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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1879
Janus Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)
Kelley Abbott Howes, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)
Registrant's telephone number, including area code: 303-333-3863
Date of fiscal year end: 10/31
Date of reporting period: For the six months ended 04/30/04
Item 1 - Reports to Shareholders
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2004 SEMIANNUAL REPORT
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JANUS GROWTH FUNDS
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Janus Fund
Janus Enterprise Fund
Janus Mercury Fund
Janus Olympus Fund
Janus Orion Fund
Janus Twenty Fund
Janus Venture Fund
[LOGO] JANUS CAPITAL
Group
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TABLE OF CONTENTS
JANUS GROWTH FUNDS
Schedules of Investments
Janus Fund ................................................. 2
Janus Enterprise Fund ...................................... 7
Janus Mercury Fund ......................................... 12
Janus Olympus Fund ......................................... 17
Janus Orion Fund ........................................... 22
Janus Twenty Fund .......................................... 26
Janus Venture Fund ......................................... 29
Statements of Assets and Liabilities ........................... 34
Statements of Operations ....................................... 36
Statements of Changes in Net Assets ............................ 38
Financial Highlights ........................................... 40
Notes to Schedules of Investments .............................. 44
Notes to Financial Statements .................................. 46
Explanations of Charts, Tables and Financial Statements ........ 54
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A MESSAGE REGARDING PORTFOLIO MANAGER COMMENTARY: To provide our shareholders
with more timely and comprehensive updates on their funds, we will now provide
portfolio manager commentaries five times per year. Quarterly commentaries and
other timely fund information will be available in the Fund Updates section of
janus.com and will be offered in place of the portfolio manager letters in April
30 semiannual reports. Shareholders will continue to receive a comprehensive
annual letter from portfolio managers in the October 31 annual report which will
be available at year end. Going forward, semiannual and annual reports will
continue to provide a complete list of fund holdings, performance information
and other important details about Janus funds.
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Below is a schedule of planned communications regarding your investment with
Janus:
INVESTMENT UPDATE: WHEN AVAILABLE: WHERE YOU CAN FIND IT:
Quarterly Review
(prior calendar quarter) January, April, July, www.janus.com;
October Fund Updates section
Annual Review
(funds' fiscal year-
November 1 through
October 31) December www.janus.com;
Fund Updates section
Annual Report (sent by
U.S. mail or e-mail)
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Dear Shareholder,
Let me begin by telling you how excited I am to be associated with Janus. As a
shareholder of the funds, I'm sure you already know many of the things that make
Janus unique. To me, it is a research-driven firm with an impressive heritage of
delivering exceptional long-term performance to its shareholders. I am proud to
be a part of continuing that heritage into the future.
There are three main reasons why I decided to join Janus as Chief Investment
Officer. First, I believe the research at Janus is the best I've ever seen. In a
prior job as a sell-side analyst, I had the opportunity to get an inside look at
the passion, intensity and energy that characterized investment debates at
Janus. That positive impression has only been reinforced in the short time I
have been part of the team. Given my analyst background, I share the same zeal
for getting the story right behind every investment.
Second, the people at Janus are special. From the individuals at our call
center, to the sales and marketing staff, to the person who actually manages
your money, all of our employees are passionate about winning, and passionate
about setting the pace, not following it. The esprit de corps of the firm is
quite remarkable.
Third, Janus is an investment-centric firm. By that I mean we focus on our core
competency of managing our shareholders' money. Delivering performance remains
at the heart of what we do and we constantly reinvest in our core business
toward that end.
My role at Janus will be to oversee the investment team and drive investment
returns. In an attempt to safeguard the consistency and quality of the
investment process, I plan to play devil's advocate with the portfolio managers,
to poke and prod their investment decisions. I will take full responsibility for
the performance of the team, making sure that portfolio managers have the tools
and resources needed to make wise decisions.
Like any solid organization, there is always room to improve. I have
communicated to the investment team the following enhancements that I plan to
focus on during the next two quarters. For starters, I plan on expanding our
coverage of international stocks. In this era of increased globalization, I
believe sectors are more important than countries and our research needs to be
borderless. In addition, we need to make sure that our research edge provides a
solid foundation from which we can invest with conviction. Of course, the
flipside of this exercise is to have the proper risk controls in place to serve
as an early warning system when fundamentals begin to deteriorate and stocks
need to be trimmed or sold.
Furthermore, I want to improve communication so that analysts and portfolio
managers are sharing their best ideas and discussing how topical events may
impact portfolios. Collectively, I believe we can arrive at better investment
decisions through debate and idea sharing versus acting in isolation. These are
the initiatives I will be focusing on in the initial phase of my tenure at
Janus. I look forward to circling back with you in the fall and providing an
update on our progress.
Turning to the markets, after finishing last year on a strong note, stocks have
treaded water during the first few months of 2004, as concerns about rising
interest rates, war, and oil prices have offset good news on job growth and
corporate earnings. Consequently, the S&P 500 Index rose 6.3% during the
six-month time period ended 4/30/04, after rising 15.6% in the six months ended
10/31/03. The S&P outperformed both the Dow Jones Industrial Average and the
Nasdaq Composite, which posted returns of 5.4% and -0.6%, respectively.
Notwithstanding the moderate returns of the market, my message to you today is
that we like what we are hearing from our company contacts. Enterprise spending
is improving as corporate profits accelerate. After two years of balance sheet
repair, CEOs are again thinking strategically about how to grow their
businesses. This is a very encouraging development that we feel is being
underappreciated in the marketplace at the current time. Yes, interest rates are
likely to be higher 12 months from now, but we believe that the strength of the
economy and an improvement in corporate profits will overpower any dampening
effect caused by a rising interest rate environment.
While the market in 2003 could be characterized as broad-based as the economy
began its recovery, we believe that the market will be much more selective in
2004. I think the expected "stock-picker's" market will play to our strength of
identifying companies that are investing in their businesses, growing their
market share, and capitalizing on technological and infrastructural change
throughout the world. Indeed, I believe the recent improved performance of our
funds provides evidence that our research process remains strong and that our
portfolios are properly positioned to capitalize on continuing growth in the
global economy.
It is my belief that Janus' investment process works best during times of
"normal" economic activity (3%-4% GDP growth, 10%-12% corporate profit growth).
We are now moving into the middle innings of this economic recovery, which has
followed fairly normal patterns to date compared to historical recoveries.
Therefore, I am optimistic of continued strong performance by our funds in this
environment.
In closing, let me thank you again for your loyalty to Janus. As a shareholder
of our funds, you have our absolute faithfulness in return. I believe that we
face a very bright future together.
Sincerely,
/s/ Gary Black
Gary Black
President and Chief Investment Officer
Past performance is no guarantee of future results.
Janus Growth Funds April 30, 2004 1
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JANUS FUND (unaudited) Portfolio Manager
Blaine Rollins
PERFORMANCE
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AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
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Janus Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
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Fiscal One Five Ten Since
Year-to-date Year Year Year Inception*
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Janus Fund 1.33% 18.24% (5.30)% 8.56% 14.16%
S&P 500(R)Index 6.27% 22.88% (2.26)% 11.36% 11.43%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance
information.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - February 5, 1970
FUND STRATEGY
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To seek long-term growth of capital in a manner consistent with the preservation
of capital by investing primarily in common stocks of issuers of any size. This
Fund generally invests in larger, more established companies.
FUND ASSET MIX - (% of Net Assets)
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[PIE CHART]
Pie chart data shown in following table.
Preferred Stock - Foreign - 0.1%
Cash and Cash Equivalents - 0.3%
Corporate Bonds - Domestic - 0.5%
Common Stock - Foreign - 8.7%
Common Stock - Domestic - 90.4%
Number of Stocks: 104
Number of Bonds: 3
Top 10 Equities: 43.7%
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For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
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2 Janus Growth Funds April 30, 2004
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(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
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April 30, 2004 October 31, 2003
Comcast Corp. - Special Class A 7.3% 7.4%
Maxim Integrated Products, Inc. 6.5% 6.2%
Time Warner, Inc. 6.4% 5.1%
Linear Technology Corp. 5.9% 6.2%
Cisco Systems, Inc. 4.0% 3.5%
Univision Communications, Inc. - Class A 3.0% 2.7%
Walgreen Co. 3.0% 3.0%
United Parcel Service, Inc. - Class B 2.6% 2.3%
3M Co. 2.6% 2.0%
MGIC Investment Corp. 2.4% 1.8%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
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Janus Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
S&P 500 Janus Fund
Semiconductor Components/Integrated Circuits 0.4% 12.4%
Cable Television 0.7% 7.3%
Diversified Operations 5.3% 6.8%
Multimedia 2.0% 6.4%
Networking Products 1.4% 4.0%
Cosmetics and Toiletries 2.6% 3.8%
Television 0.1% 3.0%
Retail - Drug Store 0.5% 3.0%
Medical Instruments 1.2% 2.7%
Fiduciary Banks 0.6% 2.7%
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See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Janus Growth Funds April 30, 2004 3
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JANUS FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
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Common Stock - 99.2%
Advertising Sales - 0.6%
2,214,397 Lamar Advertising Co.* ...................... $ 90,923,141
Aerospace and Defense - 2.3%
1,175,020 Boeing Co. .................................. 50,161,604
920,140 General Dynamics Corp.# ..................... 86,143,507
4,365,565 Lockheed Martin Corp. ....................... 208,237,450
344,542,561
Aerospace and Defense - Equipment - 0.5%
841,670 United Technologies Corp. ................... 72,602,454
Airlines - 0.9%
4,150,683 Ryanair Holdings PLC (ADR)*,**,# ............ 138,300,758
Apparel Manufacturers - 0.3%
5,848,713 Burberry Group PLC** ........................ 40,191,101
Broadcast Services and Programming - 0.1%
453,925 Clear Channel Communications, Inc. .......... 18,833,348
Building - Mobile Home and Manufactured Homes - 0.4%
1,863,200 Winnebago Industries, Inc.(pound) ........... 53,716,056
Building - Residential and Commercial - 0.6%
148,250 NVR, Inc.*,# ................................ 66,860,750
310,855 Ryland Group, Inc.# ......................... 24,542,002
91,402,752
Cable Television - 7.3%
38,240,967 Comcast Corp. - Special Class A*,# .......... 1,108,605,633
Casino Hotels - 0.5%
1,340,685 Mandalay Resort Group ....................... 77,022,353
Chemicals - Specialty - 1.2%
2,562,025 Ecolab, Inc.# ............................... 76,348,345
1,857,230 Sigma-Aldrich Corp.# ........................ 105,193,507
181,541,852
Commercial Banks - 0.6%
8,209 Mitsubishi Tokyo Financial Group, Inc.** .... 73,048,235
1,833 Sumitomo Mitsui Financial Group, Inc.** ..... 13,852,766
86,901,001
Commercial Services - 0.2%
758,600 Iron Mountain, Inc.*,# ...................... 34,523,886
Commercial Services - Finance - 1.3%
5,306,802 Paychex, Inc.# .............................. 197,837,579
Computer Services - 0.7%
4,742,945 Ceridian Corp.* ............................. 101,404,164
Computers - 0.3%
430,120 IBM Corp. ................................... 37,923,680
Containers - Metal and Glass - 0.8%
1,911,520 Ball Corp. .................................. 126,160,320
Containers - Paper and Plastic - 1.1%
4,529,775 Bemis Company, Inc.# ........................ 122,349,223
822,330 Sealed Air Corp.*,# ......................... 40,359,956
162,709,179
Cosmetics and Toiletries - 3.8%
4,720,645 Colgate-Palmolive Co.# ...................... 273,230,932
1,180,155 International Flavors & Fragrances, Inc.# ... 42,780,619
2,514,105 Procter & Gamble Co.# ....................... 265,866,604
581,878,155
Shares or Principal Amount Market Value
================================================================================
Dental Supplies and Equipment - 0.4%
904,494 Patterson Dental Co.*,# ..................... $ 66,661,208
Diversified Operations - 6.8%
4,521,100 3M Co. ...................................... 390,984,727
928,290 General Electric Co. ........................ 27,802,286
505,905 Honeywell International, Inc. ............... 17,494,195
1,923,795 Illinois Tool Works, Inc.# .................. 165,850,367
960,765 ITT Industries, Inc. ........................ 76,179,057
635,745 Pentair, Inc.# .............................. 37,884,045
11,577,720 Tyco International, Ltd. (New York Shares)# . 317,808,414
1,034,003,091
Diversified Operations-Commercial Services - 1.0%
2,437,160 ARAMARK Corp.- Class B ...................... 69,702,776
3,475,800 Cendant Corp. ............................... 82,306,944
152,009,720
E-Commerce/Products - 1.4%
5,049,205 Amazon.com, Inc.*,# ......................... 219,438,449
E-Commerce/Services - 1.0%
1,930,342 eBay, Inc.* ................................. 154,079,898
Electric Products - Miscellaneous - 0.1%
22,380 Samsung Electronics Company, Ltd. ........... 10,623,991
Electronic Components - Semiconductors - 1.5%
889,065 Broadcom Corp. - Class A*,# ................. 33,571,094
1,483,735 NVIDIA Corp.*,# ............................. 30,475,917
6,604,645 Texas Instruments, Inc.# .................... 165,776,590
229,823,601
Entertainment Software - 0.3%
848,940 Electronic Arts, Inc.* ...................... 42,973,343
Fiduciary Banks - 2.7%
8,716,325 Bank of New York Company, Inc. .............. 253,993,710
3,569,485 Northern Trust Corp.# ....................... 150,917,826
404,911,536
Finance - Commercial - 0.5%
2,161,145 CIT Group, Inc. ............................. 74,278,554
Finance - Investment Bankers/Brokers - 2.3%
32,059,617 Charles Schwab Corp.# ....................... 329,893,459
438,385 J.P. Morgan Chase & Co. ..................... 16,483,276
346,376,735
Finance - Mortgage Loan Banker - 0.1%
326,530 Fannie Mae .................................. 22,439,142
Financial Guarantee Insurance - 2.4%
4,937,150 MGIC Investment Corp.(pound) ................ 363,472,983
Food - Retail - 0.4%
700,090 Whole Foods Market, Inc.# ................... 56,000,199
Food - Wholesale/Distribution - 0.8%
3,118,940 Sysco Corp. ................................. 119,299,455
Hazardous Waste Disposal - 0.1%
487,490 Stericycle, Inc.*,# ......................... 23,311,772
Hospital Beds and Equipment - 0.7%
1,538,470 Hillenbrand Industries, Inc. ................ 103,846,725
Hotels and Motels - 0.4%
431,260 Four Seasons Hotels, Inc. ................... 23,072,410
945,790 Starwood Hotels & Resorts
Worldwide, Inc.# .......................... 37,632,984
60,705,394
See Notes to Schedules of Investments and Financial Statements.
4 Janus Growth Funds April 30, 2004
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Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Human Resources - 1.0%
5,326,385 Robert Half International, Inc. ............. $ 145,250,519
Instruments - Scientific - 0.3%
804,235 Dionex Corp.*,# ............................. 41,040,112
Life and Health Insurance - 0.5%
1,621,325 AFLAC, Inc.# ................................ 68,468,555
Machine Tools and Related Products - 0.5%
1,594,505 Kennametal, Inc. ............................ 68,818,836
Medical - Biomedical and Genetic - 0.1%
150,000 Amgen, Inc.* ................................ 8,440,500
100,000 Genentech, Inc.*,# .......................... 12,280,000
20,720,500
Medical - Drugs - 0.3%
379,776 Roche Holding A.G.** ........................ 39,834,595
Medical Instruments - 2.7%
4,532,670 Apogent Technologies, Inc.*,(pound) ......... 146,949,161
2,730,575 Medtronic, Inc.# ............................ 137,784,815
1,653,190 St. Jude Medical, Inc.*,# ................... 126,072,269
410,806,245
Medical Products - 1.9%
1,622,154 Stryker Corp.# .............................. 160,479,695
56,079 Synthes-Stratec, Inc.** ..................... 60,940,391
428,670 Varian Medical Systems, Inc.*,# ............. 36,797,033
391,875 Zimmer Holdings, Inc.*,# .................... 31,291,219
289,508,338
Metal Processors and Fabricators - 0.4%
1,492,700 Precision Castparts Corp.# .................. 67,186,427
Multi-Line Insurance - 0.7%
1,851,275 PartnerRe, Ltd.# ............................ 106,078,058
Multimedia - 6.4%
57,724,424 Time Warner, Inc.*,# ........................ 970,924,812
Networking Products - 4.0%
28,715,340 Cisco Systems, Inc.* ........................ 599,289,146
Oil Companies - Integrated - 0.1%
396,870 BP PLC (ADR)**,# ............................ 20,994,423
Optical Supplies - 1.0%
1,991,875 Alcon, Inc. (New York Shares)**,# ........... 147,896,719
Pharmacy Services - 0.3%
1,127,110 Caremark Rx, Inc.* .......................... 38,152,674
Property and Casualty Insurance - 0.7%
2,724,345 W. R. Berkley Corp. ......................... 110,335,973
Reinsurance - 2.4%
354 Berkshire Hathaway, Inc. - Class A*,# ....... 33,060,060
73,764 Berkshire Hathaway, Inc. - Class B*,# ....... 230,069,916
1,934,875 RenaissanceRe Holdings, Ltd.# ............... 101,948,564
365,078,540
Retail - Apparel and Shoe - 0.5%
2,007,030 Foot Locker, Inc.# .......................... 48,168,720
1,448,010 Gap, Inc.# .................................. 31,870,700
80,039,420
Retail - Discount - 0.8%
3,068,624 Costco Wholesale Corp.# ..................... 114,919,969
Shares or Principal Amount Market Value
================================================================================
Retail - Drug Stores - 3.0%
13,075,690 Walgreen Co.# ............................... $ 450,849,791
Retail - Home Furnishings - 0.2%
1,486,410 Pier 1 Imports, Inc.# ....................... 30,709,231
Retail - Office Supplies - 0.6%
3,424,840 Staples, Inc.# .............................. 88,223,878
Retail - Regional Department Stores - 0.6%
2,237,775 Kohl's Corp.* ............................... 93,516,617
Retail - Restaurants - 1.4%
8,045,415 McDonald's Corp.# ........................... 219,076,650
Schools - 1.0%
1,393,155 Apollo Group, Inc. - Class A*,# ............. 126,609,926
253,240 Strayer Education, Inc.# .................... 31,647,403
158,257,329
Semiconductor Components/Integrated Circuits - 12.4%
25,287,705 Linear Technology Corp.(pound) .............. 901,000,929
21,579,735 Maxim Integrated Products, Inc.(pound) ...... 992,452,012
1,893,452,941
Semiconductor Equipment - 0.9%
3,863,970 Applied Materials, Inc.*,# .................. 70,440,173
1,652,690 KLA-Tencor Corp.*,# ......................... 68,867,592
139,307,765
Soap and Cleaning Preparations - 0.3%
1,773,126 Reckitt Benckiser PLC** ..................... 46,096,872
Telecommunication Equipment - 0.6%
6,743,265 Nokia Oyj (ADR)** ........................... 94,473,143
Telecommunication Equipment - Fiber Optics - 0.4%
5,910,965 Corning, Inc.*,# ............................ 65,197,944
Television - 3.0%
13,650,442 Univision Communications, Inc. -
Class A*,(pound) .......................... 462,067,462
Transportation - Railroad - 0.6%
2,320,725 Canadian National Railway Co.
(New York Shares) ........................... 87,653,783
Transportation - Services - 2.6%
5,617,865 United Parcel Service, Inc. - Class B# ...... 394,093,230
Web Portals/Internet Service Providers - 0.6%
1,814,635 Yahoo!, Inc.*,# ............................. 91,566,482
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Total Common Stock (cost $10,756,682,180) ................... 15,051,162,748
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Corporate Bonds - 0.5%
Advertising Sales - 0.3%
$ 36,420,000 Lamar Advertising Co., 2.875%
convertible senior notes, due 12/31/10 .... 39,424,650
Medical - Biomedical and Genetic - 0.1%
14,200,000 Invitrogen Corp., 2.00%
convertible senior notes, due 8/1/23 (144A) . 18,105,000
Software Tools - 0.1%
15,000,000 Mercury Interactive Corp., 0%
convertible senior notes, due 5/1/08 ...... 15,656,250
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Total Corporate Bonds (cost $66,934,995) .................... 73,185,900
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See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 5
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JANUS FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Preferred Stock - 0.1%
Multi-Line Insurance - 0.1%
211,000 PartnerRe, Ltd., 8.00%# (cost $11,265,360) .. $ 11,573,350
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Other Securities - 3.9%
$ 3,661,133 Letter of Credit+ ........................... 3,661,133
State Street Navigator Securities Lending
582,317,381 Prime Portfolio+ .......................... 582,317,381
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Total Other Securities (cost $585,978,514) .................. 585,978,514
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Time Deposit - 0.1%
SouthTrust Bank, ETD
24,800,000 1.04%, 5/3/04 (cost $24,800,000) .......... 24,800,000
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Total Investments (total cost $11,445,661,049) - 103.8% ..... 15,746,700,512
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Liabilities, net of Cash, Receivables and Other Assets - (3.8)% (573,407,131)
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Net Assets - 100% ........................................... $15,173,293,381
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Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Bermuda $ 537,408,386 3.4%
Canada 110,726,193 0.7%
Finland 94,473,143 0.6%
Ireland 138,300,758 0.9%
Japan 86,901,001 0.5%
South Korea 10,623,991 0.1%
Switzerland 248,671,705 1.6%
United Kingdom 107,282,396 0.7%
United States++ 14,412,312,939 91.5%
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Total $15,746,700,512 100.0%
++Includes Short-Term Securities (87.6% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
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British Pound 9/27/04 3,500,000 $ 6,123,697 $ 186,803
British Pound 11/19/04 22,000,000 38,324,905 472,385
Euro 9/27/04 101,000,000 120,661,666 2,103,834
Japanese Yen 9/27/04 3,185,000,000 29,028,172 798,506
Swiss Franc 9/27/04 14,000,000 10,842,767 13,355
Swiss Franc 10/15/04 59,000,000 45,718,808 (264,263)
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Total $ 250,700,015 $ 3,310,620
See Notes to Schedules of Investments and Financial Statements.
6 Janus Growth Funds April 30, 2004
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JANUS ENTERPRISE FUND (unaudited) Portfolio Manager
Jonathan Coleman
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
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Janus Enterprise Fund Russell Midcap Growth Index
S&P MidCap 400 Index
[BAR GRAPH]
Bar graph data shown in following table.
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Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
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Janus Enterprise Fund 8.13% 33.03% (5.55)% 8.63% 10.59%
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Russell MidCap Growth Index 5.74% 36.14% 0.80% 9.98% 10.41%
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S&P MidCap 400 Index 6.93% 34.45% 9.34% 14.47% 14.46%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance
information.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - September 1, 1992
FUND STRATEGY
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To seek long-term growth of capital by normally investing at least 50% of its
equity assets in securities issued by medium-sized companies.
FUND ASSET MIX - (% of Net Assets)
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[PIE CHART]
Pie chart data shown in following table.
Corporate Bonds - Domestic - 0.2%
Cash and Cash Equivalents - 1.7%
Common Stock - Foreign - 9.7%
Common Stock - Domestic - 88.4%
Number of Stocks: 101
Number of Bonds: 1
Top 10 Equities: 23.9%
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For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
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Janus Growth Funds April 30, 2004 7
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(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Lamar Advertising Co. 3.6% 2.5%
Berkshire Hathaway, Inc. - Class B 2.9% 2.3%
Kinder Morgan, Inc. 2.7% 2.6%
St. Jude Medical, Inc. 2.6% 2.5%
Ball Corp. 2.3% 2.0%
Apollo Group, Inc. - Class A 2.2% 1.5%
Starwood Hotels & Resorts
Worldwide, Inc. 2.0% 1.5%
Murphy Oil Corp. 1.9% 1.7%
Cendant Corp. 1.9% 1.7%
University of Phoenix Online 1.8% 1.4%
TOP INDUSTRIES - FUND VS. INDEX (% of Net Assets)
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Janus Enterprise Fund Russell Midcap Growth Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus
Russell MidCap Enterprise
Growth Fund
Electronic Components - Semiconductors 4.9% 4.9%
Schools 1.4% 4.6%
Medical Instruments 0.5% 4.3%
Oil Companies - Exploration and Production 1.3% 3.6%
Advertising Sales 0.2% 3.6%
Human Resources 0.7% 3.0%
Reinsurance 0% 2.9%
Medical - Biomedical and Genetic 4.0% 2.9%
Commercial Services - Finance 1.7% 2.8%
Pipelines 0.4% 2.7%
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See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
indices. The indices are not available for direct investment; therefore their
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Returns have sustained significant gains and losses due to market volatility in
the consumer discretionary sector.
Funds that emphasize investments in medium-sized companies may experience
greater price volatility.
8 Janus Growth Funds April 30, 2004
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JANUS ENTERPRISE FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 98.1%
Advertising Agencies - 0.7%
798,290 Interpublic Group of Companies, Inc.* ....... $ 12,525,170
Advertising Sales - 3.6%
1,582,465 Lamar Advertising Co.* ...................... 64,976,013
Airlines - 0.7%
393,923 Ryanair Holdings PLC (ADR)*,# ............... 13,125,514
Apparel Manufacturers - 0.7%
380,265 Liz Claiborne, Inc. ......................... 13,347,302
Applications Software - 0.5%
208,300 Citrix Systems, Inc.*,# ..................... 3,968,115
139,927 National Instruments Corp.# ................. 4,276,169
8,244,284
Athletic Footwear - 0.8%
60,121 Puma A.G. Rudolf Dassler Sport .............. 13,926,130
Audio and Video Products - 1.4%
325,690 Harman International Industries, Inc.# ...... 24,703,587
Automotive - Truck Parts and Equipment - Original - 0.9%
260,450 Lear Corp.*,# ............................... 15,788,479
Building - Residential and Commercial - 1.4%
55,480 NVR, Inc.*,# ................................ 25,021,480
Building Products - Air and Heating - 0.9%
153,530 American Standard Companies, Inc.* .......... 16,149,821
Cable Television - 1.7%
928,035 EchoStar Communications Corp. - Class A* .... 30,801,482
Casino Hotels - 1.3%
416,340 Mandalay Resort Group ....................... 23,918,733
Casino Services - 1.3%
645,126 International Game Technology ............... 24,347,055
Cellular Telecommunications - 0.7%
971,150 Nextel Partners, Inc. - Class A*,# .......... 12,964,853
Commercial Banks - 0.4%
49,640 M&T Bank Corp. .............................. 4,219,400
72,840 UCBH Holdings, Inc.# ........................ 2,696,537
6,915,937
Commercial Services - 0.1%
55,535 Iron Mountain, Inc.* ........................ 2,527,398
Commercial Services - Finance - 2.8%
297,718 Moody's Corp.# .............................. 19,205,788
828,716 Paychex, Inc. ............................... 30,894,533
50,100,321
Computer Services - 0.3%
114,620 Affiliated Computer Services, Inc. - Class A* 5,559,070
Computers - 0.6%
419,710 Apple Computer, Inc.*,# ..................... 10,799,138
Containers - Metal and Glass - 2.3%
633,190 Ball Corp. .................................. 41,790,540
Disposable Medical Products - 0.9%
158,515 C.R. Bard, Inc.# ............................ 16,845,389
Distribution/Wholesale - 0.3%
83,065 CDW Corp. ................................... 5,190,732
Diversified Operations - 0.3%
83,155 Pentair, Inc. ............................... 4,955,206
Shares or Principal Amount Market Value
================================================================================
Diversified Operations - Commercial Services - 1.9%
1,428,210 Cendant Corp. ............................... $ 33,820,013
E-Commerce/Services - 0.6%
136,200 eBay, Inc.* ................................. 10,871,484
Electric Products - Miscellaneous - 1.0%
705,580 AMETEK, Inc. ................................ 18,697,870
Electronic Components - Miscellaneous - 1.2%
1,386,315 Flextronics International, Ltd.
(New York Shares)*,# ...................... 22,319,672
Electronic Components - Semiconductors - 4.9%
1,274,315 Advanced Micro Devices, Inc.*,# ............. 18,120,759
298,630 Altera Corp.* ............................... 5,975,586
547,425 ATI Technologies, Inc. (New York Shares)*,# . 7,965,034
142,690 International Rectifier Corp.* .............. 5,656,232
572,945 Intersil Corp. - Class A .................... 11,315,664
364,685 LSI Logic Corp.*,# .......................... 2,713,256
617,230 National Semiconductor Corp.* ............... 25,176,811
613,731 NVIDIA Corp.* ............................... 12,606,035
89,529,377
Electronic Design Automation - 0.9%
740,670 Cadence Design Systems, Inc.*,# ............. 9,495,389
259,200 Synopsys, Inc.*,# ........................... 6,928,416
16,423,805
Enterprise Software/Services - 0.9%
933,600 BMC Software, Inc.* ......................... 16,151,280
Entertainment Software - 0.5%
181,835 Electronic Arts, Inc.* ...................... 9,204,488
Fiduciary Banks - 2.5%
525,317 Investors Financial Services Corp.# ......... 20,419,072
568,350 Northern Trust Corp. ........................ 24,029,838
44,448,910
Finance - Other Services - 0.7%
111,300 Chicago Mercantile Exchange
Holdings, Inc.# ........................... 13,055,490
Financial Guarantee Insurance - 1.5%
376,855 MGIC Investment Corp. ....................... 27,744,065
Food - Dairy Products - 1.3%
726,402 Dean Foods Co.*,# ........................... 24,392,579
Hospital Beds and Equipment - 0.3%
128,115 Kinetic Concepts, Inc.* ..................... 6,200,766
Hotels and Motels - 2.6%
234,490 Marriott International, Inc. - Class A ...... 11,058,548
906,030 Starwood Hotels & Resorts Worldwide, Inc. ... 36,050,934
47,109,482
Human Resources - 3.0%
540,525 Manpower, Inc. .............................. 25,350,623
1,030,995 Robert Half International, Inc. ............. 28,115,233
53,465,856
Independent Power Producer - 0.5%
1,090,195 Reliant Energy, Inc.*,# ..................... 9,059,520
Internet Security - 0.7%
511,180 Check Point Software Technologies, Ltd.
(New York Shares)* ........................ 11,976,947
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 9
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JANUS ENTERPRISE FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Investment Management and Advisory Services - 1.7%
616,820 T. Rowe Price Group, Inc.# .................. $ 31,630,530
Medical - Biomedical and Genetic - 2.9%
431,220 Celgene Corp.*,# ............................ 22,289,762
72,720 ICOS Corp.*,# ............................... 2,326,313
384,380 Invitrogen Corp.*,# ......................... 27,763,767
52,379,842
Medical - Drugs - 1.0%
136,315 Cephalon, Inc.*,# ........................... 7,757,686
218,975 Elan Corporation PLC (ADR)*,# ............... 4,729,860
119,655 Merck KGaA .................................. 6,397,281
18,884,827
Medical - Generic Drugs - 1.3%
577,760 Barr Pharmaceuticals, Inc.* ................. 23,930,819
Medical - HMO - 0.7%
300,352 Conventry Health Care, Inc.* ................ 12,566,728
Medical Instruments - 4.3%
970,425 Apogent Technologies, Inc.* ................. 31,461,179
610,935 St. Jude Medical, Inc.* ..................... 46,589,903
78,051,082
Medical Products - 1.8%
310,942 INAMED Corp.# ............................... 18,295,828
13,350 Synthes-Stratec, Inc. ....................... 14,507,288
32,803,116
Miscellaneous Manufacturing - 0.9%
7,910,444 FKI PLC ..................................... 15,921,890
Multi-Line Insurance - 0.7%
488,555 Assurant, Inc. .............................. 11,901,200
Office Furnishings - Original - 0.1%
38,746 Herman Miller, Inc.# ........................ 1,018,245
Oil Companies - Exploration and Production - 3.6%
624,025 EOG Resources, Inc. ......................... 30,733,231
515,130 Murphy Oil Corp.# ........................... 35,286,405
66,019,636
Oil Field Machinery and Equipment - 0.7%
238,172 Smith International, Inc.*,# ................ 13,039,917
Optical Supplies - 0.5%
121,355 Alcon, Inc. (New York Shares) ............... 9,010,609
Pipelines - 2.7%
821,811 Kinder Morgan, Inc. ......................... 49,481,240
Property and Casualty Insurance - 1.0%
464,015 W. R. Berkley Corp. ......................... 18,792,608
Publishing - Newspapers - 0.5%
124,380 McClatchy Co. - Class A# .................... 8,830,980
Recreational Vehicles - 0.6%
240,990 Polaris Industries, Inc.# ................... 10,338,471
Reinsurance - 2.9%
17,000 Berkshire Hathaway, Inc. - Class B* ......... 53,023,000
Respiratory Products - 0.3%
98,035 Respironics, Inc.* .......................... 5,138,014
Retail - Auto Parts - 1.1%
279,216 Advance Auto Parts, Inc.* ................... 12,048,170
90,965 AutoZone, Inc.* ............................. 7,965,805
20,013,975
Shares or Principal Amount Market Value
================================================================================
Retail - Discount - 0.2%
218,910 Fred's, Inc.# ............................... $ 4,065,159
Retail - Home Furnishings - 0.4%
330,400 Pier 1 Imports, Inc. ........................ 6,826,064
Retail - Office Supplies - 1.2%
815,877 Staples, Inc. ............................... 21,016,992
Retail - Restaurants - 1.3%
615,521 Yum! Brands, Inc.* .......................... 23,876,060
Schools - 4.6%
433,348 Apollo Group, Inc. - Class A* ............... 39,382,665
90,535 Strayer Education, Inc. ..................... 11,314,159
380,045 University of Phoenix Online* ............... 33,086,718
83,783,542
Semiconductor Components/Integrated Circuits - 1.7%
774,175 Marvell Technology Group, Ltd.*,# ........... 29,983,798
Semiconductor Equipment - 1.8%
470,840 KLA-Tencor Corp.* ........................... 19,619,903
460,415 Novellus Systems, Inc.* ..................... 13,333,618
32,953,521
Telecommunication Equipment - 0.4%
244,290 UTStarcom, Inc.*,# .......................... 6,437,042
Telecommunication Services - 1.1%
731,235 Amdocs, Ltd. (New York Shares)* ............. 19,414,289
Television - 1.3%
707,918 Univision Communications, Inc. - Class A* ... 23,963,024
Textile-Home Furnishings - 1.5%
349,210 Mohawk Industries, Inc.*,# .................. 26,938,059
Therapeutics - 1.9%
183,114 Gilead Sciences, Inc.*,# .................... 11,138,825
351,815 Neurocrine Biosciences, Inc.* ............... 23,089,618
34,228,443
Toys - 0.9%
833,767 Marvel Enterprises, Inc.* ................... 15,833,235
Transportation - Railroad - 0.4%
183,385 Canadian National Railway Co.
