | | | $3,264,878 | | | $2,119,275 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.78% | | | 0.79% | | | 0.78% | | | 0.80% | | | 0.83% | | | 0.83% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.75% | | | 0.77% | | | 0.76% | | | 0.77% | | | 0.79% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | (0.14)% | | | (0.13)% | | | 0.22% | | | 0.41% | | | 0.29% | | | 0.42% | |
| Portfolio Turnover Rate | | 15% | | | 31% | | | 38% | | | 41% | | | 43% | | | 46% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Research Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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 March 31, 2022.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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.
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States.
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or 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 the Fund's Schedule of Investments.
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
JPMorgan Chase Bank, National Association | $ | 56,253,527 | $ | — | $ | (56,253,527) | $ | — |
| | | | | | | | | |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $56,253,527. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $59,567,714, resulting in the net amount due to the counterparty of $3,314,187.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee rate that may adjust up or down based on the Fund’s performance relative to its benchmark index.
The investment advisory fee rate paid to the Adviser 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 (the “Base Fee Rate”), plus or minus (2) a performance-fee adjustment (the “Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets based on the Fund’s relative performance compared to the cumulative investment record of its benchmark index over a 36-month performance measurement period or shorter time period, as applicable. The investment advisory fee rate is calculated daily and paid monthly.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. The Fund’s Base Fee Rate prior to any performance adjustment (expressed as an annual rate) is 0.64%, and the Fund’s benchmark index used in the calculation is the Russell 1000® Growth Index.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index, up to the Fund’s full performance rate of ±5.00%. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase the Adviser’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease the Adviser’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index.
The Fund’s prospectuses and statement(s) 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. For the period ended March 31, 2022, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.52%.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding any performance adjustments to management fees (if applicable), the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.68% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period ending January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as ��Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent or its
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities.
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $3,008.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $18.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the period ended March 31, 2022, the Fund engaged in cross trades amounting to $14,703,630 in purchases and $5,645,466 in sales, resulting in a net realized gain of $38,631. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, straddle deferrals, and investments in partnerships.
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 10,691,601,812 | $8,806,683,214 | $(430,078,758) | $ 8,376,604,456 |
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
5. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 95,294 | $ 6,499,081 | | 266,614 | $ 17,903,311 |
Reinvested dividends and distributions | 95,791 | 6,169,874 | | 15,644 | 988,359 |
Shares repurchased | (95,799) | (6,398,172) | | (136,203) | (8,965,511) |
Net Increase/(Decrease) | 95,286 | $ 6,270,783 | | 146,055 | $ 9,926,159 |
Class C Shares: | | | | | |
Shares sold | 7,520 | $ 472,615 | | 22,144 | $ 1,342,818 |
Reinvested dividends and distributions | 35,103 | 2,024,369 | | 9,336 | 539,413 |
Shares repurchased | (32,645) | (2,008,207) | | (123,771) | (7,370,317) |
Net Increase/(Decrease) | 9,978 | $ 488,777 | | (92,291) | $ (5,488,086) |
Class D Shares: | | | | | |
Shares sold | 1,671,774 | $ 110,626,746 | | 3,326,107 | $ 220,997,171 |
Reinvested dividends and distributions | 26,529,686 | 1,729,735,563 | | 6,022,078 | 383,787,030 |
Shares repurchased | (7,402,439) | (499,980,731) | | (14,398,341) | (960,735,585) |
Net Increase/(Decrease) | 20,799,021 | $1,340,381,578 | | (5,050,156) | $(355,951,384) |
Class I Shares: | | | | | |
Shares sold | 661,365 | $ 44,118,337 | | 1,377,299 | $ 92,389,122 |
Reinvested dividends and distributions | 795,671 | 51,774,306 | | 176,530 | 11,225,532 |
Shares repurchased | (879,727) | (57,914,967) | | (1,682,084) | (112,301,083) |
Net Increase/(Decrease) | 577,309 | $ 37,977,676 | | (128,255) | $ (8,686,429) |
Class N Shares: | | | | | |
Shares sold | 294,357 | $ 20,027,198 | | 761,708 | $ 51,177,439 |
Reinvested dividends and distributions | 815,570 | 53,109,893 | | 199,163 | 12,664,782 |
Shares repurchased | (703,434) | (46,861,144) | | (1,505,622) | (100,404,583) |
Net Increase/(Decrease) | 406,493 | $ 26,275,947 | | (544,751) | $ (36,562,362) |
Class R Shares: | | | | | |
Shares sold | 3,120 | $ 222,512 | | 9,957 | $ 654,373 |
Reinvested dividends and distributions | 8,356 | 532,028 | | 2,094 | 131,597 |
Shares repurchased | (4,899) | (319,506) | | (24,025) | (1,558,716) |
Net Increase/(Decrease) | 6,577 | $ 435,034 | | (11,974) | $ (772,746) |
Class S Shares: | | | | | |
Shares sold | 53,161 | $ 3,255,770 | | 78,526 | $ 5,126,028 |
Reinvested dividends and distributions | 56,135 | 3,531,423 | | 13,532 | 838,966 |
Shares repurchased | (81,081) | (5,725,170) | | (102,443) | (6,615,686) |
Net Increase/(Decrease) | 28,215 | $ 1,062,023 | | (10,385) | $ (650,692) |
Class T Shares: | | | | | |
Shares sold | 2,804,358 | $ 191,284,561 | | 4,517,826 | $ 303,568,991 |
Reinvested dividends and distributions | 8,407,226 | 547,814,842 | | 1,861,188 | 118,687,931 |
Shares repurchased | (5,410,486) | (362,433,479) | | (8,091,628) | (540,159,142) |
Net Increase/(Decrease) | 5,801,098 | $ 376,665,924 | | (1,712,614) | $(117,902,220) |
6. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$3,000,055,361 | $3,746,643,226 | $ - | $ - |
Janus Henderson Research Fund
Notes to Financial Statements (unaudited)
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Research Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Research Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Research Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Research Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Research Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Research Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Research Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Research Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Research Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Research Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Research Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Research Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Research Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Research Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Research Fund
Notes
NotesPage1
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| | | | | |
| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93053 05-22 |
| | | | |
| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Triton Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Triton Fund
| | | | | | |
FUND SNAPSHOT A moderately positioned, small-mid-cap growth fund seeking long-term growth of capital. The Fund invests in small-cap companies with differentiated business models and sustainable competitive advantages that are positioned to grow market share regardless of economic conditions. | | | | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
| | | |
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
Fund At A Glance
March 31, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| Crown Holdings Inc | 2.96% | | 0.96% | | LivePerson Inc | 0.70% | | -0.44% |
| LPL Financial Holdings Inc | 2.34% | | 0.49% | | Purple Innovation Inc | 0.41% | | -0.40% |
| ON Semiconductor Corp | 1.59% | | 0.46% | | NeoGenomics Inc | 0.45% | | -0.32% |
| Vonage Holdings Corp | 1.04% | | 0.43% | | Yext Inc | 0.49% | | -0.22% |
| Hostess Brands Inc | 1.17% | | 0.39% | | Wayfair Inc - Class A | 0.35% | | -0.21% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Health Care | | 3.45% | | 23.99% | 21.98% |
| Materials | | 1.09% | | 6.93% | 3.25% |
| Consumer Staples | | 0.86% | | 3.92% | 2.76% |
| Information Technology | | 0.80% | | 27.89% | 27.95% |
| Financials | | 0.73% | | 7.68% | 5.77% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2500 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Energy | | -0.91% | | 0.00% | 2.23% |
| Real Estate | | -0.28% | | 0.71% | 2.85% |
| Utilities | | -0.01% | | 0.54% | 0.40% |
| Industrials | | 0.01% | | 14.03% | 15.05% |
| Consumer Discretionary | | 0.09% | | 11.06% | 15.42% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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. |
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Crown Holdings Inc | |
Containers & Packaging | 2.9% |
Catalent Inc | |
Pharmaceuticals | 2.7% |
LPL Financial Holdings Inc | |
Capital Markets | 2.6% |
SS&C Technologies Holdings Inc | |
Software | 2.1% |
Terminix Global Holdings Inc | |
Diversified Consumer Services | 2.1% |
| | 12.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.6% | |
Private Investment in Public Equity (PIPES) | | 1.9% | |
Investment Companies | | 1.0% | |
Investments Purchased with Cash Collateral from Securities Lending | | 0.8% | |
Preferred Stocks | | 0.6% | |
Warrants | | 0.0% | |
Other | | (0.9)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | |
Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV(1) | | -6.48% | -3.88% | 12.14% | 12.43% | 12.21% | | | 1.29% |
Class A Shares at MOP(1) | | -11.85% | -9.41% | 10.82% | 11.77% | 11.82% | | | |
Class C Shares at NAV(1) | | -6.74% | -4.39% | 11.50% | 11.73% | 11.46% | | | 1.73% |
Class C Shares at CDSC(1) | | -7.49% | -5.15% | 11.50% | 11.73% | 11.46% | | | |
Class D Shares(1) | | -6.33% | -3.57% | 12.50% | 12.79% | 12.50% | | | 0.78% |
Class I Shares(1) | | -6.32% | -3.54% | 12.54% | 12.84% | 12.56% | | | 0.75% |
Class N Shares(1) | | -6.30% | -3.46% | 12.65% | 12.94% | 12.57% | | | 0.66% |
Class R Shares(1) | | -6.65% | -4.17% | 11.81% | 12.11% | 11.85% | | | 1.41% |
Class S Shares(1) | | -6.53% | -3.95% | 12.09% | 12.39% | 12.10% | | | 1.16% |
Class T Shares(1) | | -6.39% | -3.67% | 12.38% | 12.68% | 12.42% | | | 0.91% |
Russell 2500 Growth Index | | -12.13% | -10.12% | 13.22% | 12.69% | 10.32% | | | |
Russell 2000 Growth Index | | -12.62% | -14.33% | 10.33% | 11.21% | 9.06% | | | |
Morningstar Quartile - Class T Shares | | - | 2nd | 3rd | 2nd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | - | 133/626 | 354/587 | 213/536 | 12/454 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
Performance
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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 (renamed Class T Shares effective February 16, 2010), 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 former 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – February 25, 2005
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
(1) Closed to certain new investors.
Janus Henderson Triton Fund (unaudited)(closed to certain new investors)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $935.20 | $5.40 | | $1,000.00 | $1,019.35 | $5.64 | 1.12% |
Class C Shares | $1,000.00 | $932.60 | $8.00 | | $1,000.00 | $1,016.65 | $8.35 | 1.66% |
Class D Shares | $1,000.00 | $936.70 | $3.81 | | $1,000.00 | $1,020.99 | $3.98 | 0.79% |
Class I Shares | $1,000.00 | $936.80 | $3.67 | | $1,000.00 | $1,021.14 | $3.83 | 0.76% |
Class N Shares | $1,000.00 | $937.00 | $3.19 | | $1,000.00 | $1,021.64 | $3.33 | 0.66% |
Class R Shares | $1,000.00 | $933.50 | $6.75 | | $1,000.00 | $1,017.95 | $7.04 | 1.40% |
Class S Shares | $1,000.00 | $934.70 | $5.60 | | $1,000.00 | $1,019.15 | $5.84 | 1.16% |
Class T Shares | $1,000.00 | $936.10 | $4.34 | | $1,000.00 | $1,020.44 | $4.53 | 0.90% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.6% | | | |
Aerospace & Defense – 2.2% | | | |
| | Axon Enterprise Inc* | | 631,332 | | | $86,953,356 | |
| | Teledyne Technologies Inc* | | 259,420 | | | 122,609,675 | |
| | | 209,563,031 | |
Auto Components – 1.5% | | | |
| | Fox Factory Holding Corp* | | 428,414 | | | 41,963,151 | |
| | Quantumscape Corp*,# | | 1,293,635 | | | 25,859,764 | |
| | Visteon Corp* | | 660,884 | | | 72,122,271 | |
| | | 139,945,186 | |
Automobiles – 0.5% | | | |
| | Thor Industries Inc | | 639,064 | | | 50,294,337 | |
Banks – 0.4% | | | |
| | MSD Acquisition Corp*,£ | | 4,073,279 | | | 41,099,385 | |
Biotechnology – 7.6% | | | |
| | Abcam PLC* | | 2,325,256 | | | 42,001,418 | |
| | Arrowhead Pharmaceuticals Inc* | | 663,268 | | | 30,503,695 | |
| | Ascendis Pharma A/S (ADR)* | | 308,481 | | | 36,203,330 | |
| | Biohaven Pharmaceutical Holding Co Ltd* | | 312,187 | | | 37,016,013 | |
| | Centessa Pharmacuticals PLC (ADR)*,# | | 1,578,408 | | | 14,158,320 | |
| | Eagle Pharmaceuticals Inc/DE*,£ | | 965,786 | | | 47,796,749 | |
| | Fate Therapeutics Inc* | | 736,438 | | | 28,551,701 | |
| | Global Blood Therapeutics Inc* | | 1,645,452 | | | 56,998,457 | |
| | Ligand Pharmaceuticals Inc*,£ | | 1,010,358 | | | 113,655,171 | |
| | Mirati Therapeutics Inc* | | 381,887 | | | 31,398,749 | |
| | Natera Inc* | | 496,856 | | | 20,212,102 | |
| | Neurocrine Biosciences Inc* | | 1,149,748 | | | 107,788,875 | |
| | PTC Therapeutics Inc* | | 444,655 | | | 16,590,078 | |
| | Sarepta Therapeutics Inc* | | 1,022,134 | | | 79,849,108 | |
| | Vaxcyte Inc* | | 2,004,508 | | | 48,408,868 | |
| | | 711,132,634 | |
Building Products – 1.1% | | | |
| | Zurn Water Solutions Corp | | 2,980,086 | | | 105,495,044 | |
Capital Markets – 3.5% | | | |
| | Cboe Global Markets Inc | | 742,604 | | | 84,968,750 | |
| | LPL Financial Holdings Inc | | 1,329,032 | | | 242,787,566 | |
| | | 327,756,316 | |
Chemicals – 1.5% | | | |
| | Sensient Technologies Corp£ | | 1,741,994 | | | 146,240,396 | |
Commercial Services & Supplies – 1.8% | | | |
| | Brady Corp | | 1,986,487 | | | 91,914,754 | |
| | Cimpress PLC* | | 462,343 | | | 29,400,391 | |
| | Driven Brands Holdings Inc* | | 1,943,156 | | | 51,066,140 | |
| | | 172,381,285 | |
Construction Materials – 0.9% | | | |
| | Summit Materials Inc* | | 2,738,805 | | | 85,067,283 | |
Containers & Packaging – 4.2% | | | |
| | Crown Holdings Inc | | 2,186,139 | | | 273,494,500 | |
| | Sealed Air Corp | | 1,886,558 | | | 126,323,924 | |
| | | 399,818,424 | |
Diversified Consumer Services – 2.9% | | | |
| | Frontdoor Inc* | | 1,264,590 | | | 37,748,012 | |
| | Mister Car Wash Inc* | | 2,931,672 | | | 43,359,429 | |
| | Terminix Global Holdings Inc* | | 4,266,728 | | | 194,690,799 | |
| | | 275,798,240 | |
Diversified Financial Services – 0.8% | | | |
| | Clarivate Analytics PLC* | | 3,964,580 | | | 66,446,361 | |
| | Kensington Capital Acquisition Corp* | | 943,535 | | | 9,444,785 | |
| | | 75,891,146 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Diversified Telecommunication Services – 0.2% | | | |
| | AST SpaceMobile Inc*,# | | 1,670,199 | | | $16,668,586 | |
Electrical Equipment – 2.4% | | | |
| | EnerSys | | 1,110,529 | | | 82,812,148 | |
| | Regal Beloit Corp | | 629,458 | | | 93,650,761 | |
| | Stem Inc*,# | | 1,489,935 | | | 16,404,184 | |
| | Wallbox NV* | | 2,251,735 | | | 28,709,621 | |
| | | 221,576,714 | |
Electronic Equipment, Instruments & Components – 2.3% | | | |
| | Itron Inc* | | 612,929 | | | 32,289,100 | |
| | Mirion Technologies Inc*,# | | 2,406,926 | | | 19,423,893 | |
| | National Instruments Corp | | 1,362,148 | | | 55,289,587 | |
| | OSI Systems Inc*,£ | | 1,280,610 | | | 109,005,523 | |
| | | 216,008,103 | |
Equity Real Estate Investment Trusts (REITs) – 0.7% | | | |
| | Lamar Advertising Co | | 576,730 | | | 67,004,491 | |
Food & Staples Retailing – 1.2% | | | |
| | Casey's General Stores Inc | | 349,658 | | | 69,291,726 | |
| | Grocery Outlet Holding Corp* | | 1,232,726 | | | 40,408,758 | |
| | | 109,700,484 | |
Food Products – 3.1% | | | |
| | Hostess Brands Inc*,£ | | 5,823,832 | | | 127,774,874 | |
| | Premium Brands Holdings Corp | | 791,107 | | | 69,218,698 | |
| | Simply Good Foods Co* | | 2,423,669 | | | 91,978,239 | |
| | | 288,971,811 | |
Health Care Equipment & Supplies – 7.4% | | | |
| | Glaukos Corp* | | 1,313,779 | | | 75,962,702 | |
| | Globus Medical Inc* | | 1,800,248 | | | 132,822,297 | |
| | ICU Medical Inc* | | 458,201 | | | 102,013,871 | |
| | Integra LifeSciences Holdings Corp* | | 2,294,812 | | | 147,464,619 | |
| | iRhythm Technologies Inc* | | 433,241 | | | 68,222,460 | |
| | Ortho Clinical Diagnostics Holdings PLC* | | 3,874,319 | | | 72,294,793 | |
| | STERIS PLC | | 420,583 | | | 101,684,352 | |
| | | 700,465,094 | |
Health Care Providers & Services – 3.1% | | | |
| | Agiliti Inc* | | 5,258,127 | | | 110,946,480 | |
| | Chemed Corp | | 225,574 | | | 114,264,510 | |
| | HealthEquity Inc* | | 969,272 | | | 65,367,704 | |
| | | 290,578,694 | |
Hotels, Restaurants & Leisure – 1.3% | | | |
| | Churchill Downs Inc | | 238,400 | | | 52,872,352 | |
| | Wendy's Co | | 3,223,186 | | | 70,813,396 | |
| | | 123,685,748 | |
Household Durables – 1.2% | | | |
| | Helen of Troy Ltd* | | 444,945 | | | 87,138,029 | |
| | Purple Innovation Inc*,£ | | 5,261,797 | | | 30,781,512 | |
| | | 117,919,541 | |
Independent Power and Renewable Electricity Producers – 0.6% | | | |
| | NRG Energy Inc | | 1,474,565 | | | 56,564,313 | |
Industrial Conglomerates – 1.1% | | | |
| | Carlisle Cos Inc | | 422,174 | | | 103,821,030 | |
Information Technology Services – 6.3% | | | |
| | Broadridge Financial Solutions Inc | | 676,267 | | | 105,301,535 | |
| | Euronet Worldwide Inc* | | 993,418 | | | 129,293,353 | |
| | LiveRamp Holdings Inc* | | 2,400,301 | | | 89,747,254 | |
| | MAXIMUS Inc | | 1,277,117 | | | 95,719,919 | |
| | Switch Inc | | 2,403,707 | | | 74,082,250 | |
| | WEX Inc* | | 539,247 | | | 96,228,627 | |
| | | 590,372,938 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Insurance – 0.9% | | | |
| | Selective Insurance Group Inc | | 929,709 | | | $83,078,796 | |
Internet & Direct Marketing Retail – 0.7% | | | |
| | Etsy Inc* | | 349,344 | | | 43,416,472 | |
| | Wayfair Inc - Class A*,# | | 200,921 | | | 22,258,028 | |
| | | 65,674,500 | |
Life Sciences Tools & Services – 2.4% | | | |
| | Bio-Techne Corp | | 150,908 | | | 65,349,200 | |
| | Bruker Corp | | 1,030,721 | | | 66,275,360 | |
| | NeoGenomics Inc* | | 1,601,732 | | | 19,461,044 | |
| | PerkinElmer Inc | | 405,139 | | | 70,680,550 | |
| | | 221,766,154 | |
Machinery – 3.0% | | | |
| | Donaldson Co Inc | | 1,172,227 | | | 60,873,748 | |
| | Gates Industrial Corp PLC* | | 5,649,021 | | | 85,074,256 | |
| | ITT Inc | | 834,656 | | | 62,774,478 | |
| | Nordson Corp | | 293,953 | | | 66,750,847 | |
| | Xos Inc*,# | | 2,033,906 | | | 6,081,379 | |
| | | 281,554,708 | |
Media – 0.7% | | | |
| | Cable One Inc# | | 42,564 | | | 62,323,911 | |
Pharmaceuticals – 3.4% | | | |
| | Catalent Inc* | | 2,293,926 | | | 254,396,393 | |
| | Horizon Therapeutics PLC* | | 616,381 | | | 64,849,445 | |
| | | 319,245,838 | |
Professional Services – 2.3% | | | |