(New York Shares) ......................... 6,926,451
Transportation - Services - 0.5%
226,860 Expeditors International
of Washington, Inc.# ...................... 9,117,503
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Total Common Stock (cost $1,309,752,673) .................... 1,777,135,149
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Corporate Bonds - 0.2%
Wireless Equipment - 0.2%
$ 2,500,000 Crown Castle International Corp., 10.75%
senior notes, due 8/1/11 (cost $2,545,161) 2,837,500
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Other Securities - 9.5%
530,132 Letter of Credit+ ........................... 530,132
State Street Navigator Securities
172,366,581 Lending Prime Portfolio+ .................. 172,366,581
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Total Other Securities (cost $172,896,713) .................. 172,896,713
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Time Deposit - 1.9%
SouthTrust Bank, ETD
34,500,000 1.04%, 5/3/04 (cost $34,500,000) .......... 34,500,000
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Total Investments (total cost $1,519,694,547) - 109.7% ...... 1,987,369,362
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Liabilities, net of Cash, Receivables and Other Assets - (9.7)% (175,555,566)
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Net Assets - 100% ........................................... $ 1,811,813,796
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See Notes to Schedules of Investments and Financial Statements.
10 Janus Growth Funds April 30, 2004
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- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Bermuda $ 29,983,798 1.5%
Canada 14,891,485 0.7%
Germany 20,323,411 1.0%
Ireland 17,855,374 0.9%
Israel 11,976,947 0.6%
Singapore 22,319,672 1.1%
Switzerland 23,517,897 1.2%
United Kingdom 35,336,179 1.8%
United States++ 1,811,164,599 91.2%
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Total $ 1,987,369,362 100.0%
++Includes Short-Term Securities (80.7% excluding Short-Term Securities)
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 11
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JANUS MERCURY FUND (unaudited) Portfolio Manager
David Corkins
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Mercury Fund S&P 500(R) Index
Russell 1000 Growth Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
Janus Mercury Fund 7.11% 24.55% (5.25)% 11.50% 12.99%
- --------------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% 11.36% 10.80%
- --------------------------------------------------------------------------------
Russell 1000 Growth Index 4.14% 21.65% (6.37)% 9.61% 9.07%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance
information.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - May 3, 1993
FUND STRATEGY
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To seek long-term growth of capital by investing primarily in common stocks of
issuers of any size, which may include larger well-established issuers and/or
smaller emerging growth companies.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 1.3%
Common Stock - Foreign - 20.0%
Common Stock - Domestic - 78.7%
Number of Stocks: 81
Top 10 Equities: 35.7%
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For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
12 Janus Growth Funds April 30, 2004
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- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Liberty Media Corp. - Class A 5.9% 5.7%
Berkshire Hathaway, Inc. - Class B 4.4% 4.1%
Samsung Electronics Company, Ltd. 4.0% 3.2%
Tyco International, Ltd.
(New York Shares) 4.0% 3.1%
Roche Holding A.G. 3.4% 2.3%
Yahoo!, Inc. 3.2% 3.6%
Cisco Systems, Inc. 2.9% 3.2%
UnitedHealth Group, Inc. 2.8% 2.1%
Time Warner, Inc. 2.7% 2.6%
Microsoft Corp. 2.4% 2.0%
TOP INDUSTRIES - FUND VS. INDEX (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Mercury Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus
S&P 500 Mercury Fund
Medical - Drugs 6.7% 8.0%
Broadcast Services and Programming 0.2% 7.2%
Cable Television 0.7% 5.2%
Diversified Operations 5.3% 4.9%
Reinsurance N/A 4.4%
Finance - Investment Bankers/Brokers 5.1% 4.3%
Electric Products - Miscellaneous 0.3% 4.0%
Medical - HMO 0.8% 3.9%
Medical Instruments 1.2% 3.4%
Web Portals/Internet Service Providers 0.3% 3.2%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
Returns have sustained significant gains and losses due to market volatility in
the information technology sector.
The Fund's portfolio may differ significantly from the securities held in the
indices. The indices are not available for direct investment; therefore their
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Janus Growth Funds April 30, 2004 13
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JANUS MERCURY FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 98.7%
Advertising Sales - 0.9%
1,087,410 Lamar Advertising Co.* ...................... $ 44,649,055
Aerospace and Defense - 1.9%
1,466,275 Lockheed Martin Corp. ....................... 69,941,317
267,175 Northrop Grumman Corp.# ..................... 26,517,119
96,458,436
Applications Software - 2.4%
4,651,750 Microsoft Corp. ............................. 120,805,948
Audio and Video Products - 0.6%
370,700 Harman International Industries, Inc.# ...... 28,117,595
Broadcast Services and Programming - 7.2%
1,564,470 Clear Channel Communications, Inc.# ......... 64,909,860
27,108,178 Liberty Media Corp. - Class A* .............. 296,563,467
361,473,327
Cable Television - 5.2%
4,234,907 Cablevision Systems New York Group
- Class A*,# .............................. 92,448,020
3,967,830 Comcast Corp. - Special Class A* ............ 115,027,391
1,578,590 EchoStar Communications Corp. - Class A* .... 52,393,402
259,868,813
Casino Services - 0.3%
372,835 International Game Technology ............... 14,070,793
Cellular Telecommunications - 0.1%
262,755 AT&T Wireless Services, Inc.* ............... 3,628,647
Chemicals - Specialty - 1.2%
75,454 Givaudan S.A.** ............................. 37,534,961
237,642 Syngenta A.G.** ............................. 19,015,392
325,075 Syngenta A.G. (ADR)** ....................... 5,178,445
61,728,798
Commercial Banks - 0.5%
2,196,400 Bangkok Bank Company, Ltd.* ................. 5,379,835
6,888,300 Bangkok Bank Public Company, Ltd. (NVDR)* ... 16,269,542
76,830 Franklin Financial Corp.# ................... 2,428,596
24,077,973
Computers - 0.6%
861,680 Dell, Inc.* ................................. 29,908,913
Computers - Peripheral Equipment - 0.1%
74,925 Lexmark International Group, Inc. - Class A*,# 6,777,716
Cosmetics and Toiletries - 1.1%
656,030 Avon Products, Inc. ......................... 55,106,520
Data Processing and Management - 0.4%
409,425 Automatic Data Processing, Inc. ............. 17,936,909
Diversified Operations - 4.9%
428,757 Louis Vuitton Moet Hennessy S.A.**,# ........ 30,221,656
1,248,023 Smiths Group PLC ............................ 15,459,195
7,252,750 Tyco International, Ltd. (New York Shares) .. 199,087,988
244,768,839
E-Commerce/Products - 1.8%
2,076,205 Amazon.com, Inc.*,# ......................... 90,231,869
E-Commerce/Services - 0.3%
197,495 eBay, Inc.* ................................. 15,764,051
Shares or Principal Amount Market Value
================================================================================
Electric Products - Miscellaneous - 4.0%
423,210 Samsung Electronics Company, Ltd.** ......... $ 200,901,666
Electronic Components - Semiconductors - 1.6%
3,164,120 Texas Instruments, Inc. ..................... 79,419,412
Electronic Design Automation - 0.6%
1,155,454 Synopsys, Inc.* ............................. 30,885,285
Enterprise Software/Services - 2.1%
1,634,565 BMC Software, Inc.*,# ....................... 28,277,975
2,047,965 Computer Associates International, Inc.# .... 54,905,941
1,836,995 Oracle Corp.* ............................... 20,611,084
103,795,000
Entertainment Software - 0.8%
754,635 Electronic Arts, Inc.* ...................... 38,199,624
Finance - Credit Card - 0.8%
1,618,150 MBNA Corp. .................................. 39,450,497
Finance - Investment Bankers/Brokers - 4.3%
1,744,848 Citigroup, Inc. ............................. 83,909,740
3,053,160 E*TRADE Financial Corp.*,# .................. 34,683,898
1,005,305 Goldman Sachs Group, Inc. ................... 97,011,932
215,605,570
Finance - Mortgage Loan Banker - 2.1%
831,285 Fannie Mae .................................. 57,125,905
848,150 Freddie Mac ................................. 49,531,960
106,657,865
Financial Guarantee Insurance - 1.4%
971,425 MGIC Investment Corp. ....................... 71,516,309
Food - Retail - 0.6%
351,825 Whole Foods Market, Inc.# ................... 28,142,482
Hotels and Motels - 1.7%
2,150,540 Starwood Hotels & Resorts Worldwide, Inc. ... 85,569,987
Internet Security - 1.4%
1,518,155 Symantec Corp.*,# ........................... 68,392,883
Machinery - Construction and Mining - 0.6%
5,399,000 Komatsu, Ltd. ............................... 30,773,150
Medical - Biomedical and Genetic - 0.2%
223,385 Celgene Corp.* .............................. 11,546,771
Medical - Drugs - 8.0%
1,748,740 Forest Laboratories, Inc.* .................. 112,758,755
3,269,170 Pfizer, Inc. ................................ 116,905,519
1,611,196 Roche Holding A.G.** ........................ 168,997,883
398,662,157
Medical - HMO - 3.9%
563,655 Anthem, Inc.*,# ............................. 49,928,560
2,222,005 UnitedHealth Group, Inc.# ................... 136,608,867
51,000 WellPoint Health Networks, Inc.* ............ 5,696,190
192,233,617
Medical Instruments - 3.4%
1,250,340 Guidant Corp.# .............................. 78,783,923
1,762,035 Medtronic, Inc. ............................. 88,912,287
167,696,210
See Notes to Schedules of Investments and Financial Statements.
14 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Multi-Line Insurance - 1.6%
1,063,260 Allstate Corp. .............................. $ 48,803,634
430,530 American International Group, Inc.# ......... 30,847,475
79,651,109
Multimedia - 2.7%
7,850,159 Time Warner, Inc.* .......................... 132,039,674
Networking Products - 2.9%
7,022,450 Cisco Systems, Inc.* ........................ 146,558,532
Oil - Field Services - 0.7%
781,440 BJ Services Co.* ............................ 34,774,080
Oil Companies - Integrated - 0.3%
384,911 Yukos (ADR)# ................................ 17,128,540
Pharmacy Services - 1.9%
1,974,270 Caremark Rx, Inc.*,# ........................ 66,829,040
825,040 Medco Health Solutions, Inc.* ............... 29,206,416
96,035,456
Property and Casualty Insurance - 0.3%
337,729 St. Paul Travelers Companies, Inc. .......... 13,735,438
Reinsurance - 4.4%
70,870 Berkshire Hathaway, Inc. - Class B* ......... 221,043,530
Retail - Office Supplies - 0.9%
1,618,863 Staples, Inc. ............................... 41,701,911
Retail - Pet Food and Supplies - 0.5%
851,860 PETsMART, Inc. .............................. 23,596,522
Semiconductor Equipment - 1.3%
3,592,475 Applied Materials, Inc.* .................... 65,490,819
Steel - Producers - 0.5%
189,090 POSCO** ..................................... 23,125,593
Super-Regional Banks - 2.9%
2,072,665 Bank One Corp. .............................. 102,327,471
788,655 Fifth Third Bancorp ......................... 42,319,227
144,646,698
Shares or Principal Amount Market Value
================================================================================
Telecommunication Equipment - 1.8%
6,474,592 Nokia Oyj (ADR)** ........................... $ 90,709,034
Telecommunication Equipment - Fiber Optics - 0.5%
2,408,110 Corning, Inc.* .............................. 26,561,453
Telecommunication Services - 0.2%
409,345 Amdocs, Ltd. (New York Shares)*,# ........... 10,868,110
Television - 0.6%
2,473,766 British Sky Broadcasting Group PLC .......... 29,216,671
Toys - 0.4%
1,172,467 Marvel Enterprises, Inc.* ................... 22,265,148
Transportation - Railroad - 2.1%
2,543,320 Canadian National Railway Co.
(New York Shares) ......................... 96,061,196
419,050 Kansas City Southern*,# ..................... 5,803,843
101,865,039
Transportation - Services - 1.5%
807,630 C.H. Robinson Worldwide, Inc.# .............. 33,145,135
596,910 FedEx Corp. ................................. 42,923,798
76,068,933
Web Portals/Internet Service Providers - 3.2%
3,145,400 Yahoo!, Inc.* ............................... 158,716,884
Wireless Equipment - 0.5%
1,326,260 Motorola, Inc. .............................. 24,204,245
- --------------------------------------------------------------------------------
Total Common Stock (cost $3,741,539,268) .................... 4,924,826,106
- --------------------------------------------------------------------------------
Other Securities - 3.2%
State Street Navigator Securities Lending
$159,111,493 Prime Portfolio+ (cost $159,111,493) ...... 159,111,493
- --------------------------------------------------------------------------------
Time Deposit - 1.7%
SouthTrust Bank, ETD
87,000,000 1.04%, 5/3/04 (cost $87,000,000) .......... 87,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $3,987,650,761) - 103.6% ...... 5,170,937,599
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (3.6)% (181,044,027)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 4,989,893,572
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS MERCURY FUND
Schedule of Investments (unaudited)
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Bermuda $ 199,087,988 3.8%
Canada 96,061,196 1.9%
Finland 90,709,034 1.8%
France 30,221,656 0.6%
Japan 30,773,150 0.6%
Russia 17,128,540 0.3%
South Korea 224,027,259 4.3%
Switzerland 230,726,681 4.5%
Thailand 21,649,377 0.4%
United Kingdom 55,543,976 1.1%
United States++ 4,175,008,742 80.7%
- --------------------------------------------------------------------------------
Total $ 5,170,937,599 100.0%
++Includes Short-Term Securities (76.0% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Euro 8/6/04 7,180,000 $ 8,585,076 $ 384,180
Euro 9/27/04 12,000,000 14,336,039 249,960
Euro 10/15/04 15,300,000 18,273,032 (142,532)
South Korean Won
5/14/04 63,400,000,000 53,975,362 (715,953)
Swiss Franc 9/27/04 41,000,000 31,753,818 636,765
Swiss Franc 10/15/04 42,900,000 33,242,998 (192,150)
- --------------------------------------------------------------------------------
Total $ 160,166,325 $ 220,270
See Notes to Schedules of Investments and Financial Statements.
16 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS OLYMPUS FUND (unaudited) Portfolio Manager
Claire Young
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Olympus Fund S&P 500(R) Index
Russell 1000 Growth Fund
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Since
Year-to-Date Year Year Inception*
Janus Olympus Fund 2.62% 21.05% (4.45)% 11.06%
- --------------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% 9.00%
- --------------------------------------------------------------------------------
Russell 1000 Growth Index 4.14% 21.65% (6.37)% 6.63%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance
information.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - December 29, 1995
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by investing primarily in common stocks of
issuers of any size, which may include larger well-established issuers and/or
smaller emerging growth companies.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 1.0%
Common Stock - Foreign - 23.5%
Common Stock - Domestic - 75.5%
Number of Stocks: 83
Top 10 Equities: 22.9%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
Janus Growth Funds April 30, 2004 17
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Cisco Systems, Inc. 3.2% 3.1%
Yahoo!, Inc. 3.0% 2.7%
Time Warner, Inc. 2.4% 2.6%
Maxim Integrated Products, Inc. 2.2% 3.6%
Texas Instruments, Inc. 2.1% 2.6%
Citigroup, Inc. 2.1% 1.9%
Roche Holding A.G. 2.0% 1.5%
Medtronic, Inc. 2.0% 1.7%
Total S.A. (ADR) 2.0% 1.6%
Alcon, Inc. (New York Shares) 1.9% 1.5%
TOP INDUSTRIES - FUND VS. INDEX (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Olympus Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus
S&P 500 Olympus Fund
Medical - Biomedical and Genetic 1.2% 4.2%
Transportation - Services 1.0% 3.8%
Networking Products 1.4% 3.7%
Electronic Components - Semiconductors 2.7% 3.5%
Diversified Operations 5.3% 3.5%
Medical - Drugs 6.7% 3.2%
Web Portals/Internet Service Providers 0.3% 3.0%
Finance - Investment Bankers/Brokers 5.1% 3.0%
Oil Companies - Integrated 4.5% 2.9%
Medical Products 2.3% 2.9%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
indices. The indices are not available for direct investment; therefore their
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Returns have sustained significant gains and losses due to market volatility in
the information technology sector.
18 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS OLYMPUS FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 99.0%
Aerospace and Defense - 0.8%
444,080 Lockheed Martin Corp. ....................... $ 21,182,616
Aerospace and Defense - Equipment - 1.5%
435,115 United Technologies Corp. ................... 37,533,020
Airlines - 1.0%
4,590,891 easyJet PLC*,** ............................. 24,077,956
Applications Software - 1.1%
683,755 Mercury Interactive Corp.* .................. 29,093,775
Audio and Video Products - 1.2%
401,725 Harman International Industries, Inc. ....... 30,470,841
Broadcast Services and Programming - 1.5%
929,475 Clear Channel Communications, Inc. .......... 38,563,918
Building - Residential and Commercial - 1.4%
732,390 Lennar Corp.# ............................... 34,312,472
Building Products - Air and Heating - 1.0%
240,665 American Standard Companies, Inc.* .......... 25,315,551
Cable Television - 0.6%
551,950 Comcast Corp. - Special Class A* ............ 16,001,031
Casino Hotels - 1.0%
425,910 Mandalay Resort Group ....................... 24,468,530
Cellular Telecommunications - 1.1%
2,148,020 Nextel Partners, Inc. - Class A*,# .......... 28,676,067
Commercial Banks - 2.5%
4,087 Mitsubishi Tokyo Financial Group, Inc.** .... 36,368,393
748,685 UCBH Holdings, Inc.# ........................ 27,716,319
64,084,712
Commercial Services - 2.0%
578,795 Iron Mountain, Inc.* ........................ 26,340,960
1,941,345 ServiceMaster Co. ........................... 23,548,515
49,889,475
Commercial Services - Finance - 1.0%
673,525 Paychex, Inc. ............................... 25,109,012
Computers - Memory Devices - 0.3%
586,180 EMC Corp.* .................................. 6,541,769
Containers - Metal and Glass - 1.4%
544,100 Ball Corp. .................................. 35,910,600
Cosmetics and Toiletries - 1.2%
280,855 Procter & Gamble Co. ........................ 29,700,416
Cruise Lines - 1.2%
751,145 Royal Caribbean Cruises, Ltd.
(New York Shares)# ........................ 30,443,907
Data Processing and Management - 0.5%
321,560 Fiserv, Inc.* ............................... 11,756,234
Diversified Operations - 3.5%
384,795 3M Co. ...................................... 33,277,072
393,311 Louis Vuitton Moet Hennessy S.A. ............ 27,723,185
1,021,215 Tyco International, Ltd. (New York Shares) .. 28,032,352
89,032,609
E-Commerce/Products - 1.4%
811,030 Amazon.com, Inc.*,# ......................... 35,247,364
Shares or Principal Amount Market Value
================================================================================
Electronic Components - Semiconductors - 3.5%
1,640,670 Advanced Micro Devices, Inc.*,# ............. $ 23,330,327
656,860 NVIDIA Corp.*,# ............................. 13,491,904
2,100,610 Texas Instruments, Inc. ..................... 52,725,311
89,547,542
Electronic Design Automation - 0.8%
1,525,525 Cadence Design Systems, Inc.*,# ............. 19,557,231
Enterprise Software/Services - 1.3%
212,315 SAP A.G. .................................... 32,475,890
Entertainment Software - 1.0%
510,367 Electronic Arts, Inc.* ...................... 25,834,778
Fiduciary Banks - 1.0%
610,195 Northern Trust Corp. ........................ 25,799,045
Finance - Consumer Loans - 1.0%
683,525 SLM Corp.# .................................. 26,185,843
Finance - Credit Card - 1.3%
230,060 Capital One Financial Corp. ................. 15,075,832
1,412,665 Providian Financial Corp.*,# ................ 17,135,626
32,211,458
Finance - Investment Bankers/Brokers - 3.0%
1,088,720 Citigroup, Inc. ............................. 52,356,544
481,315 J.P. Morgan Chase & Co. ..................... 18,097,444
357,000 Nomura Holdings, Inc.** ..................... 5,797,146
76,251,134
Food - Retail - 0.7%
206,167 Whole Foods Market, Inc.# ................... 16,491,298
Hotels and Motels - 2.6%
784,150 Four Seasons Hotels, Inc. ................... 41,952,025
604,655 Starwood Hotels & Resorts Worldwide, Inc. ... 24,059,222
66,011,247
Human Resources - 1.0%
517,215 Manpower, Inc. .............................. 24,257,384
Independent Power Producer - 0.8%
2,421,695 Reliant Energy, Inc.* ....................... 20,124,285
Internet Security - 1.1%
1,140,025 Check Point Software Technologies, Ltd.
(New York Shares)* ........................ 26,710,786
Machine Tools and Related Products - 0.7%
400,720 Kennametal, Inc. ............................ 17,295,075
Medical - Biomedical and Genetic - 4.2%
809,720 Amgen, Inc.* ................................ 45,562,943
552,453 Celgene Corp.*,# ............................ 28,556,296
271,260 Genentech, Inc.*,# .......................... 33,310,728
107,429,967
Medical - Drugs - 3.2%
403,265 Elan Corporation PLC (ADR)*,# ............... 8,710,524
622,910 Pfizer, Inc. ................................ 22,275,262
481,914 Roche Holding A.G. .......................... 50,547,820
81,533,606
Medical - Generic Drugs - 2.3%
533,460 Barr Pharmaceuticals, Inc.* ................. 22,095,913
574,159 Teva Pharmaceutical Industries, Ltd. (ADR)# . 35,345,228
57,441,141
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 19
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS OLYMPUS FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Medical - HMO - 1.7%
700,756 UnitedHealth Group, Inc.# ................... $ 43,082,479
Medical Instruments - 2.0%
999,225 Medtronic, Inc. ............................. 50,420,894
Medical Products - 2.9%
417,700 Varian Medical Systems, Inc.* ............... 35,855,368
469,065 Zimmer Holdings, Inc.* ...................... 37,454,840
73,310,208
Multimedia - 2.4%
3,667,625 Time Warner, Inc.* .......................... 61,689,453
Networking Products - 3.7%
3,899,092 Cisco Systems, Inc.* ........................ 81,374,049
599,570 Juniper Networks, Inc.*,# ................... 13,118,592
94,492,641
Office Automation and Equipment - 1.1%
533,000 Canon, Inc.** ............................... 27,964,931
Oil - Field Services - 1.0%
541,015 BJ Services Co.*,# .......................... 24,075,168
Oil and Gas Drilling - 0.9%
886,900 Global Santa Fe Corp. ....................... 23,387,553
Oil Companies - Integrated - 2.9%
446,185 BP PLC (ADR)**,# ............................ 23,603,187
542,145 Total S.A. (ADR)# ........................... 49,942,397
73,545,584
Optical Supplies - 1.9%
639,395 Alcon, Inc. (New York Shares) ............... 47,475,079
Retail - Auto Parts - 1.6%
929,895 Advance Auto Parts, Inc.* ................... 40,124,969
Retail - Bedding - 1.1%
763,550 Bed Bath & Beyond, Inc.* .................... 28,342,976
Retail - Consumer Electronics - 1.2%
563,350 Best Buy Company, Inc. ...................... 30,561,738
Retail - Jewelry - 1.0%
680,165 Tiffany & Co. ............................... 26,526,435
Shares or Principal Amount Market Value
================================================================================
Semiconductor Components/Integrated Circuits - 2.2%
1,218,100 Maxim Integrated Products, Inc. ............. $ 56,020,419
Semiconductor Equipment - 0.8%
1,055,705 Applied Materials, Inc.* .................... 19,245,502
Telecommunication Equipment - 1.1%
1,929,585 Nokia Oyj (ADR) ............................. 27,033,486
Telecommunication Equipment - Fiber Optics - 1.2%
2,815,230 Corning, Inc.*,# ............................ 31,051,987
Telecommunication Services - 0.8%
802,435 Amdocs, Ltd. (New York Shares)*,** .......... 21,304,649
Television - 1.0%
2,144,366 British Sky Broadcasting Group PLC** ........ 25,326,258
Therapeutics - 1.5%
583,635 Neurocrine Biosciences, Inc.* ............... 38,303,965
Transportation - Services - 3.8%
683,115 C.H. Robinson Worldwide, Inc.# .............. 28,035,040
417,675 FedEx Corp. ................................. 30,035,009
559,125 United Parcel Service, Inc. - Class B ....... 39,222,618
97,292,667
Transportation - Truck - 0.9%
1,126,285 Werner Enterprises, Inc. .................... 22,514,437
Web Portals/Internet Service Providers - 3.0%
1,526,625 Yahoo!, Inc.* ............................... 77,033,498
Wireless Equipment - 0.6%
802,445 Motorola, Inc. .............................. 14,644,621
- --------------------------------------------------------------------------------
Total Common Stock (cost $2,075,887,293) .................... 2,507,341,182
- --------------------------------------------------------------------------------
Other Securities - 7.7%
State Street Navigator Securities Lending
$196,179,818 Prime Portfolio+ (cost $196,179,818) ...... 196,179,818
- --------------------------------------------------------------------------------
Time Deposit - 2.7%
SouthTrust Bank, ETD
68,200,000 1.04%, 5/3/04 (cost $68,200,000) .......... 68,200,000
- --------------------------------------------------------------------------------
Total Investments (total cost $2,340,267,111) - 109.4% ...... 2,771,721,000
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (9.4)% (237,809,504)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 2,533,911,496
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
20 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Bermuda $ 28,032,352 1.0%
Canada 41,952,025 1.5%
Cayman Islands 23,387,553 0.8%
Finland 27,033,486 1.0%
France 77,665,582 2.8%
Germany 32,475,890 1.2%
Ireland 8,710,524 0.3%
Israel 62,056,014 2.3%
Japan 70,130,470 2.5%
Liberia 30,443,907 1.1%
Switzerland 98,022,899 3.5%
United Kingdom 94,312,050 3.4%
United States++ 2,177,498,248 78.6%
- --------------------------------------------------------------------------------
Total $ 2,771,721,000 100.0%
++Includes Short-Term Securities (69.0% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 9/27/04 2,700,000 $ 4,723,994 $ 144,106
British Pound 11/19/04 3,400,000 5,922,940 155,461
Japanese Yen 9/27/04 2,100,000,000 19,139,454 718,702
- --------------------------------------------------------------------------------
Total $ 29,786,388 $ 1,018,269
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 21
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS ORION FUND (unaudited) Portfolio Manager
Ron Sachs
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Orion Fund S&P 500(R) Index
Russell 1000 Growth Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Since
Year-to-Date Year Inception*
- --------------------------------------------------------------------------------
Janus Orion Fund 8.87% 34.65% (11.88)%
- --------------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (5.43)%
- --------------------------------------------------------------------------------
Russell 1000 Growth Index 4.14% 21.65% (14.36)%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance
information.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - June 30, 2000
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by investing primarily in a core group of
domestic and foreign common stocks, which may include larger well-established
issuers and/or smaller emerging growth companies.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 3.9%
Common Stock - Foreign - 41.9%
Common Stock - Domestic - 54.2%
Number of Stocks: 42
Top 10 Equities: 40.2%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
22 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Oriflame Cosmetics S.A. 6.5% --
Berkshire Hathaway, Inc. - Class B 4.7% 4.2%
Roche Holding A.G. 4.6% 3.9%
Samsung Electronics Company, Ltd. 3.8% 2.4%
Getty Images, Inc. 3.7% 3.2%
Time Warner, Inc. 3.5% 4.3%
Costco Wholesale Corp. 3.5% 3.5%
CapitalSource, Inc. 3.3% 2.3%
Puma A.G. Rudolf Dassler Sport 3.3% 1.6%
Univision Communications, Inc. - Class A 3.3% 3.5%
TOP INDUSTRIES - FUND VS. INDEX (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Orion Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Orion
S&P 500 Fund
Cosmetics and Toiletries 2.6% 10.3%
Medical - Drugs 6.7% 5.8%
Reinsurance N/A 4.7%
Electric Products - Miscellaneous 0.3% 3.8%
Advertising Services N/A 3.7%
Multimedia 2.0% 3.5%
Retail - Discount 3.2% 3.5%
Finance - Commercial N/A 3.3%
Athletic Footwear 0.2% 3.3%
Television 0.1% 3.3%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
Returns have sustained significant gains and losses due to market volatility in
the consumer discretionary and financials sectors.
The Fund's portfolio may differ significantly from the securities held in the
indices. The indices are not available for direct investment; therefore their
performance does not reflect the expenses associated with the active management
of an actual portfolio.
A fund that is classified as "nondiversified" has the ability to take larger
positions in a smaller number of issuers than a fund that is classified as
"diversified." Nondiversified funds may experience greater price volatility.
Concentration may lead to greater price volatility.
Janus Growth Funds April 30, 2004 23
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS ORION FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 96.1%
Advertising Services - 3.7%
366,505 Getty Images, Inc.*,# ....................... $ 20,011,173
Apparel Manufacturers - 3.1%
84,615 Hermes International ........................ 16,858,079
Athletic Footwear - 3.3%
78,792 Puma A.G. Rudolf Dassler Sport .............. 18,250,988
Brewery - 2.3%
555,149 Molson, Inc. - Class A ...................... 12,651,060
Commercial Banks - 1.5%
623,380 Koram Bank** ................................ 7,969,233
Cosmetics and Toiletries - 10.3%
201,332 Alberto-Culver Co. .......................... 9,494,817
133,635 Avon Products, Inc. ......................... 11,225,340
1,138,038 Oriflame Cosmetics S.A.* .................... 35,380,037
56,100,194
Dental Supplies and Equipment - 2.7%
859,615 Align Technology, Inc.*,# ................... 14,888,532
Diagnostic Equipment - 1.1%
275,385 Cytyc Corp.*,# .............................. 5,893,239
Diagnostic Kits - 1.4%
171,005 Dade Behring Holdings, Inc.* ................ 7,866,230
Diversified Operations - 3.0%
233,306 Louis Vuitton Moet Hennessy S.A. ............ 16,444,965
Drug Delivery Systems - 1.1%
205,895 Atrix Laboratories, Inc.*,# ................. 6,209,793
Electric Products - Miscellaneous - 3.8%
43,600 Samsung Electronics Company, Ltd** .......... 20,697,320
Electronic Components - Semiconductors - 2.4%
524,885 Advanced Micro Devices, Inc.*,# ............. 7,463,865
2,848,158 ARM Holdings PLC ............................ 5,884,206
13,348,071
Finance - Commercial - 3.3%
868,185 CapitalSource, Inc.*,# ...................... 18,283,976
Finance - Investment Bankers/Brokers - 0.9%
103,075 Citigroup, Inc. ............................. 4,956,877
Finance - Other Services - 3.2%
148,530 Chicago Mercantile Exchange Holdings, Inc.# . 17,422,569
Food - Diversified - 0.8%
257,521 CoolBrands International, Inc.* ............. 4,222,577
Internet Applications Software - 0.7%
1,074,757 Tumbleweed Communications Corp.*,# .......... 4,041,086
Internet Security - 2.2%
516,655 Check Point Software Technologies, Ltd.
(New York Shares)* ........................ 12,105,227
Investment Management and Advisory Services - 0.6%
108,000 National Financial Partners Corp.* .......... 3,375,000
Medical - Biomedical and Genetic - 0.9%
100,320 Celgene Corp.*,# ............................ 5,185,541
Medical - Drugs - 5.8%
76,745 OSI Pharmaceuticals, Inc.*,# ................ 5,663,014
242,435 Roche Holding A.G. .......................... 25,428,937
31,091,951
Shares or Principal Amount Market Value
================================================================================
Miscellaneous Manufacturing - 1.9%
5,153,007 FKI PLC ..................................... $ 10,371,808
Multi-Line Insurance - 2.0%
445,860 Assurant, Inc. .............................. 10,861,150
Multimedia - 3.5%
1,141,650 Time Warner, Inc.* .......................... 19,202,553
Oil Companies - Exploration and Production - 3.0%
328,165 EOG Resources, Inc. ......................... 16,162,126
Paper and Related Products - 2.4%
414,270 Aracruz Celulose S.A. (ADR) ................. 12,900,368
Radio - 0.6%
141,805 XM Satellite Radio Holdings, Inc.
- Class A*,# .............................. 3,397,648
Real Estate Management/Services - 1.9%
208,950 LNR Property Corp.# ......................... 10,493,469
Reinsurance - 4.7%
8,296 Berkshire Hathaway, Inc. - Class B* ......... 25,875,224
Retail - Auto Parts - 2.6%
165,130 AutoZone, Inc.* ............................. 14,460,434
Retail - Discount - 3.5%
510,385 Costco Wholesale Corp. ...................... 19,113,918
Steel - Producers - 2.5%
391,140 Companhia Siderurgica de Tubarao* ........... 11,215,246
234,720 Usinas Siderurgicas de Minas Gerais S.A. .... 2,349,589
13,564,835
Steel - Specialty - 3.0%
349,200 Companhia Siderurgica Nacional
S.A. (ADR)# ............................... 16,478,748
Television - 3.3%
534,078 Univision Communications, Inc. - Class A* ... 18,078,540
Toys - 1.1%
314,895 Marvel Enterprises, Inc.* ................... 5,979,856
Transportation - Services - 2.0%
152,410 FedEx Corp. ................................. 10,959,803
- --------------------------------------------------------------------------------
Total Common Stock (cost $442,242,861) ...................... 525,774,161
- --------------------------------------------------------------------------------
Other Securities - 10.0%
State Street Navigator Securities Lending
$ 55,005,244 Prime Portfolio+ (cost $55,005,244) ....... 55,005,244
- --------------------------------------------------------------------------------
Short-Term Corporate Notes - 0.3%
AIG Funding, Inc.
1,800,000 0.97%, 5/3/04 (amortized cost $1,799,903) . 1,799,903
- --------------------------------------------------------------------------------
Total Investments (total cost $499,048,008) - 106.4% ........ 582,579,308
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (6.4)% (35,117,914)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 547,461,394
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
24 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Brazil $ 42,943,951 7.4%
Canada 16,873,637 2.9%
France 33,303,044 5.7%
Germany 18,250,988 3.1%
Israel 12,105,227 2.1%
South Korea 28,666,553 4.9%
Swedan 35,380,037 6.1%
Switzerland 25,428,937 4.3%
United Kingdom 16,256,014 2.8%
United States++ 353,370,920 60.7%
- --------------------------------------------------------------------------------
Total $ 582,579,308 100.0%
++Includes Short-Term Securities (50.9% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
South Korean Won
5/14/04 9,300,000,000 $ 7,917,522 $ (105,022)
- --------------------------------------------------------------------------------
Total $ 7,917,522 $ (105,022)
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 25
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS TWENTY FUND (unaudited) (closed to new investors) Portfolio Manager
Scott Schoelzel
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Twenty Fund S&P 500(R) Index
Russell Top 200 Growth Index**
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
- --------------------------------------------------------------------------------
Janus Twenty Fund 12.44% 25.53% (8.04)% 11.70% 13.23%
- --------------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% 11.36% 12.94%
- --------------------------------------------------------------------------------
Russell Top 200 3.72% 18.18% (7.91)% 10.02% 10.99%**
Growth Index
- --------------------------------------------------------------------------------
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - April 30, 1985
** The Russell Top 200 Growth Index's since inception returns calculated from
December 31, 1985.