| | Alight Inc - Class A* | | 9,347,367 | | | 93,006,302 | |
| | TriNet Group Inc*,# | | 1,245,601 | | | 122,517,314 | |
| | | 215,523,616 | |
Road & Rail – 0.9% | | | |
| | Saia Inc* | | 347,673 | | | 84,769,631 | |
Semiconductor & Semiconductor Equipment – 4.0% | | | |
| | Brooks Automation Inc | | 790,150 | | | 65,487,632 | |
| | Entegris Inc | | 695,716 | | | 91,319,682 | |
| | ON Semiconductor Corp* | | 2,287,552 | | | 143,223,631 | |
| | SMART Global Holdings Inc*,# | | 1,056,991 | | | 27,302,078 | |
| | Wolfspeed Inc* | | 404,748 | | | 46,084,607 | |
| | | 373,417,630 | |
Software – 13.7% | | | |
| | Altair Engineering Inc* | | 1,002,619 | | | 64,568,664 | |
| | Aspen Technology Inc* | | 484,826 | | | 80,175,676 | |
| | Avalara Inc* | | 625,022 | | | 62,195,939 | |
| | Blackbaud Inc* | | 1,986,409 | | | 118,926,307 | |
| | Ceridian HCM Holding Inc* | | 441,498 | | | 30,180,803 | |
| | Clearwater Analytics Holdings Inc - Class A* | | 582,586 | | | 12,234,306 | |
| | Consensus Cloud Solutions Inc* | | 512,150 | | | 30,795,580 | |
| | Dynatrace Inc* | | 1,901,578 | | | 89,564,324 | |
| | Envestnet Inc* | | 1,280,378 | | | 95,311,338 | |
| | j2 Global Inc* | | 1,536,453 | | | 148,697,921 | |
| | LivePerson Inc* | | 2,064,673 | | | 50,419,315 | |
| | Nice Ltd (ADR)* | | 254,734 | | | 55,786,746 | |
| | Pagerduty Inc* | | 2,817,109 | | | 96,316,957 | |
| | SS&C Technologies Holdings Inc | | 2,687,634 | | | 201,626,303 | |
| | Zendesk Inc* | | 1,309,933 | | | 157,571,841 | |
| | | 1,294,372,020 | |
Specialty Retail – 2.3% | | | |
| | Leslie's Inc* | | 3,886,290 | | | 75,238,574 | |
| | National Vision Holdings Inc* | | 1,962,464 | | | 85,504,557 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Specialty Retail– (continued) | | | |
| | Williams-Sonoma Inc | | 406,083 | | | $58,882,035 | |
| | | 219,625,166 | |
Technology Hardware, Storage & Peripherals – 0.6% | | | |
| | NCR Corp* | | 1,315,852 | | | 52,884,092 | |
Thrifts & Mortgage Finance – 1.9% | | | |
| | LendingTree Inc* | | 429,087 | | | 51,348,841 | |
| | Walker & Dunlop Inc | | 1,002,843 | | | 129,787,941 | |
| | | 181,136,782 | |
Total Common Stocks (cost $5,722,672,019) | | 9,099,193,098 | |
Private Investment in Public Equity (PIPES)– 1.9% | | | |
Capital Markets – 0.6% | | | |
| | P3 Health Partners Inc*,§ | | 6,493,848 | | | 50,781,891 | |
Diversified Financial Services – 1.3% | | | |
| | GS Acquisition Holdings Corp*,§ | | 9,458,407 | | | 76,329,345 | |
| | SomaLogic Holdings Inc*,§ | | 2,827,494 | | | 22,676,502 | |
| | Wallbox BV*,£,§ | | 1,355,820 | | | 17,286,705 | |
| | Xos Inc*,§ | | 3,032,434 | | | 9,066,978 | |
| | | 125,359,530 | |
Total Private Investment in Public Equity (PIPES) (cost $232,792,800) | | 176,141,421 | |
Preferred Stocks– 0.6% | | | |
Professional Services – 0.3% | | | |
| | IntelyCare Inc PP*,¢,§ | | 1,023,958 | | | 25,081,954 | |
Software – 0.3% | | | |
| | Loadsmart Inc PP - Series A*,¢,§ | | 377,303 | | | 7,168,757 | |
| | Loadsmart Inc PP - Series D*,¢,§ | | 1,075,313 | | | 21,506,260 | |
| | | 28,675,017 | |
Total Preferred Stocks (cost $53,756,971) | | 53,756,971 | |
Warrants– 0% | | | |
Electrical Equipment – 0% | | | |
| | Wallbox NV - Class A, expires 12/31/26*((cost $985,354) | | 665,780 | | | 2,200,403 | |
Investment Companies– 1.0% | | | |
Money Markets – 1.0% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $94,879,604) | | 94,870,117 | | | 94,879,604 | |
Investments Purchased with Cash Collateral from Securities Lending– 0.8% | | | |
Investment Companies – 0.6% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 60,570,146 | | | 60,570,146 | |
Time Deposits – 0.2% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $15,142,537 | | | 15,142,537 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $75,712,683) | | 75,712,683 | |
Total Investments (total cost $6,180,799,431) – 100.9% | | 9,501,884,180 | |
Liabilities, net of Cash, Receivables and Other Assets – (0.9)% | | (88,476,484) | |
Net Assets – 100% | | $9,413,407,696 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $9,267,763,964 | | 97.5 | % |
Canada | | 69,218,698 | | 0.7 | |
Israel | | 55,786,746 | | 0.6 | |
United Kingdom | | 42,001,418 | | 0.5 | |
Denmark | | 36,203,330 | | 0.4 | |
Spain | | 30,910,024 | | 0.3 | |
| | | | | | |
| | | | | | |
Total | | $9,501,884,180 | | 100.0 | % |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 3/31/22 |
Common Stocks - 3.6% |
Banks - 0.4% | |
| | MSD Acquisition Corp* | $ | - | $ | - | $ | 325,862 | $ | 41,099,385 |
Biotechnology - 1.7% | |
| | Eagle Pharmaceuticals Inc/DE* | | - | | - | | (6,074,794) | | 47,796,749 |
| | Ligand Pharmaceuticals Inc* | | - | | 1,429,763 | | (27,744,960) | | 113,655,171 |
Total Biotechnology | $ | - | $ | 1,429,763 | $ | (33,819,754) | $ | 161,451,920 |
Chemicals - N/A | |
| | Sensient Technologies Corpš | | 1,776,117 | | 19,755,579 | | (31,096,416) | | N/A |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp | | - | | - | | 3,821,581 | | - |
Electronic Equipment, Instruments & Components - 1.2% | |
| | OSI Systems Inc* | | - | | - | | (12,396,305) | | 109,005,523 |
Food Products - N/A | |
| | Hostess Brands Inc*,š | | - | | 2,776,918 | | 25,781,469 | | N/A |
Household Durables - 0.3% | |
| | Purple Innovation Inc* | | - | | - | | (54,672,027) | | 30,781,512 |
Total Common Stocks | $ | 1,776,117 | $ | 23,962,260 | $ | (102,055,590) | $ | 342,338,340 |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Wallbox BV*,§,š | | - | | - | | 6,060,515 | | N/A |
Investment Companies - 1.0% |
Money Markets - 1.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 26,847 | | 437 | | (437) | | 94,879,604 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 244,180∆ | | - | | - | | 60,570,146 |
Total Affiliated Investments - 5.2% | $ | 2,047,144 | $ | 23,962,697 | $ | (95,995,512) | $ | 497,788,090 |
(1) For securities that were affiliated for a portion of the period ended March 31, 2022, this column reflects amounts for the entire period ended March 31, 2022 and not just the period in which the security was affiliated.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Common Stocks - 3.6% |
Banks - 0.4% | |
| | MSD Acquisition Corp* | | 40,773,523 | | - | | - | | 41,099,385 |
Biotechnology - 1.7% | |
| | Eagle Pharmaceuticals Inc/DE* | | 53,871,543 | | - | | - | | 47,796,749 |
| | Ligand Pharmaceuticals Inc* | | 145,600,685 | | - | | (5,630,317) | | 113,655,171 |
Chemicals - N/A | |
| | Sensient Technologies Corpš | | 231,045,095 | | - | | (73,463,862) | | 146,240,396 |
Diversified Financial Services - N/A | |
| | Kensington Capital Acquisition Corp | | 22,809,648 | | - | | (26,631,229)Ð | | - |
Electronic Equipment, Instruments & Components - 1.2% | |
| | OSI Systems Inc* | | 121,401,828 | | - | | - | | 109,005,523 |
Food Products - N/A | |
| | Hostess Brands Inc*,š | | 114,429,165 | | - | | (15,212,678) | | 127,774,874 |
Household Durables - 0.3% | |
| | Purple Innovation Inc* | | 64,992,516 | | 20,461,023 | | - | | 30,781,512 |
Private Investment in Public Equity (PIPES) - N/A |
Diversified Financial Services - N/A | |
| | Wallbox BV*,§,š | | 11,226,190 | | - | | - | | 17,286,705 |
Investment Companies - 1.0% |
Money Markets - 1.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 188,325,249 | | 1,006,314,580 | | (1,099,760,225) | | 94,879,604 |
Investments Purchased with Cash Collateral from Securities Lending - 0.6% |
Investment Companies - 0.6% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 39,470,021 | | 416,766,462 | | (395,666,337) | | 60,570,146 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Barclays Capital, Inc.: | | | | | | | | |
British Pound | 4/7/22 | (1,783,000) | $ | 2,409,665 | $ | 67,916 | | |
Euro | 4/7/22 | 6,778,000 | | (7,564,129) | | (66,312) | | |
Euro | 4/7/22 | (8,721,000) | | 9,995,851 | | 348,689 | | |
Euro | 6/30/22 | (6,778,000) | | 7,589,377 | | 64,621 | | |
| | | | | | | | | |
| | | | | | | 414,914 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 4/7/22 | (728,000) | | 980,792 | | 24,654 | | |
Canadian Dollar | 4/7/22 | 8,081,000 | | (6,344,693) | | 120,014 | | |
Canadian Dollar | 4/7/22 | 15,577,000 | | (12,479,829) | | (18,406) | | |
Canadian Dollar | 4/7/22 | (20,070,000) | | 16,048,646 | | (7,126) | | |
Canadian Dollar | 6/30/22 | (15,577,000) | | 12,476,080 | | 17,261 | | |
| | | | | | | | | |
| | | | | | | 136,397 | | |
Credit Suisse International: | | | | | | | | |
Canadian Dollar | 4/7/22 | 15,577,000 | | (12,468,133) | | (6,711) | | |
Canadian Dollar | 4/7/22 | (20,530,000) | | 16,401,795 | | (21,972) | | |
Canadian Dollar | 6/30/22 | (15,577,000) | | 12,463,754 | | 4,935 | | |
Euro | 4/7/22 | 6,778,000 | | (7,568,200) | | (70,382) | | |
Euro | 4/7/22 | (8,721,000) | | 9,992,696 | | 345,534 | | |
Euro | 6/30/22 | (6,778,000) | | 7,592,133 | | 67,376 | | |
| | | | | | | | | |
| | | | | | | 318,780 | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 4/7/22 | 2,842,000 | | (3,850,975) | | (118,361) | | |
British Pound | 4/7/22 | (1,815,000) | | 2,375,786 | | (7,992) | | |
Canadian Dollar | 4/7/22 | 3,738,000 | | (2,931,865) | | 58,493 | | |
Canadian Dollar | 4/7/22 | 15,577,000 | | (12,479,571) | | (18,148) | | |
Canadian Dollar | 4/7/22 | (20,069,000) | | 16,044,931 | | (10,040) | | |
Canadian Dollar | 6/30/22 | (15,577,000) | | 12,476,172 | | 17,353 | | |
Euro | 4/7/22 | 13,598,000 | | (15,264,301) | | (222,207) | | |
Euro | 4/7/22 | (9,920,000) | | 11,364,805 | | 391,310 | | |
Euro | 4/7/22 | (3,953,000) | | 4,347,634 | | (25,171) | | |
Euro | 6/30/22 | (6,778,000) | | 7,588,039 | | 63,282 | | |
| | | | | | | | | |
| | | | | | | 128,519 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 4/7/22 | 508,000 | | (663,493) | | 3,702 | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | | |
British Pound | 4/7/22 | 36,404,000 | $ | (48,108,248) | $ | (296,106) | | |
British Pound | 4/7/22 | (34,228,000) | | 46,823,046 | | 1,868,810 | | |
British Pound | 4/7/22 | (1,200,000) | | 1,568,122 | | (7,930) | | |
British Pound | 6/30/22 | (30,458,000) | | 40,029,183 | | 38,111 | | |
Canadian Dollar | 4/7/22 | 3,723,000 | | (2,935,542) | | 42,817 | | |
Canadian Dollar | 4/7/22 | 15,577,000 | | (12,466,607) | | (5,184) | | |
Canadian Dollar | 4/7/22 | (23,570,000) | | 18,802,861 | | (52,870) | | |
Canadian Dollar | 6/30/22 | (15,577,000) | | 12,462,956 | | 4,137 | | |
Canadian Dollar | 6/30/22 | (2,600,000) | | 2,076,065 | | (3,470) | | |
Euro | 4/7/22 | 2,490,000 | | (2,832,457) | | (78,021) | | |
Euro | 4/7/22 | (1,855,000) | | 2,119,354 | | 67,354 | | |
Euro | 4/7/22 | (1,100,000) | | 1,211,441 | | (5,378) | | |
| | | | | | | | |
| | | | | | | 1,575,972 | |
State Street Bank and Trust Company: | | | | | | | |
Canadian Dollar | 4/7/22 | 6,389,000 | | (5,034,528) | | 76,600 | | |
Euro | 4/7/22 | 2,500,000 | | (2,749,573) | | 15,925 | | |
Euro | 4/7/22 | 2,126,000 | | (2,370,421) | | (18,642) | | |
| | | | | | | | |
| | | | | | | 73,883 | |
Total | | | | | $ | 2,648,465 | |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $3,708,894 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $1,060,429 |
| | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
14 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Schedule of Investments (unaudited)
March 31, 2022
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended March 31, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $1,387,905 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 397,748 |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Value of Derivative Instruments During the Period Ended March 31, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $38,470,465 |
Average amounts sold - in USD | 167,893,284 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 15 |
Janus Henderson Triton Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
Russell 2000® Growth Index | Russell 2000® Growth Index reflects the performance of U.S. small-cap equities with higher price-to-book ratios and higher forecasted growth values. |
Russell 2500TM Growth Index | Russell 2500TM Growth Index reflects the performance of U.S. small to mid-cap equities with higher price-to-book ratios and higher forecasted growth values. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $53,756,971, which represents 0.6% of net assets. |
| | |
£ | 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. |
| | |
š | Company was no longer an affiliate as of March 31, 2022. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | |
Ð | All or a portion is the result of a corporate action. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
GS Acquisition Holdings Corp | 6/16/21 | $ | 94,584,070 | $ | 76,329,345 | | 0.8 | % |
IntelyCare Inc PP | 3/29/22 | | 25,081,954 | | 25,081,954 | | 0.3 | |
Loadsmart Inc PP - Series A | 1/4/22 | | 7,168,757 | | 7,168,757 | | 0.1 | |
Loadsmart Inc PP - Series D | 1/4/22 | | 21,506,260 | | 21,506,260 | | 0.2 | |
P3 Health Partners Inc | 5/25/21 | | 61,934,635 | | 50,781,891 | | 0.6 | |
SomaLogic Holdings Inc | 3/29/21 | | 28,274,940 | | 22,676,502 | | 0.2 | |
Wallbox BV | 6/9/21 | | 13,558,200 | | 17,286,705 | | 0.2 | |
Xos Inc | 2/22/21 - 2/23/21 | | 34,440,955 | | 9,066,978 | | 0.1 | |
Total | | $ | 286,549,771 | $ | 229,898,392 | | 2.5 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Triton Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | | | | | | |
Biotechnology | $ | 669,131,216 | $ | 42,001,418 | $ | - |
All Other | | 8,388,060,464 | | - | | - |
Private Investment in Public Equity (PIPES) | | 9,066,978 | | 167,074,443 | | - |
Preferred Stocks | | - | | - | | 53,756,971 |
Warrants | | 2,200,403 | | - | | - |
Investment Companies | | - | | 94,879,604 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 75,712,683 | | - |
Total Investments in Securities | $ | 9,068,459,061 | $ | 379,668,148 | $ | 53,756,971 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 3,708,894 | | - |
Total Assets | $ | 9,068,459,061 | $ | 383,377,042 | $ | 53,756,971 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 1,060,429 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures 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. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Triton Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $5,607,078,171)(1) | | $ | 9,004,096,090 | |
| Affiliated investments, at value (cost $573,721,260) | | | 497,788,090 | |
| Forward foreign currency exchange contracts | | | 3,708,894 | |
| Non-interested Trustees' deferred compensation | | | 258,767 | |
| Receivables: | | | | |
| | Fund shares sold | | | 39,675,467 | |
| | Dividends | | | 1,237,599 | |
| | Investments sold | | | 880,234 | |
| | Foreign tax reclaims | | | 201,263 | |
| | Dividends from affiliates | | | 4,193 | |
| Other assets | | | 237,092 | |
Total Assets | | | 9,548,087,689 | |
Liabilities: | | | | |
| Due to custodian | | | 3,886 | |
| Collateral for securities loaned (Note 3) | | | 75,712,683 | |
| Forward foreign currency exchange contracts | | | 1,060,429 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 50,541,807 | |
| | Advisory fees | | | 5,058,270 | |
| | Transfer agent fees and expenses | | | 1,235,579 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 287,031 | |
| | Non-interested Trustees' deferred compensation fees | | | 258,767 | |
| | Professional fees | | | 41,488 | |
| | Non-interested Trustees' fees and expenses | | | 40,338 | |
| | Affiliated fund administration fees payable | | | 19,759 | |
| | Custodian fees | | | 3,922 | |
| | Accrued expenses and other payables | | | 416,034 | |
Total Liabilities | | | 134,679,993 | |
Net Assets | | $ | 9,413,407,696 | |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 5,506,337,448 | |
| Total distributable earnings (loss) | | | 3,907,070,248 | |
Total Net Assets | | $ | 9,413,407,696 | |
Net Assets - Class A Shares | | $ | 382,148,199 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 13,030,492 | |
Net Asset Value Per Share(2) | | $ | 29.33 | |
Maximum Offering Price Per Share(3) | | $ | 31.12 | |
Net Assets - Class C Shares | | $ | 32,934,163 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,286,204 | |
Net Asset Value Per Share(2) | | $ | 25.61 | |
Net Assets - Class D Shares | | $ | 1,136,223,142 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 36,973,969 | |
Net Asset Value Per Share | | $ | 30.73 | |
Net Assets - Class I Shares | | $ | 1,624,086,671 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 52,289,173 | |
Net Asset Value Per Share | | $ | 31.06 | |
Net Assets - Class N Shares | | $ | 3,506,006,339 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 111,788,188 | |
Net Asset Value Per Share | | $ | 31.36 | |
Net Assets - Class R Shares | | $ | 256,315,943 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 9,235,626 | |
Net Asset Value Per Share | | $ | 27.75 | |
Net Assets - Class S Shares | | $ | 336,353,089 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 11,640,418 | |
Net Asset Value Per Share | | $ | 28.90 | |
Net Assets - Class T Shares | | $ | 2,139,340,150 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 70,706,506 | |
Net Asset Value Per Share | | $ | 30.26 | |
| |
(1) Includes $71,381,754 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Triton Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 21,183,218 | |
| Dividends from affiliates | | 1,802,964 | |
| Affiliated securities lending income, net | | 244,180 | |
| Unaffiliated securities lending income, net | | 3,933 | |
| Other income | | 79 | |
| Foreign tax withheld | | (130,636) | |
Total Investment Income | | 23,103,738 | |
Expenses: | | | |
| Advisory fees | | 34,174,170 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 525,769 | |
| | Class C Shares | | 192,702 | |
| | Class R Shares | | 683,993 | |
| | Class S Shares | | 492,438 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 684,726 | |
| | Class R Shares | | 347,907 | |
| | Class S Shares | | 494,779 | |
| | Class T Shares | | 3,049,094 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 800,936 | |
| | Class C Shares | | 14,557 | |
| | Class I Shares | | 890,332 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 13,780 | |
| | Class C Shares | | 1,057 | |
| | Class D Shares | | 61,351 | |
| | Class I Shares | | 64,382 | |
| | Class N Shares | | 74,694 | |
| | Class R Shares | | 2,945 | |
| | Class S Shares | | 2,528 | |
| | Class T Shares | | 10,465 | |
| Shareholder reports expense | | 152,101 | |
| Registration fees | | 137,849 | |
| Affiliated fund administration fees | | 133,492 | |
| Non-interested Trustees’ fees and expenses | | 85,874 | |
| Custodian fees | | 70,828 | |
| Professional fees | | 47,909 | |
| Other expenses | | 324,112 | |
Total Expenses | | 43,534,770 | |
Less: Excess Expense Reimbursement and Waivers | | (451,037) | |
Net Expenses | | 43,083,733 | |
Net Investment Income/(Loss) | | (19,979,995) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 671,347,693 | |
| Investments in affiliates | | 23,962,697 | |
| Forward foreign currency exchange contracts | | 1,387,905 | |
Total Net Realized Gain/(Loss) on Investments | | 696,698,295 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (1,248,168,968) | |
| Investments in affiliates | | (95,995,512) | |
| Forward foreign currency exchange contracts | | 397,748 | |
Total Change in Unrealized Net Appreciation/Depreciation | | (1,343,766,732) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (667,048,432) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Triton Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (19,979,995) | | $ | (49,031,496) | |
| Net realized gain/(loss) on investments | | 696,698,295 | | | 2,261,924,577 | |
| Change in unrealized net appreciation/depreciation | | (1,343,766,732) | | | 1,229,246,038 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (667,048,432) | | | 3,442,139,119 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (79,886,294) | | | (20,918,705) | |