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by investing primarily in common stocks of
issuers of any size, which may include larger well-established issuers and/or
smaller emerging growth companies.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 1.6%
Common Stock - Foreign - 9.8%
Common Stock - Domestic - 88.6%
Number of Stocks: 26
Top 10 Equities: 67.7%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
26 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
eBay, Inc. 13.8% 9.1%
UnitedHealth Group, Inc. 10.4% 8.1%
Genentech, Inc. 7.9% 4.9%
Roche Holding A.G. 7.3% 5.4%
Electronic Arts, Inc. 6.0% 5.5%
Bank of America Corp. 5.9% 5.6%
NIKE, Inc. - Class B 5.2% 4.1%
Goldman Sachs Group, Inc. 4.3% 4.5%
3M Co. 3.5% 2.2%
Wells Fargo & Co. 3.4% 3.2%
TOP INDUSTRIES - FUND VS. INDEX (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Twenty Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Twenty
S&P 500 Fund
E-Commerce/Services 0.5% 13.8%
Medical - HMO 0.8% 12.1%
Medical - Drugs 6.7% 10.4%
Super-Regional Banks 5.2% 9.3%
Medical - Biomedical and Genetic 1.2% 7.9%
Entertainment Software 0.1% 6.0%
Athletic Footwear 0.2% 5.2%
Finance - Investment Bankers/Brokers 5.1% 4.3%
Electronic Components - Semiconductors 2.7% 3.6%
Diversified Operations 5.3% 3.5%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
indices. The indices are not available for direct investment; therefore their
performance does not reflect the expenses associated with the active management
of an actual portfolio.
A fund that is classified as "nondiversified" has the ability to take larger
positions in a smaller number of issuers than a fund that is classified as
"diversified." Nondiversified funds may experience greater price volatility.
Returns have sustained significant gains and losses due to market volatility in
the healthcare sector.
Concentration may lead to greater price volatility.
Janus Growth Funds April 30, 2004 27
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS TWENTY FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 98.4%
Athletic Footwear - 5.2%
6,677,115 NIKE, Inc. - Class B# ....................... $ 480,418,424
Cable Television - 0.5%
1,424,630 EchoStar Communications Corp. - Class A* .... 47,283,470
Cellular Telecommunications - 3.0%
1,750,000 Nextel Communications, Inc. - Class A* ...... 41,755,000
7,987,800 Vodafone Group PLC .......................... 19,406,429
8,744,070 Vodafone Group PLC (ADR)# ................... 214,579,478
275,740,907
Cosmetics and Toiletries - 3.3%
2,901,455 Procter & Gamble Co. ........................ 306,828,866
Diversified Operations - 3.5%
3,791,020 3M Co. ...................................... 327,847,410
E-Commerce/Products - 1.5%
3,114,000 Amazon.com, Inc.*,# ......................... 135,334,440
E-Commerce/Services - 13.8%
15,987,950 eBay, Inc.*,# ............................... 1,276,158,168
Electronic Components - Semiconductors - 3.6%
889,360 Broadcom Corp. - Class A*,# ................. 33,582,234
11,879,160 Texas Instruments, Inc. ..................... 298,166,916
331,749,150
Entertainment Software - 6.0%
10,971,065 Electronic Arts, Inc.* ...................... 555,355,310
Finance - Consumer Loans - 3.1%
7,391,445 SLM Corp.# .................................. 283,166,258
Finance - Investment Bankers/Brokers - 4.3%
4,074,075 Goldman Sachs Group, Inc. ................... 393,148,238
Finance - Mortgage Loan Banker - 2.9%
4,538,190 Countrywide Financial Corp. ................. 269,114,667
Medical - Biomedical and Genetic - 7.9%
5,929,270 Genentech, Inc.*,# .......................... 728,114,356
Medical - Drugs - 10.4%
4,408,000 Forest Laboratories, Inc.* .................. 284,227,840
6,434,958 Roche Holding A.G. .......................... 674,960,888
959,188,728
Medical - HMO - 12.1%
15,565,730 UnitedHealth Group, Inc.# ................... 956,981,080
1,454,045 WellPoint Health Networks, Inc.* ............ 162,402,286
1,119,383,366
Retail - Auto Parts - 2.3%
2,423,315 AutoZone, Inc.* ............................. 212,209,695
Retail - Regional Department Stores - 2.3%
5,023,605 Kohl's Corp.* ............................... 209,936,453
Super-Regional Banks - 9.3%
6,758,140 Bank of America Corp. ....................... 543,962,689
5,505,370 Wells Fargo & Co. ........................... 310,833,190
854,795,879
Web Portals/Internet Service Providers - 1.4%
2,565,325 Yahoo!, Inc.*,# ............................. 129,446,300
Wireless Equipment - 2.0%
2,985,903 QUALCOMM, Inc. .............................. 186,499,501
- --------------------------------------------------------------------------------
Total Common Stock (cost $6,582,573,008) .................... 9,081,719,586
- --------------------------------------------------------------------------------
Shares or Principal Amount Market Value
================================================================================
Other Securities - 1.9%
State Street Navigator Securities Lending
$173,756,090 Prime Portfolio+ (cost $173,756,090) ...... $ 173,756,090
- --------------------------------------------------------------------------------
Time Deposit - 1.7%
SouthTrust Bank, ETD
158,500,000 1.04%, 5/3/04 (cost $158,500,000) ......... 158,500,000
- --------------------------------------------------------------------------------
Total Investments (total cost $6,914,829,098) - 102.0% ...... 9,413,975,676
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (2.0)% (184,034,937)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 9,229,940,739
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Switzerland $ 674,960,888 7.2%
United Kingdom 233,985,907 2.5%
United States++ 8,505,028,881 90.3%
- --------------------------------------------------------------------------------
Total $ 9,413,975,676 100.0%
++Includes Short-Term Securities (86.8% excluding Short-Term Securities)
See Notes to Schedules of Investments and Financial Statements.
28 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS VENTURE FUND (unaudited) (closed to new investors) Portfolio Manager
Will Bales
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Venture Fund Russell 2000(R) Index
Russell 2000 Growth Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
- --------------------------------------------------------------------------------
Janus Venture Fund 4.90% 49.63% 2.04% 10.44% 13.48%
- --------------------------------------------------------------------------------
Russell 2000(R)Index 6.54% 42.01% 6.67% 9.80% 10.56%
- --------------------------------------------------------------------------------
Russell 2000 Growth Index 4.01% 41.57% (0.44)% 5.89% 7.63%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance
information.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - April 30, 1985
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek capital appreciation by investing in equity securities of U.S. and
foreign companies. The Fund normally invests at least 50% of its equity assets
in smaller-sized companies.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 0.1%
Warrants - 0.2%
Common Stock - Foreign - 11.0%
Common Stock - Domestic - 88.7%
Number of Stocks: 138
Top 10 Equities: 18.9%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
Janus Growth Funds April 30, 2004 29
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS VENTURE FUND (unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Euronet Worldwide, Inc. 3.1% 2.3%
Infocrossing, Inc. 2.0% 1.0%
Ligand Pharmaceuticals, Inc. - Class B 1.9% 1.2%
Artisian Components, Inc. 1.8% --
Skillsoft PLC (ADR) 1.7% 1.2%
TALX Corp. 1.7% 1.6%
CoolBrands International, Inc. 1.7% 1.4%
MGI Pharma, Inc. 1.7% 1.0%
Information Holdings, Inc. 1.7% 1.5%
Centene Corp. 1.6% 1.3%
TOP INDUSTRIES - FUND VS. INDEX (% of Net Assets)
- --------------------------------------------------------------------------------
[BAR GRAPH]
Bar graph data shown in following table.
Russell Janus Venture
2000 Index Fund
Commercial Services - Finance 0.3% 4.4%
Hotels and Motels 0.5% 3.7%
Computer Services 0.6% 3.3%
Therapeutics 2.4% 2.9%
Enterprise Software/Services 1.1% 2.8%
Consulting Services 0.6% 2.7%
Cellular Telecommunications 0.4% 2.6%
Medical - Drugs 1.2% 2.5%
Medical - HMO 0.3% 2.3%
Data Processing and Management 0.6% 2.3%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
indices. The indices are not available for direct investment; therefore their
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Funds that emphasize investments in smaller companies may experience greater
price volatility.
The Fund has been significantly impacted, either positively or negatively, by
investing in initial public offerings ("IPOs").
Returns have sustained significant gains and losses due to market volatility in
the consumer discretionary, healthcare and information technology sectors.
30 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 99.7%
Advertising Services - 1.5%
377,520 Getty Images, Inc.* ......................... $ 20,612,592
Airlines - 0.4%
308,609 WestJet Airlines, Ltd.*,** .................. 5,228,569
Apparel Manufacturers - 1.5%
130,475 Carter Holdings, Inc.*,# .................... 3,933,821
775,929 Gymboree Corp.*,# ........................... 13,695,147
138,900 Quiksilver, Inc.* ........................... 3,004,407
20,633,375
Applications Software - 1.5%
1,310,000 Authentidate Holding Corp.*,(pound),ss. ..... 13,217,900
610,060 Quest Software, Inc.*,# ..................... 6,863,175
20,081,075
Broadcast Services and Programming - 1.2%
1,071,570 Gray Television, Inc.# ...................... 15,880,667
Building - Mobile Home and Manufactured Homes - 0.6%
302,580 Winnebago Industries, Inc. .................. 8,723,381
Building - Residential and Commercial - 0.3%
190,580 WCI Communities, Inc.*,# .................... 4,633,000
Building and Construction Products - Miscellaneous - 0.3%
170,520 ElkCorp ..................................... 4,726,814
Casino Services - 0.8%
604,015 Mikohn Gaming Corp.*,#,(pound) .............. 2,597,265
269,209 Shuffle Master, Inc.*,# ..................... 8,816,594
11,413,859
Cellular Telecommunications - 2.6%
187,440 Linktone, Ltd. (ADR)*,# ..................... 1,578,245
1,539,945 Nextel Partners, Inc. - Class A* ............ 20,558,266
1,301,600 Telesystem International Wireless, Inc.
(New York Shares)**,# ..................... 12,755,680
34,892,191
Chemicals - Specialty - 0.5%
208,809 Cabot Microelectronics Corp.*,# ............. 6,166,130
Circuit Boards - 1.2%
1,483,175 TTM Technologies, Inc.* ..................... 16,478,074
Commercial Banks - 0.3%
120,840 UCBH Holdings, Inc.# ........................ 4,473,497
Commercial Services - Finance - 4.4%
2,164,558 Euronet Worldwide, Inc.*,(pound) ............ 42,057,361
572,365 IPayment, Inc.*,# ........................... 19,403,173
61,460,534
Communications Software - 0.4%
252,884 Inter-Tel, Inc.# ............................ 6,054,043
Computer Services - 3.3%
335,665 Anteon International Corp.*,# ............... 10,472,748
220,314 Cognizant Technology Solutions Corp.* ....... 9,530,784
375,830 Manhattan Associates, Inc.*,# ............... 10,098,552
1,551,485 Tier Technologies, Inc.- Class B*,(pound) ... 15,949,266
46,051,350
Computers - 0.5%
839,040 Neoware Systems, Inc.*,#,(pound) ............ 7,484,237
Computers - Memory Devices - 0.9%
1,601,565 Dot Hill Systems Corp.*,# ................... 12,011,738
Shares or Principal Amount Market Value
================================================================================
Computers - Peripheral Equipment - 1.3%
547,867 TransAct Technologies, Inc.*,(pound) ........ $ 11,236,752
333,333 TransAct Technologies, Inc.*,(sigma),ss. .... 6,267,850
17,504,602
Computers - Voice Recognition - 1.7%
1,021,823 TALX Corp.(pound) ........................... 23,736,948
Consulting Services - 2.7%
478,300 Advisory Board Co.* ......................... 16,553,963
334,643 Corporate Executive Board Co. ............... 17,284,311
133,045 LECG Corp.* ................................. 2,527,855
36,366,129
Consumer Products - Miscellaneous - 1.1%
414,177 Jarden Corp.*,# ............................. 15,407,384
Data Processing and Management - 2.1%
1,490,458 Infocrossing, Inc.*,ss. ..................... 21,462,596
400,000 Infocrossing, Inc.*,(sigma),ss. ............. 5,126,400
573,265 Intellisync Corp.*,# ........................ 1,387,301
27,976,297
Distribution and Wholesale - 0.9%
385,665 Central European Distribution Corp.*,# ...... 11,821,481
Diversified Minerals - 0.2%
151,627 Teck Cominco, Ltd. - Class B** .............. 2,243,672
Drug Delivery Systems - 0.6%
552,240 I-Flow Corp.*,# ............................. 8,084,794
E-Commerce/Products - 1.1%
1,525,100 1-800-FLOWERS.COM, Inc. - Class A*,#,(pound) 15,388,259
E-Services/Consulting - 0.6%
432,560 GSI Commerce, Inc.*,# ....................... 4,195,832
706,355 Sapient Corp.*,# ............................ 3,955,588
8,151,420
Educational Software - 1.7%
1,907,471 Skillsoft PLC (ADR)*,# ...................... 23,843,388
Electronic Components - Semiconductors - 2.0%
1,045,875 Artisian Components, Inc.*,# ................ 24,473,475
167,435 SiRF Technology Holdings, Inc.*,# ........... 2,678,960
27,152,435
Electronic Measuring Instruments - 0.9%
255,493 FLIR Systems, Inc.*,# ....................... 11,985,177
Enterprise Software/Services - 2.8%
548,250 ManTech International Corp. - Class A*,# .... 13,761,075
577,486 Omnicell, Inc.* ............................. 7,957,757
1,500,000 Ultimate Software Group, Inc.*,(pound),ss. .. 15,750,000
37,468,832
Fiduciary Banks - 1.5%
508,680 Investors Financial Services Corp.# ......... 19,772,392
Finance - Commercial - 1.2%
791,205 CapitalSource, Inc.*,# ...................... 16,662,777
Finance - Other Services - 0.4%
266,040 Asset Acceptance Capital Corp.*,# ........... 4,996,231
Food - Diversified - 1.7%
1,423,935 CoolBrands International, Inc.*,** .......... 23,348,289
Food - Retail - 0.3%
225,540 Provide Commerce, Inc.*,# ................... 4,518,017
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 31
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS VENTURE FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Forestry - 0.2%
807,402 Sino-Forest Corp.*,** ....................... $ 2,195,734
Gambling-Non Hotel - 0.5%
569,620 Pinnacle Entertainment, Inc.* ............... 6,505,060
Home Furnishings - 0.4%
355,165 Tempur-Pedic International, Inc.*,# ......... 5,544,126
Hotels and Motels - 3.7%
816,800 Fairmont Hotels & Resorts, Inc.** ........... 20,175,747
391,045 Four Seasons Hotels, Inc.** ................. 20,920,907
569,445 Orient-Express Hotel, Ltd. - Class A* ....... 9,202,231
50,298,885
Human Resources - 2.0%
107,837 Heidrick & Struggles International, Inc.*,# . 2,677,593
1,111,250 Labor Ready, Inc.*,# ........................ 14,046,200
258,475 Resources Connection, Inc.*,# ............... 10,419,127
27,142,920
Industrial Audio and Video Products - 1.2%
892,092 Sonic Solutions*,# .......................... 16,066,577
Internet Content - Information/News - 0.8%
1,421,805 Harris Interactive, Inc.* ................... 10,364,958
Internet Infrastructure Software - 1.5%
2,637,074 TIBCO Software, Inc.* ....................... 19,778,055
Lasers - Systems and Components - 0.6%
257,835 Cymer, Inc.*,# .............................. 8,245,563
Leisure and Recreation Products - 0.6%
586,685 K2, Inc.*,# ................................. 8,600,802
Life and Health Insurance - 0.6%
718,420 American Equity Investment
Life Holding Co.* ......................... 8,082,225
Machine Tools and Related Products - 1.1%
341,465 Kennametal, Inc. ............................ 14,737,629
Marine Services - 0.6%
1,766,325 Odyssey Marine Exploration, Inc.*,(pound) ... 8,831,625
Medical - Biomedical and Genetic - 0.8%
2,109,665 Ark Therapeutics Group PLC* ................. 4,050,227
305,015 Barrier Therapeutics, Inc.* ................. 4,270,210
136,700 Ciphergen Biosystems, Inc.*,# ............... 1,002,011
131,975 Cytokinetics, Inc.* ......................... 2,145,914
11,468,362
Medical - Drugs - 2.5%
1,199,690 Ligand Pharmaceuticals, Inc. - Class B*,# ... 25,685,363
394,894 Pharmion Corp.*,# ........................... 8,494,170
34,179,533
Medical - Generic Drugs - 0.5%
144,870 Taro Pharmaceutical Industries, Ltd.*,# ..... 6,265,628
Medical - HMO - 2.3%
221,980 Amerigroup Corp.*,# ......................... 9,214,390
663,732 Centene Corp.*,# ............................ 22,235,022
31,449,412
Medical - Hospitals - 1.4%
177,190 Symbion, Inc.* .............................. 2,888,197
463,350 United Surgical Partners
International, Inc.*,# .................... 16,782,537
19,670,734
Shares or Principal Amount Market Value
================================================================================
Medical - Outpatient and Home Medical Care - 0.1%
58,224 Odyssey Healthcare, Inc.*,# ................. $ 978,745
Medical Labs and Testing Services - 1.3%
593,610 LabOne, Inc.*,# ............................. 17,535,239
Medical Products - 1.9%
939,425 PSS World Medical, Inc.*,# .................. 10,512,166
1,008,464 ThermoGenesis Corp.* ........................ 4,729,696
323,995 Wright Medical Group, Inc.*,# ............... 11,125,988
26,367,850
Metal - Diversified - 0.2%
112,506 Falconbridge, Ltd.** ........................ 2,413,326
Networking Products - 0.8%
1,251,655 Extreme Networks, Inc.*,# ................... 6,921,652
67,746 Ixia* ....................................... 604,972
303,222 NETGEAR, Inc.*,# ............................ 3,299,055
10,825,679
Non-Ferrous Metals - 0.5%
157,166 Cameco Corp.** .............................. 6,799,765
Oil - Field Services - 0.5%
644,820 Key Energy Services, Inc.*,# ................ 6,873,781
Oil and Gas Drilling - 0.5%
182,290 Patterson-UTI Energy, Inc. .................. 6,597,075
Oil Companies - Exploration and Production - 0.5%
158,440 Evergreen Resources, Inc.*,# ................ 6,358,197
Oil Field Machinery and Equipment - 0.4%
378,000 Grant Prideco, Inc.*,# ...................... 5,764,500
Optical Supplies - 0.8%
1,292,881 STAAR Surgical Co.*,(pound) ................. 10,989,489
Pharmacy Services - 1.2%
426,330 Accredo Health, Inc.*,# ..................... 16,477,655
Property and Casualty Insurance - 0.3%
168,515 Bristol West Holdings, Inc. ................. 3,454,558
Publishing - Books - 1.7%
921,835 Information Holdings, Inc.* ................. 22,907,600
Radio - 2.0%
673,320 Cumulus Media, Inc. - Class A*,# ............ 14,153,186
694,870 Radio One, Inc. - Class A*,# ................ 13,258,120
27,411,306
Recreational Vehicles - 0.5%
156,450 Polaris Industries, Inc.# ................... 6,711,705
Retail - Apparel and Shoe - 0.7%
421,985 Hot Topic, Inc.* ............................ 9,393,386
Retail - Bedding - 0.7%
276,046 Linens 'n Things, Inc.*,# ................... 8,954,932
Retail - Computer Equipment - 0.6%
493,620 Insight Enterprises, Inc.* .................. 8,263,199
Retail - Convenience Stores - 0.4%
242,195 Pantry, Inc.* ............................... 4,831,790
Retail - Discount - 0.5%
352,095 Fred's, Inc.# ............................... 6,538,404
Retail - Home Furnishings - 0.9%
2,133,107 Restoration Hardware, Inc.*,(pound) ......... 12,414,683
Retail - Music Store - 1.4%
453,635 Guitar Center, Inc.*,# ...................... 18,834,925
See Notes to Schedules of Investments and Financial Statements.
32 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Retail - Petroleum Products - 0.6%
208,170 World Fuel Services Corp.# .................. $ 8,809,754
Savings/Loan/Thrifts - 0.4%
519,650 Ocwen Financial Corp.*,# .................... 5,648,596
Semiconductor Components/Integrated Circuits - 0.5%
171,279 Exar Corp.* ................................. 2,613,718
184,715 Sigmatel, Inc.*,# ........................... 4,516,281
7,129,999
Semiconductor Equipment - 1.9%
638,330 AMIS Holdings, Inc.* ........................ 9,205,357
203,580 DuPont Photomasks, Inc.*,# .................. 4,210,034
132,660 FormFactor, Inc.*,# ......................... 2,333,489
619,005 Rudolph Technologies, Inc.*,# ............... 9,947,411
25,696,291
Superconductor Products and Systems - 0.3%
58,480 Intermagnetics General Corp.*,# ............. 1,433,930
1,945,845 Superconductor Technologies, Inc.*,# ........ 2,724,183
4,158,113
Telecommunication Equipment - 0.4%
1,840,185 Terayon Communication Systems, Inc.*,# ...... 5,336,537
Therapeutics - 2.9%
373,560 MGI Pharma, Inc.*,# ......................... 23,093,480
246,796 Neurocrine Biosciences, Inc.* ............... 16,197,221
39,290,701
Toys - 1.2%
892,650 Marvel Enterprises, Inc.* ................... 16,951,424
Transactional Software - 0.6%
311,500 Open Solutions, Inc.* ....................... 7,703,395
Transportation - Services - 2.3%
735,755 Central Freight Lines, Inc.* ................ 9,491,240
697,320 Pacer International, Inc.* .................. 13,109,616
185,705 UTi Worldwide, Inc. (New York Shares)# ...... 8,507,146
31,108,002
Transportation - Truck - 0.3%
31,010 Old Dominion Freight Line, Inc.* ............ 1,156,053
222,580 Quality Distribution, Inc.*,# ............... 2,837,895
3,993,948
Web Hosting/Design - 1.0%
295,015 Kintera, Inc.*,# ............................ 3,245,165
486,405 Macromedia, Inc.* ........................... 10,019,943
13,265,108
Wireless Equipment - 0.6%
660,345 Carrier Access Corp.*,# ..................... 7,026,071
88,085 Wireless Facilities, Inc.*,# ................ 844,735
7,870,806
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,068,900,766) .................... 1,357,521,941
- --------------------------------------------------------------------------------
Preferred Stock - 0%
Computers - Peripheral Equipment - 0%
665,000 Candescent Technologies Corp. - Series*,
(beta),(sigma),o (cost $3,657,500) ........ 0
- --------------------------------------------------------------------------------
Shares or Principal Amount Market Value
================================================================================
Warrants - 0.2%
Data Processing and Management - 0.2%
521,660 Infocrossing, Inc. -
expires 5/10/07*,(beta),(sigma) (cost $0) . $ 3,411,656
- --------------------------------------------------------------------------------
Other Securities - 19.2%
State Street Navigator Securities Lending
$261,617,181 Prime Portfolio+ (cost $261,617,181) ...... 261,617,181
- --------------------------------------------------------------------------------
Total Investments (total cost $1,334,175,447) - 119.1% ...... 1,622,550,778
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (19 1)% (259,672,753)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 1,362,878,025
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Bermuda $ 9,202,231 0.6%
Canada 96,081,689 5.9%
Cayman Islands 1,578,245 0.1%
Ireland 23,843,388 1.5%
Israel 6,265,628 0.4%
United Kingdom 12,557,373 0.7%
United States++ 1,473,022,224 90.8%
- --------------------------------------------------------------------------------
Total $ 1,622,550,778 100.0%
++Includes Short-Term Securities (74.7% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Canadian Dollar 8/6/04 8,700,000 $ 6,311,698 $ 176,965
- --------------------------------------------------------------------------------
Total $ 6,311,698 $ 176,965
See Notes to Schedules of Investments and Financial Statements.
Janus Growth Funds April 30, 2004 33
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
As of April 30, 2004 (unaudited) Janus
(all numbers in thousands except Janus Enterprise
net asset value per share) Fund Fund
- ----------------------------------------------------------------------------------
Assets:
Investments, at cost(1) $ 11,445,661 $ 1,519,695
Investments, at value(1) $ 15,746,701 $ 1,987,369
Cash 1,547 1,544
Receivables:
Investments sold 33,150 20,751
Fund shares sold 6,557 1,726
Dividends 11,129 1,118
Interest 519 94
Other assets 171 13
Forward currency contracts 3,575 --
- ----------------------------------------------------------------------------------
Total Assets 15,803,349 2,012,615
- ----------------------------------------------------------------------------------
Liabilities:
Payables:
Securities loaned (Note 1) 585,979 172,897
Investments purchased -- 16,013
Fund shares repurchased 31,761 10,380
Advisory fees 8,384 1,005
Transfer agent fees and expenses 2,960 468
Foreign tax liability -- --
Accrued expenses 708 38
Forward currency contracts 264 --
- ----------------------------------------------------------------------------------
Total Liabilities 630,056 200,801
- ----------------------------------------------------------------------------------
Net Assets $ 15,173,293 $ 1,811,814
- ----------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid in surplus)* $ 20,785,535 $ 5,982,124
Undistributed net investment income/(loss)* (11,892) (3,985)
Undistributed net realized gain/(loss) from
investments and foreign currency transactions* (9,904,657) (4,633,998)
Unrealized appreciation/(depreciation) of
investments and foreign currency translations 4,304,307 467,673
- ----------------------------------------------------------------------------------
Total Net Assets $ 15,173,293 $ 1,811,814
- ----------------------------------------------------------------------------------
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 664,972 55,822
- ----------------------------------------------------------------------------------
Net Asset Value Per Share $ 22.82 $ 32.46
- ----------------------------------------------------------------------------------
* See Note 3 in Notes to Financial Statements.
(1) Investments at cost and value include $573,556,826, $168,766,318,
$155,109,961, $191,546,853, $53,737,481, $169,536,789 and $255,924,016 of
securities loaned for Janus Fund, Janus Enterprise Fund, Janus Mercury
Fund, Janus Olympus Fund, Janus Orion Fund, Janus Twenty Fund and Janus
Venture Fund, respectively (Note 1).
(2) Net of foreign taxes on investments of $256,424 and $62,412 for Janus
Mercury Fund and Janus Orion Fund, respectively.
See Notes to Financial Statements.
34 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
As of April 30, 2004 (unaudited) Janus Janus Janus Janus Janus
(all numbers in thousands except Mercury Olympus Orion Twenty Venture
net asset value per share) Fund Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Assets:
Investments, at cost(1) $ 3,987,651 $ 2,340,267 $ 499,048 $ 6,914,829 $ 1,334,175
Investments, at value(1) $ 5,170,938 $ 2,771,721 $ 582,579 $ 9,413,976 $ 1,622,551
Cash 1,085 1,062 2,201 2,052 356
Receivables:
Investments sold 99,374 24,112 19,184 3,704 18,496
Fund shares sold 2,446 547 352 2,868 422
Dividends 2,741 1,561 1,828 4,359 73
Interest 25 65 10 24 47
Other assets 33 19 3 100 29
Forward currency contracts 1,271 1,018 -- -- 177
- ----------------------------------------------------------------------------------------------------------------------------------
Total Assets 5,277,913 2,800,105 606,157 9,427,083 1,642,151
- ----------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Securities loaned (Note 1) 159,111 196,180 55,005 173,756 261,617
Investments purchased 118,654 64,704 2,242 -- 15,588
Fund shares repurchased 4,468 2,989 801 15,920 965
Advisory fees 2,793 1,416 305 5,034 766
Transfer agent fees and expenses 1,245 689 159 1,809 265
Foreign tax liability 256 -- 62 -- --
Accrued expenses 441 216 17 623 72
Forward currency contracts 1,051 -- 105 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 288,019 266,194 58,696 197,142 279,273
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets $ 4,989,894 $ 2,533,911 $ 547,461 $ 9,229,941 $ 1,362,878
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid in surplus)* $ 10,650,074 $ 4,181,089 $ 1,097,757 $ 11,510,874 $ 1,248,824
Undistributed net investment income/(loss)* (5,440) (5,019) 252 7,806 (5,288)
Undistributed net realized gain/(loss) from
investments and foreign currency transactions* (6,837,988) (2,074,619) (633,917) (4,787,870) (169,210)
Unrealized appreciation/(depreciation) of
investments and foreign currency translations 1,183,248(2) 432,460 83,369(2) 2,499,131 288,552
- ----------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 4,989,894 $ 2,533,911 $ 547,461 $ 9,229,941 $ 1,362,878
- ----------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 256,813 97,913 89,208 242,135 27,197
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 19.43 $ 25.88 $ 6.14 $ 38.12 $ 50.11
- ----------------------------------------------------------------------------------------------------------------------------------
Janus Growth Funds April 30, 2004 35
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the six month period ended Janus
April 30, 2004 (unaudited) Janus Enterprise
(all numbers in thousands) Fund Fund
- --------------------------------------------------------------------------------
Investment Income:
Interest $ 865 $ 242
Securities lending income 760 130
Dividends 53,948 5,235
Dividends from affiliates 7,669 --
Foreign tax withheld (846) (40)
- --------------------------------------------------------------------------------
Total Income 62,396 5,567
- --------------------------------------------------------------------------------
Expenses:
Advisory fees 53,812 6,080
Transfer agent fees and expenses 17,828 2,540
Registration fees 36 11
Postage and mailing expenses 1,161 396
Custodian fees 177 24
Printing Expenses 999 445
Audit fees 20 5
Trustees' fees and expenses 110 18
Other expenses 246 46
- --------------------------------------------------------------------------------
Total Expenses 74,389 9,565
- --------------------------------------------------------------------------------
Expense and Fee Offsets (101) (13)
- --------------------------------------------------------------------------------
Net Expenses 74,288 9,552
- --------------------------------------------------------------------------------
Net Investment Income/(Loss) (11,892) (3,985)
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments:
Net realized gain/(loss) from
securities transactions 414,668 70,599
Net realized gain/(loss) from
foreign currency transactions 6,008 --
Change in net unrealized appreciation/
(depreciation) of investments and
foreign currency translations (149,248) 80,304
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments 271,428 150,903
- --------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations $ 259,536 $ 146,918
- --------------------------------------------------------------------------------
(1) Net of foreign taxes on investments of $256,424 and $62,412 for Janus
Mercury Fund and Janus Orion Fund, respectively.
See Notes to Financial Statements.
36 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the six month period ended Janus Janus Janus Janus Janus
April 30, 2004 (unaudited) Mercury Olympus Orion Twenty Venture
(all numbers in thousands) Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------
Investment Income:
Interest $ 298 $ 208 $ 137 $ 8,936 $ 12
Securities lending income 419 254 56 391 301
Dividends 20,579 8,936 3,131 45,713 634
Dividends from affiliates -- -- -- 95 102
Foreign tax withheld (1,308) (347) (201) (1,585) (13)
- -----------------------------------------------------------------------------------------------------------------------
Total Income 19,988 9,051 3,123 53,550 1,036
- -----------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 17,172 8,831 1,761 31,021 4,569
Transfer agent fees and expenses 6,933 3,762 838 9,787 1,459
Registration fees 55 46 11 29 31
Postage and mailing expenses 480 521 116 887 84
Custodian fees 106 59 35 193 26
Printing Expenses 566 781 112 900 112
Audit fees 13 10 12 18 12
Trustees' fees and expenses 33 15 6 68 11
Other expenses 95 57 25 160 32
- -----------------------------------------------------------------------------------------------------------------------
Total Expenses 25,453 14,082 2,916 43,063 6,336
- -----------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (25) (14) (70) (41) (12)
- -----------------------------------------------------------------------------------------------------------------------
Net Expenses 25,428 14,068 2,846 43,022 6,324
- -----------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) (5,440) (5,017) 277 10,528 (5,288)
- -----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments:
Net realized gain/(loss) from
securities transactions 280,675 114,167 61,436 10,307 135,628
Net realized gain/(loss) from
foreign currency transactions (4,718) (1,846) (122) (9,736) (303)
Change in net unrealized appreciation/
(depreciation) of investments and
foreign currency translations 102,650(1) (29,496) (17,522)(1) 1,127,032 (62,204)
- -----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/
(Loss) on Investments 378,607 82,825 43,792 1,127,603 73,121
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations $ 373,167 $ 77,808 $ 44,069 $ 1,138,131 $ 67,833
- -----------------------------------------------------------------------------------------------------------------------
Janus Growth Funds April 30, 2004 37
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
Janus Janus
For the six month period ended April 30, 2004 Fund Enterprise Fund
(unaudited) and for the fiscal year ended
October 31, 2003 (all numbers in thousands) 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ (11,892) $ (26,961) $ (3,985) $ (7,931)
Net realized gain/(loss) from investment
and foreign currency transactions 420,676 (567,676) 70,599 (22,692)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations (149,248) 3,954,718 80,304 517,019
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 259,536 3,360,081 146,918 486,396
- -----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- -- -- --
Net realized gain/(loss) from investment transactions* -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Dividends and Distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 556,818 1,436,356 117,822 443,246
Shares issued in connection with acquistion* N/A 199,286 N/A 80,137
Reinvested dividends and distributions -- -- -- --
Shares repurchased (3,069,519) (3,889,686) (369,632) (947,265)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (2,512,701) (2,254,044) (251,810) (423,882)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (2,253,165) 1,106,037 (104,892) 62,514
Net Assets:
Beginning of period 17,426,458 16,320,421 1,916,706 1,854,192
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 15,173,293 $ 17,426,458 $ 1,811,814 $ 1,916,706
- -----------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchase of securities $ 921,776 $ 3,496,619 $ 259,780 $ 526,086
Proceeds from sales of securities 3,483,518 5,903,698 490,621 844,419
Purchases of long-term U.S. Government obligations -- -- -- --
Proceeds from sales of long-term
U.S. Government obligations -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ (11,892) -- $ (3,985) --
- -----------------------------------------------------------------------------------------------------------------------
*See Notes 3 and 5 in Notes to Financial Statements.
See Notes to Financial Statements.