| | Class C Shares | | (8,666,725) | | | (5,224,115) | |
| | Class D Shares | | (220,219,254) | | | (52,614,084) | |
| | Class I Shares | | (331,363,921) | | | (94,827,813) | |
| | Class N Shares | | (711,413,843) | | | (187,894,503) | |
| | Class R Shares | | (53,978,801) | | | (14,319,168) | |
| | Class S Shares | | (72,364,312) | | | (22,371,704) | |
| | Class T Shares | | (450,188,562) | | | (118,585,208) | |
Net Decrease from Dividends and Distributions to Shareholders | | (1,928,081,712) | | | (516,755,300) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 21,636,491 | | | (61,612,927) | |
| | Class C Shares | | (5,558,581) | | | (72,525,699) | |
| | Class D Shares | | 145,276,977 | | | (64,762,842) | |
| | Class I Shares | | (10,828,270) | | | (416,233,465) | |
| | Class N Shares | | 53,056,510 | | | (499,325,933) | |
| | Class R Shares | | 35,080,695 | | | (62,146,403) | |
| | Class S Shares | | (20,242,184) | | | (118,034,473) | |
| | Class T Shares | | 71,786,607 | | | (372,317,004) | |
Net Increase/(Decrease) from Capital Share Transactions | | 290,208,245 | | | (1,666,958,746) | |
Net Increase/(Decrease) in Net Assets | | (2,304,921,899) | | | 1,258,425,073 | |
Net Assets: | | | | | | |
| Beginning of period | | 11,718,329,595 | | | 10,459,904,522 | |
| End of period | $ | 9,413,407,696 | | $ | 11,718,329,595 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $38.38 | | | $30.01 | | | $29.95 | | | $33.12 | | | $28.03 | | | $23.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.12) | | | (0.26) | | | (0.16) | | | (0.08) | | | (0.07) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | (2.00) | | | 10.22 | | | 1.55 | | | (1.19) | | | 6.62 | | | 4.97 | |
| Total from Investment Operations | | (2.12) | | | 9.96 | | | 1.39 | | | (1.27) | | | 6.55 | | | 4.89 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $29.33 | | | $38.38 | | | $30.01 | | | $29.95 | | | $33.12 | | | $28.03 | |
| Total Return* | | (6.48)% | | | 33.41% | | | 4.64% | | | (2.69)% | | | 24.26% | | | 21.06% | |
| Net Assets, End of Period (in thousands) | | $382,148 | | | $467,269 | | | $416,036 | | | $491,045 | | | $586,644 | | | $498,657 | |
| Average Net Assets for the Period (in thousands) | | $426,625 | | | $494,458 | | | $430,974 | | | $501,143 | | | $544,457 | | | $532,950 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.29% | | | 1.29% | | | 1.35% | | | 1.33% | | | 1.30% | | | 1.26% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.12% | | | 1.10% | | | 1.12% | | | 1.12% | | | 1.12% | | | 1.14% | |
| | Ratio of Net Investment Income/(Loss) | | (0.69)% | | | (0.69)% | | | (0.57)% | | | (0.28)% | | | (0.25)% | | | (0.30)% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $34.49 | | | $27.23 | | | $27.45 | | | $30.72 | | | $26.25 | | | $22.45 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.19) | | | (0.42) | | | (0.30) | | | (0.23) | | | (0.25) | | | (0.22) | |
| | Net realized and unrealized gain/(loss) | | (1.76) | | | 9.27 | | | 1.41 | | | (1.14) | | | 6.18 | | | 4.67 | |
| Total from Investment Operations | | (1.95) | | | 8.85 | | | 1.11 | | | (1.37) | | | 5.93 | | | 4.45 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $25.61 | | | $34.49 | | | $27.23 | | | $27.45 | | | $30.72 | | | $26.25 | |
| Total Return* | | (6.74)% | | | 32.72% | | | 4.02% | | | (3.26)% | | | 23.51% | | | 20.34% | |
| Net Assets, End of Period (in thousands) | | $32,934 | | | $49,738 | | | $97,105 | | | $150,431 | | | $206,617 | | | $215,499 | |
| Average Net Assets for the Period (in thousands) | | $41,730 | | | $75,187 | | | $124,872 | | | $168,909 | | | $219,336 | | | $216,651 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.66% | | | 1.65% | | | 1.70% | | | 1.68% | | | 1.74% | | | 1.75% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.66% | | | 1.65% | | | 1.70% | | | 1.68% | | | 1.74% | | | 1.75% | |
| | Ratio of Net Investment Income/(Loss) | | (1.24)% | | | (1.25)% | | | (1.14)% | | | (0.84)% | | | (0.88)% | | | (0.91)% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $39.82 | | | $30.99 | | | $30.79 | | | $33.89 | | | $28.56 | | | $24.18 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.06) | | | (0.14) | | | (0.07) | | | 0.01 | | | 0.02 | | | 0.01 | |
| | Net realized and unrealized gain/(loss) | | (2.10) | | | 10.56 | | | 1.60 | | | (1.21) | | | 6.77 | | | 5.05 | |
| Total from Investment Operations | | (2.16) | | | 10.42 | | | 1.53 | | | (1.20) | | | 6.79 | | | 5.06 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | (0.03) | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.68) | |
| Net Asset Value, End of Period | | $30.73 | | | $39.82 | | | $30.99 | | | $30.79 | | | $33.89 | | | $28.56 | |
| Total Return* | | (6.33)% | | | 33.85% | | | 4.98% | | | (2.41)% | | | 24.67% | | | 21.47% | |
| Net Assets, End of Period (in thousands) | | $1,136,223 | | | $1,289,904 | | | $1,057,332 | | | $1,191,950 | | | $1,302,196 | | | $1,074,740 | |
| Average Net Assets for the Period (in thousands) | | $1,232,034 | | | $1,297,945 | | | $1,088,543 | | | $1,183,056 | | | $1,190,715 | | | $979,341 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | (0.35)% | | | (0.37)% | | | (0.25)% | | | 0.04% | | | 0.07% | | | 0.03% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $40.17 | | | $31.24 | | | $31.02 | | | $34.11 | | | $28.72 | | | $24.31 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.06) | | | (0.13) | | | (0.06) | | | 0.02 | | | 0.04 | | | 0.02 | |
| | Net realized and unrealized gain/(loss) | | (2.12) | | | 10.65 | | | 1.61 | | | (1.21) | | | 6.81 | | | 5.08 | |
| Total from Investment Operations | | (2.18) | | | 10.52 | | | 1.55 | | | (1.19) | | | 6.85 | | | 5.10 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | (0.04) | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.69) | |
| Net Asset Value, End of Period | | $31.06 | | | $40.17 | | | $31.24 | | | $31.02 | | | $34.11 | | | $28.72 | |
| Total Return* | | (6.32)% | | | 33.90% | | | 5.00% | | | (2.36)% | | | 24.74% | | | 21.52% | |
| Net Assets, End of Period (in thousands) | | $1,624,087 | | | $2,082,427 | | | $1,953,114 | | | $2,235,807 | | | $2,451,517 | | | $1,928,184 | |
| Average Net Assets for the Period (in thousands) | | $1,861,562 | | | $2,243,961 | | | $2,022,112 | | | $2,206,658 | | | $2,158,823 | | | $1,641,647 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.76% | | | 0.76% | | | 0.75% | | | 0.77% | |
| | Ratio of Net Investment Income/(Loss) | | (0.33)% | | | (0.34)% | | | (0.21)% | | | 0.08% | | | 0.12% | | | 0.07% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
24 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $40.48 | | | $31.44 | | | $31.18 | | | $34.24 | | | $28.80 | | | $24.37 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.04) | | | (0.10) | | | (0.03) | | | 0.05 | | | 0.07 | | | 0.04 | |
| | Net realized and unrealized gain/(loss) | | (2.15) | | | 10.73 | | | 1.62 | | | (1.21) | | | 6.83 | | | 5.10 | |
| Total from Investment Operations | | (2.19) | | | 10.63 | | | 1.59 | | | (1.16) | | | 6.90 | | | 5.14 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | (0.06) | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.71) | |
| Net Asset Value, End of Period | | $31.36 | | | $40.48 | | | $31.44 | | | $31.18 | | | $34.24 | | | $28.80 | |
| Total Return* | | (6.30)% | | | 34.04% | | | 5.11% | | | (2.26)% | | | 24.85% | | | 21.63% | |
| Net Assets, End of Period (in thousands) | | $3,506,006 | | | $4,412,467 | | | $3,824,419 | | | $3,848,034 | | | $3,218,359 | | | $1,614,834 | |
| Average Net Assets for the Period (in thousands) | | $4,024,838 | | | $4,658,162 | | | $3,817,816 | | | $3,452,214 | | | $2,381,425 | | | $1,158,522 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.66% | | | 0.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.23)% | | | (0.25)% | | | (0.12)% | | | 0.17% | | | 0.23% | | | 0.17% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $36.75 | | | $28.86 | | | $28.94 | | | $32.17 | | | $27.34 | | | $23.28 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.15) | | | (0.35) | | | (0.24) | | | (0.16) | | | (0.16) | | | (0.14) | |
| | Net realized and unrealized gain/(loss) | | (1.92) | | | 9.83 | | | 1.49 | | | (1.17) | | | 6.45 | | | 4.85 | |
| Total from Investment Operations | | (2.07) | | | 9.48 | | | 1.25 | | | (1.33) | | | 6.29 | | | 4.71 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $27.75 | | | $36.75 | | | $28.86 | | | $28.94 | | | $32.17 | | | $27.34 | |
| Total Return* | | (6.65)% | | | 33.06% | | | 4.30% | | | (2.97)% | | | 23.91% | | | 20.74% | |
| Net Assets, End of Period (in thousands) | | $256,316 | | | $293,567 | | | $281,907 | | | $325,507 | | | $386,643 | | | $314,746 | |
| Average Net Assets for the Period (in thousands) | | $279,090 | | | $316,824 | | | $295,035 | | | $341,001 | | | $352,329 | | | $276,566 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.40% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | | | 1.42% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.40% | | | 1.40% | | | 1.41% | | | 1.41% | | | 1.41% | | | 1.42% | |
| | Ratio of Net Investment Income/(Loss) | | (0.97)% | | | (0.99)% | | | (0.86)% | | | (0.57)% | | | (0.54)% | | | (0.58)% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 25 |
Janus Henderson Triton Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $37.93 | | | $29.68 | | | $29.65 | | | $32.83 | | | $27.81 | | | $23.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.12) | | | (0.28) | | | (0.17) | | | (0.09) | | | (0.09) | | | (0.08) | |
| | Net realized and unrealized gain/(loss) | | (1.98) | | | 10.12 | | | 1.53 | | | (1.19) | | | 6.57 | | | 4.93 | |
| Total from Investment Operations | | (2.10) | | | 9.84 | | | 1.36 | | | (1.28) | | | 6.48 | | | 4.85 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Net Asset Value, End of Period | | $28.90 | | | $37.93 | | | $29.68 | | | $29.65 | | | $32.83 | | | $27.81 | |
| Total Return* | | (6.50)% | | | 33.37% | | | 4.58% | | | (2.75)% | | | 24.20% | | | 21.05% | |
| Net Assets, End of Period (in thousands) | | $336,353 | | | $452,832 | | | $450,947 | | | $520,950 | | | $619,660 | | | $498,839 | |
| Average Net Assets for the Period (in thousands) | | $396,911 | | | $498,603 | | | $471,543 | | | $541,037 | | | $553,006 | | | $435,784 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.16% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.72)% | | | (0.75)% | | | (0.61)% | | | (0.32)% | | | (0.29)% | | | (0.33)% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $39.34 | | | $30.67 | | | $30.51 | | | $33.64 | | | $28.39 | | | $24.05 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.08) | | | (0.19) | | | (0.10) | | | (0.02) | | | (0.01) | | | (0.02) | |
| | Net realized and unrealized gain/(loss) | | (2.07) | | | 10.45 | | | 1.59 | | | (1.21) | | | 6.72 | | | 5.03 | |
| Total from Investment Operations | | (2.15) | | | 10.26 | | | 1.49 | | | (1.23) | | | 6.71 | | | 5.01 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | (0.02) | |
| | Distributions (from capital gains) | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.65) | |
| Total Dividends and Distributions | | (6.93) | | | (1.59) | | | (1.33) | | | (1.90) | | | (1.46) | | | (0.67) | |
| Net Asset Value, End of Period | | $30.26 | | | $39.34 | | | $30.67 | | | $30.51 | | | $33.64 | | | $28.39 | |
| Total Return* | | (6.39)% | | | 33.67% | | | 4.89% | | | (2.52)% | | | 24.53% | | | 21.34% | |
| Net Assets, End of Period (in thousands) | | $2,139,340 | | | $2,670,126 | | | $2,379,045 | | | $2,881,377 | | | $3,317,058 | | | $2,784,374 | |
| Average Net Assets for the Period (in thousands) | | $2,445,977 | | | $2,809,155 | | | $2,557,135 | | | $2,940,071 | | | $3,031,535 | | | $2,611,122 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.90% | | | 0.90% | | | 0.90% | | | 0.90% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.47)% | | | (0.49)% | | | (0.35)% | | | (0.07)% | | | (0.04)% | | | (0.07)% | |
| Portfolio Turnover Rate | | 4% | | | 24% | | | 32% | | | 26% | | | 21% | | | 30% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
26 | MARCH 31, 2022 |
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Triton Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks long-term growth of capital. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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.
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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 futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
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 purposes (to earn income and seek to enhance returns). 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 that 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
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
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.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – 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 – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – 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 – the risk related 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 – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC 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. Additionally, the Fund may deposit cash and/or treasuries 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 contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE are used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The realized 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 forward currency contract is reported on the Statement of Operations (if applicable).
During the period, the Fund entered into forward currency contracts with the obligation to purchase 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.
During the period, the Fund entered into forward currency 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.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
within the EU. 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. Among other things, these developments have adversely affected the value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 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 has entered 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.
The following tables present gross amounts of recognized assets and/or 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 the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022” table located in the Fund’s Schedule of Investments.
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets | |
| | |
| | | Gross Amounts | | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount | |
| | | | | | | | | | |
Barclays Capital, Inc. | $ | 481,226 | $ | (66,312) | $ | — | $ | 414,914 | |
Citibank, National Association | | 161,929 | | (25,532) | | — | | 136,397 | |
Credit Suisse International | | 417,845 | | (99,065) | | — | | 318,780 | |
HSBC Securities (USA), Inc. | | 530,438 | | (401,919) | | — | | 128,519 | |
JPMorgan Chase Bank, National Association | | 73,406,685 | | (448,959) | | (71,381,754) | | 1,575,972 | |
State Street Bank and Trust Company | | 92,525 | | (18,642) | | — | | 73,883 | |
| | | | | | | | | | |
Total | $ | 75,090,648 | $ | (1,060,429) | $ | (71,381,754) | $ | 2,648,465 | |
Offsetting of Financial Liabilities and Derivative Liabilities | |
| | |
| | | Gross Amounts | | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount | |
| | | | | | | | | | |
Barclays Capital, Inc. | $ | 66,312 | $ | (66,312) | $ | — | $ | — | |
Citibank, National Association | | 25,532 | | (25,532) | | — | | — | |
Credit Suisse International | | 99,065 | | (99,065) | | — | | — | |
HSBC Securities (USA), Inc. | | 401,919 | | (401,919) | | — | | — | |
JPMorgan Chase Bank, National Association | | 448,959 | | (448,959) | | — | | — | |
State Street Bank and Trust Company | | 18,642 | | (18,642) | | — | | — | |
| | | | | | | | | | |
Total | $ | 1,060,429 | $ | (1,060,429) | $ | — | $ | — | |
(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. | |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Special Purpose Acquisition Companies (SPAC)
The Fund may invest in stock, warrants, and other securities of special purpose acquisition companies (“SPACs”) or similar entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC typically invests its assets (less a portion retained to cover expenses) in U.S. Government securities, money market fund securities, and cash. If an acquisition that meets the requirements for the SPAC is not completed within a pre-established period of time (typically two years), the invested funds are returned to the SPAC’s shareholders. Because SPACs and similar entities are in essence blank check companies without an operating history or ongoing business other than seeking acquisitions, the value of a SPAC’s securities is particularly dependent on the ability of the SPAC’s management to timely identify and complete a profitable acquisition. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. To the extent the SPAC is invested in cash or similar securities while awaiting an acquisition opportunity, a Fund’s ability to meet its investment objective may be negatively impacted. In addition, some SPACs may be traded in the over-the-counter market and may be considered illiquid and/or be subject to restrictions on resale.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
security by the time the replacement investment is made, resulting in a loss to the Fund. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson 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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $71,381,754. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $75,712,683, resulting in the net amount due to the counterparty of $4,330,929.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.64% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.92% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors.
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class R Shares, Class S Shares, and Class T Shares for providing or procuring administrative services to investors in Class R Shares, Class S Shares, and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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 the Fund. The Transfer Agent 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. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Plan, the Trust is authorized to make payments to the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $1,370.
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $459.
The Fund is permitted to purchase or sell securities (“cross-trade”) between itself and other funds or accounts managed by the Adviser in accordance with Rule 17a-7 under the Investment Company Act of 1940 (“Rule 17a-7”), when the transaction is consistent with the investment objectives and policies of the Fund and in accordance with the Internal Cross Trade Procedures adopted by the Trust’s Board of Trustees. These procedures have been designed to ensure that any cross-trade of securities by the Fund from or to another fund or account that is or could be considered an affiliate of the Fund under certain limited circumstances by virtue of having a common investment adviser, common Officer, or common Trustee complies with Rule 17a-7. Under these procedures, each cross-trade is effected at the current market price to save costs where allowed. During the period ended March 31, 2022, the Fund engaged in cross trades amounting to $7,549,570 in sales, resulting in a net realized gain of $2,470,130. The net realized gain is included within the “Net Realized Gain/(Loss) on Investments” section of the Fund’s Statement of Operations.
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 6,189,792,708 | $ 3,842,162,325 | $(530,070,853) | $ 3,312,091,472 |
Information on the tax components of derivatives as of March 31, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ - | $ 3,708,894 | $ (1,060,429) | $ 2,648,465 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 2,001,345 | $ 64,476,321 | | 3,853,025 | $ 144,902,447 |
Reinvested dividends and distributions | 1,630,945 | 50,477,762 | | 346,342 | 12,748,838 |
Shares repurchased | (2,775,745) | (93,317,592) | | (5,889,451) | (219,264,212) |
Net Increase/(Decrease) | 856,545 | $ 21,636,491 | | (1,690,084) | $ (61,612,927) |
Class C Shares: | | | | | |
Shares sold | 20,740 | $ 609,903 | | 41,662 | $ 1,410,929 |
Reinvested dividends and distributions | 315,522 | 8,538,022 | | 155,451 | 5,162,542 |
Shares repurchased | (492,285) | (14,706,506) | | (2,320,663) | (79,099,170) |
Net Increase/(Decrease) | (156,023) | $ (5,558,581) | | (2,123,550) | $ (72,525,699) |
Class D Shares: | | | | | |
Shares sold | 582,633 | $ 19,663,483 | | 1,527,088 | $ 59,085,722 |
Reinvested dividends and distributions | 6,559,596 | 212,530,907 | | 1,342,054 | 51,118,827 |
Shares repurchased | (2,558,762) | (86,917,413) | | (4,593,066) | (174,967,391) |
Net Increase/(Decrease) | 4,583,467 | $145,276,977 | | (1,723,924) | $ (64,762,842) |
Class I Shares: | | | | | |
Shares sold | 3,360,686 | $113,940,238 | | 7,377,365 | $ 287,287,212 |
Reinvested dividends and distributions | 9,090,129 | 297,610,830 | | 2,237,820 | 85,954,671 |
Shares repurchased | (11,999,724) | (422,379,338) | | (20,291,149) | (789,475,348) |
Net Increase/(Decrease) | 451,091 | $ (10,828,270) | | (10,675,964) | $ (416,233,465) |
Class N Shares: | | | | | |
Shares sold | 9,473,238 | $325,022,839 | | 23,123,566 | $ 908,840,328 |
Reinvested dividends and distributions | 20,501,639 | 677,579,161 | | 4,627,982 | 179,010,359 |
Shares repurchased | (27,197,549) | (949,545,490) | | (40,368,606) | (1,587,176,620) |
Net Increase/(Decrease) | 2,777,328 | $ 53,056,510 | | (12,617,058) | $ (499,325,933) |
Class R Shares: | | | | | |
Shares sold | 605,246 | $ 18,607,255 | | 1,089,601 | $ 38,896,368 |
Reinvested dividends and distributions | 1,823,751 | 53,454,135 | | 398,972 | 14,091,687 |
Shares repurchased | (1,182,495) | (36,980,695) | | (3,265,891) | (115,134,458) |
Net Increase/(Decrease) | 1,246,502 | $ 35,080,695 | | (1,777,318) | $ (62,146,403) |
Class S Shares: | | | | | |
Shares sold | 860,940 | $ 27,726,961 | | 2,184,486 | $ 80,368,356 |
Reinvested dividends and distributions | 2,334,571 | 71,181,074 | | 605,674 | 22,034,418 |
Shares repurchased | (3,494,065) | (119,150,219) | | (6,042,323) | (220,437,247) |
Net Increase/(Decrease) | (298,554) | $ (20,242,184) | | (3,252,163) | $ (118,034,473) |
Class T Shares: | | | | | |
Shares sold | 2,037,083 | $ 68,961,471 | | 6,341,829 | $ 243,373,921 |
Reinvested dividends and distributions | 13,871,334 | 442,634,268 | | 3,101,260 | 116,793,438 |
Shares repurchased | (13,077,819) | (439,809,132) | | (19,145,899) | (732,484,363) |
Net Increase/(Decrease) | 2,830,598 | $ 71,786,607 | | (9,702,810) | $ (372,317,004) |
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$389,675,334 | $2,107,513,533 | $ - | $ - |
Janus Henderson Triton Fund
Notes to Financial Statements (unaudited)
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Triton Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Triton Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Triton Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Triton Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Triton Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Triton Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Triton Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Triton Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Triton Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Triton Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Triton Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Triton Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Triton Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Triton Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Triton Fund
Notes
NotesPage1
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| | | | |
This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93054 05-22 |
| | | | |
| | | |
| | | SEMIANNUAL REPORT March 31, 2022 |
| | |
| | Janus Henderson Venture Fund |
| | |
| | Janus Investment Fund |
| |
| | | HIGHLIGHTS · Investment strategy behind your fund · Fund performance, characteristics
and holdings |
Table of Contents
Janus Henderson Venture Fund
| | | | | | |
FUND SNAPSHOT A moderately positioned U.S. small-cap growth fund seeking capital appreciation. Invests in small-cap companies with differentiated business models and sustainable competitive advantages that we believe are positioned to grow market share regardless of economic conditions. | | | | 
Jonathan Coleman co-portfolio manager | 
Scott Stutzman co-portfolio manager |
| | | |
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
Fund At A Glance
March 31, 2022
| | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| 5 Top Contributors - Holdings | 5 Top Detractors - Holdings |
| | Average
Weight | | Relative
Contribution | | | Average
Weight | | Relative
Contribution |
| ON Semiconductor Corp | 1.97% | | 0.81% | | NeoGenomics Inc | 0.72% | | -0.47% |
| LPL Financial Holdings Inc | 2.29% | | 0.61% | | LivePerson Inc | 0.78% | | -0.43% |
| Sealed Air Corp | 1.20% | | 0.34% | | ModivCare Inc | 1.15% | | -0.33% |
| SS&C Technologies Holdings Inc | 1.90% | | 0.34% | | Redfin Corp | 0.66% | | -0.28% |
| Zogenix Inc | 0.29% | | 0.28% | | Paylocity Holding Corp | 1.63% | | -0.28% |
| | | | | | | |
| 5 Top Contributors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Consumer Discretionary | | 1.23% | | 9.06% | 14.67% |
| Information Technology | | 0.50% | | 29.95% | 22.71% |
| Financials | | 0.41% | | 7.12% | 5.56% |
| Health Care | | 0.39% | | 24.83% | 25.86% |
| Materials | | 0.36% | | 6.07% | 3.22% |
| | | | | | |
| | | | | | |
| 5 Top Detractors - Sectors* | | | | | |
| | | Relative | | Fund | Russell 2000 Growth Index |
| | | Contribution | | Average Weight | Average Weight |
| Industrials | | -1.23% | | 14.92% | 15.28% |
| Energy | | -1.06% | | 0.00% | 2.56% |
| Real Estate | | -0.71% | | 2.09% | 3.12% |
| Consumer Staples | | -0.26% | | 1.83% | 3.88% |
| Utilities | | -0.05% | | 0.00% | 0.34% |
| | | | | | | |
| Relative contribution reflects how the portolio's holdings impacted return relative to the benchmark. Cash and securities not held in the portfolio are not shown. For equity portfolios, relative contribution compares the performance of a security in the portfolio to the benchmark's total return, factoring in the difference in weight of that security in the benchmark. Returns are calculated using daily returns and previous day ending weights rolled up by ticker, excluding fixed income securities, gross of advisory fees, may exclude certain derivatives and will differ from actual performance.
Performance attribution reflects returns gross of advisory fees and may differ from actual returns as they are based on end of day holdings. Attribution is calculated by geometrically linking daily returns for the portfolio and index. |
* | 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. |
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
Fund At A Glance
March 31, 2022
| | |
5 Largest Equity Holdings - (% of Net Assets) |
Catalent Inc | |
Pharmaceuticals | 2.7% |
LPL Financial Holdings Inc | |
Capital Markets | 2.6% |
Nice Ltd (ADR) | |
Software | 2.2% |
SS&C Technologies Holdings Inc | |
Software | 2.0% |
Valvoline Inc | |
Chemicals | 1.9% |
| | 11.4% |
| | | | | | |
Asset Allocation - (% of Net Assets) | |
Common Stocks | | 96.8% | |
Investments Purchased with Cash Collateral from Securities Lending | | 2.9% | |
Investment Companies | | 2.0% | |
Preferred Stocks | | 0.8% | |
Private Investment in Public Equity (PIPES) | | 0.4% | |
Warrants | | 0.0% | |
Rights | | 0.0% | |
Other | | (2.9)% |
| | | 100.0% |
| | |
Top Country Allocations - Long Positions - (% of Investment Securities) |
As of March 31, 2022 
| As of September 30, 2021 
|
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
Performance
| |
See important disclosures on the next page. |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | |
Average Annual Total Return - for the periods ended March 31, 2022 | | | Prospectus Expense Ratios |
| | Fiscal
Year-to-Date | One
Year | Five
Year | Ten
Year | Since
Inception* | | | Total Annual Fund
Operating Expenses‡ |
Class A Shares at NAV(1) | | -13.00% | -8.37% | 11.60% | 12.07% | 11.85% | | | 1.00% |
Class A Shares at MOP(1) | | -18.00% | -13.64% | 10.29% | 11.40% | 11.67% | | | |
Class C Shares at NAV(1) | | -13.29% | -9.05% | 10.80% | 11.29% | 11.10% | | | 1.80% |
Class C Shares at CDSC(1) | | -14.04% | -9.84% | 10.80% | 11.29% | 11.10% | | | |
Class D Shares(1) | | -12.89% | -8.17% | 11.85% | 12.34% | 12.07% | | | 0.78% |
Class I Shares(1) | | -12.89% | -8.15% | 11.90% | 12.40% | 12.08% | | | 0.75% |
Class N Shares(1) | | -12.85% | -8.06% | 11.99% | 12.49% | 12.10% | | | 0.66% |
Class S Shares(1) | | -13.06% | -8.53% | 11.43% | 11.93% | 11.72% | | | 1.16% |
Class T Shares(1) | | -12.94% | -8.27% | 11.73% | 12.22% | 12.03% | | | 0.91% |
Russell 2000 Growth Index | | -12.62% | -14.33% | 10.33% | 11.21% | 8.42% | | | |
Russell 2000 Index | | -5.55% | -5.79% | 9.74% | 11.04% | 9.80% | | | |
Morningstar Quartile - Class T Shares | | - | 3rd | 3rd | 3rd | 1st | | | |
Morningstar Ranking - based on total returns for Small Growth Funds | | - | 308/626 | 399/587 | 276/536 | 8/50 | | | |
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 800.668.0434 (or 800.525.3713 if you hold shares directly with Janus Henderson) or visit janushenderson.com/performance (or janushenderson.com/allfunds if you hold shares directly with Janus Henderson).
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.
Performance may be affected by risks that include those associated with foreign and emerging markets, fixed income securities, high-yield and high-risk securities, undervalued, overlooked and smaller capitalization companies, real estate related securities including Real Estate Investment Trusts (REITs), Environmental, Social and Governance (ESG) factors, non-diversification, portfolio turnover, derivatives, short sales, initial public offerings (IPOs) and potential conflicts of interest. Each product has different risks. Please see the prospectus for more information about risks, 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
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
Performance
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 (renamed Class T Shares effective February 16, 2010), 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 former 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.
© 2022 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.
Index performance does not reflect the expenses of managing a portfolio as an index is unmanaged and not available for direct investment.
See “Useful Information About Your Fund Report.”
*The Fund’s inception date – April 30, 1985
‡ As stated in the prospectus. See Financial Highlights for actual expense ratios during the reporting period.
(1) Closed to certain new investors.
Janus Henderson Venture Fund (unaudited)(closed to certain new investors)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses 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.
| | | | | | | | | | | |
| | | | | | | | |
| | | Actual | | Hypothetical
(5% return before expenses) | |
| Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | | Beginning
Account
Value
(10/1/21) | Ending
Account
Value
(3/31/22) | Expenses
Paid During
Period
(10/1/21 - 3/31/22)† | Net Annualized
Expense Ratio
(10/1/21 - 3/31/22) |
Class A Shares | $1,000.00 | $870.00 | $4.71 | | $1,000.00 | $1,019.90 | $5.09 | 1.01% |
Class C Shares | $1,000.00 | $867.10 | $7.91 | | $1,000.00 | $1,016.45 | $8.55 | 1.70% |
Class D Shares | $1,000.00 | $871.10 | $3.69 | | $1,000.00 | $1,020.99 | $3.98 | 0.79% |
Class I Shares | $1,000.00 | $871.10 | $3.55 | | $1,000.00 | $1,021.14 | $3.83 | 0.76% |
Class N Shares | $1,000.00 | $871.50 | $3.13 | | $1,000.00 | $1,021.59 | $3.38 | 0.67% |
Class S Shares | $1,000.00 | $869.40 | $5.45 | | $1,000.00 | $1,019.10 | $5.89 | 1.17% |
Class T Shares | $1,000.00 | $870.60 | $4.15 | | $1,000.00 | $1,020.49 | $4.48 | 0.89% |
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– 96.8% | | | |
Auto Components – 1.1% | | | |
| | Quantumscape Corp*,# | | 486,572 | | | $9,726,574 | |
| | Visteon Corp* | | 279,774 | | | 30,531,737 | |
| | | 40,258,311 | |
Automobiles – 0.5% | | | |
| | Thor Industries Inc | | 232,944 | | | 18,332,693 | |
Banks – 0.7% | | | |
| | Bancorp Inc/The* | | 927,645 | | | 26,280,183 | |
Biotechnology – 6.6% | | | |
| | Ascendis Pharma A/S (ADR)* | | 130,750 | | | 15,344,820 | |
| | Bicycle Therapeutics Ltd (ADR)* | | 115,040 | | | 5,047,955 | |
| | Centessa Pharmacuticals PLC (ADR)* | | 749,189 | | | 6,720,225 | |
| | Eagle Pharmaceuticals Inc/DE* | | 424,384 | | | 21,002,764 | |
| | ESSA Pharma Inc*,# | | 734,925 | | | 4,541,836 | |
| | Global Blood Therapeutics Inc* | | 438,707 | | | 15,196,810 | |
| | Halozyme Therapeutics Inc* | | 606,718 | | | 24,195,914 | |
| | Insmed Inc* | | 688,643 | | | 16,183,110 | |
| | Ligand Pharmaceuticals Inc* | | 291,855 | | | 32,830,769 | |
| | Mirati Therapeutics Inc* | | 117,381 | | | 9,651,066 | |
| | Myovant Sciences Ltd*,# | | 911,369 | | | 12,139,435 | |
| | Neurocrine Biosciences Inc* | | 289,676 | | | 27,157,125 | |
| | Praxis Precision Medicines Inc* | | 438,841 | | | 4,480,567 | |
| | PTC Therapeutics Inc* | | 211,322 | | | 7,884,424 | |
| | Travere Therapeutics Inc* | | 624,927 | | | 16,104,369 | |
| | Vaxcyte Inc* | | 603,547 | | | 14,575,660 | |
| | | 233,056,849 | |
Building Products – 2.9% | | | |
| | CSW Industrials Inc | | 302,002 | | | 35,512,415 | |
| | Janus International Group Inc* | | 2,505,646 | | | 22,550,814 | |
| | Zurn Water Solutions Corp | | 1,229,360 | | | 43,519,344 | |
| | | 101,582,573 | |
Capital Markets – 3.8% | | | |
| | Assetmark Financial Holdings Inc* | | 749,909 | | | 16,685,475 | |
| | Focus Financial Partners Inc* | | 577,267 | | | 26,404,193 | |
| | LPL Financial Holdings Inc | | 505,898 | | | 92,417,447 | |
| | | 135,507,115 | |
Chemicals – 4.1% | | | |
| | Perimeter Solutions SA* | | 1,392,863 | | | 16,867,571 | |
| | Sensient Technologies Corp | | 718,078 | | | 60,282,648 | |
| | Valvoline Inc | | 2,171,416 | | | 68,529,889 | |
| | | 145,680,108 | |
Commercial Services & Supplies – 1.6% | | | |
| | Brady Corp | | 706,170 | | | 32,674,486 | |
| | Cimpress PLC* | | 151,982 | | | 9,664,535 | |
| | Montrose Environmental Group Inc*,# | | 246,858 | | | 13,066,194 | |
| | | 55,405,215 | |
Containers & Packaging – 1.4% | | | |
| | Sealed Air Corp | | 733,823 | | | 49,136,788 | |
Diversified Consumer Services – 3.1% | | | |
| | Frontdoor Inc* | | 567,840 | | | 16,950,024 | |
| | Stride Inc* | | 1,041,878 | | | 37,851,428 | |
| | Terminix Global Holdings Inc* | | 1,208,709 | | | 55,153,392 | |
| | | 109,954,844 | |
Diversified Financial Services – 0.9% | | | |
| | Clarivate Analytics PLC* | | 1,882,322 | | | 31,547,717 | |
Diversified Telecommunication Services – 0.5% | | | |
| | Vonage Holdings Corp* | | 869,145 | | | 17,634,952 | |
Electrical Equipment – 1.9% | | | |
| | EnerSys | | 406,591 | | | 30,319,491 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
6 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Electrical Equipment– (continued) | | | |