38 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Janus Janus
For the six month period ended April 30, 2004 Mercury Fund Olympus Fund
(unaudited) and for the fiscal year ended
October 31, 2003 (all numbers in thousands) 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ (5,440) $ (15,594) $ (5,017) $ (3,315)
Net realized gain/(loss) from investment
and foreign currency transactions 275,957 (241,542) 112,321 59,224
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 102,650 1,258,383 (29,496) 462,250
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 373,167 1,001,247 77,808 518,159
- -----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- -- -- --
Net realized gain/(loss) from investment transactions* -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Dividends and Distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 224,068 1,325,788 114,521 232,374
Shares issued in connection with acquistion* N/A N/A N/A 454,629
Reinvested dividends and distributions -- -- -- --
Shares repurchased (889,505) (2,078,912) (430,627) (569,120)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (665,437) (753,124) (316,106) 117,883
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (292,270) 248,123 (238,298) 636,042
Net Assets:
Beginning of period 5,282,164 5,034,041 2,772,209 2,136,167
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 4,989,894 $ 5,282,164 $ 2,533,911 $ 2,772,209
- -----------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchase of securities $ 962,770 $ 2,623,781 $ 1,027,671 $ 1,901,991
Proceeds from sales of securities 1,671,068 3,330,355 1,348,443 2,058,190
Purchases of long-term U.S. Government obligations -- -- -- --
Proceeds from sales of long-term
U.S. Government obligations -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ (5,440) -- $ (5,019) $ (2)
- -----------------------------------------------------------------------------------------------------------------------
Janus Janus
For the six month period ended April 30, 2004 Orion Fund Twenty Fund
(unaudited) and for the fiscal year ended
October 31, 2003 (all numbers in thousands) 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 277 $ (1,859) $ 10,528 $ 50,247
Net realized gain/(loss) from investment
and foreign currency transactions 61,314 14,147 571 (643,338)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations (17,522) 106,055 1,127,032 1,743,101
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 44,069 118,343 1,138,131 1,150,010
- -----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- -- (47,904) (70,146)
Net realized gain/(loss) from investment transactions* -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Dividends and Distributions -- -- (47,904) (70,146)
- -----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 73,575 125,593 255,373 701,658
Shares issued in connection with acquistion* N/A N/A N/A N/A
Reinvested dividends and distributions -- -- 46,952 68,636
Shares repurchased (83,891) (151,686) (1,984,103) (2,135,909)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (10,316) (26,093) (1,681,778) (1,365,615)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 33,753 92,250 (591,551) (285,751)
Net Assets:
Beginning of period 513,708 421,458 9,821,492 10,107,243
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 547,461 $ 513,708 $ 9,229,941 $ 9,821,492
- -----------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchase of securities $ 233,658 $ 315,394 $ 980,453 $ 3,750,550
Proceeds from sales of securities 253,309 297,046 2,099,218 3,937,360
Purchases of long-term U.S. Government obligations -- -- -- --
Proceeds from sales of long-term
U.S. Government obligations -- -- 47,236 --
- -----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ 252 $ (25) $ 7,806 $ 45,181
- -----------------------------------------------------------------------------------------------------------------------
Janus
For the six month period ended April 30, 2004 Venture Fund
(unaudited) and for the fiscal year ended
October 31, 2003 (all numbers in thousands) 2004 2003
- ---------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ (5,288) $ (6,581)
Net realized gain/(loss) from investment
and foreign currency transactions 135,325 99,308
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations (62,204) 389,725
- ---------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 67,833 482,452
- ---------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- --
Net realized gain/(loss) from investment transactions* -- --
- ---------------------------------------------------------------------------------------
Net Increase/(Decrease) from Dividends and Distributions -- --
- ---------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 38,766 52,765
Shares issued in connection with acquistion* N/A 273,865
Reinvested dividends and distributions -- --
Shares repurchased (136,079) (173,047)
- ---------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (97,313) 153,583
- ---------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (29,480) 636,035
Net Assets:
Beginning of period 1,392,358 756,323
- ---------------------------------------------------------------------------------------
End of period $ 1,362,878 $ 1,392,358
- ---------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchase of securities $ 451,451 $ 736,672
Proceeds from sales of securities 543,957 865,938
Purchases of long-term U.S. Government obligations -- --
Proceeds from sales of long-term
U.S. Government obligations -- --
- ---------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ (5,288) --
- ---------------------------------------------------------------------------------------
Janus Growth Funds April 30, 2004 39
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding during the JANUS FUND
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 22.52 $ 18.39 $ 22.11 $ 44.00 $ 42.78 $ 27.97
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.02) -- -- -- -- --
Net gains/(losses) on securities
(both realized and unrealized) 0.32 4.13 (3.72) (17.50) 6.44 15.63
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.30 4.13 (3.72) (17.50) 6.44 15.63
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* -- -- -- -- -- --
Distributions (from capital gains)* -- -- -- (4.39) (5.22) (.82)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (4.39) (5.22) (.82)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 22.82 $ 22.52 $ 18.39 $ 22.11 $ 44.00 $ 42.78
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 1.33% 22.46% (16.82)% (43.42)% 15.60% 56.75%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $15,173,293 $17,426,458 $16,320,421 $23,513,436 $46,467,747 $35,834,730
Average Net Assets for the Period
(in thousands) $16,648,387 $16,206,681 $21,651,285 $34,254,548 $45,103,049 $28,993,305
Ratio of Gross Expenses to
Average Net Assets***(1) 0.90% 0.89% 0.85% 0.84% 0.85% 0.85%
Ratio of Net Expenses to
Average Net Assets***(1) 0.90% 0.89% 0.84% 0.83% 0.84% 0.84%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** (0.14)% (0.17)% (0.24)% (0.16)% (0.19)% (0.14)%
Portfolio Turnover Rate*** 11% 22% 27% 51% 65% 63%
For a share outstanding during the JANUS ENTERPRISE FUND
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 30.02 $ 22.93 $ 29.67 $ 68.41 $ 58.64 $ 32.33
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations: (.07)
Net investment income/(loss) -- -- -- -- --
Net gains/(losses) on securities
(both realized and unrealized) 2.51 7.09 (6.74) (38.74) 13.10 30.61
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.44 7.09 (6.74) (38.74) 13.10 30.61
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* -- -- -- -- -- --
Distributions (from capital gains)* -- -- -- -- (3.33) (4.30)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- -- (3.33) (4.30)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 32.46 $ 30.02 $ 22.93 $ 29.67 $ 68.41 $ 58.64
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 8.13% 30.92% (22.72)% (56.63)% 22.29% 104.09%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,811,814 $ 1,916,706 $ 1,854,192 $ 3,071,818 $ 8,084,564 $ 2,329,698
Average Net Assets for the Period
(in thousands) $ 1,881,147 $ 1,741,680 $ 2,518,273 $ 4,858,360 $ 7,265,824 $ 1,126,839
Ratio of Gross Expenses to
Average Net Assets***(1) 1.02% 1.02% 0.93% 0.92% 0.90% 0.98%
Ratio of Net Expenses to
Average Net Assets***(1) 1.02% 1.02% 0.90% 0.90% 0.88% 0.95%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** (0.43)% (0.46)% (0.43)% (0.55)% (0.65)% (0.67)%
Portfolio Turnover Rate*** 28% 32% 64% 85% 80% 98%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) See "Explanations of Charts, Tables and Financial Statements."
See Notes to Financial Statements.
40 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For a share outstanding during the JANUS MERCURY FUND
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 18.14 $ 14.92 $ 19.14 $ 40.59 $ 35.65 $ 20.77
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.02) -- -- .04 .03 --
Net gains/(losses) on securities
(both realized and unrealized) 1.31 3.22 (4.18) (17.05) 8.18 16.89
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.29 3.22 (4.18) (17.01) 8.21 16.89
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* -- -- (.04) (.03) -- --
Distributions (from capital gains)* -- -- -- (4.41) (3.27) (2.01)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (.04) (4.44) (3.27) (2.01)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 19.43 $ 18.14 $ 14.92 $ 19.14 $ 40.59 $ 35.65
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 7.11% 21.58% (21.88)% (46.21)% 22.99% 86.02%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 4,989,894 $ 5,282,164 $ 5,034,041 $ 7,910,482 $16,347,935 $ 9,059,883
Average Net Assets for the Period
(in thousands) $ 5,312,845 $ 5,088,567 $ 6,783,864 $11,243,108 $15,903,790 $ 5,258,427
Ratio of Gross Expenses to
Average Net Assets***(1) 0.96% 0.96% 0.94% 0.89% 0.89% 0.93%
Ratio of Net Expenses to
Average Net Assets***(1) 0.96% 0.95% 0.92% 0.88% 0.88% 0.91%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** (0.21)% (0.31)% (0.07)% 0.16% 0.08% (0.39)%
Portfolio Turnover Rate*** 37% 54% 97% 83% 71% 89%
For a share outstanding during the JANUS OLYMPUS FUND
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 25.22 $ 20.60 $ 24.59 $ 50.50 $ 40.87 $ 21.70
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.05) --(2) -- .13 .21 .02
Net gains/(losses) on securities
(both realized and unrealized) .71 4.62 (3.88) (25.42) 11.21 19.15
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .66 4.62 (3.88) (25.29) 11.42 19.17
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* -- -- (.11) (.23) (.01) --
Distributions (from capital gains)* -- -- -- (.39) (1.78) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- (.11) (.62) (1.79) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 25.88 $ 25.22 $ 20.60 $ 24.59 $ 50.50 $ 40.87
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 2.62% 22.38% (15.89)% (50.61)% 28.05% 88.34%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,533,911 $ 2,772,209 $ 2,136,167 $ 3,074,317 $ 7,695,784 $ 3,887,448
Average Net Assets for the
Period (in thousands) $ 2,732,162 $ 2,378,814 $ 2,882,934 $ 4,767,090 $ 7,594,158 $ 2,268,894
Ratio of Gross Expenses to
Average Net Assets***(1) 1.04% 0.99% 0.94% 0.91% 0.91% 0.95%
Ratio of Net Expenses to
Average Net Assets***(1) 1.04% 0.98% 0.91% 0.89% 0.90% 0.93%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** (0.37)% (0.14)% (0.13)% 0.34% 0.51% 0.06%
Portfolio Turnover Rate*** 77% 84% 90% 118% 96% 91%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) See "Explanations of Charts, Tables and Financial Statements."
(2) Net investment income/(loss) aggregated less than $.01 on a per share basis
for the fiscal year ended October 31, 2003.
See Notes to Financial Statements.
Janus Growth Funds April 30, 2004 41
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding during the
six month period ended April 30, 2004 JANUS ORION FUND
(unaudited) and through each fiscal year
or period ended October 31 2004 2003 2002 2001 2000(1)
- -------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 5.64 $ 4.33 $ 5.21 $ 8.81 $ 10.00
- -------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(2) --(2) -- -- .02
Net gains/(losses) on securities
(both realized and unrealized) .50 1.31 (.88) (3.58) (1.21)
- -------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .50 1.31 (.88) (3.58) (1.19)
- -------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* -- -- -- (.02) --
Distributions (from capital gains)* -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (.02) --
- -------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 6.14 $ 5.64 $ 4.33 $ 5.21 $ 8.81
- -------------------------------------------------------------------------------------------------------------------
Total Return** 8.87% 29.95% (16.70)% (40.69)% (11.90)%
- -------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 547,461 $ 513,708 $ 421,458 $ 602,303 $ 1,127,628
Average Net Assets for the Period
(in thousands) $ 544,768 $ 431,124 $ 562,457 $ 762,142 $ 1,086,834
Ratio of Gross Expenses to
Average Net Assets***(3) 1.08% 1.10% 1.09% 1.06% 1.14%
Ratio of Net Expenses to
Average Net Assets***(3) 1.05% 1.08% 1.04% 1.03% 1.12%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 0.10% (0.43)% (0.30)% (0.06)% 0.82%
Portfolio Turnover Rate*** 91% 72% 161% 206% 35%
For a share outstanding during the JANUS TWENTY FUND
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 34.06 $ 30.47 $ 36.31 $ 71.07 $ 69.72 $ 42.98
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .05 .17 .21 .32 -- .21
Net gains/(losses) on securities
(both realized and unrealized) 4.18 3.63 (5.71) (33.33) 5.62 26.97
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 4.23 3.80 (5.50) (33.01) 5.62 27.18
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.17) (.21) (.34) -- (0.19) (.14)
Distributions (from capital gains)* -- -- -- (1.75) (4.08) (.30)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.17) (.21) (.34) (1.75) (4.27) (.44)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 38.12 $ 34.06 $ 30.47 $ 36.31 $ 71.07 $ 69.72
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 12.44% 12.60% (15.35)% (47.43)% 7.40% 63.51%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 9,229,941 $ 9,821,492 $10,107,243 $14,378,453 $31,008,266 $28.793,112
Average Net Assets for the Period
(in thousands) $ 9,600,382 $ 9,749,457 $12,572,984 $20,320,750 $34,528,876 $22,206,982
Ratio of Gross Expenses to
Average Net Assets***(3) 0.90% 0.88% 0.84% 0.84% 0.86% 0.88%
Ratio of Net Expenses to
Average Net Assets***(3) 0.90% 0.88% 0.83% 0.84% 0.85% 0.87%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 0.22% 0.52% 0.56% 0.63% (0.13)% 0.40%
Portfolio Turnover Rate*** 21% 44% 53% 50% 27% 40%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Fiscal period from June 30, 2000 (inception date) through October 31, 2000.
(2) Net investment income/(loss) aggregated less than $.01 on a per share basis
for the fiscal year or period ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
See Notes to Financial Statements.
42 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For a share outstanding during the JANUS VENTURE FUND
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 47.77 $ 31.59 $ 36.99 $ 82.39 $ 89.71 $ 49.81
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.19) -- -- -- -- --
Net gains/(losses) on securities
(both realized and unrealized) 2.53 16.18 (5.40) (29.02) 6.94 44.31
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.34 16.18 (5.40) (29.02) 6.94 44.31
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* -- -- -- -- -- --
Distributions (from capital gains)* -- -- -- (16.38) (14.26) (4.41)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- -- -- (16.38) (14.26) (4.41)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 50.11 $ 47.77 $ 31.59 $ 36.99 $ 82.39 $ 89.71
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 4.90% 51.22% (14.60)% (40.67)% 3.79% 94.42%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,362,878 $ 1,392,358 $ 756,323 $ 1,009,278 $ 1,922,649 $ 1,860,355
Average Net Assets for the Period
(in thousands) $ 1,413,570 $ 988,156 $ 992,760 $ 1,312,759 $ 2,504,381 $ 1,350,642
Ratio of Gross Expenses to
Average Net Assets***(1) 0.90% 0.94% 0.88% 0.87% 0.87% 0.93%
Ratio of Net Expenses to
Average Net Assets***(1) 0.90% 0.93% 0.87% 0.86% 0.86% 0.92%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** (0.75)% (0.67)% (0.73)% (0.36)% (0.35)% (0.55)%
Portfolio Turnover Rate*** 65% 75% 90% 70% 87% 104%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) See "Explanations of Charts, Tables and Financial Statements."
See Notes to Financial Statements.
Janus Growth Funds April 30, 2004 43
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (unaudited)
Dow Jones Industrial Average A price-weighted average of 30 actively traded
Blue-Chip Stocks.
NASDAQ Composite The National Association of Securities Dealers
Stock Index Automated Quotation System is a nation wide
computerized quotation system for over 5,500
over-the-counter stocks. The index is com-piled of
more than 4,800 stocks that are traded via this
system.
Russell 1000 Growth Index Measures the performance of those Russell 1000
companies with higher price-to-book ratios and
higher forecasted growth values.
Russell 2000 Growth Index Measures the performance of those Russell 2000
companies with higher price-to-book ratios and
higher forecasted growth values.
Russell 2000(R) Index Measures the performance of the 2,000 smallest
companies in the Russell 3000 Index.
Russell Midcap Growth Index Consists of stocks from the Russell MidCap Index
with a greater-than-average growth orientation.
The Russell MidCap Index consists of the smallest
800 companies in the Russell 1000 Index, as ranked
by total market capitalization.
Russell Top 200 Measures the performance of those Russell Top 200
Growth Index companies with higher price-to-book ratios
and higher forecated growth values. The stocks are
also members of the Russell 1000 Growth Index. The
Russell Top 200 Growth Index began December 30,
1985.
S&P 500(R)Index The Standard & Poor's Composite Index of 500
stocks, is a widely recognized, unmanaged index of
common stock prices.
S&P MidCap 400 Index An unmanaged group of 400 domestic stocks chosen
for their market size, liquidity and industry
group representation.
144A Securities sold under Rule 144A of the Securities
Act of 1933 and are subject to legal and/or
contractual restrictions on resale and may not be
publicly sold without registration under the 1933
Act.
ADR American Depositary Receipt
ETD Euro Time Deposit
New York Shares Securities of foreign companies trading on the New
York Stock Exchange
NVDR Non-Voting Depositary Receipt
PLC Public Limited Company
* Non-income-producing security.
** A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts and/or forward
currency contracts.
(beta) Security is illiquid.
# Loaned security, a portion or all of the security is on loan as of April
30, 2004.
+ The security is purchased with the cash collateral received from Securities
on Loan (Note 1).
(sigma) Fair valued security.
o Security is a defaulted security.
ss. SCHEDULE OF RESTRICTED AND ILLIQUID SECURITIES
Value as
Acquisition Acquisition % of
Date Cost Value Net Assets
- --------------------------------------------------------------------------------------------
Janus Venture Fund
Authentidate Holding Corp. 1/28/04 $18,012,500 $13,217,900 1.0%
Infocrossing, Inc. 10/16/03 $11,715,000 $21,462,596 1.6%
Infocrossing, Inc.(sigma) 3/24/04 $4,200,000 $5,126,400 0.4%
TransAct Technologies, Inc.(sigma) 4/26/04 $5,999,988 $6,267,850 0.4%
Ultimate Software Group, Inc. 7/14/03 $7,950,000 $15,750,000 1.1%
- --------------------------------------------------------------------------------------------
$47,877,488 $61,824,746 4.5%
- --------------------------------------------------------------------------------------------
The funds have registration rights for certain restricted securities held as of
April 30, 2004. The issuer incurs all registration costs.
44 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (unaudited) (continued)
(pound) The Investment Company Act of 1940 defines affiliates as those companies
in which a fund holds 5% or more of the outstanding voting securities at any
time during the period ended April 30, 2004.
Purchases Sales
Shares Cost Shares Cost
- -----------------------------------------------------------------------------------------------------
Janus Fund
Apogent Technologies, Inc. -- -- 752,600 $ 18,847,287
Linear Technology Corp. -- -- 300,000 5,467,451
Maxim Integrated Products, Inc. -- -- 100,000 4,971,210
MGIC Investment Corp. -- -- 1,111,850 77,311,653
Univision Communications, Inc.
- Class A -- -- 100,001 4,731,517
Winnebago Industries, Inc.(1) -- -- 104,495 4,772,287
- -----------------------------------------------------------------------------------------------------
-- $ 116,101,405
- -----------------------------------------------------------------------------------------------------
Janus Venture Fund
1-800-FLOWERS.COM, Inc. 787,855 $ 7,821,726 -- --
Authentidate Holding Corp. 1,310,000 18,012,500 -- --
Euronet Worldwide, Inc. 36,121 586,532 100,000 $ 1,874,727
Mikohn Gaming Corp. -- -- 400,000 2,976,863
Neoware Systems, Inc. 136,700 1,661,915 -- --
Odyssey Marine Exploration, Inc. 1,766,325 7,153,616 -- --
Restoration Hardware, Inc. 173,711 999,735 -- --
STAAR Surgical Co. -- -- -- --
TALX Corp. -- -- -- --
Tier Technologies, Inc. - Class B -- -- -- --
TransAct Technologies, Inc.(2) 194,823 268,429 1 7
Ultimate Software Group, Inc. -- -- -- --
- -----------------------------------------------------------------------------------------------------
$ 36,504,453 $ 4,851,597
- -----------------------------------------------------------------------------------------------------
Realized Dividend Market Value
Gain/(Loss) Income at 4/30/04
- -------------------------------------------------------------------------------------
Janus Fund
Apogent Technologies, Inc. $ 2,339,877 -- $ 146,949,161
Linear Technology Corp. 7,563,529 $ 3,558,279 901,000,929
Maxim Integrated Products, Inc. 150,900 3,460,758 992,452,012
MGIC Investment Corp. 2,604,140 453,675 363,472,983
Univision Communications, Inc.
- Class A (1,074,213) -- 462,067,462
Winnebago Industries, Inc.(1) 2,713,543 196,770 53,716,056
- -------------------------------------------------------------------------------------
$ 14,297,776 $ 7,669,482 $2,919,658,603
- -------------------------------------------------------------------------------------
Janus Venture Fund
1-800-FLOWERS.COM, Inc. -- -- $ 15,388,259
Authentidate Holding Corp. -- -- 13,217,900
Euronet Worldwide, Inc. $ (219,219) -- 42,057,361
Mikohn Gaming Corp. 1,080,306 -- 2,597,265
Neoware Systems, Inc. -- -- 7,484,237
Odyssey Marine Exploration, Inc. -- -- 8,831,625
Restoration Hardware, Inc. -- -- 12,414,683
STAAR Surgical Co. -- -- 10,989,489
TALX Corp. -- $ 102,182 23,736,948
Tier Technologies, Inc. - Class B -- -- 15,949,266
TransAct Technologies, Inc.(2) 5 -- 11,236,752
Ultimate Software Group, Inc. -- -- 15,750,000
- -------------------------------------------------------------------------------------
$ 861,092 $ 102,182 $ 179,653,785
- -------------------------------------------------------------------------------------
(1) Adjusted for 2 for 1 stock split 3/8/04.
(2) Adjusted for 1.5 for 1 stock split 4/5/04.
Repurchase Agreements held by a fund are fully collateralized, and such
collateral is in the possession of the fund's custodian or subcustodian. The
collateral is evaluated daily to ensure its market value equals or exceeds the
current market value of the repurchase agreements including accrued interest. In
the event of default on the obligation to repurchase, the fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
Janus Growth Funds April 30, 2004 45
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
The following section describes the organization and significant accounting
policies and provides more detailed information about the schedules and tables
that appear throughout this report. In addition, the Notes to Financial
Statements explain the methods used in preparing and presenting this report.
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Janus Fund, Janus Enterprise Fund, Janus Mercury Fund, Janus Olympus Fund, Janus
Orion Fund, Janus Twenty Fund and Janus Venture Fund (collectively the "Funds"
and individually a "Fund") are series funds. The Funds are part of Janus
Investment Fund (the "Trust"), which was organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940 (the "1940
Act") as an open-end management investment company. The Trust has nineteen funds
which invest primarily in equity securities. Each of the Funds in this report
are classified as diversified as defined in the 1940 Act, with the exception of
Janus Orion Fund and Janus Twenty Fund, which are classified as nondiversified.
The Funds are no-load investments.
The following accounting policies have been consistently followed by the Funds
and are in conformity with accounting principles generally accepted in the
United States of America in the investment company industry.
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a principal
securitites exchange (U.S. or foreign) and on the NASDAQ National Market.
Securities traded on over-the-counter markets and listed securities for which no
sales are reported are valued at the latest bid price (or yield equivalent
thereof) obtained from one or more dealers making a market for such securities
or by a pricing service approved by the Funds' Trustees. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. Currently, foreign securities and currencies are converted to U.S.
dollars using the applicable rate in effect as of 1:00 p.m. (New York time). It
is anticipated that sometime during the third calendar quarter, the conversion
to U.S. dollars will use the applicable rate in effect as of the close of the
New York Stock Exchange ("NYSE"). When market quotations are not readily
available or are deemed not to be reliable because of events or circumstances
that may affect the value of portfolio securities are identified between the
closing of their principal markets and the closing of the NYSE, then their fair
value is determined in good faith under procedures established by and under the
supervision of the Funds' Trustees. The Funds may use a systematic fair
valuation model provided by an independent third party to value international
equity securities in order to adjust for stale pricing, which may occur between
the close of the foreign exchanges and the close of the NYSE.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold
(trade date). Dividend income is recorded on the ex-dividend date. Certain
dividends from foreign securities will be recorded as soon as the Trust is
informed of the dividend if such information is obtained subsequent to the
ex-dividend date. Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. Gains and losses are determined on the
identified cost basis, which is the same basis used for federal income tax
purposes.
SECURITIES LENDING
Under procedures adopted by the Trustees, the Funds may lend securities to
qualified parties (typically brokers or other financial institutions) who need
to borrow securities in order to complete certain transactions such as covering
short sales, avoiding failures to deliver securities or completing arbitrage
activities. The Funds may seek to earn additional income through securities
lending. 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,
such loans will only be made if Janus Capital Management LLC ("Janus Capital")
believes the benefit from granting such loans justifies the risk. A Fund will
not have the right to vote on securities while they are being lent, however, the
Fund will attempt to call back the loan and vote the proxy if time permits. All
loans will be continuously secured by collateral which consists of cash, U.S.
Government securities, domestic and foreign short-term debt instruments, letters
of credit and such other collateral permitted by the Securities Exchange
Commission ("SEC"). The lending agent may also invest the cash collateral in the
State Street Navigator Securities Lending Prime Portfolio or investments in
unaffiliated money market funds or accounts that comply with rule 2a-7 of the
1940 Act relating to money market funds and mutually agreed to by the Funds and
the lending agent.
As of April 30, 2004, the following Funds had on loan securities as indicated:
Value at
Fund April 30, 2004
- ---------------------------------------------
Growth
Janus Fund $573,556,826
Janus Enterprise Fund 168,766,318
Janus Mercury Fund 155,109,961
Janus Olympus Fund 191,546,853
Janus Orion Fund 53,737,481
Janus Twenty Fund 169,536,789
Janus Venture Fund 255,924,016
As of April 30, 2004, the following Funds received cash collateral in accordance
with securities lending activity as indicated:
46 Janus Growth Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
Cash Collateral at
Fund April 30, 2004
- ----------------------------------------------
Growth
Janus Fund $585,978,514
Janus Enterprise Fund 172,896,713
Janus Mercury Fund 159,111,493
Janus Olympus Fund 196,179,818
Janus Orion Fund 55,005,244
Janus Twenty Fund 173,756,090
Janus Venture Fund 261,617,181
All cash collateral received was invested into the State Street Navigator
Securities Lending Prime Portfolio, except for Janus Fund and Janus Enterprise
Fund which also invested $3,661,133 and $530,132, respectively, in a letter of
credit.
The borrower pays fees at the Funds' direction to its lending agent. The lending
agent may retain a portion of the interest earned. The cash collateral invested
by the lending agent is disclosed in the Schedule of Investments. The lending
fees and the Funds' portion of the interest income earned on cash collateral is
included on the Statement of Operations
FORWARD CURRENCY TRANSACTIONS
The Funds may enter into forward currency contracts in order to reduce their
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to lock in the U.S. dollar cost of firm purchase and sale
commitments for securities denominated in or exposed to foreign currencies. A
forward currency exchange contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated rate. The gain or loss arising from
the difference between the U.S. dollar cost of the original contract and the
value of the foreign currency in U.S. dollars upon closing of such contract is
included in net realized gain or loss from foreign currency transactions on the
Statement of Operations.
Forward currency contracts held by the Funds are fully collateralized by other
securities, which are denoted (if applicable) in the accompanying Schedule of
Investments. Such collateral is in the possession of the Funds' custodian. The
collateral is evaluated daily to ensure its market value equals or exceeds the
current market value of the corresponding forward currency contracts.
FOREIGN CURRENCY TRANSLATIONS
The Funds do not isolate that portion of the results of operations resulting
from 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 on investments
and foreign currency translation 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 security transactions and income.
Foreign-denominated assets and forward currency contracts may involve more risks
than domestic transactions, including currency risk, political and economic
risk, regulatory risk and market risk. Risks may arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
WHEN-ISSUED SECURITIES
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. The price of the underlying securities and date when the securities will
be delivered and paid for are fixed at the time the transaction is negotiated.
Losses may arise due to changes in the market value of the securities or from
the inability of counterparties to meet the terms of the contract. In connection
with such purchases, the Funds are required to hold liquid assets as collateral
with the Fund's custodian sufficient to cover the purchase price.
INITIAL PUBLIC OFFERINGS
The Funds may invest in Initial public offerings ("IPOs"). A Fund's performance
may be significantly affected, positively or negatively, by investments in IPOs.
IPOs and other investment techniques may have a magnified performance impact on
a fund with a small asset base. The Funds may not experience similar performance
as their assets grow.
RESTRICTED SECURITIES TRANSACTIONS
Restricted securities held by the Funds may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. 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 a Fund to sell a security at a fair price and may substantially delay the
sale of the security which each fund seeks to sell. In addition, these
securities may exhibit greater price volatility than securities for which
secondary markets exist.
DIVIDEND DISTRIBUTIONS
The Funds generally declare and distribute dividends and capital gains (if any)
annually. The majority of dividends and capital gains distributions from a Fund
will be automatically reinvested into additional shares of that Fund.
ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and
Janus Growth Funds April 30, 2004 47
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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.
FEDERAL INCOME TAXES
No provision for income taxes is included in the accompanying financial
statements as the Funds intend to distribute to shareholders all taxable
investment income and realized gains and otherwise comply with Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
PROXY VOTING
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to their portfolio securities is available (i) without
charge, upon request, by calling 1-800-525-3713 (toll free); (ii) on the Fund's
website at www.janus.com; and (iii) on the SEC's website at http://www.sec.gov.
Starting in August 2004, each Fund's proxy voting record for the one-year period
ending each June 30th will be available through www.janus.com and from the SEC
through the SEC's website at www.sec.gov.
2. AGREEMENTS
The advisory agreements with the Funds spell out the fees that the Funds must
pay for the period. Each of the Funds' management fee is equal to 0.65% of
average daily net assets. The advisory fee is calculated daily and paid monthly.
Each of the Funds pays Janus Services LLC ("Janus Services"), a wholly-owned
subsidiary of Janus Capital, an asset-weighted average annual fee based on the
proportion of each of the Fund's total net assets sold directly and the
proportion of each Fund's net assets sold through financial intermediaries. The
applicable fee rates are 0.16% of net assets on the proportion of assets sold
directly and 0.21% on the proportion of assets sold through intermediaries. In
addition, Janus Services receives $4.00 per shareholder account (excluding Janus
Twenty Fund and Janus Venture Fund) for transfer agent services plus
reimbursement of certain out-of-pocket expenses (primarily postage and telephone
charges).
Certain officers and trustees of the Funds may also be officers and/or directors
of Janus Capital; however, such officers and trustees receive no compensation
from the Funds.
The Funds' expenses may be reduced by voluntary brokerage credits from
affiliated or unaffiliated brokers or expense offsets from an unaffiliated
custodian. Such credits or offsets are included in Expense and Fee Offsets on
the Statement of Operations. Brokerage commissions paid to the brokers reduce
transfer agent fees and expenses. Custody credits received reduce custodian
fees. The Funds could have employed the assets used by the broker and/or the
custodian to produce income if it had not entered into an expense offset
arrangement.
DST Systems, Inc. ("DST"), an affiliate of Janus Capital Group Inc. ("JCGI"),
parent to the Funds' adviser, provides a shareholder accounting system to the
Funds for a fee. As of December 1, 2003, following a share exchange transaction
in which JCGI exchanged 32.3 million shares of its holdings of DST common stock
for all of the stock of a wholly-owned subsidiary of DST, JCGI owned
approximately 9% of the outstanding common shares of DST. DST fees are included
in Transfer Agent Fees and Expenses on the Statement of Operations. Brokerage
commissions paid to DST Securities, Inc. serve to reduce transfer agent fees and
expenses. Brokerage commissions paid, fees reduced and the net fees paid to DST
for the six month period ended April 30, 2004, are noted below.
DST Securities, Inc. Fund
Commissions Expense
Fund Paid Reduction DST Systems Cost
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Growth
Janus Fund -- -- $1,457,290
Janus Enterprise Fund -- -- 477,094
Janus Mercury Fund $ 3,000 $ 2,251 955,072
Janus Olympus Fund -- -- 734,929
Janus Orion Fund -- -- 192,287
Janus Twenty Fund -- -- 994,468
Janus Venture Fund -- -- 218,573
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48 Janus Growth Funds April 30, 2004
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
The Funds may invest in money market funds, including funds managed by Janus
Capital. During the six month period ended April 30, 2004, the following Funds
recorded distributions from affiliated investment companies as affiliated
dividend income, and had the following affiliated purchases and sales:
Purchases Sales Dividend Market Value
Shares/Cost Shares/Cost Income at 04/30/04
- ---------------------------------------------------------------------------------------------------------------
Janus Institutional Cash Reserves Fund
Janus Twenty Fund $595,000,000 $695,000,000 $94,508 --
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3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
accounting principles generally accepted in the United States of America. These
differences are due to differing treatments for items such as deferral of wash
sales, foreign currency transactions, net operating losses and capital loss
carryovers.
The Funds have elected to treat gains and losses on forward foreign currency
contracts as capital gains and losses. 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 October 31, 2003 that may be available to offset future realized capital
gains and thereby reduce future taxable gain distributions. These carryovers
expire between October 31, 2007 and October 31, 2011.
The aggregate cost of investments and the composition of unrealized appreciation
and depreciation of investments for federal income tax purposes as of April 30,
2004 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude
appreciation/(depreciation) on foreign currency translations. The primary
difference between book and tax appreciation or depreciation of investments is
wash sale loss deferrals.
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Fund Accumulated Federal Tax Unrealized Unrealized Net Appreciation
Capital Losses Cost Appreciation (Depreciation) /(Depreciation)
- ---------------------------------------------------------------------------------------------------------------------------
Janus Fund $(10,310,874,184) $ 11,454,586,424 $ 4,990,884,701 $ (698,770,613) $ 4,292,114,088
Janus Enterprise Fund (4,703,074,190) 1,520,410,094 517,267,400 (50,308,132) 466,959,268
Janus Mercury Fund (6,995,773,272) 4,094,545,764 1,185,320,470 (108,928,635) 1,076,391,835
Janus Olympus Fund (2,168,343,932) 2,350,182,342 477,944,746 (56,406,088) 421,538,658
Janus Orion Fund (693,693,615) 500,490,992 101,604,263 (19,515,947) 82,088,316
Janus Twenty Fund (4,769,005,012) 6,935,642,576 2,635,329,699 (156,996,599) 2,478,333,100
Janus Venture Fund (301,800,002) 1,336,202,491 372,272,210 (85,923,923) 286,348,287
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4. EXPENSES
Each Fund bears expenses incurred specifically on its behalf as well as a
portion of general expenses, which are allocated pro rata to each of the Funds.
Janus Growth Funds April 30, 2004 49
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
5. FUND ACQUISITIONS AND FUND REORGANIZATION
On February 28, 2003, Janus Fund acquired all of the net assets of Janus Fund 2
pursuant to a plan of reorganization approved by the Trustees of Janus
Investment Fund. The reorganization was accomplished by a tax-free exchange of
shares of Janus Fund in the amount of 11,634,716 shares (valued at $199,285,954)
for the 40,874,216 shares of Janus Fund 2, including $6,174,361 of unrealized
depreciation. The aggregate net assets of Janus Fund and Janus Fund 2
immediately before the reorganization were $14,357,492,480 and $199,285,954,
respectively. The aggregate net assets immediately after the reorganization were
$14,556,778,434.
On April 21, 2003, certain Funds, as listed below (each an "Acquiring Fund"),
acquired all of the assets and liabilities of other Funds, also listed below
(each an "Acquired Fund"), in a tax-free reorganization in exchange for shares
of the Acquiring Fund, pursuant to a plan of reorganization approved by the
Acquired Funds' shareholders. The number and value of shares issued by the
Acquiring Funds are presented on the Statement of Changes. Janus Capital
incurred the costs associated with the reorganizations. Net assets and
unrealized appreciation/(depreciation) as of the reorganization date immediately
prior to and after the reorganization were as follows:
Acquired Net Assets
Acquiring Fund Acquired Fund Fund Unrealized After
Acquiring Fund Acquired Fund Net Assets Net Assets AP/DP Reorganization
- ------------------------------------------------------------------------------------------------------------------------------
Janus Enterprise Fund Berger Mid Cap Growth Fund $1,606,910,637 $ 80,137,216 $ 4,503,128 $1,687,047,853
Janus Olympus Fund Berger Growth Fund 2,070,023,348 454,628,789 15,490,967 2,524,652,137
Janus Venture Fund Berger Small Company Growth Fund 710,726,618 273,865,379 27,072,956 984,591,997
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Acquiring Fund Acquired Fund Shares Acquired Shares issued in Acquisition
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Janus Enterprise Fund Berger Mid Cap Growth Fund 10,093,435 3,351,814
Janus Olympus Fund Berger Growth Fund 83,936,348 21,445,522
Janus Venture Fund Berger Small Company Growth Fund 166,219,003 8,536,017
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50 Janus Growth Funds April 30, 2004
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6. CAPITAL SHARE TRANSACTIONS
Janus Janus
For the six month period ended April 30, 2004 Janus Enterprise Mercury
(unaudited) and for the fiscal year ended Fund Fund Fund
October 31, 2003 (all numbers in thousands) 2004 2003 2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 23,925 74,063 3,694 17,703 11,371 84,810
Shares issued in connection with acquisition* N/A 11,635 N/A 3,352 N/A N/A
Reinvested distributions -- -- -- -- -- --
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Total 23,925 85,698 3,694 21,055 11,371 84,810
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Shares Repurchased (132,728) (199,320) (11,723) (38,066) (45,732) (131,121)
Net Increase/(Decrease) in Fund Shares (108,803) (113,622) (8,029) (17,011) (34,361) (46,311)
Shares Outstanding, Beginning of Period 773,775 887,397 63,851 80,862 291,174 337,485
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Shares Outstanding, End of Period 664,972 773,775 55,822 63,851 256,813 291,174
- --------------------------------------------------------------------------------------------------------------------------
Janus
For the six month period ended April 30, 2004 Olympus
(unaudited) and for the fiscal year ended Fund
October 31, 2003 (all numbers in thousands) 2004 2003
- --------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 4,341 10,684
Shares issued in connection with acquisition* N/A 21,446
Reinvested distributions -- --
- --------------------------------------------------------------------------------
Total 4,341 32,130
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Shares Repurchased (16,371) (25,893)
Net Increase/(Decrease) in Fund Shares (12,030) 6,237
Shares Outstanding, Beginning of Period 109,943 103,706
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Shares Outstanding, End of Period 97,913 109,943
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Janus Janus Janus
For the six month period ended April 30, 2004 Orion Twenty Venture
(unaudited) and for the fiscal year ended Fund Fund Fund
October 31, 2003 (all numbers in thousands) 2004 2003 2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 11,988 26,050 6,942 22,587 769 1,354
Shares issued in connection with acquisition* N/A N/A N/A N/A N/A 8,536
Reinvested distributions -- -- 1,362 2,336 -- --
- --------------------------------------------------------------------------------------------------------------------------
Total 11,988 26,050 8,304 24,923 769 9,890
- --------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (13,815) (32,386) (54,534) (68,250) (2,720) (4,682)
Net Increase/(Decrease) in Fund Shares (1,827) (6,336) (46,230) (43,327) (1,951) 5,208
Shares Outstanding, Beginning of Period 91,035 97,371 288,365 331,692 29,148 23,940
- --------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 89,208 91,035 242,135 288,365 27,197 29,148
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*See Note 5 in Notes to Financial Statements.
Janus Growth Funds April 30, 2004 51
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
7. LEGAL MATTERS
In September 2003, the Securities and Exchange Commission ("SEC") and the Office
of the New York State Attorney General ("NYAG") publicly announced that they
were investigating trading practices in the mutual fund industry. The
investigations were prompted by the NYAG's settlement with a hedge fund, Canary
Capital, which allegedly engaged in irregular trading practices with certain
mutual fund companies. While Janus Capital was not named as a defendant in the
NYAG complaint against the hedge fund, Janus Capital was mentioned in the
complaint as having allowed Canary Capital to "market time" certain Janus funds.
Market timing is an investment technique involving frequent short-term trading
of mutual fund shares that is designed to exploit market movements or
inefficiencies in the way mutual fund companies price their shares. The NYAG
complaint alleged that this practice is in contradiction to policies stated in
the prospectuses for certain Janus funds.
The investigations by the NYAG, the SEC, and certain other agencies, including
the Colorado Division of Securities and the Colorado Attorney General ("COAG"),
also sought to determine whether late trading occurred in mutual funds managed
by Janus Capital. The term "late trading" generally refers to the practice of
permitting or processing a fund purchase or redemption in a manner that
improperly allows the current day's fund share price to be used for an order
that was placed or improperly processed at a time following the deadline for
obtaining that day's share price (normally, 4:00 p.m. (eastern time)). Because
many mutual fund transactions are cleared and settled through financial
intermediaries, Janus Capital cannot exclude the possibility that one or more
intermediaries may have submitted improper or unauthorized late trade
transactions to Janus Capital in violation of Janus Capital's agreements with
those intermediaries.
Other documentation and information sought by various regulatory agencies,
including the National Association of Securities Dealers, the West Virginia
Attorney General, the Florida Department of Financial Services, the NYAG, the
SEC, the COAG, the Colorado Division of Securities and one or more U.S. Attorney
offices, relate to a variety of matters, including but not limited to: improper
disclosure of portfolio holdings, trading by executives in Fund shares, certain
revenue sharing arrangements, information related to cash and non-cash
compensation paid to brokers, trading by Janus Capital investment personnel in
portfolio securities owned by certain Janus funds, information provided to the
Trustees in connection with the review and approval of management contracts
related to the Funds, information related to certain types of distribution and
sales arrangements with brokers and other distributors of mutual fund products,
and other topics related to the foregoing. The Janus funds, Janus Capital Group
Inc. and its subsidiaries have either complied with or intend to comply with
these subpoenas and other document and information requests.
On April 27, 2004, Janus Capital announced agreements in principle with the
NYAG, the COAG and the Colorado Division of Securities setting forth financial
agreements and certain corporate governance and compliance initiatives that will
be required by such regulators. Janus Capital also announced an agreement in
principle with respect to monetary terms with the SEC, subject to the approval
of the SEC Commissioners. Pursuant to such agreements, Janus Capital will
establish a pool of $100 million that will be available to compensate investors
for the adverse effects of frequent trading and other mutual fund practices. Of
this amount, $50 million will be in the form of a civil money penalty. Janus
Capital also agreed to reduce its management fees in the amount of $25 million
per annum, in the aggregate, for at least a five year period. Janus also agreed
to make $1.2 million in other settlement-related payments required by the State
of Colorado.
Subsequent to the initiation of the regulatory investigations, a number of civil
lawsuits were brought against Janus Capital and certain of its affiliates, the
Janus funds, and related entities and individuals on behalf of Fund shareholders
and shareholders of Janus Capital Group Inc. The factual allegations made in
these actions are generally based on the NYAG complaint against Canary Capital
and in general allege that Janus Capital allowed certain hedge funds and other
investors to engage in "market timing" trades in certain Janus funds. Such
lawsuits allege a variety of theories for recovery including, but not limited
to: (i) violation of various provisions of the federal securities laws; (ii)
breach of fiduciary duties, as established by state common law or federal law,
to the funds and/or individual investors; (iii) breach of contract; (iv) unjust
enrichment; and (v) violations of Section 1962 of the Racketeering Influenced
and Corrupt Organizations Act.
The "market timing" lawsuits include actions purportedly on behalf of a class of
Fund investors, cases allegedly brought on behalf of the Funds themselves, a
case asserting claims both on behalf of an investor class and derivatively on
behalf of the Funds, cases brought on behalf of shareholders of Janus Capital
Group Inc. on a derivative basis against the Board of Directors of Janus Capital
Group Inc., purported ERISA actions against the managers of the Janus 401(k)
plan, and a non-class "representative action" purportedly brought on behalf of
the general public. The complaints also name various defendants. One or more
Janus entities (Janus Capital Group Inc., Janus Capital Management LLC or Janus
Capital Corporation) are named in
52 Janus Growth Funds April 30, 2004
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every action. In addition, actions have been brought against Janus Investment
Fund and/or one or more of the individual Funds, the Janus fund Trustees,
officers of the Funds, officers of Janus Capital, officers of Janus Capital
Group Inc., and directors of Janus Capital Group Inc.
The "market timing" lawsuits were filed in a number of state and federal
jurisdictions. The Judicial Panel on Multidistrict Litigation has finally or
conditionally transferred all but one of these actions to the United States
District Court for the District of Maryland for coordinated proceedings. One
action (alleging failure to adequately implement fair value pricing) has been
remanded to state court in Madison County, Illinois and is not subject to the
federal transfer procedures.
In addition to the "market timing" actions described above, civil lawsuits have
been filed against Janus Capital challenging the investment advisory fees
charged by Janus Capital to certain Funds. Additional lawsuits may be filed
against certain of the Janus funds, Janus Capital and related parties in the
future.
Janus Capital does not currently believe that any of the pending actions will
materially affect its ability to continue to provide to the Funds the services
it has agreed to provide.
Janus Growth Funds April 30, 2004 53
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EXPLANATIONS OF CHARTS, TABLES AND FINANCIAL
STATEMENTS (unaudited)
1. PERFORMANCE OVERVIEWS
Average annual total returns are quoted for each Fund. Average annual total
return is calculated by taking the growth or decline in value of an investment
over a period of time, including reinvestment of dividends and distributions,
then calculating the annual compounded percentage rate that would have produced
the same result had the rate of growth been constant throughout the period.
Average annual total return does not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or redemption of Fund shares.
When comparing the performance of a Fund with an index, keep in mind that market
indices do not include brokerage commissions that would be incurred if you
purchased the individual securities in the index. They also do not include taxes
payable on dividends and interest or operating expenses incurred if you
maintained a portfolio invested in the index.
2. SCHEDULES OF INVESTMENTS
Following the performance overview section is each Fund's Schedule of
Investments. This schedule reports the industry concentrations and types of
securities held in each 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.).
The market value of each security is quoted as of the last day of the reporting
period. The values of securities denominated in foreign currencies are converted
into U.S. dollars. Holdings are subject to change without notice.
A summary of investments by country is provided if the Fund invested in foreign
securities in the period or year ended. This summary reports the Fund's exposure
to different countries by providing the percentage of securities invested in
each country. The country of each security represents the country in which the
company is incorporated.
2A. FORWARD CURRENCY CONTRACTS
A table listing forward currency contracts follows each Fund's Schedule of
Investments (if applicable). Forward currency contracts are agreements to
deliver or receive a preset amount of currency at a future date. Forward
currency contracts are used to hedge against foreign currency risk in the Fund's
long-term holdings.
The table provides the name of the foreign currency, the settlement date of the
contract, the amount of the contract, the value of the currency in U.S. dollars
and the amount of unrealized gain or loss. The amount of unrealized gain or loss
reflects the change in currency exchange rates from the time the contract was
opened to the last day of the reporting period.
2B. FUTURES
A table listing future contracts follows each Fund's Schedule of Investments (if
applicable). Futures contracts are contracts that obligate the buyer to receive
and the seller to deliver an instrument or money at a specified price on a
specified date. Futures are used to hedge against adverse movements in
securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the
expiration date, the principal amount, value and the amount of unrealized gain
or loss. The amount of unrealized gain or loss reflects the marked to market
amount for the last day of the fiscal period.
3. STATEMENT OF ASSETS AND LIABILITIES
This statement is often referred to as the "balance sheet." It lists the assets
and liabilities of the Funds on the last day of the reporting period.
The Funds' 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 stocks owned and the receivable for
Fund shares sold to investors but not yet settled. The Funds' 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 titled "Net Assets Consist of" breaks down the components of the
Funds' net assets. Because Funds 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 Funds' net asset value ("NAV")
per share on the last day of the reporting period. The NAV is calculated by
dividing the Funds' net assets (assets minus liabilities) by the number of
shares outstanding.
54 Janus Growth Funds April 30, 2004
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4. STATEMENT OF OPERATIONS
This statement details the Funds' income, expenses, gains and losses on
securities and currency transactions, and appreciation or depreciation of
current Fund holdings.
The first section in this statement, titled "Investment Income," reports the
dividends earned from stocks and interest earned from interest-bearing
securities in the Funds.
The next section reports the expenses and expense offsets incurred by the Funds,
including the advisory fee paid to the investment advisor, transfer agent fees,
shareholder servicing expenses, and printing and postage for mailing statements,
financial reports and prospectuses.
The last section lists the increase or decrease in the value of securities held
in the Funds. Funds realize a gain (or loss) when they sell their position in a
particular security. An unrealized gain (or loss) refers to the change in net
appreciation or depreciation of the Fund during the 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.
5. STATEMENT OF CHANGES IN NET ASSETS
This statement reports the increase or decrease in the Funds'
net assets during the reporting period. Changes in the Funds' net assets are
attributable to investment operations, dividends, distributions and capital
share transactions. This is important to investors because it shows exactly what
caused the Funds' 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 Funds' investment performance. The
Funds' net assets may also change as a result of dividend and capital gains
distributions to investors. If investors receive their dividends in cash, money
is taken out of the Fund to pay the distribution. If investors reinvest their
dividends, the Funds' net assets will not be affected. If you compare each
Fund's "Net Decrease from Dividends and Distributions" to the "Reinvested
dividends and distributions," you'll notice that dividend distributions had
little effect on each Fund's net assets. This is because the majority of Janus
investors reinvest their distributions. The reinvestment of dividends is
included under "Capital Share Transactions." "Capital Shares" refers to the
money investors contribute to the Funds through purchases or withdraw via
redemptions. The Funds' net assets will increase and decrease in value as
investors purchase and redeem shares from the Funds.
6. FINANCIAL HIGHLIGHTS
This schedule provides a per-share breakdown of the components that affect the
Funds' NAV for current and past reporting periods. Not only does this table
provide you with total return, it also reports total distributions, asset size,
expense 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 per share,
which comprises dividends and interest income earned on securities held by the
Funds. Following is the total of gains, realized and unrealized. Dividends and
distributions are then subtracted to arrive at the NAV per share at the end of
the period. The next line reflects the average annual total return reported the
last day of the period.
Also included are the expense ratios, or the percentage of net assets that was
used to cover operating expenses during the period. Expense ratios vary across
the Funds for a number of reasons, including the differences in average
shareholder account size, the frequency of dividend payments and the extent of
foreign investments, which entail greater transaction costs.
The expenses may be reduced through expense-reduction arrangements. These
arrangements may include the use of brokerage commissions, uninvested cash
balances earning interest or balance credits. The Statement of Operations
reflects total expenses before any such offset (Gross Expense Ratio) and after
expense offsets (Net Expense Ratio). The expense ratios listed in the Financial
Highlights reflect total expenses prior to any waivers or reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less
expenses divided by the average net assets of a Fund during the reporting
period. Don't confuse this ratio with a Fund's yield. The net investment income
ratio is not a true measure of a Fund's yield because it doesn't take into
account the dividends distributed to the Fund's investors.
The next ratio is the portfolio turnover rate, which measures the buying and
selling activity in a Fund. Portfolio turnover is affected by market conditions,
changes in the size of a Fund, the nature of the Fund's investments and the
investment style of the portfolio manager. A 100% rate implies that an amount
equal to the value of the entire portfolio is turned over in a 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 portfolio
is sold every six months.
Janus Growth Funds April 30, 2004 55
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NOTES
56 Janus Growth Funds April 30, 2004
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NOTES
Janus Growth Funds April 30, 2004 57
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JANUS PROVIDES ACCESS TO A WIDE RANGE OF INVESTMENT DISCIPLINES.
----------------------------------------------------------------
GROWTH
Janus growth funds focus on companies believed to be the leaders in their
respective industries, with solid management teams, expanding market share,
margins and efficiencies.
INTERNATIONAL & GLOBAL
Janus international and global funds seek to leverage Janus' research
capabilities by taking advantage of inefficiencies in foreign markets,
where accurate information and analytical insight are often at a premium.
CORE
Janus core funds seek investments in more stable and predictable companies.
These funds look for a strategic combination of steady growth and for
certain funds, some degree of income.
RISK-MANAGED
Janus risk-managed funds seek to outperform their respective indices while
maintaining a risk profile equal to or lower than the index itself. Managed
by INTECH, these funds use a mathematical process in an attempt to build a
more "efficient" portfolio than the index.
VALUE
Janus value funds invest in companies they believe are poised for a
turnaround or are trading at a significant discount to fair value. The goal
is to gain unique insight into a company's true value and identify and
evaluate potential catalysts that may unlock shareholder value.
INCOME
Janus income funds attempt to provide less risk relative to equities while
seeking to deliver a competitive total return through high current income
and appreciation.
FOR MORE INFORMATION ABOUT OUR FUNDS, GO TO www.janus.com.
[LOGO] JANUS CAPITAL 151 Detroit Street
Group Denver, CO 80206
1-800-525-3713
This material must be preceded or accompanied by a prospectus. (4/04) Funds
distributed by Janus Distributors LLC
C-0504-158 111-24-103 06-04
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----------------------
2004 SEMIANNUAL REPORT
----------------------
JANUS INTERNATIONAL & GLOBAL FUNDS
------------------------------------------------------------------
Janus Global Life Sciences Fund
Janus Global Opportunities Fund
Janus Global Technology Fund
Janus Overseas Fund
Janus Worldwide Fund
[LOGO] JANUS CAPITAL
Group
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TABLE OF CONTENTS
JANUS INTERNATIONAL & GLOBAL FUNDS
Schedules of Investments
Janus Global Life Sciences Fund ........................... 2
Janus Global Opportunities Fund ........................... 6
Janus Global Technology Fund .............................. 9
Janus Overseas Fund ....................................... 13
Janus Worldwide Fund ...................................... 17
Statements of Assets and Liabilities ........................... 22
Statements of Operations ....................................... 23
Statements of Changes in Net Assets ............................ 24
Financial Highlights ........................................... 26
Notes to Schedules of Investments .............................. 29
Notes to Financial Statements .................................. 32
Explanations of Charts, Tables and Financial Statements ........ 40
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A MESSAGE REGARDING PORTFOLIO MANAGER COMMENTARY: To provide our shareholders
with more timely and comprehensive updates on their funds, we will now provide
portfolio manager commentaries five times per year. Quarterly commentaries and
other timely fund information will be available in the Fund Updates section of
janus.com and will be offered in place of the portfolio manager letters in April
30 semiannual reports. Shareholders will continue to receive a comprehensive
annual letter from portfolio managers in the October 31 annual report which will
be available at year end. Going forward, semiannual and annual reports will
continue to provide a complete list of fund holdings, performance information
and other important details about Janus funds.
- --------------------------------------------------------------------------------
Below is a schedule of planned communications regarding your investment with
Janus:
INVESTMENT UPDATE: WHEN AVAILABLE: WHERE YOU CAN FIND IT:
Quarterly Review
(prior calendar quarter) January, April, July, www.janus.com;
October Fund Updates section
Annual Review
(funds' fiscal year-
November 1 through
October 31) December www.janus.com;
Fund Updates section
Annual Report (sent by
U.S. mail or e-mail)
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Dear Shareholder,
Let me begin by telling you how excited I am to be associated with Janus. As a
shareholder of the funds, I'm sure you already know many of the things that make
Janus unique. To me, it is a research-driven firm with an impressive heritage of
delivering exceptional long-term performance to its shareholders. I am proud to
be a part of continuing that heritage into the future.
There are three main reasons why I decided to join Janus as Chief Investment
Officer. First, I believe the research at Janus is the best I've ever seen. In a
prior job as a sell-side analyst, I had the opportunity to get an inside look at
the passion, intensity and energy that characterized investment debates at
Janus. That positive impression has only been reinforced in the short time I
have been part of the team. Given my analyst background, I share the same zeal
for getting the story right behind every investment.
Second, the people at Janus are special. From the individuals at our call
center, to the sales and marketing staff, to the person who actually manages
your money, all of our employees are passionate about winning, and passionate
about setting the pace, not following it. The esprit de corps of the firm is
quite remarkable.
Third, Janus is an investment-centric firm. By that I mean we focus on our core
competency of managing our shareholders' money. Delivering performance remains
at the heart of what we do and we constantly reinvest in our core business
toward that end.
My role at Janus will be to oversee the investment team and drive investment
returns. In an attempt to safeguard the consistency and quality of the
investment process, I plan to play devil's advocate with the portfolio managers,
to poke and prod their investment decisions. I will take full responsibility for
the performance of the team, making sure that portfolio managers have the tools
and resources needed to make wise decisions.
Like any solid organization, there is always room to improve. I have
communicated to the investment team the following enhancements that I plan to
focus on during the next two quarters. For starters, I plan on expanding our
coverage of international stocks. In this era of increased globalization, I
believe sectors are more important than countries and our research needs to be
borderless. In addition, we need to make sure that our research edge provides a
solid foundation from which we can invest with conviction. Of course, the
flipside of this exercise is to have the proper risk controls in place to serve
as an early warning system when fundamentals begin to deteriorate and stocks
need to be trimmed or sold.
Furthermore, I want to improve communication so that analysts and portfolio
managers are sharing their best ideas and discussing how topical events may
impact portfolios. Collectively, I believe we can arrive at better investment
decisions through debate and idea sharing versus acting in isolation. These are
the initiatives I will be focusing on in the initial phase of my tenure at
Janus. I look forward to circling back with you in the fall and providing an
update on our progress.
Turning to the markets, after finishing last year on a strong note, stocks have
treaded water during the first few months of 2004, as concerns about rising
interest rates, war, and oil prices have offset good news on job growth and
corporate earnings. Consequently, the S&P 500 Index rose 6.3% during the
six-month time period ended 4/30/04, after rising 15.6% in the six months ended
10/31/03. The S&P outperformed both the Dow Jones Industrial Average and the
Nasdaq Composite, which posted returns of 5.4% and -0.6%, respectively.
Notwithstanding the moderate returns of the market, my message to you today is
that we like what we are hearing from our company contacts. Enterprise spending
is improving as corporate profits accelerate. After two years of balance sheet
repair, CEOs are again thinking strategically about how to grow their
businesses. This is a very encouraging development that we feel is being
underappreciated in the marketplace at the current time. Yes, interest rates are
likely to be higher 12 months from now, but we believe that the strength of the
economy and an improvement in corporate profits will overpower any dampening
effect caused by a rising interest rate environment.
While the market in 2003 could be characterized as broad-based as the economy
began its recovery, we believe that the market will be much more selective in
2004. I think the expected "stock-picker's" market will play to our strength of
identifying companies that are investing in their businesses, growing their
market share, and capitalizing on technological and infrastructural change
throughout the world. Indeed, I believe the recent improved performance of our
funds provides evidence that our research process remains strong and that our
portfolios are properly positioned to capitalize on continuing growth in the
global economy.
It is my belief that Janus' investment process works best during times of
"normal" economic activity (3%-4% GDP growth, 10%-12% corporate profit growth).
We are now moving into the middle innings of this economic recovery, which has
followed fairly normal patterns to date compared to historical recoveries.
Therefore, I am optimistic of continued strong performance by our funds in this
environment.
In closing, let me thank you again for your loyalty to Janus. As a shareholder
of our funds, you have our absolute faithfulness in return. I believe that we
face a very bright future together.
Sincerely,
/s/ Gary Black
Gary Black
President and Chief Investment Officer
Past performance is no guarantee of future results.
Janus International & Global Funds April 30, 2004 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GLOBAL LIFE SCIENCES FUND (unaudited) Portfolio Manager
Thomas Malley
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Global Life Sciences S&P 500(R) Index
Fund
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Since
Year-to-date Year Year Inception*
---------------------------------------------------------------------------
Janus Global Life Sciences Fund 19.51% 35.66% 11.17% 11.04%
---------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% (0.53)%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - December 31, 1998
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by normally investing at least 80% of its
net assets in securities of companies that the portfolio manager believes have a
life sciences orientation. At least 25% of the Fund's total assets will normally
be invested in the healthcare, pharmaceuticals, agriculture, cosmetics/personal
care, and biotechnology industry groups.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 1.7%
Common Stock - Foreign - 23.8%
Common Stock - Domestic - 74.5%
Number of Stocks: 79
Top 10 Equities: 26.0%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
2 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Genentech, Inc. 3.2% 4.0%
Alcon, Inc. (New York Shares) 3.1% 2.9%
Roche Holding A.G. 3.0% 3.7%
Anthem, Inc. 2.6% 2.9%
Smith & Nephew PLC 2.5% 2.3%
Amgen, Inc. 2.4% 3.9%
Ligand Pharmaceuticals, Inc. 2.4% 1.6%
Pfizer, Inc. 2.3% 2.6%
Cephalon, Inc. 2.3% --
Tyco International, Ltd.
(New York Shares) 2.2% 1.9%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Global Life Sciences Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Global Life
S&P 500 Sciences Fund
Medical - Drugs 6.7% 29.4%
Medical - Biomedical and Genetic 1.2% 17.6%
Medical Products 2.3% 9.1%
Therapeutics N/A 8.6%
Medical - HMO 0.8% 7.4%
Medical Instruments 1.2% 5.6%
Pharmacy Services 0.3% 4.3%
Optical Supplies 0.0% 3.8%
Medical - Generic Drugs 0.1% 3.0%
Instruments - Scientific 0.1% 2.7%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
The Fund emphasizes investments in certain industry groups, which may react
similarly to market developments (resulting in greater price volatility), and
may have significant exposure to foreign markets (which include risks such as
currency fluctuation and political uncertainty).
Effective March 1, 2004, the Fund's redemption fee, that may be imposed on
shares held for 3 months or less, increased from 1% to 2% on shares purchased on
or after that date.
Janus International & Global Funds April 30, 2004 3
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GLOBAL LIFE SCIENCES FUND
Schedule of Investments (Unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 98.3%
Diagnostic Equipment - 1.7%
1,094,885 Cytyc Corp.* ................................... $ 23,430,539
Diversified Operations - 2.2%
1,117,845 Tyco International, Ltd. (New York Shares) ..... 30,684,845
Drug Delivery Systems - 0.8%
382,193 Atrix Laboratories, Inc.*,# .................... 11,526,941
Hospital Beds and Equipment - 0.6%
154,990 Kinetic Concepts, Inc.* ........................ 7,501,516
Instruments - Scientific - 2.7%
410,490 Fisher Scientific International, Inc.* ......... 24,034,189
630,590 PerkinElmer, Inc. .............................. 12,138,858
36,173,047
Medical - Biomedical and Genetic - 17.6%
593,355 Amgen, Inc.* ................................... 33,388,086
243,950 Biocon, Ltd.* .................................. 3,291,432
460,054 Biogen Idec, Inc.* ............................. 27,143,186
88,265 Cambridge Antibody Technology
Group PLC*,** ................................ 887,502
325,950 Celgene Corp.*,# ............................... 16,848,356
209,275 Chiron Corp.*,# ................................ 9,710,360
354,235 Genentech, Inc.*,# ............................. 43,500,059
590,655 Genzyme Corp.* ................................. 25,728,932
451,544 ICOS Corp.*,# .................................. 14,444,893
1,253,330 Incyte Corp.*,# ................................ 9,951,440
177,250 Invitrogen Corp.*,# ............................ 12,802,768
478,165 Millennium Pharmaceuticals, Inc.*,# ............ 7,167,693
705,945 Nektar Therapeutics* ........................... 14,295,386
295,570 Neurochem, Inc. (New York Shares)*,# ........... 7,208,952
287,940 Protein Design Labs, Inc.* ..................... 7,048,771
446,510 Seattle Genetics, Inc.* ........................ 3,706,033
153,620 Telik, Inc.* ................................... 3,605,461
240,729,310
Medical - Drugs - 29.4%
137,160 Abbott Laboratories ............................ 6,037,783
309,563 Altana A.G.** .................................. 19,704,856
542,595 Cephalon, Inc.*,# .............................. 30,879,081
1,184,400 Chugai Pharmaceutical Company, Ltd.** .......... 17,923,501
708,440 Elan Corporation PLC (ADR)*,**,# ............... 15,302,304
238,570 Eli Lilly and Co. .............................. 17,608,852
342,785 Forest Laboratories, Inc.* ..................... 22,102,777
451,265 Ivax Corp.# .................................... 9,611,945
1,500,000 Ligand Pharmaceuticals, Inc.*,#,ss ............. 32,115,000
270,465 Medicis Pharmaceutical Corp. - Class A ......... 11,608,358
234,297 Merck KGaA** ................................... 12,526,545
573,127 Novartis A.G.** ................................ 25,548,928
280,745 OSI Pharmaceuticals, Inc.*,# ................... 20,716,174
889,810 Pfizer, Inc. ................................... 31,819,606
275,835 Pharmion Corp.*,# .............................. 5,933,211
286,310 POZEN, Inc.*,# ................................. 3,389,910
153,880 Rigel Pharmaceuticals, Inc.*,# ................. 3,263,795
389,477 Roche Holding A.G.**,# ......................... 40,852,129
464,200 Sankyo Company, Ltd.** ......................... 8,602,139
299,349 Sanofi-Synthelabo S.A.** ....................... 19,018,812
179,000 Takeda Chemical Industries, Ltd.** ............. 7,218,069
551,415 Valeant Pharmaceuticals International .......... 12,737,687
701,360 Wyeth .......................................... 26,700,775
401,222,237
Shares or Principal Amount Market Value
================================================================================
Medical - Generic Drugs - 3.0%
432,715 Barr Pharmaceuticals, Inc.* .................... $ 17,923,055
39,720 Eon Labs, Inc.* ................................ 2,611,590
107,555 Mylan Laboratories, Inc. ....................... 2,464,085
301,370 Teva Pharmaceutical Industries, Ltd. (ADR)# .... 18,552,338
41,551,068
Medical - HMO - 7.4%
271,330 Aetna, Inc. .................................... 22,452,558
402,040 Anthem, Inc.*,# ................................ 35,612,703
394,150 PacifiCare Health Systems, Inc.*,# ............. 14,094,804
479,485 UnitedHealth Group, Inc. ....................... 29,478,738
101,638,803
Medical - Hospitals - 1.5%
880,315 Health Management Associates, Inc.
- Class A .................................... 20,361,686
Medical Instruments - 5.6%
446,335 Boston Scientific Corp.* ....................... 18,384,539
323,335 Guidant Corp. .................................. 20,373,338
263,480 Medtronic, Inc. ................................ 13,295,201
313,175 St. Jude Medical, Inc.* ........................ 23,882,725
75,935,803
Medical Products - 9.1%
154,585 Becton, Dickinson and Co.# ..................... 7,814,272
439,020 Biomet, Inc. ................................... 17,341,290
313,460 EPIX Medical, Inc.*,# .......................... 7,686,039
3,395,080 Smith & Nephew PLC** ........................... 34,468,579
20,663 Synthes-Stratec, Inc.** ........................ 22,454,240
86,390 Varian Medical Systems, Inc.* .................. 7,415,718
338,585 Zimmer Holdings, Inc.* ......................... 27,036,012
124,216,150
Optical Supplies - 3.8%
562,015 Alcon, Inc. (New York Shares)** ................ 41,729,614
122,805 Allergan, Inc.# ................................ 10,812,980
52,542,594
Pharmacy Services - 4.3%
277,105 Accredo Health, Inc.* .......................... 10,710,108
902,600 Caremark Rx, Inc.* ............................. 30,553,010
498,425 Medco Health Solutions, Inc.* .................. 17,644,245
58,907,363
Therapeutics - 8.6%
573,170 Abgenix, Inc.*,# ............................... 9,325,476
378,700 Amylin Pharmaceuticals, Inc.*,# ................ 8,482,880
695,075 Cypress Bioscience, Inc.* ...................... 10,099,440
284,765 Gilead Sciences, Inc.*,# ....................... 17,322,255
200,105 ImClone Systems, Inc.*,# ....................... 13,383,022
483,225 MGI Pharma, Inc.* .............................. 29,872,969
272,950 Neurocrine Biosciences, Inc.* .................. 17,913,709
494,890 Vicuron Pharmaceuticals, Inc.*,# ............... 11,288,441
117,688,192
- --------------------------------------------------------------------------------
Total Common Stock (cost $958,909,642)......................... 1,344,110,094
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
4 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Investments (Unaudited)
Shares or Principal Amount Market Value
================================================================================
Other Securities - 11.9%
$ 2,668,788 Letter of Credit+ .............................. $ 2,668,788
State Street Navigator Securities Lending
158,794,913 Prime Portfolio+ ............................... 158,794,913
- --------------------------------------------------------------------------------
Total Other Securities (cost $161,463,701)..................... 161,463,701
- --------------------------------------------------------------------------------
Time Deposit - 0.8%
SouthTrust Bank, ETD
11,600,000 1.04%, 5/3/04 (cost $11,600,000) ............. 11,600,000
- --------------------------------------------------------------------------------
Total Investments (total cost $1,131,973,343) - 111.0%......... 1,517,173,795
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (11.0)% (149,973,402)
- --------------------------------------------------------------------------------
Net Assets - 100%.............................................. $1,367,200,393
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 30,684,845 2.0%
Canada 7,208,952 0.5%
France 19,018,812 1.3%
Germany 32,231,401 2.1%
India 3,291,432 0.2%
Ireland 15,302,304 1.0%
Israel 18,552,337 1.2%
Japan 33,743,709 2.2%
Switzerland 130,584,912 8.6%
United Kingdom 35,356,082 2.4%
United States++ 1,191,199,009 78.5%
- --------------------------------------------------------------------------------
Total $1,517,173,795 100.0%
++Includes Short-Term Securities (67.1% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 10/15/04 500,000 $ 873,441 $ 7,059
British Pound 11/19/04 4,300,000 7,490,777 98,273
Euro 9/27/04 3,600,000 4,300,812 73,638
Japanese Yen 9/27/04 1,100,000,000 10,025,428 385,005
Swiss Franc 9/27/04 2,300,000 1,781,312 35,721
Swiss Franc 10/15/04 14,500,000 11,235,978 (64,946)
- --------------------------------------------------------------------------------
Total $ 35,707,748 $ 534,750
See Notes to Schedules of Investments and Financial Statements.
Janus International & Global Funds April 30, 2004 5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GLOBAL OPPORTUNITIES FUND (unaudited) Portfolio Manager
Jason Yee
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Global Opportunities Fund Morgan Stanley Capital
International World IndexSM
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Since
Year-to-Date Year Inception*
---------------------------------------------------------------------------
Janus Global
Opportunities Fund 11.52% 47.15% 9.94%
---------------------------------------------------------------------------
Morgan Stanley Capital
International World IndexSM 8.43% 29.45% (0.12)%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - June 29, 2001
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by investing primarily in common stocks of
companies of any size located throughout the world. The Fund normally invests in
issuers from at least five different countries, which may include the United
States.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Preferred Stock - Foreign - 1.4%
Cash and Cash Equivalents - 14.9%
Common Stock - Domestic - 26.8%
Common Stock - Foreign - 56.9%
Number of Stocks: 33
Top 10 Equities: 44.9%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
6 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Nipponkoa Insurance Company, Ltd. 6.0% 5.8%
FKI PLC 5.9% 6.9%
Nippon Broadcasting System, Inc. 5.5% 5.9%
Tyco International, Ltd.
(New York Shares) 5.4% 5.0%
Walt Disney Co. 4.3% 5.1%
Smiths Group PLC 4.1% 2.7%
Berkshire Hathaway, Inc. - Class B 4.1% 4.1%
Tenma Corp. 3.4% 2.9%
Tenet Healthcare Corp. 3.1% 1.5%
Interpublic Group of Companies, Inc. 3.1% 4.7%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Global Opportunities Fund Morgan Stanley Capital
International World Index SM
[BAR GRAPH]
Bar graph data shown in following table.
Janus Global
MSCI World Index Opportunities Fund
Diversified Operations 4.1% 9.5%
Property and Casualty Insurance 0.8% 8.9%
Multimedia 1.7% 7.0%
Miscellaneous Manufacturing 0.0% 5.9%
Radio N/A 5.5%
TOP COUNTRIES - (% of Net Assets)
- --------------------------------------------------------------------------------
[BAR GRAPH]
Bar graph data shown in following table.
United Kingdom - 28.2%
Japan - 20.1%
United States - 12.7%
Netherlands - 7.1%
Bermuda - 5.4%
- --------------------------------------------------------------------------------
Net dividends reinvested are the dividends that remain to be reinvested after
foreign tax obligations have been met. Such obligations vary from country to
country.
See "Explanations of Charts, Tables and Financial Statements."
Returns have sustained significant gains and losses due to market volatility in
the industrials and financials and consumer discretionary sectors.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
This Fund is designed for long-term investors who can accept the special risks
associated with value investing and having significant exposure to foreign
markets (which include risks such as currency fluctuation and political
uncertainty).