| | Regal Beloit Corp | | 253,738 | | | $37,751,140 | |
| | | 68,070,631 | |
Electronic Equipment, Instruments & Components – 3.9% | | | |
| | Napco Security Technologies Inc | | 1,578,454 | | | 32,389,876 | |
| | National Instruments Corp | | 409,361 | | | 16,615,963 | |
| | Novanta Inc* | | 178,864 | | | 25,450,559 | |
| | OSI Systems Inc* | | 364,796 | | | 31,051,436 | |
| | Rogers Corp* | | 65,758 | | | 17,866,449 | |
| | Xometry Inc - Class A*,# | | 446,365 | | | 16,403,914 | |
| | | 139,778,197 | |
Entertainment – 0.4% | | | |
| | Manchester United PLC# | | 956,656 | | | 13,842,812 | |
Equity Real Estate Investment Trusts (REITs) – 0.8% | | | |
| | Easterly Government Properties Inc | | 1,411,847 | | | 29,846,446 | |
Food & Staples Retailing – 0.6% | | | |
| | Casey's General Stores Inc | | 109,463 | | | 21,692,283 | |
Food Products – 0.8% | | | |
| | AppHarvest Inc*,# | | 699,656 | | | 3,760,651 | |
| | Hain Celestial Group Inc* | | 735,996 | | | 25,318,262 | |
| | | 29,078,913 | |
Health Care Equipment & Supplies – 9.1% | | | |
| | Alphatec Holdings Inc* | | 1,895,983 | | | 21,803,804 | |
| | Axogen Inc* | | 1,593,846 | | | 12,655,137 | |
| | CryoPort Inc* | | 554,262 | | | 19,349,286 | |
| | Glaukos Corp* | | 403,170 | | | 23,311,289 | |
| | Globus Medical Inc* | | 475,488 | | | 35,081,505 | |
| | Heska Corp* | | 101,773 | | | 14,073,170 | |
| | ICU Medical Inc* | | 184,671 | | | 41,115,151 | |
| | Insulet Corp* | | 95,396 | | | 25,412,540 | |
| | Integra LifeSciences Holdings Corp* | | 712,962 | | | 45,814,938 | |
| | Paragon 28 Inc*,# | | 685,264 | | | 11,471,319 | |
| | Sight Sciences Inc*,# | | 1,117,471 | | | 12,917,965 | |
| | STERIS PLC | | 140,232 | | | 33,903,891 | |
| | Surmodics Inc* | | 335,975 | | | 15,229,747 | |
| | Treace Medical Concepts Inc* | | 607,482 | | | 11,487,485 | |
| | | 323,627,227 | |
Health Care Providers & Services – 1.6% | | | |
| | HealthEquity Inc* | | 273,743 | | | 18,461,228 | |
| | ModivCare Inc* | | 339,471 | | | 39,171,559 | |
| | | 57,632,787 | |
Health Care Technology – 0.3% | | | |
| | Phreesia Inc* | | 381,609 | | | 10,059,213 | |
Hotels, Restaurants & Leisure – 2.2% | | | |
| | Dutch Bros Inc - Class A*,# | | 383,516 | | | 21,196,929 | |
| | Inspirato Inc* | | 2,244,245 | | | 22,307,795 | |
| | Monarch Casino & Resort Inc* | | 405,737 | | | 35,392,438 | |
| | | 78,897,162 | |
Household Durables – 0.9% | | | |
| | Lovesac Co*,# | | 593,257 | | | 32,071,473 | |
Information Technology Services – 6.4% | | | |
| | Broadridge Financial Solutions Inc | | 263,614 | | | 41,047,336 | |
| | Euronet Worldwide Inc* | | 379,800 | | | 49,430,970 | |
| | Payfare Inc*,#,£ | | 2,403,934 | | | 14,019,743 | |
| | Repay Holdings Corp* | | 744,872 | | | 11,001,759 | |
| | Shift4 Payments Inc - Class A* | | 323,201 | | | 20,015,838 | |
| | WEX Inc* | | 175,079 | | | 31,242,848 | |
| | WNS Holdings Ltd (ADR)* | | 700,151 | | | 59,855,909 | |
| | | 226,614,403 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 7 |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Insurance – 1.3% | | | |
| | RLI Corp | | 334,333 | | | $36,987,260 | |
| | Trean Insurance Group Inc* | | 1,613,421 | | | 7,566,944 | |
| | | 44,554,204 | |
Internet & Direct Marketing Retail – 1.1% | | | |
| | CarParts.com Inc* | | 1,643,474 | | | 11,011,276 | |
| | Global-E Online Ltd* | | 277,773 | | | 9,383,172 | |
| | Vivid Seats Inc - Class A# | | 1,745,658 | | | 19,306,977 | |
| | | 39,701,425 | |
Life Sciences Tools & Services – 3.2% | | | |
| | Bio-Techne Corp | | 72,895 | | | 31,566,451 | |
| | Codexis Inc* | | 789,729 | | | 16,284,212 | |
| | ICON PLC* | | 145,539 | | | 35,397,996 | |
| | Inotiv Inc*,# | | 679,020 | | | 17,776,744 | |
| | NeoGenomics Inc* | | 969,659 | | | 11,781,357 | |
| | | 112,806,760 | |
Machinery – 5.4% | | | |
| | Alamo Group Inc | | 159,759 | | | 22,971,747 | |
| | ATS Automation Tooling Systems Inc* | | 1,120,270 | | | 40,419,342 | |
| | Gates Industrial Corp PLC* | | 1,655,485 | | | 24,931,604 | |
| | Hydrofarm Holdings Group Inc* | | 656,740 | | | 9,949,611 | |
| | ITT Inc | | 349,395 | | | 26,277,998 | |
| | Kornit Digital Ltd* | | 139,591 | | | 11,542,780 | |
| | Nordson Corp | | 124,959 | | | 28,375,690 | |
| | SPX Corp* | | 581,456 | | | 28,729,741 | |
| | | 193,198,513 | |
Media – 0.8% | | | |
| | Advantage Solutions Inc* | | 1,770,769 | | | 11,297,506 | |
| | John Wiley & Sons Inc | | 327,567 | | | 17,370,878 | |
| | | 28,668,384 | |
Metals & Mining – 1.0% | | | |
| | Constellium SE* | | 1,880,252 | | | 33,844,536 | |
Personal Products – 0.5% | | | |
| | BellRing Brands Inc* | | 700,625 | | | 16,170,425 | |
Pharmaceuticals – 3.1% | | | |
| | Catalent Inc* | | 854,327 | | | 95,644,665 | |
| | EyePoint Pharmaceuticals Inc*,# | | 676,743 | | | 8,222,427 | |
| | Phathom Pharmaceuticals Inc* | | 401,751 | | | 5,467,831 | |
| | | 109,334,923 | |
Real Estate Management & Development – 0.9% | | | |
| | FirstService Corp | | 135,649 | | | 19,652,827 | |
| | Redfin Corp* | | 751,545 | | | 13,557,872 | |
| | | 33,210,699 | |
Road & Rail – 0.7% | | | |
| | AMERCO | | 39,881 | | | 23,806,564 | |
Semiconductor & Semiconductor Equipment – 1.8% | | | |
| | ON Semiconductor Corp* | | 1,048,703 | | | 65,659,295 | |
Software – 18.1% | | | |
| | Altair Engineering Inc* | | 483,323 | | | 31,126,001 | |
| | AvidXchange Holdings Inc* | | 895,202 | | | 7,206,376 | |
| | Blackbaud Inc* | | 669,004 | | | 40,053,269 | |
| | ChannelAdvisor Corp*,£ | | 1,783,534 | | | 29,553,158 | |
| | Clear Secure Inc - Class A*,# | | 547,251 | | | 14,710,107 | |
| | Consensus Cloud Solutions Inc* | | 273,797 | | | 16,463,414 | |
| | Descartes Systems Group Inc* | | 747,380 | | | 54,726,153 | |
| | Enfusion Inc - Class A*,# | | 887,562 | | | 11,289,789 | |
| | EngageSmart Inc* | | 487,195 | | | 10,382,125 | |
| | Envestnet Inc* | | 471,220 | | | 35,077,617 | |
| | Expensify Inc - Class A*,# | | 648,455 | | | 11,386,870 | |
| | Intelligent Systems Corp*,#,£ | | 477,352 | | | 13,079,445 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
8 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | |
Shares or
Principal Amounts | | | Value | |
Common Stocks– (continued) | | | |
Software– (continued) | | | |
| | j2 Global Inc* | | 659,980 | | | $63,872,864 | |
| | LivePerson Inc* | | 853,492 | | | 20,842,275 | |
| | Nice Ltd (ADR)* | | 351,132 | | | 76,897,908 | |
| | Paylocity Holding Corp* | | 260,869 | | | 53,679,014 | |
| | SailPoint Technologies Holding Inc* | | 901,634 | | | 46,145,628 | |
| | SS&C Technologies Holdings Inc | | 951,434 | | | 71,376,579 | |
| | Tyler Technologies Inc* | | 80,974 | | | 36,024,523 | |
| | | 643,893,115 | |
Specialty Retail – 0.8% | | | |
| | Williams-Sonoma Inc | | 189,660 | | | 27,500,700 | |
Thrifts & Mortgage Finance – 0.8% | | | |
| | LendingTree Inc* | | 95,104 | | | 11,381,096 | |
| | Walker & Dunlop Inc | | 133,001 | | | 17,212,989 | |
| | | 28,594,085 | |
Trading Companies & Distributors – 1.2% | | | |
| | Core & Main Inc - Class A* | | 1,695,615 | | | 41,016,927 | |
Total Common Stocks (cost $2,219,720,908) | | 3,437,549,450 | |
Private Investment in Public Equity (PIPES)– 0.4% | | | |
Diversified Financial Services – 0.4% | | | |
| | Everarc Holdings Ltd*,§((cost $11,648,060) | | 1,164,806 | | | 14,105,801 | |
Preferred Stocks– 0.8% | | | |
Professional Services – 0.5% | | | |
| | Apartment List Inc PP*,¢,§ | | 2,431,401 | | | 8,881,908 | |
| | IntelyCare Inc PP*,¢,§ | | 384,276 | | | 9,412,879 | |
| | | 18,294,787 | |
Software – 0.3% | | | |
| | Loadsmart Inc PP - Series A*,¢,§ | | 140,312 | | | 2,665,928 | |
| | Loadsmart Inc PP - Series D*,¢,§ | | 399,891 | | | 7,997,820 | |
| | | 10,663,748 | |
Total Preferred Stocks (cost $28,958,535) | | 28,958,535 | |
Rights– 0% | | | |
Pharmaceuticals – 0% | | | |
| | Zogenix Inc*((cost $513,775) | | 755,552 | | | 513,775 | |
Warrants– 0% | | | |
Chemicals – 0% | | | |
| | Perimeter Solutions SA, expires 11/11/24*((cost $13,929) | | 1,392,883 | | | 1,333,546 | |
Investment Companies– 2.0% | | | |
Money Markets – 2.0% | | | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº,£((cost $70,644,723) | | 70,637,659 | | | 70,644,723 | |
Investments Purchased with Cash Collateral from Securities Lending– 2.9% | | | |
Investment Companies – 2.3% | | | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº,£ | | 80,974,057 | | | 80,974,057 | |
Time Deposits – 0.6% | | | |
| | Royal Bank of Canada, 0.2900%, 4/1/22 | | $21,417,434 | | | 21,417,434 | |
Total Investments Purchased with Cash Collateral from Securities Lending (cost $102,391,491) | | 102,391,491 | |
Total Investments (total cost $2,433,891,421) – 102.9% | | 3,655,497,321 | |
Liabilities, net of Cash, Receivables and Other Assets – (2.9)% | | (103,468,079) | |
Net Assets – 100% | | $3,552,029,242 | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 9 |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | |
Summary of Investments by Country - (Long Positions) (unaudited) |
| |
| | | | | % of | |
| | | | | Investment | |
Country | | Value | | Securities | |
United States | | $3,246,873,731 | | 88.8 | % |
Canada | | 133,359,901 | | 3.7 | |
Israel | | 97,823,860 | | 2.7 | |
India | | 59,855,909 | | 1.6 | |
Ireland | | 35,397,996 | | 1.0 | |
Netherlands | | 33,844,536 | | 0.9 | |
United Kingdom | | 18,890,767 | | 0.5 | |
Denmark | | 15,344,820 | | 0.4 | |
Virgin Islands (British) | | 14,105,801 | | 0.4 | |
| | | | | | |
| | | | | | |
Total | | $3,655,497,321 | | 100.0 | % |
Schedules of Affiliated Investments – (% of Net Assets)
| | | | | | | | | | | |
| | Dividend Income(1) | Realized Gain/(Loss)(1) | Change in Unrealized Appreciation/ Depreciation(1) | Value at 3/31/22 |
Common Stocks - 1.6% |
Information Technology Services - 0.4% | |
| | Payfare Inc*,# | $ | - | $ | - | $ | (5,872,524) | $ | 14,019,743 |
Software - 1.2% | |
| | ChannelAdvisor Corp* | | - | | - | | (15,445,405) | | 29,553,158 |
| | Intelligent Systems Corp*,# | | - | | - | | (6,305,820) | | 13,079,445 |
Total Software | $ | - | $ | - | $ | (21,751,225) | $ | 42,632,603 |
Total Common Stocks | $ | - | $ | - | $ | (27,623,749) | $ | 56,652,346 |
Investment Companies - 2.0% |
Money Markets - 2.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 32,449 | | 1,857 | | (1,857) | | 70,644,723 |
Investments Purchased with Cash Collateral from Securities Lending - 2.3% |
Investment Companies - 2.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 1,595,212∆ | | - | | - | | 80,974,057 |
Total Affiliated Investments - 5.9% | $ | 1,627,661 | $ | 1,857 | $ | (27,625,606) | $ | 208,271,126 |
(1) For securities that were affiliated for a portion of the period ended March 31, 2022, this column reflects amounts for the entire period ended March 31, 2022 and not just the period in which the security was affiliated.
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
10 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | | | | |
| | Value at 9/30/21 | Purchases | Sales Proceeds | Value at 3/31/22 |
Common Stocks - 1.6% |
Information Technology Services - 0.4% | |
| | Payfare Inc*,# | | 17,302,806 | | 2,589,461 | | - | | 14,019,743 |
Software - 1.2% | |
| | ChannelAdvisor Corp* | | 44,998,563 | | - | | - | | 29,553,158 |
| | Intelligent Systems Corp*,# | | 19,385,265 | | - | | - | | 13,079,445 |
Investment Companies - 2.0% |
Money Markets - 2.0% | |
| | Janus Henderson Cash Liquidity Fund LLC, 0.3260%ºº | | 69,523,348 | | 339,663,084 | | (338,541,709) | | 70,644,723 |
Investments Purchased with Cash Collateral from Securities Lending - 2.3% |
Investment Companies - 2.3% | |
| | Janus Henderson Cash Collateral Fund LLC, 0.2313%ºº | | 23,642,180 | | 331,465,494 | | (274,133,617) | | 80,974,057 |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 11 |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | |
Schedule of Forward Foreign Currency Exchange Contracts | | | | | | |
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | |
Barclays Capital, Inc.: | | | | | | | | |
British Pound | 4/7/22 | (110,000) | $ | 147,743 | $ | 3,272 | | |
Citibank, National Association: | | | | | | | | |
British Pound | 4/7/22 | (69,000) | | 92,960 | | 2,337 | | |
Canadian Dollar | 4/7/22 | 5,146,000 | | (4,070,014) | | 46,727 | | |
Canadian Dollar | 4/7/22 | 31,032,200 | | (24,862,075) | | (36,668) | | |
Canadian Dollar | 4/7/22 | (32,713,000) | | 26,158,413 | | (11,614) | | |
Canadian Dollar | 6/30/22 | (31,032,200) | | 24,854,607 | | 34,387 | | |
| | | | | | | | | |
| | | | | | | 35,169 | | |
Credit Suisse International: | | | | | | | | |
Canadian Dollar | 4/7/22 | 31,032,100 | | (24,838,695) | | (13,369) | | |
Canadian Dollar | 4/7/22 | (38,112,800) | | 30,403,772 | | (86,034) | | |
Canadian Dollar | 6/30/22 | (31,032,100) | | 24,829,971 | | 9,830 | | |
| | | | | | | | | |
| | | | | | | (89,573) | | |
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound | 4/7/22 | 537,000 | | (729,169) | | (23,886) | | |
British Pound | 4/7/22 | (315,000) | | 422,728 | | 9,015 | | |
British Pound | 4/7/22 | (1,000,000) | | 1,307,998 | | (5,378) | | |
Canadian Dollar | 4/7/22 | 5,570,000 | | (4,368,777) | | 87,160 | | |
Canadian Dollar | 4/7/22 | 31,032,100 | | (24,861,481) | | (36,154) | | |
Canadian Dollar | 4/7/22 | (32,712,900) | | 26,153,582 | $ | (16,366) | | |
Canadian Dollar | 6/30/22 | (31,032,100) | | 24,854,710 | | 34,570 | | |
| | | | | | | | | |
| | | | | | | 48,961 | | |
JPMorgan Chase Bank, National Association: | | | | | | | | |
British Pound | 4/7/22 | 200,000 | | (261,354) | | 1,322 | | |
British Pound | 4/7/22 | 15,463,400 | | (20,385,291) | | (76,032) | | |
British Pound | 4/7/22 | (14,246,400) | | 19,507,668 | | 796,786 | | |
British Pound | 4/7/22 | (460,000) | | 600,801 | | (3,352) | | |
British Pound | 6/30/22 | (13,501,400) | | 17,744,107 | | 16,894 | | |
Canadian Dollar | 4/7/22 | 5,990,000 | | (4,712,788) | | 79,144 | | |
Canadian Dollar | 4/7/22 | 31,032,100 | | (24,835,654) | | (10,327) | | |
Canadian Dollar | 4/7/22 | (47,876,800) | | 38,097,983 | | (202,912) | | |
Canadian Dollar | 6/30/22 | (31,032,100) | | 24,828,381 | | 8,241 | | |
Canadian Dollar | 6/30/22 | (2,100,000) | | 1,676,822 | | (2,803) | | |
| | | | | | | | | |
| | | | | | | 606,961 | | |
State Street Bank and Trust Company: | | | | | | | | |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
12 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Schedule of Investments (unaudited)
March 31, 2022
| | | | | | | | | |
Counterparty/ Foreign Currency | Settlement Date | Foreign Currency Amount (Sold)/ Purchased | | USD Currency Amount (Sold)/ Purchased | | Market Value and Unrealized Appreciation/ (Depreciation) | | |
Canadian Dollar | 4/7/22 | 10,581,000 | $ | (8,353,935) | | 110,745 | | |
Total | | | | | $ | 715,535 | |
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2022.
| | | | | | |
Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022 |
| | | | | |
| | | | | Currency
Contracts |
Asset Derivatives: | | | |
Forward foreign currency exchange contracts | | | $1,240,430 |
| | | | |
Liability Derivatives: | | | |
Forward foreign currency exchange contracts | | | $ 524,895 |
| | | | |
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2022.
| | | | | |
The effect of Derivative Instruments (not accounted for as hedging instruments) on the Statement of Operations for the period ended March 31, 2022 |
| | | | |
Amount of Realized Gain/(Loss) Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $ 133,615 |
| | | | | |
| | | | | |
| | | | | |
Amount of Change in Unrealized Appreciation/Depreciation Recognized on Derivatives |
Derivative | | Currency
Contracts |
Forward foreign currency exchange contracts | | $(960,883) |
| | | | | |
Please see the "Net Realized Gain/(Loss) on Investments" and "Change in Unrealized Net Appreciation/Depreciation" sections of the Fund’s Statement of Operations.
| | |
Average Ending Monthly Value of Derivative Instruments During the Period Ended March 31, 2022 |
| |
| |
Forward foreign currency exchange contracts: | |
Average amounts purchased - in USD | $26,858,820 |
Average amounts sold - in USD | 154,570,727 |
| | |
| |
| |
| |
| | |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. |
| |
Janus Investment Fund | 13 |
Janus Henderson Venture Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | |
Russell 2000® Growth Index | Russell 2000® Growth Index reflects the performance of U.S. small-cap equities with higher price-to-book ratios and higher forecasted growth values. |
Russell 2000® Index | Russell 2000® Index reflects the performance of U.S. small-cap equities. |
| | |
ADR | American Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
PP | Private Placement |
| | |
* | Non-income producing security. |
| | |
ºº | Rate shown is the 7-day yield as of March 31, 2022. |
| | |
# | Loaned security; a portion of the security is on loan at March 31, 2022. |
| | |
¢ | Security is valued using significant unobservable inputs. The total value of Level 3 securities as of the period ended March 31, 2022 is $28,958,535, which represents 0.8% of net assets. |
| | |
£ | 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. |
| | |
∆ | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
| | | | | | | | | | | |
§ | Schedule of Restricted Securities (as of March 31, 2022) |
| | | | | | | | Value as a | |
| | Acquisition | | | | | | % of Net | |
| | Date | | Cost | | Value | | Assets | |
Apartment List Inc PP | 11/2/20 | $ | 8,881,908 | $ | 8,881,908 | | 0.2 | % |
Everarc Holdings Ltd | 6/16/21 | | 11,648,060 | | 14,105,801 | | 0.4 | |
IntelyCare Inc PP | 3/29/22 | | 9,412,879 | | 9,412,879 | | 0.3 | |
Loadsmart Inc PP - Series A | 1/4/22 | | 2,665,928 | | 2,665,928 | | 0.1 | |
Loadsmart Inc PP - Series D | 1/4/22 | | 7,997,820 | | 7,997,820 | | 0.2 | |
Total | | $ | 40,606,595 | $ | 43,064,336 | | 1.2 | % |
| | | | | | | | | |
The Fund has registration rights for certain restricted securities held as of March 31, 2022. The issuer incurs all registration costs. | |
Janus Henderson Venture Fund
Notes to Schedule of Investments and Other Information (unaudited)
| | | | | | | | | | | | | | |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2022. See Notes to Financial Statements for more information. |
| |
Valuation Inputs Summary |
| | | | | | | |
| | | | | Level 2 - | | Level 3 - |
| | | Level 1 - | | Other Significant | | Significant |
| | | Quoted Prices | | Observable Inputs | | Unobservable Inputs |
| | | | | | | |
Assets | | | | | | |
Investments In Securities: | | | | | | |
Common Stocks | $ | 3,437,549,450 | $ | - | $ | - |
Private Investment in Public Equity (PIPES) | | - | | 14,105,801 | | - |
Preferred Stocks | | - | | - | | 28,958,535 |
Rights | | - | | 513,775 | | - |
Warrants | | - | | 1,333,546 | | - |
Investment Companies | | - | | 70,644,723 | | - |
Investments Purchased with Cash Collateral from Securities Lending | | - | | 102,391,491 | | - |
Total Investments in Securities | $ | 3,437,549,450 | $ | 188,989,336 | $ | 28,958,535 |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | | - | | 1,240,430 | | - |
Total Assets | $ | 3,437,549,450 | $ | 190,229,766 | $ | 28,958,535 |
Liabilities | | | | | | |
Other Financial Instruments(a): | | | | | | |
Forward Foreign Currency Exchange Contracts | $ | - | $ | 524,895 | $ | - |
| | | | | | | |
(a) | Other financial instruments include forward foreign currency exchange contracts, futures, written options, written swaptions, and swap contracts. Forward foreign currency exchange contracts, futures 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. Written options and written swaptions are reported at their market value at measurement date. |
Janus Henderson Venture Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| |
See footnotes at the end of the Statement. |
| | | | | | | |
| | | | | | |
Assets: | | | | |
| Unaffiliated investments, at value (cost $2,216,756,544)(1) | | $ | 3,447,226,195 | |
| Affiliated investments, at value (cost $217,134,877) | | | 208,271,126 | |
| Cash | | | 20 | |
| Forward foreign currency exchange contracts | | | 1,240,430 | |
| Non-interested Trustees' deferred compensation | | | 97,534 | |
| Receivables: | | | | |
| | Fund shares sold | | | 6,135,908 | |
| | Dividends | | | 368,035 | |
| | Foreign tax reclaims | | | 71,362 | |
| | Dividends from affiliates | | | 13,637 | |
| | Investments sold | | | 3,521 | |
| Other assets | | | 868,471 | |
Total Assets | | | 3,664,296,239 | |
Liabilities: | | | | |
| Collateral for securities loaned (Note 3) | | | 102,391,491 | |
| Forward foreign currency exchange contracts | | | 524,895 | |
| Payables: | | | — | |
| | Fund shares repurchased | | | 6,608,820 | |
| | Advisory fees | | | 1,918,358 | |
| | Transfer agent fees and expenses | | | 450,341 | |
| | Non-interested Trustees' deferred compensation fees | | | 97,534 | |
| | Professional fees | | | 33,602 | |
| | 12b-1 Distribution and shareholder servicing fees | | | 15,353 | |
| | Non-interested Trustees' fees and expenses | | | 14,866 | |
| | Custodian fees | | | 7,596 | |
| | Affiliated fund administration fees payable | | | 7,494 | |
| | Accrued expenses and other payables | | | 196,647 | |
Total Liabilities | | | 112,266,997 | |
Net Assets | | $ | 3,552,029,242 | |
| | |
See Notes to Financial Statements. |
| |
16 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Statement of Assets and Liabilities (unaudited)
March 31, 2022
| | | | | | | |
| | | | | | |
| | | | | | | |
Net Assets Consist of: | | | | |
| Capital (par value and paid-in surplus) | | $ | 2,171,569,878 | |
| Total distributable earnings (loss) | | | 1,380,459,364 | |
Total Net Assets | | $ | 3,552,029,242 | |
Net Assets - Class A Shares | | $ | 20,147,069 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 248,101 | |
Net Asset Value Per Share(2) | | $ | 81.21 | |
Maximum Offering Price Per Share(3) | | $ | 86.16 | |
Net Assets - Class C Shares | | $ | 2,417,968 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 33,878 | |
Net Asset Value Per Share(2) | | $ | 71.37 | |
Net Assets - Class D Shares | | $ | 1,873,087,988 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 22,045,405 | |
Net Asset Value Per Share | | $ | 84.97 | |
Net Assets - Class I Shares | | $ | 298,505,849 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,488,317 | |
Net Asset Value Per Share | | $ | 85.57 | |
Net Assets - Class N Shares | | $ | 464,069,333 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 5,360,303 | |
Net Asset Value Per Share | | $ | 86.58 | |
Net Assets - Class S Shares | | $ | 42,699,765 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 536,009 | |
Net Asset Value Per Share | | $ | 79.66 | |
Net Assets - Class T Shares | | $ | 851,101,270 | |
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 10,236,302 | |
Net Asset Value Per Share | | $ | 83.15 | |
| |
(1) Includes $97,453,793 of securities on loan. See Note 3 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 17 |
Janus Henderson Venture Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Investment Income: | | | |
| Dividends | $ | 6,571,107 | |
| Affiliated securities lending income, net | | 1,595,212 | |
| Dividends from affiliates | | 32,449 | |
| Unaffiliated securities lending income, net | | 5,846 | |
| Other income | | 77 | |
| Foreign tax withheld | | (8,258) | |
Total Investment Income | | 8,196,433 | |
Expenses: | | | |
| Advisory fees | | 12,761,316 | |
| 12b-1 Distribution and shareholder servicing fees: | | | |
| | Class A Shares | | 29,487 | |
| | Class C Shares | | 13,490 | |
| | Class S Shares | | 61,496 | |
| Transfer agent administrative fees and expenses: | | | |
| | Class D Shares | | 1,162,363 | |
| | Class S Shares | | 61,515 | |
| | Class T Shares | | 1,212,529 | |
| Transfer agent networking and omnibus fees: | | | |
| | Class A Shares | | 9,168 | |
| | Class C Shares | | 1,275 | |
| | Class I Shares | | 158,013 | |
| Other transfer agent fees and expenses: | | | |
| | Class A Shares | | 812 | |
| | Class C Shares | | 87 | |
| | Class D Shares | | 78,352 | |
| | Class I Shares | | 7,543 | |
| | Class N Shares | | 9,522 | |
| | Class S Shares | | 242 | |
| | Class T Shares | | 3,846 | |
| Custodian fees | | 117,255 | |
| Registration fees | | 92,183 | |
| Shareholder reports expense | | 73,128 | |
| Affiliated fund administration fees | | 49,850 | |
| Professional fees | | 33,962 | |
| Non-interested Trustees’ fees and expenses | | 33,862 | |
| Other expenses | | 141,906 | |
Total Expenses | | 16,113,202 | |
Less: Excess Expense Reimbursement and Waivers | | (102,342) | |
Net Expenses | | 16,010,860 | |
Net Investment Income/(Loss) | | (7,814,427) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
18 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Statement of Operations (unaudited)
For the period ended March 31, 2022
| | | | | | |
| | | | | |
Net Realized Gain/(Loss) on Investments: | | | |
| Investments and foreign currency transactions | $ | 222,740,853 | |
| Investments in affiliates | | 1,857 | |
| Forward foreign currency exchange contracts | | 133,615 | |
Total Net Realized Gain/(Loss) on Investments | | 222,876,325 | |
Change in Unrealized Net Appreciation/Depreciation: | | | |
| Investments, foreign currency translations and non-interested Trustees’ deferred compensation | | (721,801,501) | |
| Investments in affiliates | | (27,625,606) | |
| Forward foreign currency exchange contracts | | (960,883) | |
Total Change in Unrealized Net Appreciation/Depreciation | | (750,387,990) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (535,326,092) | |
| | | | | |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 19 |
Janus Henderson Venture Fund
Statements of Changes in Net Assets
| | | | | | | | | |
| | | | | | | | |
| | | Period ended
March 31, 2022 (unaudited) | | Year ended
September 30, 2021 | |
| | | | | | | | | |
Operations: | | | | | | |
| Net investment income/(loss) | $ | (7,814,427) | | $ | (19,612,778) | |
| Net realized gain/(loss) on investments | | 222,876,325 | | | 499,250,189 | |
| Change in unrealized net appreciation/depreciation | | (750,387,990) | | | 750,404,122 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | (535,326,092) | | | 1,230,041,533 | |
Dividends and Distributions to Shareholders: | | | | | | |
| | Class A Shares | | (2,765,688) | | | (1,268,484) | |
| | Class C Shares | | (429,596) | | | (367,739) | |
| | Class D Shares | | (245,929,526) | | | (112,793,742) | |
| | Class I Shares | | (39,332,133) | | | (18,385,450) | |
| | Class N Shares | | (60,480,497) | | | (29,110,615) | |
| | Class S Shares | | (6,073,592) | | | (3,515,025) | |
| | Class T Shares | | (117,792,659) | | | (54,714,762) | |
Net Decrease from Dividends and Distributions to Shareholders | | (472,803,691) | | | (220,155,817) | |
Capital Share Transactions: | | | | | | |
| | Class A Shares | | 1,393,101 | | | 855,548 | |
| | Class C Shares | | (474,129) | | | (3,257,033) | |
| | Class D Shares | | 171,391,289 | | | (22,405,392) | |
| | Class I Shares | | 19,501,264 | | | (10,338,530) | |
| | Class N Shares | | 28,901,075 | | | (27,207,120) | |
| | Class S Shares | | 845,493 | | | (24,627,306) | |
| | Class T Shares | | 47,429,919 | | | (8,874,501) | |
Net Increase/(Decrease) from Capital Share Transactions | | 268,988,012 | | | (95,854,334) | |
Net Increase/(Decrease) in Net Assets | | (739,141,771) | | | 914,031,382 | |
Net Assets: | | | | | | |
| Beginning of period | | 4,291,171,013 | | | 3,377,139,631 | |
| End of period | $ | 3,552,029,242 | | $ | 4,291,171,013 | |
| | | | | | | | |
| | |
See Notes to Financial Statements. |
| |
20 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $106.21 | | | $82.08 | | | $76.74 | | | $88.38 | | | $76.48 | | | $66.00 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.28) | | | (0.67) | | | (0.37) | | | (0.24) | | | (0.25) | | | (0.15) | |
| | Net realized and unrealized gain/(loss) | | (12.39) | | | 30.42 | | | 8.89 | | | (4.67) | | | 16.26 | | | 11.78 | |
| Total from Investment Operations | | (12.67) | | | 29.75 | | | 8.52 | | | (4.91) | | | 16.01 | | | 11.63 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $81.21 | | | $106.21 | | | $82.08 | | | $76.74 | | | $88.38 | | | $76.48 | |
| Total Return* | | (12.98)% | | | 36.78% | | | 11.26% | | | (4.08)% | | | 21.83% | | | 17.93% | |
| Net Assets, End of Period (in thousands) | | $20,147 | | | $24,644 | | | $18,447 | | | $27,201 | | | $31,373 | | | $21,962 | |
| Average Net Assets for the Period (in thousands) | | $23,654 | | | $23,550 | | | $22,978 | | | $27,960 | | | $24,358 | | | $29,815 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.01% | | | 1.00% | | | 1.02% | | | 1.02% | | | 1.01% | | | 1.03% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.01% | | | 1.00% | | | 1.02% | | | 1.02% | | | 1.01% | | | 1.03% | |
| | Ratio of Net Investment Income/(Loss) | | (0.60)% | | | (0.66)% | | | (0.49)% | | | (0.32)% | | | (0.31)% | | | (0.22)% | |
| Portfolio Turnover Rate | | 8% | | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $95.22 | | | $74.59 | | | $70.48 | | | $82.39 | | | $72.06 | | | $62.70 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.55) | | | (1.29) | | | (0.82) | | | (0.72) | | | (0.78) | | | (0.62) | |
| | Net realized and unrealized gain/(loss) | | (10.97) | | | 27.54 | | | 8.11 | | | (4.46) | | | 15.22 | | | 11.13 | |
| Total from Investment Operations | | (11.52) | | | 26.25 | | | 7.29 | | | (5.18) | | | 14.44 | | | 10.51 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $71.37 | | | $95.22 | | | $74.59 | | | $70.48 | | | $82.39 | | | $72.06 | |
| Total Return* | | (13.29)% | | | 35.74% | | | 10.49% | | | (4.76)% | | | 20.95% | | | 17.07% | |
| Net Assets, End of Period (in thousands) | | $2,418 | | | $3,747 | | | $5,562 | | | $8,561 | | | $12,223 | | | $13,269 | |
| Average Net Assets for the Period (in thousands) | | $3,154 | | | $4,965 | | | $6,913 | | | $9,783 | | | $12,894 | | | $13,997 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.70% | | | 1.76% | | | 1.71% | | | 1.73% | | | 1.74% | | | 1.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.70% | | | 1.76% | | | 1.71% | | | 1.73% | | | 1.74% | | | 1.76% | |
| | Ratio of Net Investment Income/(Loss) | | (1.30)% | | | (1.42)% | | | (1.18)% | | | (1.03)% | | | (1.03)% | | | (0.95)% | |
| Portfolio Turnover Rate | | 8% | | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 21 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $110.41 | | | $84.98 | | | $79.17 | | | $90.73 | | | $78.25 | | | $67.35 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.18) | | | (0.47) | | | (0.22) | | | (0.08) | | | (0.08) | | | (0.01) | |
| | Net realized and unrealized gain/(loss) | | (12.93) | | | 31.52 | | | 9.21 | | | (4.75) | | | 16.67 | | | 12.06 | |
| Total from Investment Operations | | (13.11) | | | 31.05 | | | 8.99 | | | (4.83) | | | 16.59 | | | 12.05 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $84.97 | | | $110.41 | | | $84.98 | | | $79.17 | | | $90.73 | | | $78.25 | |
| Total Return* | | (12.87)% | | | 37.07% | | | 11.52% | | | (3.87)% | | | 22.09% | | | 18.20% | |
| Net Assets, End of Period (in thousands) | | $1,873,088 | | | $2,228,324 | | | $1,731,098 | | | $1,668,639 | | | $1,843,494 | | | $1,597,029 | |
| Average Net Assets for the Period (in thousands) | | $2,091,758 | | | $2,160,434 | | | $1,645,324 | | | $1,668,200 | | | $1,712,398 | | | $1,473,945 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.79% | | | 0.78% | | | 0.80% | | | 0.80% | | | 0.80% | | | 0.81% | |
| | Ratio of Net Investment Income/(Loss) | | (0.38)% | | | (0.45)% | | | (0.28)% | | | (0.10)% | | | (0.09)% | | | (0.01)% | |
| Portfolio Turnover Rate | | 8% | | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class I Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $111.10 | | | $85.45 | | | $79.57 | | | $91.10 | | | $78.51 | | | $67.54 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.17) | | | (0.44) | | | (0.19) | | | (0.04) | | | (0.03) | | | 0.03 | |
| | Net realized and unrealized gain/(loss) | | (13.03) | | | 31.71 | | | 9.25 | | | (4.76) | | | 16.73 | | | 12.09 | |
| Total from Investment Operations | | (13.20) | | | 31.27 | | | 9.06 | | | (4.80) | | | 16.70 | | | 12.12 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $85.57 | | | $111.10 | | | $85.45 | | | $79.57 | | | $91.10 | | | $78.51 | |
| Total Return* | | (12.88)% | | | 37.13% | | | 11.55% | | | (3.82)% | | | 22.16% | | | 18.25% | |
| Net Assets, End of Period (in thousands) | | $298,506 | | | $363,007 | | | $287,582 | | | $315,109 | | | $362,757 | | | $291,520 | |
| Average Net Assets for the Period (in thousands) | | $335,078 | | | $357,200 | | | $292,611 | | | $318,833 | | | $317,820 | | | $250,794 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.76% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.76% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.76% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.75% | | | 0.76% | |
| | Ratio of Net Investment Income/(Loss) | | (0.35)% | | | (0.42)% | | | (0.23)% | | | (0.05)% | | | (0.04)% | | | 0.04% | |
| Portfolio Turnover Rate | | 8% | | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
22 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class N Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $112.20 | | | $86.18 | | | $80.15 | | | $91.63 | | | $78.88 | | | $67.79 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.13) | | | (0.35) | | | (0.12) | | | 0.02 | | | 0.03 | | | 0.08 | |
| | Net realized and unrealized gain/(loss) | | (13.16) | | | 31.99 | | | 9.33 | | | (4.77) | | | 16.83 | | | 12.16 | |
| Total from Investment Operations | | (13.29) | | | 31.64 | | | 9.21 | | | (4.75) | | | 16.86 | | | 12.24 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $86.58 | | | $112.20 | | | $86.18 | | | $80.15 | | | $91.63 | | | $78.88 | |
| Total Return* | | (12.83)% | | | 37.25% | | | 11.65% | | | (3.74)% | | | 22.26% | | | 18.36% | |
| Net Assets, End of Period (in thousands) | | $464,069 | | | $565,040 | | | $454,982 | | | $411,523 | | | $346,638 | | | $192,210 | |
| Average Net Assets for the Period (in thousands) | | $523,188 | | | $572,312 | | | $430,317 | | | $365,491 | | | $248,072 | | | $131,281 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.67% | | | 0.66% | | | 0.66% | | | 0.67% | | | 0.67% | | | 0.67% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.67% | | | 0.66% | | | 0.66% | | | 0.67% | | | 0.67% | | | 0.67% | |
| | Ratio of Net Investment Income/(Loss) | | (0.26)% | | | (0.33)% | | | (0.15)% | | | 0.03% | | | 0.04% | | | 0.11% | |
| Portfolio Turnover Rate | | 8% | | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Class S Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $104.51 | | | $80.97 | | | $75.85 | | | $87.56 | | | $75.92 | | | $65.61 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.35) | | | (0.83) | | | (0.49) | | | (0.35) | | | (0.37) | | | (0.26) | |
| | Net realized and unrealized gain/(loss) | | (12.17) | | | 29.99 | | | 8.79 | | | (4.63) | | | 16.12 | | | 11.72 | |
| Total from Investment Operations | | (12.52) | | | 29.16 | | | 8.30 | | | (4.98) | | | 15.75 | | | 11.46 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $79.66 | | | $104.51 | | | $80.97 | | | $75.85 | | | $87.56 | | | $75.92 | |
| Total Return* | | (13.05)% | | | 36.55% | | | 11.10% | | | (4.21)% | | | 21.64% | | | 17.77% | |
| Net Assets, End of Period (in thousands) | | $42,700 | | | $54,537 | | | $64,120 | | | $73,302 | | | $82,776 | | | $56,058 | |
| Average Net Assets for the Period (in thousands) | | $49,347 | | | $59,918 | | | $66,822 | | | $74,076 | | | $69,664 | | | $45,884 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 1.17% | | | 1.16% | | | 1.17% | | | 1.17% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 1.17% | | | 1.16% | | | 1.17% | | | 1.17% | | | 1.17% | | | 1.17% | |
| | Ratio of Net Investment Income/(Loss) | | (0.76)% | | | (0.83)% | | | (0.65)% | | | (0.47)% | | | (0.46)% | | | (0.37)% | |
| Portfolio Turnover Rate | | 8% | | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
Janus Investment Fund | 23 |
Janus Henderson Venture Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | | | | | | | | | | | | | | | | |
For a share outstanding during the period ended March 31, 2022 (unaudited) and the year ended September 30 | 2022 | | | 2021 | | | 2020 | | | 2019 | | | 2018 | | | 2017 | |
| Net Asset Value, Beginning of Period | | $108.38 | | | $83.59 | | | $78.01 | | | $89.60 | | | $77.41 | | | $66.70 | |
| Income/(Loss) from Investment Operations: | | | | | | | | | | | | | | | | | | |
| | Net investment income/(loss)(1) | | (0.23) | | | (0.58) | | | (0.30) | | | (0.16) | | | (0.16) | | | (0.07) | |
| | Net realized and unrealized gain/(loss) | | (12.67) | | | 30.99 | | | 9.06 | | | (4.70) | | | 16.46 | | | 11.93 | |
| Total from Investment Operations | | (12.90) | | | 30.41 | | | 8.76 | | | (4.86) | | | 16.30 | | | 11.86 | |
| Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | |
| | Dividends (from net investment income) | | — | | | — | | | — | | | — | | | — | | | — | |
| | Distributions (from capital gains) | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Total Dividends and Distributions | | (12.33) | | | (5.62) | | | (3.18) | | | (6.73) | | | (4.11) | | | (1.15) | |
| Net Asset Value, End of Period | | $83.15 | | | $108.38 | | | $83.59 | | | $78.01 | | | $89.60 | | | $77.41 | |
| Total Return* | | (12.92)% | | | 36.91% | | | 11.39% | | | (3.96)% | | | 21.95% | | | 18.09% | |
| Net Assets, End of Period (in thousands) | | $851,101 | | | $1,051,872 | | | $815,350 | | | $896,264 | | | $1,009,462 | | | $949,255 | |
| Average Net Assets for the Period (in thousands) | | $972,688 | | | $1,026,384 | | | $839,860 | | | $899,106 | | | $978,055 | | | $925,990 | |
| Ratios to Average Net Assets**: | | | | | | | | | | | | | | | | | | |
| | Ratio of Gross Expenses | | 0.92% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.92% | |
| | Ratio of Net Expenses (After Waivers and Expense Offsets) | | 0.89% | | | 0.90% | | | 0.91% | | | 0.91% | | | 0.91% | | | 0.91% | |
| | Ratio of Net Investment Income/(Loss) | | (0.48)% | | | (0.57)% | | | (0.38)% | | | (0.20)% | | | (0.20)% | | | (0.11)% | |
| Portfolio Turnover Rate | | 8% | | | 21% | | | 25% | | | 19% | | | 28% | | | 25% | |
| | | | | | | | | | | | | | | | | | | | | | |
| |
* Total return includes adjustments in accordance with generally accepted accounting principles required at the year or period end and are 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 or period. |
| | |
See Notes to Financial Statements. |
| |
24 | MARCH 31, 2022 |
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
1. Organization and Significant Accounting Policies
Janus Henderson Venture Fund (the “Fund”) is a series 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, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946. The Trust offers 41 funds, each of which offers multiple share classes, with differing investment objectives and policies. The Fund seeks capital appreciation. The Fund is classified as diversified, as defined in the 1940 Act. Janus Henderson Investors US LLC (formerly Janus Capital Management LLC) is the investment adviser (the “Adviser”) to the Fund.