A fund that is classified as "nondiversified" has the ability to take larger
positions in a smaller number of issuers than a "diversified" fund.
Nondiversified funds may experience greater price volatility.
Due to recent market volatility, the Fund may have an increased position in cash
for temporary defensive purposes.
Effective December 5, 2003, Janus Global Value Fund changed its name to Janus
Global Opportunities Fund.
Effective March 1, 2004, the Fund's redemption fee, that may be imposed on
shares held for 3 months or less, increased from 1% to 2% on shares purchased on
or after that date.
Janus International & Global Funds April 30, 2004 7
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GLOBAL OPPORTUNITIES FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 83.7%
Advertising Agencies - 3.1%
337,430 Interpublic Group of Companies, Inc.* .......... $ 5,294,277
Beverages - Wine and Spirits - 1.0%
129,857 Diageo PLC** ................................... 1,742,096
Brewery - 1.0%
42,525 Heineken N.V.*,** .............................. 1,794,389
Broadcast Services and Programming - 2.3%
372,475 Liberty Media Corp. - Class A* ................. 4,074,877
Chemicals - Specialty - 2.2%
47,080 Syngenta A.G. .................................. 3,767,199
Diversified Operations - 9.5%
573,028 Smiths Group PLC** ............................. 7,098,068
342,185 Tyco International, Ltd. (New York Shares) ..... 9,392,977
16,491,045
Electronic Components - Miscellaneous - 2.7%
172,336 Koninklijke (Royal) Philips Electronics N.V.** . 4,693,686
Electronic Design Automation - 1.6%
98,860 Cadence Design Systems, Inc.* .................. 1,267,385
58,320 Synopsys, Inc.* ................................ 1,558,894
2,826,279
Finance - Mortgage Loan Banker - 1.9%
55,010 Freddie Mac .................................... 3,212,584
Food - Diversified - 1.0%
6,727 Nestle S.A. .................................... 1,701,725
Health Care Cost Containment - 1.1%
118,915 First Health Group Corp.* ...................... 1,985,881
Home Decoration Products - 2.3%
84,304 Hunter Douglas N.V.** .......................... 4,039,355
Hotels and Motels - 1.4%
51,990 Marriott International, Inc. - Class A ......... 2,451,848
Machinery - Pumps - 3.0%
129,772 Pfeiffer Vacuum Technology A.G.** .............. 5,164,744
Medical - Drugs - 4.0%
144,787 GlaxoSmithKline PLC** .......................... 2,996,390
99,100 Takeda Chemical Industries, Ltd.** ............. 3,996,149
6,992,539
Medical - Hospitals - 4.8%
122,540 Health Management Associates, Inc.
- Class A .................................... 2,834,350
462,080 Tenet Healthcare Corp.* ........................ 5,434,061
8,268,411
Miscellaneous Manufacturing - 5.9%
5,074,581 FKI PLC** ...................................... 10,213,955
Multimedia - 7.0%
184,494 Vivendi Universal S.A.** ....................... 4,642,206
322,980 Walt Disney Co. ................................ 7,438,229
12,080,435
Property and Casualty Insurance - 8.9%
358 Millea Holdings, Inc.** ........................ 5,093,199
1,732,000 Nipponkoa Insurance Company, Ltd.** ............ 10,389,960
15,483,159
Publishing - Books - 1.1%
130,167 Reed Elsevier N.V.** ........................... 1,828,766
Shares or Principal Amount Market Value
================================================================================
Publishing - Newspapers - 1.3%
988,117 Independent News & Media PLC** ................. $ 2,250,566
Radio - 5.5%
169,000 Nippon Broadcasting System, Inc.** ............. 9,464,184
Reinsurance - 4.1%
2,259 Berkshire Hathaway, Inc. - Class B* ............ 7,045,821
Rubber/Plastic Products - 3.4%
381,000 Tenma Corp.** .................................. 5,869,240
Super-Regional Banks - 1.8%
62,955 Bank One Corp. ................................. 3,108,088
Toys - 1.8%
185,250 Mattel, Inc. ................................... 3,141,840
- --------------------------------------------------------------------------------
Total Common Stock (cost $110,961,579)......................... 144,986,989
- --------------------------------------------------------------------------------
Preferred Stock - 1.4%
Soap and Cleaning Preparations - 1.4%
27,519 Henkel KGaA** (cost $1,807,379) ................ 2,381,769
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 4.9%
AIG Funding, Inc.
$ 8,500,000 0.97%, 5/3/04 (amortized cost $8,499,542) .... 8,499,542
- --------------------------------------------------------------------------------
Short-Term U.S. Government Agency - 7.9%
Freddie Mac
13,600,000 0.85%, 5/3/04 (amortized cost $13,599,358) ... 13,599,358
- --------------------------------------------------------------------------------
Total Investments (total cost $134,867,858) - 97.9%............ 169,467,658
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 2.1%.. 3,637,499
- --------------------------------------------------------------------------------
Net Assets - 100%.............................................. $173,105,157
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 9,392,978 5.5%
France 4,642,206 2.7%
Germany 7,546,512 4.5%
Ireland 2,250,566 1.3%
Japan 34,812,732 20.6%
Netherlands 12,356,197 7.3%
Switzerland 5,468,923 3.2%
United Kingdom 22,050,509 13.0%
United States++ 70,947,035 41.9%
- --------------------------------------------------------------------------------
Total $ 169,467,658 100.0%
++Includes Short-Term Securities (28.8% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 10/15/04 2,000,000 $ 3,493,764 $ 28,236
Euro 9/27/04 2,900,000 3,464,543 45,557
Japanese Yen 9/27/04 1,920,000,000 17,498,929 665,641
- --------------------------------------------------------------------------------
Total $ 24,457,236 $ 739,434
See Notes to Schedules of Investments and Financial Statements.
8 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GLOBAL TECHNOLOGY FUND (unaudited) Portfolio Manager
Mike Lu
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Global Technology S&P 500(R) Index
Fund
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Since
Year-to-date Year Year Inception*
---------------------------------------------------------------------------
Janus Global Technology Fund (3.64)% 31.68% (5.68)% 0.52%
---------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% (0.53)%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - December 31, 1998
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by normally investing at least 80% of its
net assets in securities of domestic and foreign issuers that its portfolio
manager believes will benefit significantly from advancements or improvements in
technology. These businesses may include companies in the semiconductor,
computer systems, networking, telecommunications, and software industries.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Preferred Stock - Domestic - 1.1%
Cash and Cash Equivalents - 1.4%
Corporate Bonds - Domestic - 1.5%
Common Stock - Foreign - 43.9%
Common Stock - Domestic - 52.1%
Number of Stocks: 93
Number of Bonds: 3
Top 10 Equities: 28.1%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
Janus International & Global Funds April 30, 2004 9
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Electronic Arts, Inc. 4.9% 4.8%
Amazon.com, Inc. 3.3% 3.9%
Nokia Oyj (ADR) 2.9% 3.9%
Texas Instruments, Inc. 2.9% 3.0%
Samsung Electronics Company, Ltd. 2.8% 2.1%
Yahoo!, Inc. 2.4% 1.8%
Hon Hai Precision Industry
Company, Ltd. 2.4% 2.4%
Dell, Inc. 2.3% 2.3%
eBay, Inc. 2.1% 1.4%
Chi Mei Optoelectronics Corp.
(144A) (GDR) 2.1% 1.1%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Global Technology Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Global
S&P 500 Technology Fund
Electronic Components - Semiconductors 2.7% 12.8
Telecommunication Equipment 0.4% 7.5
Semiconductor Equipment 0.5% 6.1
Computers - Peripheral Equipment 0.1% 5.9
Semiconductor Components/Integrated Circuits 0.4% 5.5
Applications Software 2.9% 5.4
Entertainment Software 0.1% 4.9
Electric Products - Miscellaneous 0.3% 4.2
Computers 3.1% 4.2
Web Portals/Internet Service Providers 0.3% 3.9
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
This Fund concentrates in certain industry groups, which may react similarly to
market developments (resulting in greater price volatility), and may have
significant exposure to foreign markets (which include risks such as currency
fluctuation and political uncertainty).
A fund that is classified as "nondiversified" has the ability to take larger
positions in a smaller number of issuers than a fund that is classified as
"diversified." Nondiversified funds may experience greater price volatility.
Effective March 1, 2004, the Fund's redemption fee, that may be imposed on
shares held for 3 months or less, increased from 1% to 2% on shares purchased on
or after that date.
10 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GLOBAL TECHNOLOGY FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 96.0%
Aerospace and Defense - 1.0%
570,447 Embraer-Empresa Brasileira
de Aeronautica S.A. (ADR)# ................... $ 14,717,533
Applications Software - 4.4%
29,080 Infosys Technologies, Ltd. ..................... 3,365,714
716,740 Intuit, Inc.* .................................. 30,439,948
1,186,545 Microsoft Corp. ................................ 30,814,574
64,620,236
Audio and Video Products - 1.8%
297,800 Pioneer Corp.** ................................ 8,500,476
899,088 Thomson** ...................................... 17,352,329
25,852,805
Automotive - Cars and Light Trucks - 1.7%
2,241,000 Nissan Motor Company, Ltd.** ................... 24,957,537
Cable Television - 0.6%
270,060 EchoStar Communications Corp. - Class A* ....... 8,963,291
Chemicals - Diversified - 0.1%
32,600 Nitto Denko Corp.** ............................ 1,810,865
Computer Aided Design - 0.6%
203,160 Dassault Systemes S.A.** ....................... 8,294,927
Computer Services - 3.4%
491,709 Atos Origin S.A.** ............................. 28,499,309
5,527,871 LogicaCMG PLC** ................................ 21,272,353
49,771,662
Computers - 4.2%
965,725 Dell, Inc.* .................................... 33,520,315
319,490 IBM Corp. ...................................... 28,169,433
425,000 Wistron Corp. .................................. 298,089
61,987,837
Computers - Memory Devices - 2.2%
80,820 Dot Hill Systems Corp.*,# ...................... 606,150
1,605,045 EMC Corp.* ..................................... 17,912,302
368,350 SanDisk Corp.*,# ............................... 8,512,569
174,790 Storage Technology Corp.* ...................... 4,591,733
31,622,754
Computers - Peripheral Equipment - 5.9%
1,437,623 Chi Mei Optoelectronics
Corp. (144A)(GDR)ss .......................... 30,908,895
8,766,852 Hon Hai Precision Industry Company, Ltd. ....... 34,571,271
503,898 Logitech International S.A.* ................... 21,860,452
87,340,618
Data Processing and Management - 0.9%
469,320 VERITAS Software Corp.* ........................ 12,516,764
E-Commerce/Products - 3.3%
1,116,465 Amazon.com, Inc.*,# ............................ 48,521,569
E-Commerce/Services - 2.1%
390,370 eBay, Inc.* .................................... 31,159,333
Electric Products - Miscellaneous - 4.2%
256,190 LG Electronics, Inc.** ......................... 15,545,854
85,500 Samsung Electronics Company, Ltd.** ............ 40,587,633
1,328,000 Toshiba Corp.** ................................ 6,101,183
62,234,670
Shares or Principal Amount Market Value
================================================================================
Electronic Components - Miscellaneous - 3.4%
121,770 KH Vatec Company, Ltd.** ....................... $ 4,701,224
987,111 Koninklijke (Royal) Philips Electronics N.V.** . 26,884,627
40,540 Samsung Electro-Mechanics Company, Ltd.** ...... 1,527,139
127,960 Samsung SDI Company, Ltd.** .................... 16,358,290
49,471,280
Electronic Components - Semiconductors - 12.3%
829,915 Advanced Micro Devices, Inc.*,# ................ 11,801,391
7,450,693 ARM Holdings PLC** ............................. 15,392,901
514,840 ATI Technologies, Inc. (New York Shares)* ...... 7,490,922
597,005 Broadcom Corp. - Class A* ...................... 22,542,909
3,243,000 Chartered Semiconductor Manufacturing, Ltd.* ... 2,859,032
137,465 Intel Corp. .................................... 3,536,974
88,930 International Rectifier Corp.* ................. 3,525,185
511,490 Intersil Corp. - Class A ....................... 10,101,928
161,215 LSI Logic Corp.* ............................... 1,199,440
1,014,985 Micron Technology, Inc.*,# ..................... 13,824,096
259,000 Sanken Electric Company, Ltd.** ................ 3,386,679
361,677 STMicroelectronics N.V.** ...................... 7,973,194
763,920 STMicroelectronics N.V.
(New York Shares)**,# ........................ 16,630,538
1,712,805 Texas Instruments, Inc. ........................ 42,991,405
509,840 Xilinx, Inc. ................................... 17,145,919
180,402,513
Electronic Design Automation - 1.6%
1,048,000 Cadence Design Systems, Inc.*,# ................ 13,435,360
392,250 Synopsys, Inc.* ................................ 10,484,843
23,920,203
Electronic Forms - 0.1%
44,890 Adobe Systems, Inc. ............................ 1,855,753
Electronic Measuring Instruments - 1.4%
265,200 Advantest Corp.** .............................. 20,162,458
Enterprise Software/Services - 1.7%
307,165 Computer Associates International, Inc. ........ 8,235,094
975,165 Oracle Corp.* .................................. 10,941,351
38,081 SAP A.G.** ..................................... 5,824,903
25,001,348
Entertainment Software - 4.9%
1,426,860 Electronic Arts, Inc.* ......................... 72,227,653
Internet Connectivity Services - 0.6%
317,815 NDS Group PLC (ADR)*,** ........................ 8,158,311
Internet Security - 2.2%
597,545 Check Point Software Technologies, Ltd.
(New York Shares)* ........................... 14,000,479
106,645 Internet Security Systems, Inc.* ............... 1,417,312
379,780 Symantec Corp.*,# .............................. 17,109,089
32,526,880
Medical Instruments - 0.9%
248,445 Medtronic, Inc. ................................ 12,536,535
Miscellaneous Manufacturing - 0.3%
213,149 Applied Films Corp.* ........................... 5,072,946
Networking Products - 2.0%
1,326,859 Cisco Systems, Inc.* ........................... 27,691,548
206,223 NETGEAR, Inc.*,# ............................... 2,243,706
2,307,692 Yipes Communication, Inc.*,(sigma),ss.,(pound) . 0
29,935,254
Office Automation and Equipment - 1.6%
450,000 Canon, Inc.** .................................. 23,610,167
See Notes to Schedules of Investments and Financial Statements.
Janus International & Global Funds April 30, 2004 11
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GLOBAL TECHNOLOGY FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Printing - Commercial - 0.1%
76,000 Toppan Printing Company, Ltd.** ................ $ 893,226
Semiconductor Components/Integrated Circuits - 5.5%
287,445 Emulex Corp.*,# ................................ 4,791,708
740,145 Marvell Technology Group, Ltd.* ................ 28,665,817
509,760 Maxim Integrated Products, Inc. ................ 23,443,862
147,700 NEC Electronics Corp.** ........................ 10,399,429
6,519,960 Taiwan Semiconductor Manufacturing
Company, Ltd.* ............................... 11,285,301
580,355 Vitesse Semiconductor Corp.* ................... 2,483,919
81,070,036
Semiconductor Equipment - 6.1%
1,386,610 Applied Materials, Inc.* ....................... 25,277,901
478,555 KLA-Tencor Corp.* .............................. 19,941,387
222,615 Novellus Systems, Inc.* ........................ 6,446,930
403,710 NPTest Holding Corp.*,# ........................ 5,878,018
2,851,000 Siliconware Precision Industries Co.* .......... 2,505,996
733,345 Teradyne, Inc.* ................................ 14,945,571
230,800 Tokyo Electron, Ltd.** ......................... 14,054,424
89,050,227
Telecommunication Equipment - 7.5%
1,148,000 Alcatel S.A. (ADR)**,# ......................... 16,829,680
230,145 Harris Corp. ................................... 10,368,032
3,071,225 Nokia Oyj (ADR)** .............................. 43,027,863
422,360 Telefonaktiebolaget LM Ericsson (ADR)# ......... 11,264,341
1,064,835 UTStarcom, Inc.*,# ............................. 28,058,402
109,548,318
Telecommunication Equipment - Fiber Optics - 1.3%
1,793,680 Corning, Inc.*,# ............................... 19,784,290
Telecommunication Services - 0.9%
416,940 Amdocs, Ltd. (New York Shares)*,** ............. 11,069,757
4,753,000 China Telecom Corporation, Ltd.** .............. 1,416,796
12,486,553
Television - 1.1%
1,375,893 British Sky Broadcasting Group PLC** ........... 16,250,128
Web Portals/Internet Service Providers - 3.9%
690,414 Yahoo!, Inc.* .................................. 34,838,291
671 Yahoo Japan Corp.*,**,(beta),#,(sigma) ......... 7,600,471
1,327 Yahoo Japan Corp.*,** .......................... 15,031,036
57,469,798
Wireless Equipment - 0.2%
152,170 Motorola, Inc. ................................. 2,777,103
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,065,657,184)....................... 1,408,583,381
- --------------------------------------------------------------------------------
Corporate Bonds - 1.5%
Applications Software - 1.0%
$ 14,630,000 Mercury Interactive Corp., 4.75%
convertible notes, due 7/1/07 (144A)ss ....... 14,794,587
Computers - Peripheral Equipment - 0%
31,700,000 Candescent Technologies Corp., 8.00%
convertible senior subordinated
debentures, due 5/1/03 (144A)(omega),
(delta),(sigma),ss............................ 0
Electronic Components - Semiconductors - 0.5%
7,825,000 International Rectifier Corp., 4.25%
convertible subordinated notes, due 7/15/07 .. 7,854,344
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $47,535,264)....................... 22,648,931
- --------------------------------------------------------------------------------
Shares or Principal Amount Market Value
================================================================================
Preferred Stock - 1.1%
Wireless Equipment - 1.1%
363,860 Crown Castle International Corp.
convertible, 6.25%# (cost $18,193,000) ....... $ 16,874,008
- --------------------------------------------------------------------------------
Other Securities - 7.0%
State Street Navigator Securities Lending
$102,771,579 Prime Portfolio+ (cost $102,771,579) ......... 102,771,579
- --------------------------------------------------------------------------------
Time Deposit - 0.5%
SouthTrust Bank ETD
6,700,000 1.04%, 5/3/04 (cost $6,700,000) .............. 6,700,000
- --------------------------------------------------------------------------------
Total Investments (total cost $1,240,857,027) - 106.1%......... 1,557,577,899
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (6.1)% (88,958,299)
- --------------------------------------------------------------------------------
Net Assets - 100%.............................................. $1,468,619,600
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 28,665,816 1.8%
Brazil 14,717,533 0.9%
Canada 7,490,922 0.5%
Chile 1,416,796 0.1%
Finland 43,027,862 2.8%
France 70,976,246 4.6%
Germany 5,824,903 0.4%
India 3,365,714 0.2%
Israel 14,000,479 0.9%
Japan 136,507,952 8.8%
Netherlands 51,488,360 3.3%
Singapore 2,859,032 0.2%
South Korea 78,720,141 5.0%
Sweden 11,264,341 0.7%
Switzerland 21,860,452 1.4%
Taiwan 79,569,551 5.1%
United Kingdom 72,143,450 4.6%
United States++ 913,678,349 58.7%
- --------------------------------------------------------------------------------
Total $1,557,577,899 100.0%
++Includes Short-Term Securities (51.6% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 9/27/04 2,400,000 $ 4,199,106 $ 128,094
British Pound 11/19/04 7,400,000 12,891,105 133,412
Euro 9/27/04 44,100,000 52,684,945 840,305
Hong Kong Dollar
9/27/04 10,300,000 1,324,310 6,095
Japanese Yen
9/27/04 3,500,000,000 31,899,089 1,197,837
Japanese Yen
10/15/04 2,300,000,000 20,978,779 396,686
South Korean Won
5/14/04 37,300,000,000 31,755,221 (349,505)
- --------------------------------------------------------------------------------
Total $ 155,732,555 $ 2,352,924
See Notes to Schedules of Investments and Financial Statements.
12 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS OVERSEAS FUND (unaudited) Portfolio Manager
Brent Lynn
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Overseas Fund Morgan Stanley Capital
International EAFE(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Since
Year-to-date Year Year Inception*
---------------------------------------------------------------------------
Janus Overseas Fund 10.94% 44.54% 3.32% 10.52%
---------------------------------------------------------------------------
Morgan Stanley Capital
International EAFE(R)Index 12.39% 40.23% (0.73)% 3.88%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - May 2, 1994
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by normally investing 80% of net assets in
securities of issuers from at least five different countries, excluding the
United States.
FUND ASSET MIX(1) - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Common Stock - Domestic - 0.8%
Common Stock - Foreign - 99.5%
Number of Stocks: 92
Top 10 Equities: 28.5%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
Janus International & Global Funds April 30, 2004 13
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Reliance Industries, Ltd. 5.9% 4.9%
Samsung Electronics Company, Ltd. 3.6% 3.3%
Companhia Vale do Rio Doce (ADR) 3.4% 3.5%
Grupo Televisa S.A. (ADR) 2.8% 2.3%
Infineon Technologies A.G. 2.4% 1.2%
Aracruz Celulose S.A. (ADR) 2.2% 1.1%
DBS Group Holdings, Ltd. 2.2% 2.1%
Companhia Siderurgica
Nacional S.A. (ADR) 2.2% 1.1%
LG Electronics, Inc. 1.9% 0.5%
Sumitomo Mitsui Financial Group, Inc. 1.9% --
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Overseas Fund Morgan Stanley Capital
International EAFE(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Overseas
MSCI EAFE Fund
Commercial Banks 17.6% 13.6%
Electronic Products - Miscellaneous 1.0% 7.3%
Petrochemicals 0% 6.6%
Oil Companies - Integrated 7.8% 5.1%
Electronic Components - Semiconductors 0.5% 4.9%
TOP COUNTRIES - (% of Net Assets)
- --------------------------------------------------------------------------------
[BAR GRAPH]
Bar graph data shown in following table.
Japan - 24.6%
India - 13.3%
South Korea - 8.3%
Brazil - 7.8%
United Kingdom - 6.5%
- --------------------------------------------------------------------------------
Net dividends reinvested are the dividends that remain to be reinvested after
foreign tax obligations have been met. Such obligations vary from country to
country.
(1) Chart includes Cash and Cash Equivalents of (0.3)%.
See "Explanations of Charts, Tables and Financial Statements."
Returns have sustained significant gains and losses due to market volatility in
the consumer discretionary, information technology, and financials sectors.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Foreign investing involves special risks such as currency fluctuations and
political uncertainty.
Effective March 1, 2004, the Fund's redemption fee, that may be imposed on
shares held for 3 months or less, increased from 1% to 2% on shares purchased on
or after that date.
14 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS OVERSEAS FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 100.3%
Advertising Services - 1.5%
6,953 Dentsu, Inc.(beta) ............................. $ 19,468,778
6,953 Dentsu, Inc.*,(beta),(sigma) ................... 19,468,778
38,937,556
Apparel Manufacturers - 2.7%
2,929,542 Burberry Group PLC ............................. 20,131,184
241,466 Hermes International ........................... 48,107,935
68,239,119
Audio and Video Products - 1.7%
560,900 Pioneer Corp. .................................. 16,010,466
1,394,201 Thomson ........................................ 26,907,973
42,918,439
Automotive - Cars and Light Trucks - 1.8%
2,318,342 Maruti Udyog, Ltd.* ............................ 28,365,412
1,711,642 Tata Motors, Ltd. .............................. 18,203,757
46,569,169
Automotive - Truck Parts and Equipment - Original - 0%
144,600 TI Automotive, Ltd.*,(beta),(sigma) ............ 0
Broadcast Services and Programming - 2.8%
1,636,640 Grupo Televisa S.A. (ADR) ...................... 71,341,138
Building - Residential and Commercial - 0.5%
25,170,500 Land and Houses Public Company, Ltd. ........... 6,479,784
21,971,500 Land and Houses Public Company, Ltd.
(NVDR) ....................................... 5,656,247
12,136,031
Building and Construction Products - Miscellaneous - 0.9%
97,950 Imerys S.A. .................................... 22,285,909
Cellular Telecommunications - 0.5%
800,470 KT Freetel ..................................... 12,996,083
Chemicals - Plastics - 0.2%
4,196,000 Formosa Plastics Corp. ......................... 5,999,699
Commercial Banks - 13.6%
1,290,684 Anglo Irish Bank Corporation PLC ............... 21,119,434
10,777,400 Bangkok Bank Public Company, Ltd.* ............. 25,455,244
6,667,000 DBS Group Holdings, Ltd. ....................... 56,033,442
127,370 Julius Baer Holding, Ltd. ...................... 34,381,845
1,007,520 Kookmin Bank ................................... 37,609,729
4,160 Mitsubishi Tokyo Financial Group, Inc. ......... 37,017,987
10,191 Mizuho Financial Group, Inc. ................... 48,205,355
15,464,500 PT Bank Buana Indonesia Tbk .................... 6,867,633
1,590,129 Standard Chartered PLC ......................... 24,363,742
6,523 Sumitomo Mitsui Financial Group, Inc. .......... 49,297,105
1,359 UFJ Holdings, Inc. ............................. 8,411,010
348,762,526
Computer Services - 1.6%
1,405,217 TietoEnator Oyj# ............................... 41,860,026
Computers - Peripheral Equipment - 0.6%
368,341 Logitech International S.A.* ................... 15,979,625
Diversified Financial Services - 1.5%
40,013,000 Fubon Financial Holding Company, Ltd. .......... 38,182,182
Diversified Minerals - 3.4%
1,938,235 Companhia Vale do Rio Doce (ADR)*,# ............ 88,189,693
Diversified Operations-Commercial Services - 0.5%
2,301,216 Rank Group PLC ................................. 12,977,242
Shares or Principal Amount Market Value
================================================================================
Electric - Integrated - 1.0%
21,110 Reliance Energy, Ltd. .......................... $ 344,064
516,878 Reliance Energy, Ltd.(144A)(GDR) ............... 25,273,215
25,617,279
Electric Products - Miscellaneous - 7.3%
813,430 LG Electronics, Inc. ........................... 49,359,710
196,200 Samsung Electronics Company, Ltd. .............. 93,137,939
9,843,000 Toshiba Corp. .................................. 45,221,340
187,718,989
Electronic Components - Semiconductors - 4.9%
14,494,895 ARM Holdings PLC ............................... 29,946,005
39,499,000 Chartered Semiconductor
Manufacturing, Ltd.* ......................... 34,822,357
4,719,945 Infineon Technologies A.G. ..................... 60,145,053
124,913,415
Electronic Measuring Instruments - 0.5%
165,000 Advantest Corp. ................................ 12,544,515
Enterprise Software/Services - 1.0%
236,000 Nomura Research Institute, Ltd. ................ 24,400,888
Finance - Consumer Loans - 0.3%
126,000 Promise Company, Ltd. .......................... 8,334,919
Finance - Investment Bankers/Brokers - 2.6%
4,605,000 Nikko Cordial Corp. ............................ 26,205,790
2,426,000 Nomura Holdings, Inc. .......................... 39,394,609
65,600,399
Finance - Mortgage Loan Banker - 1.7%
3,186,791 Housing Development Finance
Corporation, Ltd. ............................ 42,624,315
Gambling-Non Hotel - 0.6%
792,910 OPAP S.A. ...................................... 15,132,012
Hotels and Motels - 0.5%
519,003 Fairmont Hotels & Resorts, Inc.# ............... 12,819,874
Human Resources - 0.3%
1,703 Goodwill Group, Inc. ........................... 6,697,494
Internet Security - 1.7%
1,847,725 Check Point Software Technologies, Ltd.
(New York Shares)* ........................... 43,292,197
Machinery - Construction and Mining - 1.0%
4,576,000 Komatsu, Ltd. .................................. 26,082,226
Medical - Biomedical and Genetic - 0.1%
183,332 Cambridge Antibody Technology
Group PLC* ................................... 1,843,398
Medical - Drugs - 1.7%
311,714 Altana A.G. .................................... 19,841,776
139,241 Roche Holding A.G. ............................. 14,604,948
202,800 Takeda Chemical Industries, Ltd. ............... 8,177,790
42,624,514
Metal - Aluminum - 0.4%
2,364,900 National Aluminium Company, Ltd. ............... 9,019,272
Metal - Diversified - 1.4%
590,452 MMC Norilsk Nickel (ADR)# ...................... 35,013,804
Miscellaneous Manufacturing - 1.0%
12,406,901 FKI PLC ........................................ 24,972,215
Multi-Line Insurance - 0.2%
298,336 ING Groep N.V. ................................. 6,394,445
See Notes to Schedules of Investments and Financial Statements.
Janus International & Global Funds April 30, 2004 15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS OVERSEAS FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Office Automation and Equipment - 1.7%
824,000 Canon, Inc. .................................... $ 43,232,839
Oil and Gas Drilling - 0.7%
363,230 Precision Drilling Corp.* ...................... 17,233,781
Oil Companies - Exploration and Production - 2.5%
720,358 Canadian Natural Resources, Ltd. ............... 39,494,632
350,814 EnCana Corp. ................................... 13,723,900
31,427 Niko Resources, Ltd. ........................... 855,802
558,800 Oil and Natural Gas Corporation, Ltd. .......... 10,555,251
64,629,585
Oil Companies - Integrated - 5.1%
1,545,373 Husky Energy, Inc.# ............................ 28,373,509
447,035 Lukoil (ADR) ................................... 48,726,815
1,313,392 Suncor Energy, Inc. ............................ 31,229,172
516,034 Yukos (ADR)# ................................... 22,963,513
131,293,009
Paper and Related Products - 2.2%
1,814,425 Aracruz Celulose S.A. (ADR) .................... 56,501,195
Petrochemicals - 6.6%
1,582,622 Indian Petrochemicals Corp. .................... 6,733,350
611,320 LG Petrochemical Company, Ltd. ................. 12,269,643
12,783,441 Reliance Industries, Ltd. ...................... 151,320,067
170,323,060
Property and Casualty Insurance - 1.7%
3,039 Millea Holdings, Inc. .......................... 43,235,286
Real Estate Management/Services - 1.4%
2,973,000 Mitsubishi Estate Company, Ltd. ................ 35,157,129
Real Estate Operating/Development - 3.6%
18,997,000 Hang Lung Properties, Ltd. ..................... 25,695,319
2,539,000 Sumitomo Realty & Development
Company, Ltd. ................................ 28,506,375
4,516,000 Sun Hung Kai Properties, Ltd. .................. 38,792,277
92,993,971
Retail - Automobile - 0.8%
243,860 USS Company, Ltd. .............................. 20,617,224
Retail - Convenience Stores - 0.7%
726,880 Alimentation Couche-Tard, Inc. - Class B* ...... 12,367,928
3,752,500 C.P. 7-Eleven Public Company, Ltd.(beta),(sigma) 5,299,081
17,667,009
Retail - Diversified - 1.0%
618,000 Ito-Yokado Company, Ltd. ....................... 25,704,499
Semiconductor Components/Integrated Circuits - 0.6%
220,200 NEC Electronics Corp. .......................... 15,504,091
Semiconductor Equipment - 0.9%
397,600 Tokyo Electron, Ltd. ........................... 24,211,608
Soap and Cleaning Preparations - 1.2%
10,039,884 Hindustan Lever, Ltd. .......................... 31,878,381
Steel - Producers - 1.6%
27,895,000 China Steel Corp. .............................. 24,855,267
2,101,373 Tata Iron and Steel Company, Ltd. .............. 16,907,382
41,762,649
Steel - Specialty - 2.2%
1,174,600 Companhia Siderurgica
Nacional S.A. (ADR)# ......................... 55,429,374
Shares or Principal Amount Market Value
================================================================================
Telecommunication Equipment - 1.5%
1,303,680 Comverse Technology, Inc.*,# ................... $ 21,328,205
1,305,138 Nokia Oyj# ..................................... 18,367,677
39,695,882
Telecommunication Services - 1.7%
1,685,995 Amdocs, Ltd. (New York Shares)* ................ 44,763,167
Television - 0.3%
572,905 British Sky Broadcasting Group PLC ............. 6,766,354
Wireless Equipment - 0.3%
254,680 You Eal Electronics Company, Ltd. .............. 8,399,980
- --------------------------------------------------------------------------------
Total Common Stock (cost $2,002,330,223)....................... 2,570,020,680
- --------------------------------------------------------------------------------
Other Securities - 4.0%
State Street Navigator Securities Lending
$102,740,346 Prime Portfolio+ (cost $102,740,346) ......... 102,740,346
- --------------------------------------------------------------------------------
Repurchase Agreement - 0.4%
10,700,000 J.P. Morgan Securities, Inc., 1.11%
dated 4/30/04, maturing 5/3/04
to be repurchased at $10,700,990
collateralized by $66,747,557
in U.S. Government Agencies
0% - 7.05%, 11/15/17 - 3/16/46
with a value of $10,914,056
(cost $10,700,000) ........................... 10,700,000
- --------------------------------------------------------------------------------
Time Deposit - 0.8%
SouthTrust Bank, ETD
21,000,000 1.04%, 5/3/04 (cost $21,000,000) ............. 21,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $2,136,770,569) - 105.5%......... 2,704,461,026
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (5.5)% (140,691,735)
- --------------------------------------------------------------------------------
Net Assets - 100%.............................................. $2,563,769,291
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Brazil $ 200,120,262 7.4%
Canada 156,098,598 5.8%
Finland 60,227,703 2.2%
France 97,301,817 3.6%
Germany 79,986,829 3.0%
Greece 15,132,012 0.6%
Hong Kong 64,487,596 2.4%
India 341,224,466 12.6%
Indonesia 6,867,633 0.3%
Ireland 21,119,434 0.8%
Isreal 43,292,197 1.6%
Japan 631,108,101 23.3%
Mexico 71,341,138 2.6%
Netherlands 6,394,445 0.2%
Russia 106,704,132 3.9%
Singapore 90,855,799 3.4%
South Korea 213,773,084 7.9%
Switzerland 64,966,418 2.4%
Taiwan 69,037,148 2.5%
Thailand 42,890,356 1.6%
United Kingdom 165,763,307 6.1%
United States++ 155,768,551 5.8%
- --------------------------------------------------------------------------------
Total $2,704,461,026 100.0%
++Includes Short-Term Securities (0.8% excluding Short-Term Securities)
See Notes to Schedules of Investments and Financial Statements.
16 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS WORLDWIDE FUND (unaudited) Portfolio Manager
Laurence Chang
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Worldwide Fund Morgan Stanley Capital
International World IndexSM
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
- --------------------------------------------------------------------------------
Janus Worldwide Fund 6.60% 25.65% (2.29)% 8.49% 11.41%
- --------------------------------------------------------------------------------
Morgan Stanley Capital
International World IndexSM 8.43% 29.45% (2.12)% 6.81% 7.30%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - May 15, 1991
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital in a manner consistent with the preservation
of capital primarily through investments in common stocks of foreign and
domestic issuers. The Fund normally invests in issuers from at least five
different countries, including the United States.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 3.5%
Common Stock - Domestic - 13.0%
Common Stock - Foreign - 83.5%
Number of Stocks: 144
Top 10 Equities: 22.7%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
Janus International & Global Funds April 30, 2004 17
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Samsung Electronics Company, Ltd. 4.2% 3.8%
Reliance Industries, Ltd. 3.1% 2.3%
Roche Holding A.G. 2.6% 3.0%
Canon, Inc. 2.1% 1.6%
British Sky Broadcasting Group PLC 2.1% 1.5%
Mitsubishi Tokyo Financial Group, Inc. 2.1% 1.9%
Tyco International, Ltd.
(New York Shares) 1.9% 2.2%
Cisco Systems, Inc. 1.6% 1.6%
UBS A.G. 1.5% 2.1%
Companhia Vale do Rio Doce (ADR) 1.5% 0.9%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Worldwide Fund Morgan Stanley Capital
International World IndexSM
[BAR GRAPH]
Bar graph data shown in following table.
Janus Worldwide
MSCI WORLD Fund
Commercial Bank 8.5% 10.9%
Oil Companies - Integrated 5.9% 5.6%
Medical - Drugs 7.0% 5.4%
Electric Products - Miscellaneous 0.6% 5.0%
Petrochemicals 0.0% 4.4%
TOP COUNTRIES - (% of Net Assets)
- --------------------------------------------------------------------------------
[BAR GRAPH]
Bar graph data shown in following table.
Japan - 19.1%
United States - 13.0%
United Kingdom - 11.0%
South Korea - 9.2%
India - 7.8%
- --------------------------------------------------------------------------------
Net dividends reinvested are the dividends that remain to be reinvested after
foreign tax obligations have been met. Such obligations vary from country to
country.
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Foreign investing involves special risks such as currency fluctuations and
political uncertainty.
Returns have sustained significant gains and losses due to market volatility in
the financials sector.
Effective March 1, 2004, the Fund's redemption fee, that may be imposed on
shares held for 3 months or less, increased from 1% to 2% on shares purchased on
or after that date.
18 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS WORLDWIDE FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 96.5%
Airlines - 0.5%
9,615,417 easyJet PLC*,** ................................ $ 50,430,209
Apparel Manufacturers - 0.6%
5,735,501 Burberry Group PLC** ........................... 39,413,133
89,562 Hermes International** ......................... 17,843,683
57,256,816
Applications Software - 0.6%
2,262,360 Microsoft Corp. ................................ 58,753,489
Audio and Video Products - 0.9%
3,040,600 Pioneer Corp. .................................. 86,791,627
Automotive - Cars and Light Trucks - 2.1%
7,481,000 Nissan Motor Company, Ltd. ..................... 83,314,294
3,841,480 Tata Motors, Ltd. .............................. 40,855,138
2,066,600 Toyota Motor Corp. ............................. 74,720,076
198,889,508
Automotive - Truck Parts and Equipment - Original - 0.6%
1,381,400 Autoliv, Inc. (SDR) ............................ 58,767,974
Beverages - Wine and Spirits - 0.4%
2,636,136 Diageo PLC** ................................... 35,365,079
Brewery - 0.6%
2,039,200 Asahi Breweries, Ltd. .......................... 22,913,398
3,215,000 Kirin Brewery Company, Ltd. .................... 31,871,777
54,785,175
Broadcast Services and Programming - 1.7%
1,136,075 Clear Channel Communications, Inc. ............. 47,135,752
2,603,960 Grupo Televisa S.A. (ADR)# ..................... 113,506,616
160,642,368
Building Products - Cement and Aggregate - 0.1%
374,930 Cemex S.A. de C.V. (ADR) ....................... 11,041,689
Cable Television - 0.7%
1,584,320 Comcast Corp. - Special Class A* ............... 45,929,437
372,460 Sogecable, S.A.*,# ............................. 15,948,535
61,877,972
Cellular Telecommunications - 0.7%
496,405 SK Telecom Company, Ltd. (ADR) ................. 10,027,381
20,548,259 Vodafone Group PLC** ........................... 49,922,174
409,280 Vodafone Group PLC (ADR)** ..................... 10,043,731
69,993,286
Chemicals - Diversified - 1.0%
1,748,500 Nitto Denko Corp. .............................. 97,125,685
Chemicals - Plastics - 0.1%
5,086,000 Formosa Plastics Corp. ......................... 7,272,276
Chemicals - Specialty - 0.5%
85,735 Givaudan S.A.** ................................ 42,649,294
Commercial Banks - 10.9%
2,561,101 Anglo Irish Bank Corporation PLC** ............. 41,907,240
5,166,300 Bangkok Bank Company, Ltd.* .................... 12,654,271
7,131,300 Bangkok Bank Public
Company, Ltd. (NVDR)* ........................ 16,843,485
12,764,000 DBS Group Holdings, Ltd. ....................... 107,276,264
83,332 Erste Bank der Oesterreichischen
Sparkassen A.G.** ............................ 12,471,826
182,481 Erste Bank der Oesterreichischen
Sparkassen A.G. (144A)**,ss .................. 27,310,893
2,156,370 Hana Bank ...................................... 46,587,957
2,329,437 HSBC Holdings PLC** ............................ 33,377,993
Shares or Principal Amount Market Value
================================================================================
Commercial Banks (continued)
2,268,140 HVB Group*,** .................................. $ 39,343,056
1,819,000 Kookmin Bank ................................... 67,901,479
21,708 Mitsubishi Tokyo Financial Group, Inc. ......... 193,169,826
17,029 Mizuho Financial Group, Inc. ................... 80,550,387
1,760,000 Shinsei Bank, Ltd. ............................. 11,849,758
4,707,684 Standard Chartered PLC** ....................... 72,130,499
8,704 Sumitomo Mitsui Financial Group, Inc. .......... 65,779,856
2,010,470 UBS A.G.** ..................................... 142,885,092
4,800 UFJ Holdings, Inc. ............................. 29,707,761
1,092,755 Uniao de Bancos Brasileiros S.A. (GDR)# ........ 21,417,998
1,023,165,641
Computers - 0.4%
2,019,690 Hewlett-Packard Co. ............................ 39,787,893
Computers - Peripheral Equipment - 1.1%
25,221,800 Hon Hai Precision Industry Company, Ltd. ....... 99,459,837
Diversified Minerals - 3.3%
10,442,021 BHP Billiton, Ltd. ............................. 86,497,760
3,903,767 BHP Billiton PLC** ............................. 31,187,213
123,893,750 Caemi Mineracao e Metalurgica S.A. ............. 45,824,292
3,115,020 Companhia Vale do Rio Doce (ADR)*,# ............ 141,733,410
305,242,675
Diversified Operations - 3.7%
1,376,357 Louis Vuitton Moet Hennessy S.A.** ............. 97,014,830
5,529,464 Smiths Group PLC** ............................. 68,493,180
6,579,025 Tyco International, Ltd. (New York Shares) ..... 180,594,237
346,102,247
Diversified Operations - Commercial Services - 0.9%
1,398,865 Cendant Corp. .................................. 33,125,123
9,036,462 Rank Group PLC** ............................... 50,959,298
84,084,421
E-Commerce/Services - 0.3%
969,892 InterActiveCorp*,# ............................. 30,910,458
Electric - Integrated - 0.7%
502,595 Reliance Energy, Ltd.(GDR) ..................... 24,574,835
4,847,028 Tata Power Company, Ltd. ....................... 41,418,274
65,993,109
Electric Products - Miscellaneous - 5.0%
1,218,080 LG Electronics, Inc. ........................... 73,914,259
822,205 Samsung Electronics Company, Ltd. .............. 390,308,250
464,222,509
Electronic Components - Miscellaneous - 1.0%
659,825 Fanuc, Ltd. .................................... 40,418,803
2,026,100 Omron Corp. .................................... 49,387,966
89,806,769
Electronic Components - Semiconductors - 1.1%
1,573,005 ATI Technologies, Inc. (New York Shares)* ...... 22,887,223
30,721,400 Chartered Semiconductor
Manufacturing, Ltd.* ......................... 27,084,017
2,567,166 STMicroelectronics N.V.** ...................... 56,593,348
106,564,588
Electronic Connectors - 0.3%
246,600 Hirose Electric Company, Ltd. .................. 28,267,772
Finance - Consumer Loans - 0.6%
356,100 Acom Company, Ltd. ............................. 25,363,110
469,000 Promise Company, Ltd. .......................... 31,024,421
56,387,531
See Notes to Schedules of Investments and Financial Statements.
Janus International & Global Funds April 30, 2004 19
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS WORLDWIDE FUND
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Finance - Investment Bankers/Brokers - 1.3%
7,577,945 Nomura Holdings, Inc. .......................... $123,054,483
Finance - Mortgage Loan Banker - 0.4%
2,942,800 Housing Development Finance
Corporation, Ltd. ............................ 39,360,860
Food - Catering - 0.8%
11,485,604 Compass Group PLC** ............................ 72,306,956
Food - Diversified - 0.3%
877,767 Koninklijke Numico N.V.*,** .................... 24,306,417
Gambling-Non Hotel - 0.4%
2,073,980 OPAP S.A.** .................................... 39,580,141
Gas - Distribution - 0.5%
12,142,000 Tokyo Gas Company, Ltd. ........................ 45,000,933
Human Resources - 0.6%
474,343 Adecco S.A.** .................................. 21,200,198
2,113,204 Vedior N.V.** .................................. 30,702,501
51,902,699
Import/Export - 0.3%
3,114,000 Mitsubishi Corp. ............................... 29,685,361
Internet Security - 0.4%
1,565,047 Check Point Software Technologies, Ltd.
(New York Shares)* ........................... 36,669,051
Machine Tools and Related Products - 0.6%
1,731,833 Sandvik A.B.# .................................. 56,333,964
Machinery - Construction and Mining - 1.7%
1,839,854 Atlas Copco A.B.- Class A# ..................... 64,544,028
16,825,000 Komatsu, Ltd. .................................. 95,898,917
160,442,945
Machinery - Electrical - 0.5%
698,408 Schneider Electric S.A.** ...................... 47,051,690
Machinery - General Industrial - 0.7%
1,848,340 MAN A.G.** ..................................... 67,689,730
Medical - Biomedical and Genetic - 1.2%
2,052,695 Amgen, Inc.* ................................... 115,505,148
Medical - Drugs - 5.4%
2,073,895 Abbott Laboratories ............................ 91,292,858
1,179,373 Altana A.G.** .................................. 75,071,555
2,129,300 Chugai Pharmaceutical Company, Ltd. ............ 32,222,654
2,270,535 Roche Holding A.G.** ........................... 238,155,761
1,322,300 Sankyo Company, Ltd. ........................... 24,503,679
1,019,600 Takeda Chemical Industries, Ltd. ............... 41,114,766
502,361,273
Medical - Generic Drugs - 0.7%
1,061,704 Teva Pharmaceutical Industries, Ltd. (ADR)# .... 65,358,498
Medical - HMO - 2.9%
1,597,180 Anthem, Inc.*,# ................................ 141,478,204
2,141,010 UnitedHealth Group, Inc. ....................... 131,629,295
273,107,499
Medical Instruments - 1.4%
2,675,021 Medtronic, Inc. ................................ 134,981,560
Metal - Diversified - 3.4%
3,405,425 Inco, Ltd. (New York Shares)*,# ................ 97,905,969
1,405,601 MMC Norilsk Nickel (ADR) ....................... 83,352,139
5,243,342 Rio Tinto PLC** ................................ 115,020,638
4,412,724 Vedanta Resources PLC*,** ...................... 23,945,620
320,224,366
Shares or Principal Amount Market Value
================================================================================
Money Center Banks - 1.2%
13,603,428 ICICI Bank, Ltd. ............................... $ 96,420,069
1,241,455 ICICI Bank, Ltd. (ADR)# ........................ 19,242,553
115,662,622
Multi-Line Insurance - 0.6%
2,646,911 ING Groep N.V.** ............................... 56,733,106
Multimedia - 1.0%
5,323,910 Time Warner, Inc.* ............................. 89,548,166
Networking Products - 1.6%
7,254,275 Cisco Systems, Inc.* ........................... 151,396,719
Office Automation and Equipment - 2.1%
3,798,000 Canon, Inc. .................................... 199,269,811
Oil Companies - Exploration and Production - 2.2%
674,290 Canadian Natural Resources, Ltd.# .............. 36,968,890
63,947,500 CNOOC, Ltd. .................................... 23,161,067
1,008,723 EnCana Corp. ................................... 39,461,405
4,190,303 Oil and Natural Gas Corporation, Ltd. .......... 79,151,215
555,332 Talisman Energy, Inc.# ......................... 31,484,629
210,227,206
Oil Companies - Integrated - 5.6%
193,722,000 China Petroleum and Chemical Corp. ............. 67,059,335
1,228,543 Lukoil (ADR) ................................... 133,911,186
2,028,495 Petroleo Brasileiro S.A. (ADR)# ................ 58,623,506
15,476,900 PTT Public Company, Ltd.(beta),(sigma).......... 56,476,566
3,084,079 Suncor Energy, Inc. ............................ 73,331,673
327,656 Total S.A. - Class B** ......................... 60,605,740
1,755,141 Yukos (ADR)# ................................... 78,103,774
528,111,780
Paper and Related Products - 0.2%
522,115 Aracruz Celulose S.A. (ADR) .................... 16,258,661
Petrochemicals - 4.4%
237,120 Honam Petrochemical Corp. ...................... 8,831,247
4,975,215 Indian Petrochemicals Corp. .................... 21,167,319
1,807,880 LG Chem, Ltd. .................................. 73,033,206
1,151,920 LG Petrochemical Company, Ltd. ................. 23,119,884
24,414,017 Reliance Industries, Ltd. ...................... 288,993,446
415,145,102
Property and Casualty Insurance - 1.2%
4,238 Millea Holdings, Inc. .......................... 60,293,235
5,447,000 Mitsui Sumitomo Insurance Company, Ltd. ........ 51,283,884
111,577,119
Publishing - Books - 0.4%
3,892,916 Reed Elsevier PLC** ............................ 36,243,675
Real Estate Management/Services - 0.5%
3,859,000 Mitsubishi Estate Company, Ltd. ................ 45,634,498
Reinsurance - 0.3%
726,353 Hannover Rueckversicherung A.G.** .............. 24,972,188
Retail - Automobile - 0%
71,570 CarMax, Inc.*,# ................................ 1,855,094
Retail - Discount - 1.1%
169,510 Shinsegae Company, Ltd. ........................ 38,283,675
20,944,000 Wal-Mart de Mexico S.A. de C.V. ................ 61,250,238
99,533,913
See Notes to Schedules of Investments and Financial Statements.
20 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Shares or Principal Amount Market Value
================================================================================
Rubber and Vinyl - 0.4%
1,896,000 JSR Corp. ...................................... $ 39,945,630
Semiconductor Components/Integrated Circuits - 0.8%
78,848,000 United Microelectronics Corp.* ................. 70,730,596
Semiconductor Equipment - 1.0%
1,029,295 KLA-Tencor Corp.* .............................. 42,890,723
808,000 Tokyo Electron, Ltd. ........................... 49,202,664
92,093,387
Soap and Cleaning Preparations - 0.8%
3,000,435 Reckitt Benckiser PLC** ........................ 78,003,858
Steel - Producers - 2.7%
40,584,000 China Steel Corp. .............................. 36,161,541
2,026,000 China Steel Corp.(144A)(GDR)ss ................. 35,657,600
903,610 POSCO .......................................... 110,510,960
6,478,805 Tata Iron and Steel Company, Ltd. .............. 52,127,646
1,415,100 Usinas Siderurgicas de Minas Gerais S.A. ....... 14,165,406
248,623,153
Telecommunication Equipment - 0.3%
1,876,192 Alcatel S.A.** ................................. 27,956,199
Telecommunication Services - 0.8%
2,622,650 Amdocs, Ltd. (New York Shares)*,** ............. 69,631,358
Telephone - Integrated - 1.0%
4,370,515 Deutsche Telekom A.G.*,** ...................... 75,024,885
171,840 Korea Telecom Corp. ............................ 5,989,906
738,465 KT Corp. (ADR)# ................................ 13,661,603
94,676,394
Television - 2.1%
16,473,158 British Sky Broadcasting Group PLC** ........... 194,557,950
Tobacco - 0.3%
1,055,253 ITC, Ltd. ...................................... 25,522,315
- --------------------------------------------------------------------------------
Total Common Stock (cost $7,728,387,534)....................... 9,040,471,971
- --------------------------------------------------------------------------------
Other Securities - 3.6%
State Street Navigator Securities Lending
$337,972,590 Prime Portfolio+ (cost $337,972,590) ......... 337,972,590
- --------------------------------------------------------------------------------
Time Deposit - 3.4%
SouthTrust Bank, ETD
315,000,000 1.04%, 5/3/04 (cost $315,000,000) ............ 315,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $8,381,360,124) - 103.5%......... 9,693,444,561
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (3.5)% (330,871,516)
- --------------------------------------------------------------------------------
Net Assets - 100%.............................................. $9,362,573,045
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Australia $ 86,497,760 0.9%
Austria 39,782,719 0.4%
Bermuda 180,594,237 1.9%
Brazil 298,023,273 3.1%
Canada 302,039,789 3.1%
China 67,059,335 0.7%
France 250,472,142 2.6%
Germany 282,101,414 2.9%
Greece 39,580,141 0.4%
Hong Kong 23,161,067 0.2%
India 728,833,670 7.5%
Ireland 41,907,240 0.4%
Isreal 102,027,549 1.1%
Japan 1,789,367,032 18.5%
Mexico 185,798,543 1.9%
Netherlands 168,335,372 1.7%
Russia 295,367,099 3.0%
Singapore 134,360,281 1.4%
South Korea 862,169,807 8.9%
Spain 15,948,535 0.2%
Sweden 120,877,992 1.2%
Switzerland 444,890,345 4.6%
Taiwan 249,281,850 2.6%
Thailand 85,974,322 0.9%
United Kingdom 1,031,032,564 10.6%
United States++ 1,867,960,483 19.3%
- --------------------------------------------------------------------------------
Total $9,693,444,561 100.0%
++Includes Short-Term Securities (12.5% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 10/15/04 33,000,000 $ 57,647,103 $ 465,896
British Pound 11/19/04 75,600,000 131,698,311 3,178,792
Euro 9/27/04 78,400,000 93,662,125 2,235,441
Swiss Franc 9/27/04 37,600,000 29,120,574 726,618
Swiss Franc 10/15/04 42,100,000 32,623,082 (188,567)
- --------------------------------------------------------------------------------
Total $ 344,751,195 $ 6,418,180
See Notes to Schedules of Investments and Financial Statements.
Janus International & Global Funds April 30, 2004 21
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
As of April 30, 2004 (unaudited) Janus Janus Janus
(all numbers in thousands except net Global Life Global Global Janus Janus
asset value per share) Sciences Opportunities Technology Overseas Worldwide
Fund Fund(1) Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Assets:
Investments at cost(2) $ 1,131,973 $ 134,868 $ 1,240,857 $ 2,136,771 $ 8,381,360
Investments at value(2) $ 1,517,174 $ 169,468 $ 1,557,578 $ 2,704,461 $ 9,693,445
Cash 1,548 548 1,538 1,069 1,513
Receivables:
Investments sold 22,535 2,325 19,038 25,459 191,740
Fund shares sold 1,246 94 444 1,623 4,985
Dividends 992 233 966 12,451 27,721
Interest 32 -- 347 113 526
Other assets 11 1 11 28 124
Forward currency contracts 600 739 2,702 -- 6,607
- ---------------------------------------------------------------------------------------------------------------------------------
Total Assets 1,544,138 173,408 1,582,624 2,745,204 9,926,661
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Securities loaned (Note 1) 161,464 -- 102,772 102,740 337,973
Investments purchased 12,337 -- 7,995 22,890 168,447
Fund shares repurchased 1,070 169 1,460 48,696 48,585
Dividends -- -- -- -- 2
Advisory fees 726 93 855 1,492 5,367
Transfer agent fees and expenses 368 33 436 509 1,993
Foreign tax liability 520 -- -- 4,859 623
Accrued expenses 388 8 136 249 909
Forward currency contracts 65 -- 350 -- 189
- ---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 176,938 303 114,004 181,435 564,088
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets $ 1,367,200 $ 173,105 $ 1,468,620 $ 2,563,769 $ 9,362,573
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in-
surplus)* $ 2,134,539 $ 163,979 $ 4,053,050 $ 3,438,235 14,922,237
Undistributed net investment
income/(loss)* (3,564) (28) (5,341) 3,507 17,650
Undistributed net realized
gain/(loss) from investments and
foreign currency transactions* (1,149,008) (26,179) (2,898,138) (1,440,777) (6,895,156)
Unrealized appreciation/
(depreciation) of investments
and foreign currency translations 385,233(3) 35,333 319,049 562,804(3) 1,317,842(3)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 1,367,200 $ 173,105 $ 1,468,620 $ 2,563,769 $ 9,362,573
- ---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, $0.01 Par
Value (unlimited shares authorized) 78,294 13,351 146,043 119,971 237,429
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 17.46 $ 12.97 $ 10.06 $ 21.37 $ 39.43
- ---------------------------------------------------------------------------------------------------------------------------------
*See Note 3 in the Notes to the Financial Statements.
(1) Formerly named Janus Global Value Fund.
(2) Investments at cost and value include $157,531,928, $100,140,535,
$99,946,357 and $327,192,220 of securities loaned for Janus Global Life
Sciences Fund, Janus Global Technology Fund, Janus Overseas Fund and Janus
Worldwide Fund, respectively (Note 1).
(3) Net of foreign taxes on investments of $520,322, $4,859,049 and $622,533
for Janus Global Life Sciences Fund, Janus Overseas Fund and Janus
Worldwide Fund, respectively.
See Notes to Financial Statements.
22 Janus International & Global Funds April 30, 2004
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the six month period ended Janus Janus Janus
April 30, 2004 (unaudited) Global Life Global Global Janus Janus
(all numbers in thousands) Sciences Opportunities Technology Overseas Worldwide
Fund Fund(1) Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income:
Interest $ 33 $ 94 $ 864 $ 73 $ 677
Securities lending income 122 5 236 504 1,109
Dividends 3,345 814 5,786 20,159 71,822
Dividends from affiliates -- -- -- -- 35
Foreign tax withheld (269) (69) (599) (1,476) (7,495)
- -----------------------------------------------------------------------------------------------------------------------------
Total Investment Income 3,231 844 6,287 19,260 66,148
- -----------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 4,194 519 5,306 8,891 34,153
Transfer agent fees and expenses 1,788 216 2,433 2,970 11,619
Registration fees 22 3 19 40 71
Postage and mailing expenses 365 23 298 126 827
Custodian fees 50 19 98 379 1,229
Printing expenses 337 48 423 156 663
Audit fees 18 3 7 34 15
Trustees' fees and expenses 8 3 9 16 75
Other expenses 37 22 42 60 187
- -----------------------------------------------------------------------------------------------------------------------------
Total Expenses 6,819 856 8,635 12,672 48,839
- -----------------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (24) (2) (8) (24) (176)
- -----------------------------------------------------------------------------------------------------------------------------
Net Expenses 6,795 854 8,627 12,648 48,663
- -----------------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) (3,564) (10) (2,340) 6,612 17,485
- -----------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on Investments:
Net realized gain/(loss) from
securities transactions 105,774 12,921 55,425 273,385 1,053,759
Net realized gain/(loss) from foreign
currency transactions (3,504) (3,290) (5,639) (313) 35
Change in net unrealized appreciation/
(depreciation) of investments and
foreign currency translations 130,274(2) 6,791 (103,807) 5,676(2) (323,996)(2)
- -----------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on Investments 232,544 16,422 (54,021) 278,748 729,798
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations $ 228,980 $ 16,412 $ (56,361) $ 285,360 $ 747,283
- -----------------------------------------------------------------------------------------------------------------------------
(1) Formerly named Janus Global Value Fund.
(2) Net of foreign taxes on investments of $520,322, $4,859,049 and $622,533
for Janus Global Life Sciences Fund, Janus Overseas Fund and Janus
Worldwide Fund, respectively.
See Notes to Financial Statements.
Janus International & Global Funds April 30, 2004 23
- ------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the six month period ended April 30, 2004 (unaudited) Janus Global Life
and for the fiscal year ended October 31, 2003 Sciences Fund
(all numbers in thousands) 2004 2003
- ------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ (3,564) $ (3,681)
Net realized gain/(loss) from investment
and foreign currency transactions 102,270 (100,133)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 130,274 270,947
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations 228,980 167,133
- ------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- --
Net realized gain from investment transactions* -- --
- ------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions -- --
- ------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 70,440 64,423
Redemption fees 25 44
Shares issued in connection with acquistion* N/A N/A
Reinvested dividends and distributions -- --
Shares repurchased (196,465) (357,103)
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (126,000) (292,636)
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 102,980 (125,503)
Net Assets:
Beginning of period 1,264,220 1,389,723
- ------------------------------------------------------------------------------------------------------
End of period $ 1,367,200 $ 1,264,220
- ------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 433,852 $ 1,717,055
Proceeds from sales of securities 580,061 1,989,809
Purchases of long-term U.S. Government obligations -- --
Proceeds from sales of long-term U.S. Government obligations -- --
- ------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ (3,564) $ --
- ------------------------------------------------------------------------------------------------------
*See Notes 3 and 5 in Notes to Financial Statements.
(1) Formerly named Janus Global Value Fund.
See Notes to Financial Statements.
24 Janus International & Global Funds April 30, 2004
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
For the six month period ended April 30, 2004 (unaudited) Janus Global Janus Global
and for the fiscal year ended October 31, 2003 Opportunities Fund(1) Technology Fund
(all numbers in thousands) 2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ (10) $ 357 $ (2,340) $ (3,598)
Net realized gain/(loss) from investment
and foreign currency transactions 9,631 (18,637) 49,786 (79,265)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 6,791 56,769 (103,807) 568,437
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations 16,412 38,489 (56,361) 485,574
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (382) (641) -- --
Net realized gain from investment transactions* -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (382) (641) -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 37,622 108,668 134,061 217,601
Redemption fees 24 81 130 102
Shares issued in connection with acquistion* N/A N/A N/A 22,322
Reinvested dividends and distributions 375 612 -- --
Shares repurchased (24,605) (152,440) (264,941) (319,382)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 13,416 (43,079) (130,750) (79,357)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 29,446 (5,231) (187,111) 406,217
Net Assets:
Beginning of period 143,659 148,890 1,655,731 1,249,514
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 173,105 $ 143,659 $ 1,468,620 $ 1,655,731
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 41,650 $ 39,084 $ 193,696 $ 612,319
Proceeds from sales of securities 47,859 81,472 321,363 609,191
Purchases of long-term U.S. Government obligations -- -- -- --
Proceeds from sales of long-term U.S. Government obligations -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ (28) $ 364 $ (5,341) $ (3,001)
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
For the six month period ended April 30, 2004 (unaudited) Janus Janus
and for the fiscal year ended October 31, 2003 Overseas Fund Worldwide Fund
(all numbers in thousands) 2004 2003 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 6,612 $ 34,985 $ 17,485 $ 120,474
Net realized gain/(loss) from investment
and foreign currency transactions 273,072 (42,376) 1,053,794 (604,714)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 5,676 703,648 (323,996) 2,074,883
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations 285,360 696,257 747,283 1,590,643
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (33,320) (33,135) (102,305) (122,640)
Net realized gain from investment transactions* -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (33,320) (33,135) (102,305) (122,640)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 402,110 3,259,580 371,293 2,089,585
Redemption fees 190 142 223 170
Shares issued in connection with acquistion* N/A 8,889 N/A N/A
Reinvested dividends and distributions 32,562 31,585 100,533 120,183
Shares repurchased (934,570) (4,394,478) (3,095,109) (5,802,454)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (499,708) (1,094,282) (2,623,060) (3,592,516)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (247,668) (431,160) (1,978,082) (2,124,513)
Net Assets:
Beginning of period 2,811,437 3,242,597 11,340,655 13,465,168
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 2,563,769 $ 2,811,437 $ 9,362,573 $ 11,340,655
- ---------------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 819,288 $ 2,932,224 $ 5,355,929 $ 12,577,254
Proceeds from sales of securities 1,311,044 4,002,119 8,057,960 15,463,364
Purchases of long-term U.S. Government obligations -- -- -- --
Proceeds from sales of long-term U.S. Government obligations -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ 3,507 $ 30,217 $ 17,650 $ 102,470
- ---------------------------------------------------------------------------------------------------------------------------------
Janus International & Global Funds April 30, 2004 25
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) Janus Global Life Sciences Fund
and through each fiscal year or period ended October 31 2004 2003 2002
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 14.61 $ 12.82 $ 16.96
- ------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.05) -- --
Net gains/(losses) on securities
(both realized and unrealized) 2.90 1.79 (4.14)
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.85 1.79 (4.14)
- ------------------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* -- -- --
Distributions (from capital gains)* -- -- --
Redemption fees --(2) --(2) N/A
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions and Other -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.46 $ 14.61 $ 12.82
- ------------------------------------------------------------------------------------------------------------------------
Total Return** 19.51% 13.87% (24.35)%
- ------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,367,200 $ 1,264,220 $ 1,389,723
Average Net Assets for the Period (in thousands) $ 1,297,499 $ 1,296,095 $ 1,927,734
Ratio of Gross Expenses to Average Net Assets***(3) 1.06% 0.99% 0.89%
Ratio of Net Expenses to Average Net Assets***(3) 1.05% 0.98% 0.88%
Ratio of Net Investment Income/(Loss) to Average Net Assets*** (0.55)% (0.28)% (0.42)%
Portfolio Turnover Rate*** 68% 135% 73%
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) Janus Global Life Sciences Fund
and through each fiscal year or period ended October 31 2001 2000 1999(1)
- -----------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 22.41 $ 11.97 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) -- .02 --
Net gains/(losses) on securities
(both realized and unrealized) (5.43) 10.42 1.97
- ------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations (5.43) 10.44 1.97
- ------------------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.02) -- --
Distributions (from capital gains)* -- -- --
Redemption fees N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions and Other (.02) -- --
- ------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 16.96 $ 22.41 $ 11.97
- ------------------------------------------------------------------------------------------------------------------------
Total Return** (24.26)% 87.22% 19.70%
- ------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,415,086 $ 4,267,458 $ 344,436
Average Net Assets for the Period (in thousands) $ 2,957,777 $ 2,987,158 $ 227,552
Ratio of Gross Expenses to Average Net Assets***(3) 0.93% 0.97% 1.21%
Ratio of Net Expenses to Average Net Assets***(3) 0.91% 0.94% 1.19%
Ratio of Net Investment Income/(Loss) to Average Net Assets*** (0.32)% 0.14% (0.41)%
Portfolio Turnover Rate*** 84% 147% 235%
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) Janus Global Opportunities Fund(4)
and through each fiscal year or period ended October 31 2004 2003 2002 2001(5)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 11.66 $ 8.64 $ 9.68 $ 10.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(6) .03 .03 .02
Net gains/(losses) on securities
(both realized and unrealized) 1.34 3.02 (1.04) (.34)
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.34 3.05 (1.01) (.32)
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.03) (.04) (.02) --
Distributions (from capital gains)* -- -- (.01) --
Redemption fees --(2) .01 N/A N/A
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions and Other (.03) (.03) (.03) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.97 $ 11.66 $ 8.64 $ 9.68
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 11.52% 35.51% (10.59)% (3.10)%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 173,105 $ 143,659 $ 148,890 $ 63,425
Average Net Assets for the Period (in thousands) $ 160,575 $ 132,935 $ 155,411 $ 54,832
Ratio of Gross Expenses to Average Net Assets***(3) 1.07% 1.17% 1.19% 1.52%
Ratio of Net Expenses to Average Net Assets***(3) 1.07% 1.16% 1.16% 1.50%
Ratio of Net Investment Income/(Loss) to
Average Net Assets*** (.01)% 0.27% 0.40% 0.64%
Portfolio Turnover Rate*** 60% 31% 84% 0%
*See Note 3 in Notes to Financial Statements.
**Total return not annualized for periods of less than one full year.
***Annualized for periods of less than one full year.
(1) Fiscal period from December 31, 1998 (inception date) through October 31,
1999.
(2) Redemption fees aggregated less than $.01 on a per share basis for the
fiscal year or period ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) Formerly named Janus Global Value Fund.
(5) Fiscal period from June 29, 2001 (inception date) through October 31, 2001.
(6) Net investment income/(loss) aggregated less than $.01 on a per share basis
for the fiscal year or period ended.
See Notes to Financial Statements.
26 Janus International & Global Funds April 30, 2004
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) and through Janus Global Technology Fund
each fiscal year or period ended October 31 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 10.44 $ 7.41 $ 10.83
- -------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) (.02) --(2) (.01)
Net gains/(losses) on securities
(both realized and unrealized) (.36) 3.03 (3.41)
- -------------------------------------------------------------------------------------------------------------
Total from Investment Operations (.38) 3.03 (3.42)
- -------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* -- -- --
Distributions (from capital gains)* -- -- --
Tax return of capital* -- -- --
Redemption fees --(3) --(3) N/A
- -------------------------------------------------------------------------------------------------------------
Total Distributions and Other -- -- --
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.06 $ 10.44 $ 7.41
- -------------------------------------------------------------------------------------------------------------
Total Return** (3.64)% 41.08% (31.67)%
- -------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 1,468,620 $ 1,655,731 $ 1,249,514
Average Net Assets for the Period (in thousands) $ 1,641,621 $ 1,332,510 $ 1,906,518
Ratio of Gross Expenses to Average Net Assets***(4) 1.06% 1.07% 0.96%
Ratio of Net Expenses to Average Net Assets***(4) 1.06% 1.06% 0.94%
Ratio of Net Investment Income/(Loss) to
Average Net Assets*** (0.29)% (0.27)% (0.14)%
Portfolio Turnover Rate*** 24% 48% 66%
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) and through Janus Global Technology Fund
each fiscal year or period ended October 31 2001 2000 1999(1)
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 27.44 $ 20.95 $ 10.00
- -------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .36 (.02) --
Net gains/(losses) on securities
(both realized and unrealized) (16.64) 6.71 10.95
- -------------------------------------------------------------------------------------------------------------
Total from Investment Operations (16.28) 6.69 10.95
- -------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.16) (.02) --
Distributions (from capital gains)* -- (.18) --
Tax return of capital* (.17) -- --
Redemption fees N/A N/A N/A
- -------------------------------------------------------------------------------------------------------------
Total Distributions and Other (.33) (.20) --
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 10.83 $ 27.44 $ 20.95
- -------------------------------------------------------------------------------------------------------------
Total Return** (59.95)% 31.99% 109.40%
- -------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,275,691 $ 7,564,492 $ 3,334,514
Average Net Assets for the Period (in thousands) $ 4,009,850 $ 8,883,777 $ 1,265,552
Ratio of Gross Expenses to Average Net Assets***(4) 0.92% 0.91% 1.04%
Ratio of Net Expenses to Average Net Assets***(4) 0.90% 0.90% 1.02%
Ratio of Net Investment Income/(Loss) to
Average Net Assets*** 0.55% 0.17% (0.11)%
Portfolio Turnover Rate*** 60% 47% 31%
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) and through Janus Overseas Fund
each fiscal year ended October 31 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 19.50 $ 15.44 $ 18.44
- -------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .06 .24 .15
Net gains/(losses) on securities
(both realized and unrealized) 2.05 3.98 (3.05)
- -------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.11 4.22 (2.90)
- -------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.24) (.16) (.10)
Distributions (from capital gains)* -- -- --
Redemption fees --(3) --(3) N/A
- -------------------------------------------------------------------------------------------------------------
Total Distributions and Other (.24) (.16) (.10)
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.37 $ 19.50 $ 15.44
- -------------------------------------------------------------------------------------------------------------
Total Return** 10.94% 27.62% (15.78)%
- -------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 2,563,769 $ 2,811,437 $ 3,242,597
Average Net Assets for the Period (in thousands) $ 2,750,731 $ 2,897,732 $ 4,445,864
Ratio of Gross Expenses to Average Net Assets***(4) 0.93% 0.94% 0.91%
Ratio of Net Expenses to Average Net Assets***(4) 0.92% 0.94% 0.89%
Ratio of Net Investment Income/(Loss) to
Average Net Assets*** 0.48% 1.21% 0.69%
Portfolio Turnover Rate*** 61% 104% 63%
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) and through Janus Overseas Fund
each fiscal year ended October 31 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 33.44 $ 25.35 $ 17.95
- -------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .28 .01 --
Net gains/(losses) on securities
(both realized and unrealized) (11.42) 8.22 7.49
- -------------------------------------------------------------------------------------------------------------
Total from Investment Operations (11.14) 8.23 7.49
- -------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.20) -- (.09)
Distributions (from capital gains)* (3.66) (.14) --
Redemption fees N/A N/A N/A
- -------------------------------------------------------------------------------------------------------------
Total Distributions and Other (3.86) (.14) (.09)
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 18.44 $ 33.44 $ 25.35
- -------------------------------------------------------------------------------------------------------------
Total Return** (37.09)% 32.59% 41.77%
- -------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 4,988,637 $ 9,380,308 $ 5,639,980
Average Net Assets for the Period (in thousands) $ 6,945,505 $ 9,862,835 $ 4,577,552
Ratio of Gross Expenses to Average Net Assets***(4) 0.87% 0.89% 0.92%
Ratio of Net Expenses to Average Net Assets***(4) 0.85% 0.88% 0.91%
Ratio of Net Investment Income/(Loss) to
Average Net Assets*** 0.77% 0.22% (0.03)%
Portfolio Turnover Rate*** 65% 62% 92%
*See Note 3 in Notes to Financial Statements.