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.
Shareholders, including other funds, individuals, accounts, as well as the Fund’s portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Fund’s Shares and can be considered to “control” the Fund when that ownership exceeds 25% of the Fund’s assets (and which may differ from control as determined in accordance with United States of America generally accepted accounting principles ("US GAAP")).
Class A Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class C Shares are offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, and bank trust platforms.
Class C Shares are closed to investments by new employer-sponsored retirement plans and existing employer-sponsored retirement plans are no longer able to make additional purchases or exchanges into Class C Shares.
The Funds currently implement an automatic conversion feature pursuant to which Class C Shares that have been held for eight years are automatically converted to Class A Shares without the imposition of any sales charge, fee or other charge. The conversion will generally occur no later than ten business days in the month following the month of the eighth anniversary of the date of purchase. Class C Shares purchased through the reinvestment of dividends and other distributions on Class C Shares will convert to Class A Shares at the same time as the original Class C Shares with respect to which they were purchased. For Class C Shares held in omnibus accounts on intermediary platforms, the Fund will rely on these intermediaries to implement this conversion feature. Your financial intermediary may have separate policies and procedures as to when and how Class C Shares may be converted to Class A Shares. Please contact your financial intermediary for additional information.
Effective July 6, 2020, Class D Shares are available to new investors, subject to any closed fund policies for a Fund, as applicable. Previously, Class D Shares were only available to investors who already had a direct account with the Janus Henderson funds; immediate family members or members of the same household of an eligible individual investor; and existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus Henderson 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, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments, who established Class I Share accounts before August 4, 2017.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of: 1) certain adviser-assisted, employer-sponsored retirement plans, including 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and certain welfare benefit plans, such as health savings accounts, and nonqualified deferred compensation plans; and 2) retail investors purchasing in qualified or nonqualified accounts, whose accounts are held through an omnibus account at their financial intermediary, and where the financial intermediary requires no payment or reimbursement from the Fund, the Adviser, or its affiliates. Class N Shares are also available to Janus Henderson proprietary products and to certain direct
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
institutional investors approved by Janus Henderson Distributors US LLC (formerly Janus Distributors LLC) (the “Distributor”) including, but not limited to, corporations, certain retirement plans, public plans, and foundations and endowments, subject to minimum investment requirements.
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 the Adviser 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 the Adviser 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 US GAAP.
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 generally 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 approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities 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. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. 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. Special valuation considerations may apply with respect to “odd-lot” fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. 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.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding 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 and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 – Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 – Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair 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; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. 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.
Level 3 – Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
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 fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2022 to fair 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 March 31, 2022.
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 Fund 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. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Interest income is recorded daily on an accrual basis and includes amortization of premiums and accretion of discounts. The Fund classifies gains and losses on prepayments received as an adjustment to interest income. Debt securities may be placed in non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivables when collection of all or a portion of interest has become doubtful. 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. 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 US GAAP 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
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
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, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as “equalization,” has no effect on the redeeming shareholder or a Fund’s total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Fund's equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
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 futures contracts, options on foreign currencies, options on recovery locks, options on security and commodity indices, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2022 is discussed in further detail below. A summary of derivative activity by the Fund is reflected in the tables at the end of the Schedule of Investments.
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 purposes (to earn income and seek to enhance returns). 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 that 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.
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
· Commodity Risk – the risk related to the change in value of commodities or commodity-linked investments due to changes in the overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
· Counterparty Risk – 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 – the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations.
· Currency Risk – 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 – the risk related 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 – the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease.
· Leverage Risk – the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, that involve leverage can result in losses that greatly exceed the amount originally invested.
· Liquidity Risk – 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC 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. Additionally, the Fund may deposit cash and/or treasuries 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 contracts with a particular counterparty. All liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to certain exchange-traded derivatives, centrally cleared derivatives, forward foreign currency exchange contracts, short sales, and/or securities with extended settlement dates. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on the Adviser’s ability to establish and maintain appropriate systems and trading.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy or sell a specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Fund may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fund may also invest in forward currency contracts for non-hedging purposes such as seeking to enhance returns. The Fund is subject to currency risk
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
and counterparty risk in the normal course of pursuing its investment objective through its investments in forward currency contracts.
Forward currency contracts are valued by converting the foreign value to U.S. dollars by using the current spot U.S. dollar exchange rate and/or forward rate for that currency. Exchange and forward rates as of the close of the NYSE are used to value the forward currency contracts. The unrealized appreciation/(depreciation) for forward currency contracts is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations for the change in unrealized net appreciation/depreciation (if applicable). The realized 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 forward currency contract is reported on the Statement of Operations (if applicable).
During the period, the Fund entered into forward currency contracts with the obligation to purchase 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.
During the period, the Fund entered into forward currency 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.
3. Other Investments and Strategies
Additional Investment Risk
In response to the COVID-19 pandemic, the U.S. government and the Federal Reserve, as well as certain foreign governments and central banks, have taken extraordinary actions to support local and global economies and the financial markets, including reducing interest rates to record-low levels. Extremely low or negative interest rates may become more prevalent or may not work as intended. As there is little precedent for this situation, the impact on various markets that interest rate or other significant policy changes may have is unknown. The withdrawal of this support, a failure of measures put in place in response to such economic uncertainty, or investor perception that such efforts were not sufficient could each 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.
Widespread disease, including pandemics and epidemics, and natural or environmental disasters, including those which may be attributable to global climate change, such as earthquakes, fires, floods, hurricanes, tsunamis and weather-related phenomena generally, have been and can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of a Fund’s investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. These disruptions could prevent a Fund from executing advantageous investment decisions in a timely manner and negatively impact a Fund’s ability to achieve its investment objective(s). Any such event(s) could have a significant adverse impact on the value of a Fund. In addition, these disruptions could also impair the information technology and other operational systems upon which the Fund’s service providers, including the Adviser or the subadviser (as applicable), rely, and could otherwise disrupt the ability of employees of the Fund’s service providers to perform essential tasks on behalf of the Fund. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance and reinsurance companies that insure or reinsure against the impact of natural disasters.
A number of countries in the European Union (the “EU”) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen, or spread further within the EU. 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. Among other things, these developments have adversely affected the
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
value and exchange rate of the euro and pound sterling, and may continue to significantly affect the economies of all EU countries, which in turn may have a material adverse effect on the Fund’s investments in such countries, other countries that depend on EU countries for significant amounts of trade or investment, or issuers with exposure to debt issued by certain EU countries.
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 the Adviser believes to be creditworthy at the time of the transaction. There is always the risk that the Adviser’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund 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 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 has entered 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.
The following tables present gross amounts of recognized assets and/or 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 the “Fair Value of Derivative Instruments (not accounted for as hedging instruments) as of March 31, 2022” table located in the Fund’s Schedule of Investments.
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
| | | | | | | | | | |
Offsetting of Financial Assets and Derivative Assets |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Assets | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Barclays Capital, Inc. | $ | 3,272 | $ | — | $ | — | $ | 3,272 |
Citibank, National Association | | 83,451 | | (48,282) | | — | | 35,169 |
Credit Suisse International | | 9,830 | | (9,830) | | — | | — |
HSBC Securities (USA), Inc. | | 130,745 | | (81,784) | | — | | 48,961 |
JPMorgan Chase Bank, National Association | | 98,356,180 | | (295,426) | | (97,453,793) | | 606,961 |
State Street Bank and Trust Company | | 110,745 | | — | | — | | 110,745 |
| | | | | | | | | |
Total | $ | 98,694,223 | $ | (435,322) | $ | (97,453,793) | $ | 805,108 |
Offsetting of Financial Liabilities and Derivative Liabilities |
| |
| | | Gross Amounts | | | | | | |
| | | of Recognized | | Offsetting Asset | | Collateral | | |
Counterparty | | Liabilities | | or Liability(a) | | Pledged(b) | | Net Amount |
| | | | | | | | | |
Citibank, National Association | $ | 48,282 | $ | (48,282) | $ | — | $ | — |
Credit Suisse International | | 99,403 | | (9,830) | | — | | 89,573 |
HSBC Securities (USA), Inc. | | 81,784 | | (81,784) | | — | | — |
JPMorgan Chase Bank, National Association | | 295,426 | | (295,426) | | — | | — |
| | | | | | | | | |
Total | $ | 524,895 | $ | (435,322) | $ | — | $ | 89,573 |
(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. |
JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. For financial reporting purposes, the Fund does not offset financial instruments’ payables and receivables and related collateral on the Statement of Assets and Liabilities. 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 Securities and Exchange Commission (the “SEC”). See “Securities Lending” in the “Notes to Financial Statements” for additional information.
The Fund generally does not exchange collateral on its forward foreign currency contracts with its counterparties; however, all liquid securities and restricted cash are considered to cover in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Certain securities may be segregated at the Fund’s custodian. These segregated securities are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their cover and/or market value equals or exceeds the Fund’s corresponding forward foreign currency exchange contract's obligation value.
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
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, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Restricted Security Transactions
Restricted securities held by the Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Private Investment in Public Equity
Private investments in public equity (“PIPEs”) are equity securities privately purchased from public companies (including special purpose acquisition companies) at a specified price. PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect. To the extent that they increase the supply of a company’s stock in the market, PIPEs can potentially dilute the value of existing shares.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to certain qualified broker-dealers and institutions. JPMorgan Chase Bank, National Association 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 custodial functions in accordance with the Non-Custodial Securities Lending Agreement. The Fund may lend fund 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, the Adviser 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. In certain circumstances individual loan transactions could yield negative returns.
Upon receipt of cash collateral, the Adviser 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. The Adviser currently intends to primarily invest the cash collateral in a cash management vehicle for which the Adviser serves as investment adviser, Janus Henderson Cash Collateral Fund LLC, or in time deposits. An investment in Janus Henderson 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 Henderson Cash Collateral Fund LLC, the Adviser has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Henderson Cash Collateral Fund LLC. Additionally, the Adviser receives an investment advisory fee of 0.05% for managing Janus Henderson Cash Collateral Fund LLC, but it may not receive a fee for managing certain other
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
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. Additional required collateral, or excess collateral returned, is delivered on the next business day. Therefore, the value of the collateral held may be temporarily less than 102% or 105% value of the securities on loan. The cash collateral invested by the Adviser is disclosed in the Schedule of Investments (if applicable).
Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations. As of March 31, 2022, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $97,453,793. Gross amounts of recognized liabilities for securities lending (collateral received) as of March 31, 2022 is $102,391,491, resulting in the net amount due to the counterparty of $4,937,698.
4. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays the Adviser an investment advisory fee which is calculated daily and paid monthly. The Fund’s contractual investment advisory fee rate (expressed as an annual rate) is 0.64% of its average daily net assets.
The Adviser has contractually agreed to waive the investment advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Fund’s total annual fund operating expenses, including the investment advisory fee, but excluding the fees payable pursuant to a Rule 12b-1 plan, shareholder servicing fees, such as transfer agency fees (including out-of-pocket costs), administrative services fees and any networking/omnibus payable by any share class, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.92% of the Fund’s average daily net assets. The Adviser has agreed to continue the waivers for at least a one-year period commencing on January 28, 2022. If applicable, amounts waived and/or reimbursed to the Fund by the Adviser are disclosed as “Excess Expense Reimbursement and Waivers” on the Statement of Operations.
Janus Henderson Services US LLC (formerly Janus Services LLC) (the “Transfer Agent”), a wholly-owned subsidiary of the Adviser, is the Fund’s transfer agent. In addition, the Transfer Agent 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. The Transfer Agent is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) 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 the Transfer Agent, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between the Transfer Agent and the Fund, the Transfer Agent may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. The Adviser and its affiliates benefit from an increase in assets that may result from such relationships. The Funds’ Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as “Transfer agent networking and omnibus fees” on the Statement of Operations.
The Fund pays an annual administrative services fee based on the average daily net assets of Class D Shares for shareholder services provided by the Transfer Agent, as detailed below.
| | |
Average Daily Net Assets of Class D Shares of the Janus Henderson funds | Administrative Services Fee |
Under $40 billion | 0.12% |
$40 billion – $49.9 billion | 0.10% |
Over $49.9 billion | 0.08% |
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
The Fund’s actual Class D administrative fee rate was 0.11% for the reporting period.
The Transfer Agent provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
The Transfer Agent receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund’s Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. The Transfer Agent 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. The Transfer Agent 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. The Transfer Agent may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as “Transfer agent administrative fees and expenses” on the Statement of Operations.
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 the Adviser. For all share classes, the Transfer Agent also seeks reimbursement for costs it incurs as transfer agent and for providing servicing.
The Transfer Agent is compensated for its services related to the Fund’s Class D Shares. These amounts are disclosed as “Other transfer agent fees and expenses” on the Statement of Operations.
Under a distribution and shareholder servicing plan (the “Plan”) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trust’s distributor, the Distributor, a wholly-owned subsidiary of the Adviser, a fee for the sale and distribution and/or shareholder servicing of the Shares 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 the Distributor 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 Fund. These amounts are disclosed as “12b-1 Distribution and shareholder servicing fees” on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Fund’s actual 12b-1 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 “12b-1 Distribution and shareholder servicing fees” in the Statement of Operations.
The Adviser serves as administrator to the Fund pursuant to an administration agreement between the Adviser and the Trust. Under the administration agreement, the Adviser is obligated to provide or arrange for the provision of certain administration, compliance, and accounting services to the Fund, including providing office space for the Fund, and is reimbursed by the Fund for certain of its costs in providing these services (to the extent the Adviser seeks reimbursement and such costs are not otherwise waived). In addition, employees of the Adviser and/or its affiliates may serve as officers of the Trust. The Fund pays for some or all of the salaries, fees, and expenses of the Adviser employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by the Adviser, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services the Adviser (or any subadvisor, as applicable) provides to the Fund. These amounts are disclosed as “Affiliated fund administration fees” on the Statement of Operations. In addition, some expenses related to compensation payable to the Fund’s Chief Compliance Officer and certain compliance staff, all of whom are employees of the Adviser and/or its affiliates, are shared with the Fund. Total compensation of $259,299 was paid to the Chief Compliance Officer and
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
certain compliance staff by the Trust during the period ended March 31, 2022. The Fund's portion is reported as part of “Other expenses” on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus Henderson 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 included as of March 31, 2022 on the Statement of Assets and Liabilities in the asset, “Non-interested Trustees’ deferred compensation,” and liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Total distributable earnings (loss)” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2022 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 $213,688 were paid by the Trust to the Trustees under the Deferred Plan during the period ended March 31, 2022.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or non-affiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or non-affiliated money market funds or cash management pooled investment vehicles that operate as money market funds. The Fund is eligible to participate in the cash sweep program (the “Investing Funds”). As adviser, the Adviser has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Henderson Cash Liquidity Fund LLC (the “Sweep Vehicle”) is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. The Sweep Vehicle operates pursuant to the provisions of the 1940 Act that govern the operation of money market funds and prices its shares at NAV reflecting market-based values of its portfolio securities (i.e., a “floating” NAV) rounded to the fourth decimal place (e.g., $1.0000). The Sweep Vehicle is permitted to impose a liquidity fee (of up to 2%) on redemptions from the Sweep Vehicle or a redemption gate that temporarily suspends redemptions from the Sweep Vehicle for up to 10 business days during a 90 day period. There are no restrictions on the Fund's ability to withdraw investments from the Sweep Vehicle at will, and there are no unfunded capital commitments due from the Fund to the Sweep Vehicle. The Sweep Vehicle does not charge any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended March 31, 2022 can be found in the “Schedules of Affiliated Investments” located in the Schedule of Investments.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Henderson Distributors and financial intermediaries. During the period ended March 31, 2022, Janus Henderson Distributors retained upfront sales charges of $158.
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. 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 Henderson Distributors during the period ended March 31, 2022.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended March 31, 2022, redeeming shareholders of Class C Shares paid CDSCs of $20.
5. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from US GAAP. 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.
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2022 are noted below. 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 Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ 2,445,608,867 | $1,402,873,977 | $(192,985,523) | $ 1,209,888,454 |
Information on the tax components of derivatives as of March 31, 2022 is as follows:
| | | | |
Federal Tax Cost | Unrealized
Appreciation | Unrealized
(Depreciation) | Net Tax Appreciation/
(Depreciation) |
$ - | $ 1,240,430 | $ (524,895) | $ 715,535 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
6. Capital Share Transactions
| | | | | | | |
| | | | | | |
| | Period ended March 31, 2022 | | Year ended September 30, 2021 |
| | Shares | Amount | | Shares | Amount |
| | | | | | | |
Class A Shares: | | | | | |
Shares sold | 45,902 | $ 4,521,322 | | 92,399 | $ 9,558,652 |
Reinvested dividends and distributions | 30,916 | 2,759,573 | | 12,869 | 1,266,434 |
Shares repurchased | (60,747) | (5,887,794) | | (97,981) | (9,969,538) |
Net Increase/(Decrease) | 16,071 | $ 1,393,101 | | 7,287 | $ 855,548 |
Class C Shares: | | | | | |
Shares sold | 134 | $ 10,338 | | 893 | $ 77,721 |
Reinvested dividends and distributions | 5,446 | 428,187 | | 4,135 | 367,054 |
Shares repurchased | (11,055) | (912,654) | | (40,250) | (3,701,808) |
Net Increase/(Decrease) | (5,475) | $ (474,129) | | (35,222) | $ (3,257,033) |
Class D Shares: | | | | | |
Shares sold | 151,090 | $ 14,315,253 | | 335,968 | $ 35,366,781 |
Reinvested dividends and distributions | 2,468,740 | 230,407,525 | | 1,035,846 | 105,790,991 |
Shares repurchased | (755,832) | (73,331,489) | | (1,560,909) | (163,563,164) |
Net Increase/(Decrease) | 1,863,998 | $171,391,289 | | (189,095) | $ (22,405,392) |
Class I Shares: | | | | | |
Shares sold | 250,008 | $ 24,224,161 | | 498,000 | $ 52,612,432 |
Reinvested dividends and distributions | 418,219 | 39,308,399 | | 178,842 | 18,374,262 |
Shares repurchased | (447,213) | (44,031,296) | | (774,849) | (81,325,224) |
Net Increase/(Decrease) | 221,014 | $ 19,501,264 | | (98,007) | $ (10,338,530) |
Class N Shares: | | | | | |
Shares sold | 471,638 | $ 46,227,308 | | 1,225,072 | $131,248,370 |
Reinvested dividends and distributions | 633,783 | 60,253,745 | | 279,594 | 28,991,082 |
Shares repurchased | (781,065) | (77,579,978) | | (1,747,964) | (187,446,572) |
Net Increase/(Decrease) | 324,356 | $ 28,901,075 | | (243,298) | $ (27,207,120) |
Class S Shares: | | | | | |
Shares sold | 59,233 | $ 5,507,865 | | 203,860 | $ 20,320,517 |
Reinvested dividends and distributions | 69,333 | 6,073,592 | | 36,249 | 3,515,025 |
Shares repurchased | (114,372) | (10,735,964) | | (510,183) | (48,462,848) |
Net Increase/(Decrease) | 14,194 | $ 845,493 | | (270,074) | $ (24,627,306) |
Class T Shares: | | | | | |
Shares sold | 283,294 | $ 27,116,350 | | 821,377 | $ 82,135,483 |
Reinvested dividends and distributions | 1,248,594 | 114,071,542 | | 530,319 | 53,217,526 |
Shares repurchased | (1,000,616) | (93,757,973) | | (1,400,723) | (144,227,510) |
Net Increase/(Decrease) | 531,272 | $ 47,429,919 | | (49,027) | $ (8,874,501) |
7. Purchases and Sales of Investment Securities
For the period ended March 31, 2022, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, TBAs, and in-kind transactions, as applicable) was as follows:
| | | | |
Purchases of
Securities | Proceeds from Sales
of Securities | Purchases of Long-
Term U.S. Government
Obligations | Proceeds from Sales
of Long-Term U.S.
Government Obligations |
$297,595,454 | $ 555,372,997 | $ - | $ - |
Janus Henderson Venture Fund
Notes to Financial Statements (unaudited)
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to March 31, 2022 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 Henderson Venture Fund
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 1-800-525-1093; (ii) on the Fund’s website at janushenderson.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 janushenderson.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Full Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC as an exhibit to Form N-PORT within 60 days of the end of the first and third fiscal quarters, and in the annual report and semiannual report to shareholders. The Fund’s Form N-PORT filings and annual and semiannual reports: (i) are 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) are available without charge, upon request, by calling a Janus Henderson representative at 1-877-335-2687 (toll free) (or 1-800-525-3713 if you hold Class D Shares). Portfolio holdings consisting of at least the names of the holdings are generally available on a monthly basis with a 30-day lag under Full Holdings for the Fund at janushenderson.com/info (or janushenderson.com/reports if you hold Class D Shares).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each portfolio of Janus Aspen Series (each, a “VIT Portfolio,” and collectively, the “VIT Portfolios”), as well as each fund of Janus Investment Fund (each, a “Fund,” and collectively, the “Funds” and together with the VIT Portfolios, the “Janus Henderson Funds,” and each, a “Janus Henderson Fund”). As required by law, the Trustees determine annually whether to continue the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each Janus Henderson Fund that utilizes a subadviser.
In connection with their most recent consideration of those agreements for each Janus Henderson Fund, the Trustees received and reviewed information provided by Janus Henderson Investors US LLC (formerly, Janus Capital Management LLC) (the “Adviser”) and the subadviser 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 meetings held on November 3-4, 2021 and December 7-8, 2021, the Trustees’ evaluated the information provided by the Adviser, the subadviser, and the independent fee consultant, as well as other information addressed during the year. Following such evaluation, the Trustees determined that the overall arrangements between each Janus Henderson Fund and the Adviser and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by the Adviser, its affiliates and the subadviser, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment and unanimously approved the continuation of the investment advisory agreement for each Janus Henderson Fund and the subadvisory agreement for each subadvised Janus Henderson Fund, for the period from February 1, 2022 through February 1, 2023, 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, for the purpose of peer comparisons any administration fees (excluding out of pocket costs), net of any waivers, paid by a fund as a percentage of average net assets.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by the Adviser and the subadviser to the Janus Henderson Funds, taking into account the investment objective, strategies and policies of each Janus Henderson
Janus Henderson Venture Fund
Additional Information (unaudited)
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 Janus Henderson Funds. In addition, the Trustees reviewed the resources and key personnel of the Adviser and the subadviser, particularly noting those employees who provide investment and risk management services to the Janus Henderson Funds. The Trustees also considered other services provided to the Janus Henderson Funds by the Adviser or the subadviser, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered the Adviser’s role as administrator to the Janus Henderson Funds, noting that the Adviser generally does not receive a fee for its services as administrator, but is reimbursed for its out-of-pocket costs. The Trustees considered the role of the Adviser in monitoring adherence to the Janus Henderson Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Janus Henderson Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that the Adviser provides a number of different services for the Janus Henderson Funds and fund shareholders, ranging from investment management services to various other servicing functions, and that, in its view, the Adviser is a capable provider of those services. The independent fee consultant also provided its belief that the Adviser has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and the subadviser to each Janus Henderson 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 Janus Henderson Funds whose performance lagged that of their peers for certain periods, the Janus Henderson Funds were likely to benefit from the continued provision of those services. They also concluded that the Adviser and the subadviser had sufficient personnel, with the appropriate education and experience, to serve the Janus Henderson Funds effectively and each had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Janus Henderson Fund over various time periods. They noted that they considered Janus Henderson Fund performance data throughout the year, including periodic meetings with each Janus Henderson Fund’s portfolio manager(s), and also reviewed information comparing each Janus Henderson Fund’s performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent data provider, and with the Janus Henderson Fund’s benchmark index. In this regard, the independent fee consultant found that the overall Janus Henderson Funds’ performance has been reasonable: for the 36 months ended September 30, 2021, approximately 55% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers, and for the 12 months ended September 30, 2021, approximately 45% of the Janus Henderson Funds were in the top two quartiles of performance versus Broadridge peers.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser had taken or was taking to improve performance and that the performance trend was improving
Janus Henderson Venture Fund
Additional Information (unaudited)
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Developed World Bond Fund, the Trustees noted the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson High-Yield Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the second Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson European Focus Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the
Janus Henderson Venture Fund
Additional Information (unaudited)
Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Global Select Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Opportunities Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Overseas Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Money Market Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that the Fund’s performance was in bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser had taken or was taking to improve performance.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Contrarian Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson Enterprise Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Forty Fund, the Trustees noted that the Fund’s performance was in the first Broadridge quartile for the 36 months ended May 31, 2021 and the first Broadridge quartile for the 12 months ended May 31, 2021.
Janus Henderson Venture Fund
Additional Information (unaudited)
· For Janus Henderson Growth and Income Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Research Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the third Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Triton Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, and the steps the Adviser had taken or was taking to improve performance.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance and the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the second Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, the steps the Adviser and subadviser had taken or were taking to improve performance.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
· For Janus Henderson Small-Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the third Broadridge quartile for the 36 months ended May 31, 2021 and the bottom Broadridge quartile for the 12 months ended May 31, 2021. The Trustees noted the reasons for the Fund’s underperformance, while also noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps the Adviser had taken or was taking to improve performance.
Janus Henderson Venture Fund
Additional Information (unaudited)
In consideration of each Janus Henderson Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Janus Henderson Fund’s performance warranted continuation of such Janus Henderson Fund’s investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Janus Henderson Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management fees (investment advisory fees and any administration fees but excluding out-of-pocket costs) for many of the Janus Henderson Funds, after applicable waivers, was below the average management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by the Adviser out of its management fees collected from such Janus Henderson Fund.
The independent fee consultant provided its belief that the management fees charged by the Adviser to each of the Janus Henderson Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by the Adviser. The independent fee consultant found: (1) the total expenses and management fees of the Janus Henderson Funds to be reasonable relative to other comparable mutual funds; (2) the total expenses, on average, were 8% under the average total expenses of the respective Broadridge Expense Group peers; and (3) and the management fees for the Janus Henderson Funds, on average, were 6% under the average management fees for the respective Broadridge Expense Group. The Trustees also considered the total expenses for each share class of each Janus Henderson Fund compared to the average total expenses for its Broadridge Expense Group and to average total expenses for its Broadridge Expense Universe.
For certain Janus Henderson Funds, the independent fee consultant also performed a systematic “focus list” analysis of expenses which assessed fund fees in the context of fund performance being delivered. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Janus Henderson Funds was reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and/or expense waivers on such Janus Henderson Funds.
The Trustees considered the methodology used by the Adviser and 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 the Adviser and subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by the Adviser or subadviser (for which the Adviser or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Janus Henderson Funds having a similar strategy, the Trustees considered that the Adviser noted that, under the terms of the management agreements with the Janus Henderson Funds, the Adviser performs significant additional services for the Janus Henderson Funds that it does not provide to those other clients, including administration services, oversight of the Janus Henderson Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Janus Henderson Funds, the Adviser assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, the Trustees noted that the independent fee consultant found that: (1) the management fees the Adviser charges to the Janus Henderson Funds are reasonable in relation to the management fees the Adviser charges to funds subadvised by the Adviser and to the fees the Adviser charges to its institutional separate account clients; (2) these subadvised and institutional separate accounts have different service and infrastructure needs and operate in markets very distinct relative to retail funds; (3) Janus Henderson mutual fund investors enjoy reasonable fees relative to the fees charged to Janus Henderson subadvised fund and separate account investors; and (4) as part of its 2020 review, 9 of 10 Janus Henderson Funds have lower management fees than similar funds subadvised by the Adviser.
The Trustees considered the fees for each Janus Henderson Fund for its fiscal year ended in 2020, including the VIT Portfolios, and noted the following with regard to each VIT Portfolio’s total expenses, net of applicable fee waivers (the VIT Portfolio’s “total expenses”):
Janus Henderson Venture Fund
Additional Information (unaudited)
Asset Allocation Funds
· For Janus Henderson Global Allocation Fund – Conservative, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable.
· For Janus Henderson Global Allocation Fund – Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Fixed-Income Funds
· For Janus Henderson Absolute Return Income Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Developed World Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Multi-Sector Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Short Duration Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
Global and International Equity Funds
· For Janus Henderson Asia Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Emerging Markets Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson European Focus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Equity Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Venture Fund
Additional Information (unaudited)
· For Janus Henderson Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Real Estate Fund, the Trustees noted, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Global Research Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Sustainable Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Global Technology and Innovation Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Opportunities Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Overseas Fund, the Trustees noted that although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
Money Market Funds
· For Janus Henderson Government Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has voluntarily agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
· For Janus Henderson Money Market Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has agreed to limit the Fund’s expenses to assist the Fund in attempting to maintain a yield of at least 0.00%.
Multi-Asset Funds
· For Janus Henderson Adaptive Global Allocation Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
· For Janus Henderson Dividend & Income Builder Fund, the Trustees noted that, that the Fund’s total expenses were below the peer group average for all share classes.
Multi-Asset U.S. Equity Funds
· For Janus Henderson Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Contrarian Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser had contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted
Janus Henderson Venture Fund
Additional Information (unaudited)
that the Adviser 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 Henderson Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Triton Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson Venture Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
Quantitative Equity Funds
· For Janus Henderson Emerging Markets Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson Global Income Managed Volatility Fund, the Trustees noted that the Fund’s total expenses were below the peer group for all share classes.
· For Janus Henderson International Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
· For Janus Henderson U.S. Managed Volatility Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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.
U.S. Equity Funds
· For Janus Henderson Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser 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 Henderson Small-Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group average for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that the Adviser has contractually agreed to limit the Fund’s expenses.
The Trustees reviewed information on the overall profitability to the Adviser and its affiliates from their relationships with the Janus Henderson Funds, and considered profitability data of other publicly traded mutual fund advisers. The Trustees recognized that profitability comparisons among fund managers are difficult because of the variation in the type of comparative information that is publicly available, and the profitability of any fund manager is affected by
Janus Henderson Venture Fund
Additional Information (unaudited)
numerous factors, including the organizational structure of the particular fund manager, differences in complex size, difference in product mix, difference in types of business (mutual fund, institutional and other), differences in 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.
Additionally, the Trustees considered the estimated profitability to the Adviser from the investment management services it provided to each Janus Henderson Fund. In their review, the Trustees considered whether the Adviser and subadviser receive adequate incentives and resources to manage the Janus Henderson Funds effectively. In reviewing profitability, the Trustees noted that the estimated profitability for an individual Janus Henderson Fund is necessarily a product of the allocation methodology utilized by the Adviser to allocate its expenses as part of the estimated profitability calculation. In this regard, the Trustees noted that the independent fee consultant found that (1) the expense allocation methodology and rationales utilized by the Adviser were reasonable and (2) no clear correlation exists between expense allocations and operating margins. The Trustees also considered that the estimated profitability for an individual Janus Henderson Fund was influenced by a number of factors, including not only the allocation methodology selected, but also the presence of fee waivers and expense caps, and whether the Janus Henderson Fund’s investment management agreement contained breakpoints or a performance fee component. The Trustees determined, after taking into account these factors, among others, that the Adviser’s estimated profitability with respect to each Janus Henderson Fund was not unreasonable in relation to the services provided, and that the variation in the range of such estimated profitability among the Janus Henderson Funds was not a material factor in the Board’s approval of the reasonableness of any Janus Henderson Fund’s investment management fees.
The Trustees concluded that the management fees payable by each Janus Henderson Fund to the Adviser and its affiliates, as well as the fees paid by the Adviser to the subadviser of subadvised Janus Henderson 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 the Adviser and the subadviser charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Janus Henderson Funds. The Trustees also concluded that each Janus Henderson Fund’s total expenses were reasonable, taking into account the size of the Janus Henderson Fund, the quality of services provided by the Adviser and subadviser, the investment performance of the Janus Henderson Fund, and any expense limitations agreed to or provided by the Adviser.
Economies of Scale
The Trustees considered information about the potential for the Adviser to realize economies of scale as the assets of the Janus Henderson Funds increase. They noted that their independent fee consultant published a report to the Trustees in November 2019 which provided its research and analysis into economies of scale. They also noted that, although many Janus Henderson Funds pay advisory fees at a fixed base rate as a percentage of net assets, without any breakpoints or performance fees, their independent fee consultant concluded that 75% of these Janus Henderson Funds’ have contractual management fees (gross of waivers) below their Broadridge Expense Group averages. The Trustees also noted the following: (1) that for those Janus Henderson Funds whose expenses are being reduced by the contractual expense limitations of the Adviser, the Adviser is subsidizing certain of these Janus Henderson Funds because they have not reached adequate scale; (2) performance fee structures have been implemented for various Janus Henderson Funds that have caused the effective rate of advisory fees payable by such Janus Henderson Fund to vary depending on the investment performance of the Janus Henderson Fund relative to its benchmark index over the measurement period; and (3) a few Janus Henderson Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Janus Henderson Funds share directly in economies of scale through the significant investments made by the Adviser and its affiliates related to services provided to the Funds and the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus Henderson Funds.
The Trustees also considered the independent fee consultant’s conclusion that, given the limitations of various analytical approaches to economies of scale and their conflicting results, it is difficult to analytically confirm or deny the existence of economies of scale in the Janus Henderson complex. In this regard, the independent consultant concluded that (1) to the extent there were economies of scale at the Adviser, the Adviser’s general strategy of setting fixed management fees below peers appeared to share any such economies with investors even on smaller Janus Henderson Funds which have not yet achieved those economies and (2) by setting lower fixed fees from the start on these Janus Henderson Funds, the Adviser appeared to be investing to increase the likelihood that these Janus
Janus Henderson Venture Fund
Additional Information (unaudited)
Henderson Funds will grow to a level to achieve any economies of scale that may exist. Further, the independent fee consultant provided its belief that Janus Henderson Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Henderson Funds in light of any economies of scale that may be present at the Adviser.
Based on all of the information reviewed, including the recent and past research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Janus Henderson Fund was reasonable and that the current rates of fees do reflect a sharing between the Adviser and the Janus Henderson Fund of any economies of scale that may be present at the current asset level of the Janus Henderson Fund.
Other Benefits to the Adviser
The Trustees also considered benefits that accrue to the Adviser and its affiliates and subadviser to the Janus Henderson Funds from their relationships with the Janus Henderson Funds. They recognized that two affiliates of the Adviser separately serve the Janus Henderson Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided, and that such compensation contributes to the overall profitability of the Adviser and its affiliates that results from their relationship with the Janus Henderson Funds. The Trustees also considered the Adviser’s past and proposed use of commissions paid by the Janus Henderson Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Janus Henderson Fund and/or other clients of the Adviser and/or the Adviser, and/or subadviser to a Janus Henderson Fund. The Trustees concluded that the Adviser’s and the subadviser’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 Janus Henderson Fund. The Trustees also concluded that, other than the services provided by the Adviser and its affiliates and subadviser pursuant to the agreements and the fees to be paid by each Janus Henderson Fund therefor, the Janus Henderson Funds and the Adviser and the subadviser may potentially benefit from their relationship with each other in other ways. They concluded that the Adviser and its affiliates 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 the Janus Henderson Funds and other clients serviced by the Adviser and its affiliates. They also concluded that the Adviser and the subadviser benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Janus Henderson Funds and that the Janus Henderson Funds benefit from the Adviser’s and/or the subadviser’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of the Adviser and/or other clients of the subadviser. They further concluded that the success of any Janus Henderson Fund could attract other business to the Adviser, the subadviser or other Janus Henderson funds, and that the success of the Adviser and the subadviser could enhance the Adviser’s and the subadviser’s ability to serve the Janus Henderson Funds.
Janus Henderson Venture Fund
Liquidity Risk Management Program (unaudited)
Liquidity Risk Management Program
Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), requires open-end funds (but not money market funds) to adopt and implement a written liquidity risk management program (the “LRMP”) that is reasonably designed to assess and manage liquidity risk, which is the risk that a fund could not meet redemption requests without significant dilution of remaining investors’ interest in the fund. The Fund has implemented a LRMP, which incorporates the following elements: (i) assessment, management, and periodic review of liquidity risk; (ii) classification of portfolio holdings; (iii) the establishment and monitoring of a highly liquid investment minimum, as applicable; (iv) a 15% limitation on a Fund’s illiquid investments; (v) redemptions in-kind; and (vi) board oversight.
The Trustees of the Fund (the “Trustees”) have designated Janus Henderson Investors US LLC, the Fund’s investment adviser (the “Adviser”), as the Program Administrator for the LRMP responsible for administering the LRMP and carrying out the specific responsibilities of the LRMP. A working group comprised of various teams within the Adviser’s business is responsible for administering the LRMP and carrying out the specific responsibilities of different aspects of the LRMP (the “Liquidity Risk Working Group”). In assessing each Fund’s liquidity risk, the Liquidity Risk Working Group periodically considers, as relevant, factors including (i) the liquidity of a Fund’s portfolio investments during normal and reasonably foreseeable stressed conditions; (ii) whether a Fund’s investment strategy is appropriate for an open-end fund; (iii) the extent to which a Fund’s strategy involves a relatively concentrated portfolio or large positions in any issuer; (iv) a Fund’s use of borrowing for investment purposes; and (v) a Fund’s use of derivatives.
The Liquidity Rule requires the Trustees to review at least annually a written report provided by the Program Administrator that addresses the operation of the LRMP and assesses its adequacy and the effectiveness of its implementation, including, if applicable, the operation of the highly liquid investment minimum, and any material changes to the LRMP (the “Program Administrator Report”). At a meeting held on March 16, 2022, the Adviser provided the Program Administrator Report to the Trustees which covered the operation of the LRMP from January 1, 2021 through December 31, 2021 (the “Reporting Period”).
The Program Administrator Report discussed the operation and effectiveness of the LRMP during the Reporting Period. It noted that the Fund was able to meet redemptions during the normal course of business during the Reporting Period. The Program Administrator Report also stated that the Fund did not exceed the 15% limit on illiquid assets during the Reporting Period, that the Fund held primarily highly liquid assets, and was considered to be a primarily highly liquid fund during the Reporting Period. In addition, the Adviser expressed its belief in the Program Administrator Report that the LRMP is reasonably designed and adequate to assess and manage the Fund’s liquidity risk, considering the Fund’s particular risks and circumstances, and includes policies and procedures reasonably designed to implement each required component of the Liquidity Rule.
There can be no assurance that the LRMP will achieve its objectives in the future. Please refer to your Fund’s prospectus for more information regarding the risks to which an investment in the Fund may be subject.
Janus Henderson Venture Fund
Useful Information About Your Fund Report (unaudited)
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 are not available for investment and do not reflect deduction of expenses.
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 the Adviser and reflects the Fund’s subsidized expense ratio. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
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 exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. A company may be allocated 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. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, swaptions, and swaps follow the Fund’s Schedule of Investments (if applicable).
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 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.
Janus Henderson Venture Fund
Useful Information About Your Fund Report (unaudited)
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.
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.
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.
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. Do not 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 does not take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the
Janus Henderson Venture Fund
Useful Information About Your Fund Report (unaudited)
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 Henderson Venture Fund
Notes
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Janus Henderson Venture Fund
Notes
NotesPage2
Janus Henderson Venture Fund
Notes
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This report is submitted for the general information of shareholders of the Fund. It is not an offer or solicitation for the Fund and is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. |
Janus Henderson is a trademark of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc Janus Henderson Distributors US LLC |
| | | | 125-24-93056 05-22 |
Item 2 - Code of Ethics
Not applicable to semiannual reports.
Item 3 - Audit Committee Financial Expert
Not applicable to semiannual reports.
Item 4 - Principal Accountant Fees and Services
Not applicable to semiannual reports.
Item 5 - Audit Committee of Listed Registrants
Not applicable.
Item 6 - Investments
(a) Schedule of Investments is contained in the Reports to Shareholders included under Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant.
Item 10 - Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees.
Item 11 - Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal Financial Officer have evaluated the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures were effective, as of that date.
(b) There have been no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the 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 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
(a) Not applicable
(b) Not applicable.
Item 13 - 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.
(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.
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/ Michelle Rosenberg
Michelle Rosenberg, Interim President and Chief Executive Officer of Janus Investment Fund
(Principal Executive Officer)
Date: May 31, 2022
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/ Michelle Rosenberg
Michelle Rosenberg, Interim President and Chief Executive Officer of Janus Investment Fund
(Principal Executive Officer)
Date: May 31, 2022
By: /s/ Jesper Nergaard
Jesper Nergaard, Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer of Janus Investment Fund
(Principal Accounting Officer and Principal Financial Officer)
Date: May 31, 2022