**Total return not annualized for periods of less than one full year.
***Annualized for periods of less than one full year.
(1) Fiscal period from December 31, 1998 (inception date) through October 31,
1999.
(2) Net investment income/(loss) aggregated less than $.01 on a per share basis
for the fiscal year or period ended.
(3) Redemption fees aggregated less than $.01 on a per share basis for the
fiscal year or period ended.
(4) See "Explanations of Charts, Tables and Financial Statements."
See Notes to Financial Statements.
Janus International & Global Funds April 30, 2004 27
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) and through Janus Worldwide Fund
each fiscal year ended October 31 2004 2003 2002
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 37.34 $ 32.87 $ 40.17
- -------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .10 .37 .27
Net gains/(losses) on securities
(both realized and unrealized) 2.35 4.41 (7.56)
- -------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.45 4.78 (7.29)
- -------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.36) (.31) (.01)
Distributions (from capital gains)* -- -- --
Redemption fees --(1) --(1) N/A
- -------------------------------------------------------------------------------------------------------------
Total Distributions and Other (.36) (.31) (.01)
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 39.43 $ 37.34 $ 32.87
- -------------------------------------------------------------------------------------------------------------
Total Return** 6.60% 14.65% (18.15)%
- -------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 9,362,573 $ 11,340,655 $ 13,465,168
Average Net Assets for the Period (in thousands) $ 10,567,685 $ 12,123,565 $ 18,185,263
Ratio of Gross Expenses to Average Net Assets***(2) 0.93% 0.93% 0.87%
Ratio of Net Expenses to Average Net Assets***(2) 0.93% 0.92% 0.86%
Ratio of Net Investment Income/(Loss) to
Average Net Assets*** 0.33% 0.99% 0.62%
Portfolio Turnover Rate*** 105% 108% 73%
For a share outstanding during the six month period
ended April 30, 2004 (unaudited) and through Janus Worldwide Fund
each fiscal year ended October 31 2001 2000 1999
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 70.74 $ 58.67 $ 41.52
- -------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .39 .03 .02
Net gains/(losses) on securities
(both realized and unrealized) (24.04) 13.15 17.51
- -------------------------------------------------------------------------------------------------------------
Total from Investment Operations (23.65) 13.18 17.53
- -------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.41) (.03) (.18)
Distributions (from capital gains)* (6.51) (1.28) --
Redemption fees N/A N/A N/A
- -------------------------------------------------------------------------------------------------------------
Total Distributions and Other (6.92) (1.31) (.18)
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 40.17 $ 70.74 $ 58.87
- -------------------------------------------------------------------------------------------------------------
Total Return** (36.56)% 22.41% 42.33%
- -------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 20,331,383 $ 37,775,243 $ 24,091,321
Average Net Assets for the Period (in thousands) $ 27,993,000 $ 38,726,913 $ 18,892,896
Ratio of Gross Expenses to Average Net Assets***(2) 0.87% 0.88% 0.89%
Ratio of Net Expenses to Average Net Assets***(2) 0.85% 0.86% 0.88%
Ratio of Net Investment Income/(Loss) to
Average Net Assets*** 0.53% 0.13% 0.07%
Portfolio Turnover Rate*** 78% 58% 68%
*See Note 3 in Notes to Financial Statements.
**Total return not annualized for periods of less than one full year.
***Annualized for periods of less than one full year.
(1) Redemption fees aggregated less than $.01 on a per share basis for the
fiscal year or period ended.
(2) See "Explanations of Charts, Tables and Financial Statements."
See Notes to Financial Statements.
28 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (unaudited)
Dow Jones Industrial Average A price-weighted average of 30 actively traded
Blue-Chip Stocks.
Morgan Stanley Capital Is a market capitalization weighted index
International EAFE(R) Index composed of companies representative of the
market structure of 21 Developed Market
countries in Europe, Australasia and the
Far East.
Morgan Stanley Capital Is a market capitalization weighted index
International World IndexSM composed of companies representative of the
market structure of 23 Developed Market
countries in North America, Europe and the
Asia/Pacific Region.
NASDAQ Composite The National Association of Securities Dealers
Stock Index Automated Quotation System is a nationwide
computerized quotation system for over 5,500
over-the-counter stocks. The index is compiled
of more than 4,800 stocks that are traded via
this system.
S&P 500(R)Index The Standard & Poor's Composite Index of 500
stocks, a widely recognized, unmanaged index of
common stock prices.
144A Securities sold under Rule 144A of the
Securities Act of 1933 and are subject to legal
and/or contractual restrictions on resale and
may not be publicly sold without registration
under the 1933 Act.
ADR American Depositary Receipt
ETD Euro Time Deposit
GDR Global Depositary Receipt
PLC Public Limited Company
New York Shares Securities of foreign companies trading on the
New York Stock Exchange
NVDR Non-Voting Depositary Receipt
SDR Swedish Depositary Receipt
*Non-income-producing security.
**A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts and/or forward
currency contracts.
(omega) Rate is subject to change. Rate shown reflects current rate.
(delta) Security is a defaulted security in Janus Global Technology Fund with
accrued interest in the amount of $1,268,000 that was written-off December
10, 2001.
(beta) Security is illiquid.
#Loaned security, a portion or all of the security is on loan as of April
30, 2004.
+The security is purchased with the cash collateral received from Securities
on Loan (Note 1).
(sigma) Fair valued security.
Janus International & Global Funds April 30, 2004 29
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (unaudited) (continued)
ss. SCHEDULE OF RESTRICTED AND ILLIQUID SECURITIES
Value as
Acquisition Acquisition % of
Date Cost Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------
Janus Global Life Sciences Fund
Ligand Pharmaceuticals, Inc. 7/2/03 $ 17,250,000 $ 32,115,000 2.3%
- --------------------------------------------------------------------------------------------------------------------------
Janus Global Technology Fund
Candescent Technologies Corp., 8.00%
convertible senior subordinated debentures,
due 5/1/03 (144A)(sigma) 3/6/00-2/23/01 $ 24,227,500 -- --
Chi Mei Optoelectronics Corp. (144A) (GDR) 10/21/03 $ 18,315,317 $ 30,908,895 2.1%
Mercury Interactive Corp., 4.75%
convertible notes, due 7/1/07 (144A) 6/27/00 $ 14,630,000 $ 14,794,587 1.0%
Yipes Communication, Inc.(sigma) 9/18/00 $ 14,999,998 -- --
- --------------------------------------------------------------------------------------------------------------------------
$ 72,172,815 $ 45,703,482 3.1%
- --------------------------------------------------------------------------------------------------------------------------
Janus Worldwide Fund
China Steel Corp. (144A) (GDR) 10/16/03 $ 31,524,560 $ 35,657,600 0.4%
Erste Bank der Oesterreichischen Sparkassen A.G. (144A) 1/8/04 $ 24,324,053 $ 27,310,893 0.3%
- --------------------------------------------------------------------------------------------------------------------------
$ 55,848,613 $ 62,968,493 0.7%
- --------------------------------------------------------------------------------------------------------------------------
The funds have registration rights for certain restricted securities held as of
April 30, 2004. The issuer incurs all registration costs.
30 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(pound) The Investment Company Act of 1940 defines affiliates as those companies
in which a fund holds 5% or more of the outstanding voting securities at
any time during the six month period ended April 30, 2004.
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 4/30/04
- -------------------------------------------------------------------------------------------------------------------
Janus Global Technology Fund
Yipes Communication Group, Inc. -- -- -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
Repurchase Agreements held by a fund are fully collateralized, and such
collateral is in the possession of a fund's custodian or subcustodian. The
collateral is evaluated daily to ensure its market value exceeds the current
market value of the repurchase agreements, including accrued interest. In the
event of default on the obligation to repurchase, the fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
Janus International & Global Funds April 30, 2004 31
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
The following section describes the organization and significant accounting
policies and provides more detailed information about the schedules and tables
that appear throughout this report. In addition, the Notes to Financial
Statements explain the methods used in preparing and presenting this report.
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Janus Global Life Sciences Fund, Janus Global Opportunities Fund (Formerly Janus
Global Value Fund), Janus Global Technology Fund, Janus Overseas Fund and Janus
Worldwide Fund (collectively the "Funds" and individually a "Fund") are series
funds. The Funds are part of Janus Investment Fund (the "Trust"), which was
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940 (the "1940 Act") as an open-end management
investment company. The Trust has nineteen funds which invest primarily in
equity securities. Each of the Funds in this report are classified as
diversified as defined in the1940 Act, with the exception of Janus Global
Opportunities Fund and Global Technology Fund, which are classified as
nondiversified. The Funds are no-load investments.
The following accounting policies have been consistently followed by the Funds
and are in conformity with accounting principles generally accepted in the
United States of America in the investment company industry.
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a principal
securities exchange (U.S. or foreign) and on the NASDAQ National Market.
Securities traded on over-the-counter markets and listed securities for which no
sales are reported are valued at the latest bid price (or yield equivalent
thereof) obtained from one or more dealers making a market for such securities
or by a pricing service approved by the Funds' Trustees. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. Currently, foreign securities and currencies are converted to U.S.
dollars using the applicable rate in effect as of 1:00 p.m. (New York time). It
is anticipated that sometime during the third calendar quarter, the conversion
to U.S. dollars will use the applicable rate in effect as of the close of the
New York Stock Exchange ("NYSE"). When market quotations are not readily
available or are deemed not to be reliable because of events or circumstances
that may affect the value of portfolio securities are identified between the
closing of their principal markets and the closing of the NYSE, then their fair
value is determined in good faith under procedures established by and under the
supervision of the Funds' Trustees. The Funds may use a systematic fair
valuation model provided by an independent third party to value international
equity securities in order to adjust for stale pricing, which may occur between
the close of the foreign exchanges and the close of the NYSE.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold
(trade date). Dividend income is recorded on the ex-dividend date. Certain
dividends from foreign securities will be recorded as soon as the Trust is
informed of the dividend if such information is obtained subsequent to the
ex-dividend date. Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. Gains and losses are determined on the
identified cost basis, which is the same basis used for federal income tax
purposes.
SECURITIES LENDING
Under procedures adopted by the Trustees, the Funds may lend securities to
qualified parties (typically brokers or other financial institutions) who need
to borrow securities in order to complete certain transactions such as covering
short sales, avoiding failures to deliver securities or completing arbitrage
activities. The Funds may seek to earn additional income through securities
lending. 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,
such loans will only be made if Janus Capital Management LLC ("Janus Capital")
believes the benefit from granting such loans justifies the risk. A Fund will
not have the right to vote on securities while they are being lent, however, the
Fund will attempt to call back the loan and vote the proxy if time permits. All
loans will be continuously secured by collateral which consists of cash, U.S.
Government securities, domestic and foreign short-term debt instruments, letters
of credit and such other collateral permitted by the Securities Exchange
Commission ("SEC"). The lending agent may also invest the cash collateral in the
State Street Navigator Securities Lending Prime Portfolio or investments in
unaffiliated money market funds or accounts that comply with Rule 2a-7 of the
1940 Act relating to money market funds and mutually agreed to by the Funds and
the lending agent.
As of April 30, 2004, the following Funds had on loan securities as indicated:
Value at
Fund April 30, 2004
- --------------------------------------------------------------------------------
Janus Global Life Sciences Fund $ 157,531,928
Janus Global Technology Fund 100,140,535
Janus Overseas Fund 99,946,357
Janus Worldwide Fund 327,192,220
- --------------------------------------------------------------------------------
As of April 30, 2004, the following Funds received cash collateral in accordance
with securities lending activity as indicated:
Collateral at
Fund April 30, 2004
- --------------------------------------------------------------------------------
Janus Global Life Sciences Fund $ 161,463,701
Janus Global Technology Fund 102,771,579
Janus Overseas Fund 102,740,346
Janus Worldwide Fund 337,972,590
- --------------------------------------------------------------------------------
32 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
All cash collateral received was invested into the State Street Navigator
Securities Lending Prime Portfolio, except for Janus Global Life Sciences Fund
which invested $2,668,788 in a letter of credit.
The borrower pays fees at the Funds' direction to its lending agent. The lending
agent may retain a portion of the interest earned. The cash collateral invested
by the lending agent is disclosed in the Schedule of Investments. The lending
fees and the Funds' portion of the interest income earned on cash collateral is
included on the Statement of Operations.
FORWARD CURRENCY TRANSACTIONS
The Funds may enter into forward currency contracts in order to reduce their
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to lock in the U.S. dollar cost of firm purchase and sale
commitments for securities denominated in or exposed to foreign currencies. A
forward currency exchange contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated rate. The gain or loss arising from
the difference between the U.S. dollar cost of the original contract and the
value of the foreign currency in U.S. dollars upon closing of such contract is
included in net realized gain or loss from foreign currency transactions on the
Statement of Operations.
Forward currency contracts held by the Funds are fully collateralized by other
securities, which are denoted (if applicable) in the accompanying Schedule of
Investments. Such collateral is in the possession of the Funds' custodian. The
collateral is evaluated daily to ensure its market value equals or exceeds the
current market value of the corresponding forward currency contracts.
FOREIGN CURRENCY TRANSLATIONS
The Funds do not isolate that portion of the results of operations resulting
from 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 on investments
and foreign currency translation 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 security transactions and income.
Foreign-denominated assets and forward currency contracts may involve more risks
than domestic transactions, including currency risk, political and economic
risk, regulatory risk and market risk. Risks may arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
INITIAL PUBLIC OFFERINGS
The Funds may invest in initial public offerings ("IPOs"). A Fund's performance
may be significantly affected, positively or negatively, by investments in IPOs.
IPOs and other investment techniques may have a magnified performance impact on
a fund with a small asset base. The Funds may not experience similar performance
as their assets grow.
WHEN-ISSUED SECURITIES
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. The price of the underlying securities and date when the securities will
be delivered and paid for are fixed at the time the transaction is negotiated.
Losses may arise due to changes in the market value of the securities or from
the inability of counterparties to meet the terms of the contract. In connection
with such purchases, the Funds are required to hold liquid assets as collateral
with the Fund's custodian sufficient to cover the purchase price.
RESTRICTED SECURITY TRANSACTIONS
Restricted securities held by the Funds may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. 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 a Fund to sell a security at a fair price and may substantially delay the
sale of the security which each fund seeks to sell. In addition, these
securities may exhibit greater price volatility than securities for which
secondary markets exist.
DIVIDEND DISTRIBUTIONS
The Funds generally declare and distribute dividends and capital gains (if any)
annually. The majority of dividends and capital gains distributions from a Fund
will be automatically reinvested into additional shares of that Fund.
ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
FEDERAL INCOME TAXES
No provision for income taxes is included in the accompanying financial
statements as the Funds intend to distribute to shareholders all taxable
investment income and realized gains and otherwise comply with Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
Janus International & Global Funds April 30, 2004 33
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
PROXY VOTING
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to their portfolio securities is available (i) without
charge, upon request, by calling 1-800-525-3713 (toll free); (ii) on the Fund's
website at www.janus.com; and (iii) on the SEC's website at http://www.sec.gov.
Starting in August 2004, each Fund's proxy voting record for the one-year period
ending each June 30th will be available through www.janus.com and from the SEC
through the SEC's website at www.sec.gov.
2. AGREEMENTS
The advisory agreements with the Funds spell out the fees that the Funds must
pay for the period. Each of the Funds' management fee is equal to 0.65% of
average daily net assets. The advisory fee is calculated daily and paid monthly.
Each of the Funds pays Janus Services LLC ("Janus Services"), a wholly-owned
subsidiary of Janus Capital, an asset-weighted average annual fee based on the
proportion of each of the Fund's total net assets sold directly and the
proportion of each Fund's net assets sold through financial intermediaries. The
applicable fee rates are 0.16% of net assets on the proportion of assets sold
directly and 0.21% on the proportion of assets sold through intermediaries. In
addition, Janus Services receives $4.00 per shareholder account for transfer
agent services plus reimbursement of certain out-of-pocket expenses (primarily
postage and telephone charges).
A 2.00% redemption fee may be imposed on shares of Janus Global Life Sciences
Fund, Janus Global Opportunities Fund, Janus Global Technology Fund, Janus
Overseas Fund and Janus Worldwide Fund held for three months or less. Effective
March 1, 2004, the redemption fee for the Funds listed above increased from
1.00% to 2.00% on shares purchased on or after that date. The redemption fee is
designed to offset transaction costs and other expenses associated with
short-term redemptions. This fee is paid to the Funds rather than Janus Capital,
and is designed to deter excessive short-term trading and to offset the
brokerage commissions, market impact, and other costs associated with changes in
the Funds' asset level and cash flow due to short-term money movements in and
out of the Funds. The redemption fee is accounted for as an addition to
Paid-in-Capital. Total redemption fees received by Janus Global Life Sciences
Fund, Janus Global Opportunities Fund, Janus Global Technology Fund, Janus
Overseas Fund and Janus Worldwide Fund were $24,952, $24,366, $130,204, $190,334
and $223,173, respectively, for the six month period ended April 30, 2004.
Certain officers and trustees of the Funds may also be officers and/or directors
of Janus Capital; however, such officers and trustees receive no compensation
from the Funds.
The Funds' expenses may be reduced by voluntary brokerage credits from
affiliated or unaffiliated brokers or expense offsets from an unaffiliated
custodian. Such credits or offsets are included in Expense and Fee Offsets on
the Statement of Operations. Brokerage commissions paid to the brokers reduce
transfer agent fees and expenses. Custody credits received reduce custodian
fees. The Funds could have employed the assets used by the broker and/or
custodian to produce income if it had not entered into an expense offset
arrangement.
DST Systems, Inc. ("DST"), an affiliate of Janus Capital Group Inc. ("JCGI"),
parent to the Funds' adviser, provides a share-holder accounting system to the
Funds for a fee. As of December 1, 2003, following a share exchange transaction
in which JCGI exchanged 32.3 million shares of its holdings of DST common stock
for all of the stock of a wholly-owned subsidiary of DST, JCGI owned
approximately 9% of the outstanding common shares of DST. DST fees are included
in Transfer Agent Fees and Expenses on the Statement of Operations. Brokerage
commissions paid to DST Securities, Inc. serve to reduce transfer agent fees and
expenses. Brokerage commissions paid, fees reduced and the net fees paid to DST
for the six month period ended April 30, 2004, are noted below.
DST Securities, Inc. Fund
Commissions Expense
Fund Paid Reduction DST Systems Cost
- --------------------------------------------------------------------------------
Janus Global Life Sciences Fund -- -- $338,866
Janus Global Opportunities Fund(1) -- -- 49,397
Janus Global Technology Fund -- -- 532,807
Janus Overseas Fund -- -- 161,884
Janus Worldwide Fund $ 12,000 $ 9,002 775,132
- --------------------------------------------------------------------------------
(1) Formerly named Janus Global Value Fund.
34 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Funds may invest in money market funds, including funds managed by Janus
Capital. During the six month period ended April 30, 2004, the following Funds
recorded distributions from affiliated investment companies as affiliated
dividend income, and had the following affiliated purchases and sales:
Purchases Sales Dividend Market Value
Shares/Cost Shares/Cost Income at 4/30/04
- -----------------------------------------------------------------------------------------------------
Janus Government Money Market Fund
Janus Worldwide Fund $ 30,000,000 $ 45,000,000 $ 28,032 --
- -----------------------------------------------------------------------------------------------------
Janus Institutional Cash Reserves Fund
Janus Worldwide Fund $ 55,000,000 $ 70,000,000 $ 6,596 --
- -----------------------------------------------------------------------------------------------------
3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
accounting principles generally accepted in the United States of America. These
differences are due to differing treatments for items such as deferral of wash
sales, foreign currency transactions, net operating losses and capital loss
carryovers.
The Funds have elected to treat gains and losses on forward foreign currency
contracts as capital gains and losses. 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 October 31, 2003 that may be available to offset future realized capital
gains and thereby reduce future taxable gain distributions. These carryovers
expire between October 31, 2007 and October 31, 2011.
The aggregate cost of investments and the composition of unrealized appreciation
and depreciation of investments for federal income tax purposes as of April 30,
2004 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude
appreciation/(depreciation) on foreign currency translations. The primary
difference between book and tax appreciation or depreciation of investments is
wash sale loss deferrals.
Net
Accumulated Federal Unrealized Unrealized Appreciation/
Fund Capital Losses Tax Costs Appreciation (Depreciation) (Depreciation)
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Global Life Sciences Fund $(1,233,439,542) $ 1,146,904,974 $ 393,918,313 $ (23,649,492) $ 370,268,821
Janus Global Opportunities Fund(1) (36,476,008) 134,878,279 37,192,827 (2,603,448) 34,589,379
Janus Global Technology Fund (2,939,685,570) 1,250,228,312 429,007,692 (121,658,105) 307,349,587
Janus Overseas Fund (1,702,627,841) 2,145,159,442 621,372,447 (62,070,863) 559,301,584
Janus Worldwide Fund (7,853,304,795) 8,434,211,062 1,515,766,636 (256,533,137) 1,259,233,499
- -----------------------------------------------------------------------------------------------------------------------------------
(1) Formerly named Janus Global Value Fund.
Janus International & Global Funds April 30, 2004 35
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. EXPENSES
Each Fund bears expenses incurred specifically on its behalf as well as a
portion of general expenses, which are allocated pro rata to each of the Funds.
5. FUND ACQUISITIONS AND FUND REORGANIZATIONS
On April 21, 2003, certain Funds, as listed below (each an "Acquiring Fund"),
acquired all of the assets and liabilities of other Funds, also listed below
(each an "Acquired Fund"), in a tax-free reorganization in exchange for shares
of the Acquiring Fund, pursuant to a plan of reorganization approved by the
Acquired Funds' shareholders. The number and value of shares issued by the
Acquiring Funds are presented on the Statement of Changes. Janus Capital
incurred the costs associated with the reorganizations. Net assets and
unrealized appreciation/(depreciation) as of the reorganization date immediately
prior to and after the reorganization were as follows:
Acquired Net Assets
Acquiring Fund Acquired Fund Fund Unrealized After
Acquiring Fund Acquired Fund Net Assets Net Assets AP/DP Reorganization
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Global Technology Fund Berger Information Technology Fund $1,196,479,094 $22,321,938 $(14,193,727) $1,218,801,032
Janus Overseas Fund Berger International Fund 2,735,169,004 8,888,573 222,070 2,744,057,577
- ------------------------------------------------------------------------------------------------------------------------------------
Acquiring Fund Acquired Fund Shares Acquired Shares issued in Acquisition
- --------------------------------------------------------------------------------------------------------------------------
Janus Global Technology Fund Berger Information Technology Fund 5,344,779 2,974,555
Janus Overseas Fund Berger International Fund 1,335,727 629,726
- --------------------------------------------------------------------------------------------------------------------------
36 Janus International & Global Funds April 30, 2004
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
For the six month period ended April 30, 2004 Janus Janus Janus
(unaudited) and for the fiscal year ended Global Life Sciences Global Opportunities Global Technology
October 31, 2003 Fund Fund(1) Fund
(all numbers in thousands) 2004 2003 2004 2003 2004 2003
- --------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 4,202 4,862 2,960 11,999 12,329 25,586
Shares issued in connection with acquisition* N/A N/A N/A N/A N/A 2,975
Reinvested distributions -- -- 31 69 -- --
- --------------------------------------------------------------------------------------------------------------------------
Total 4,202 4,862 2,991 12,068 12,329 28,561
- --------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (12,425) (26,780) (1,957) (16,991) (24,860) (38,660)
Net Increase/(Decrease) in Fund Shares (8,223) (21,918) 1,034 (4,923) (12,531) (10,099)
Shares Outstanding, Beginning of Period 86,517 108,435 12,317 17,240 158,574 168,673
- --------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 78,294 86,517 13,351 12,317 146,043 158,574
- --------------------------------------------------------------------------------------------------------------------------
For the six month period ended April 30, 2004 Janus Janus
(unaudited) and for the fiscal year ended Overseas Worldwide
October 31, 2003 Fund Fund
(all numbers in thousands) 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 19,008 205,329 9,237 63,891
Shares issued in connection with acquisition* N/A 630 N/A N/A
Reinvested distributions 1,649 2,044 2,649 3,721
- -----------------------------------------------------------------------------------------------------------
Total 20,657 208,003 11,886 67,612
- -----------------------------------------------------------------------------------------------------------
Shares Repurchased (44.879) (273,887) (78,186) (173,587)
Net Increase/(Decrease) in Fund Shares (24.222) (65,884) (66,300) (105,975)
Shares Outstanding, Beginning of Period 144,193 210,077 303,729 409,704
- -----------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 119,971 144,193 237,429 303,729
- -----------------------------------------------------------------------------------------------------------
*See Note 5 in Notes to Financial Statements.
(1) Formerly named Janus Global Value Fund.
Janus International & Global Funds April 30, 2004 37
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
7. LEGAL MATTERS
In September 2003, the Securities and Exchange Commission ("SEC") and the
Office of the New York State Attorney General ("NYAG") publicly announced that
they were investigating trading practices in the mutual fund industry. The
investigations were prompted by the NYAG's settlement with a hedge fund, Canary
Capital, which allegedly engaged in irregular trading practices with certain
mutual fund companies. While Janus Capital was not named as a defendant in the
NYAG complaint against the hedge fund, Janus Capital was mentioned in the
complaint as having allowed Canary Capital to "market time" certain Janus
funds. Market timing is an investment technique involving frequent short-term
trading of mutual fund shares that is designed to exploit market movements or
inefficiencies in the way mutual fund companies price their shares. The NYAG
complaint alleged that this practice is in contradiction to policies stated in
the prospectuses for certain Janus funds.
The investigations by the NYAG, the SEC, and certain other agencies, including
the Colorado Division of Securities and the Colorado Attorney General ("COAG"),
also sought to determine whether late trading occurred in mutual funds managed
by Janus Capital. The term "late trading" generally refers to the practice of
permitting or processing a fund purchase or redemption in a manner that
improperly allows the current day's fund share price to be used for an order
that was placed or improperly processed at a time following the deadline for
obtaining that day's share price (normally, 4:00 p.m. (eastern time)). Because
many mutual fund transactions are cleared and settled through financial
intermediaries, Janus Capital cannot exclude the possibility that one or more
intermediaries may have submitted improper or unauthorized late trade
transactions to Janus Capital in violation of Janus Capital's agreements with
those intermediaries.
Other documentation and information sought by various regulatory agencies,
including the National Association of Securities Dealers, the West Virginia
Attorney General, the Florida Department of Financial Services, the NYAG, the
SEC, the COAG, the Colorado Division of Securities and one or more U.S. Attorney
offices, relate to a variety of matters, including but not limited to: improper
disclosure of portfolio holdings, trading by executives in Fund shares, certain
revenue sharing arrangements, information related to cash and non-cash
compensation paid to brokers, trading by Janus Capital investment personnel in
portfolio securities owned by certain Janus funds, information provided to the
Trustees in connection with the review and approval of management contracts
related to the Funds, information related to certain types of distribution and
sales arrangements with brokers and other distributors of mutual fund products,
and other topics related to the foregoing. The Janus funds, Janus Capital Group
Inc. and its subsidiaries have either complied with or intend to comply with
these subpoenas and other document and information requests.
On April 27, 2004, Janus Capital announced agreements in principle with the
NYAG, the COAG and the Colorado Division of Securities setting forth financial
agreements and certain corporate governance and compliance initiatives that will
be required by such regulators. Janus Capital also announced an agreement in
principle with respect to monetary terms with the SEC, subject to the approval
of the SEC Commissioners. Pursuant to such agreements, Janus Capital will
establish a pool of $100 million that will be available to compensate investors
for the adverse effects of frequent trading and other mutual fund practices. Of
this amount, $50 million will be in the form of a civil money penalty. Janus
Capital also agreed to reduce its management fees in the amount of $25 million
per annum, in the aggregate, for at least a five year period. Janus also agreed
to make $1.2 million in other settlement-related payments required by the State
of Colorado.
Subsequent to the initiation of the regulatory investigations, a number of civil
lawsuits were brought against Janus Capital and certain of its affiliates, the
Janus funds, and related entities and individuals on behalf of Fund shareholders
and shareholders of Janus Capital Group Inc. The factual allegations made in
these actions are generally based on the NYAG complaint against Canary Capital
and in general allege that Janus Capital allowed certain hedge funds and other
investors to engage in "market timing" trades in certain Janus funds. Such
lawsuits allege a variety of theories for recovery including, but not limited
to: (i) violation of various provisions of the federal securities laws; (ii)
breach of fiduciary duties, as established by state common law or federal law,
to the funds and/or individual investors; (iii) breach of contract; (iv) unjust
enrichment; and (v) violations of Section 1962 of the Racketeering Influenced
and Corrupt Organizations Act.
The "market timing" lawsuits include actions purportedly on behalf of a class of
Fund investors, cases allegedly brought on behalf of the Funds themselves, a
case asserting claims both on behalf of an investor class and derivatively on
behalf of the Funds, cases brought on behalf of shareholders of Janus Capital
Group Inc. on a derivative basis against the Board of Directors of Janus Capital
Group Inc., purported ERISA actions against the managers of the Janus 401(k)
plan, and a non-class "representative action" purportedly brought on behalf of
the general public. The complaints also name various defendants. One or more
Janus entities (Janus Capital Group Inc., Janus Capital Management LLC or Janus
Capital Corporation) are named in every action. In addition, actions have been
brought against Janus Investment Fund and/or one or more of the individual
Funds, the Janus fund Trustees,
38 Janus International & Global Funds April 30, 2004
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officers of the Funds, officers of Janus Capital, officers of Janus Capital
Group Inc., and directors of Janus Capital Group Inc.
The "market timing" lawsuits were filed in a number of state and federal
jurisdictions. The Judicial Panel on Multidistrict Litigation has finally or
conditionally transferred all but one of these actions to the United States
District Court for the District of Maryland for coordinated proceedings. One
action (alleging failure to adequately implement fair value pricing) has been
remanded to state court in Madison County, Illinois and is not subject to the
federal transfer procedures.
In addition to the "market timing" actions described above, civil lawsuits have
been filed against Janus Capital challenging the investment advisory fees
charged by Janus Capital to certain Funds. Additional lawsuits may be filed
against certain of the Janus funds, Janus Capital and related parties in the
future.
Janus Capital does not currently believe that any of the pending actions will
materially affect its ability to continue to provide to the Funds the services
it has agreed to provide.
Janus International & Global Funds April 30, 2004 39
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EXPLANATIONS OF CHARTS, TABLES AND
FINANCIAL STATEMENTS (unaudited)
1. PERFORMANCE OVERVIEWS
Average annual total returns are quoted for each Fund. Average annual total
return is calculated by taking the growth or decline in value of an investment
over a period of time, including reinvestment of dividends and distributions,
then calculating the annual compounded percentage rate that would have produced
the same result had the rate of growth been constant throughout the period.
Average annual total return does not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or redemption of Fund shares.
When comparing the performance of a Fund with an index, keep in mind that market
indices do not include brokerage commissions that would be incurred if you
purchased the individual securities in the index. They also do not include taxes
payable on dividends and interest or operating expenses incurred if you
maintained a portfolio invested in the index.
2. SCHEDULES OF INVESTMENTS
Following the performance overview section is each Fund's Schedule of
Investments. This schedule reports the industry concentrations and types of
securities held in each 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 market value of each security is quoted as of the last day of the reporting
period. The values of securities denominated in foreign currencies are converted
into U.S. dollars.
A summary of investments by country is provided if the Fund invested in foreign
securities in the period or year ended. This summary reports the Fund's exposure
to different countries by providing the percentage of securities invested in
each country. The country of each security represents the country in which the
company is incorporated.
2A. FORWARD CURRENCY CONTRACTS
A table listing forward currency contracts follows each Fund's Schedule of
Investments (if applicable). Forward currency contracts are agreements to
deliver or receive a preset amount of currency at a future date. Forward
currency contracts are used to hedge against foreign currency risk in the Fund's
long-term holdings.
The table provides the name of the foreign currency, the settlement date of the
contract, the amount of the contract, the value of the currency in U.S. dollars
and the amount of unrealized gain or loss. The amount of unrealized gain or loss
reflects the change in currency exchange rates from the time the contract was
opened to the last day of the reporting period.
2B. FUTURES
A table listing future contracts follows each Fund's Schedule of Investments (if
applicable). Futures contracts are contracts that obligate the buyer to receive
and the seller to deliver an instrument or money at a specified price on a
specified date. Futures are used to hedge against adverse movements in
securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the
expiration date, the principal amount, value and the amount of unrealized gain
or loss. The amount of unrealized gain or loss reflects the marked to market
amount for the last day of the fiscal period.
3. STATEMENT OF ASSETS AND LIABILITIES
This statement is often referred to as the "balance sheet." It lists the assets
and liabilities of the Funds on the last day of the reporting period.
The Funds' 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 stocks owned and the receivable for
Fund shares sold to investors but not yet settled. The Funds' 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 titled "Net Assets Consist of" breaks down the components of the
Funds' net assets. Because Funds must distribute substantially all earnings,
you'll notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the Funds' net asset value ("NAV")
per share on the last day of the reporting period. The NAV is calculated by
dividing the Funds' net assets (assets minus liabilities) by the number of
shares outstanding.
4. STATEMENT OF OPERATIONS
This statement details the Funds' income, expenses, gains and losses on
securities and currency transactions, and appreciation or depreciation of
current Fund holdings.
40 Janus International & Global Funds April 30, 2004
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The first section in this statement, titled "Investment Income," reports the
dividends earned from stocks and interest earned from interest-bearing
securities in the Funds.
The next section reports the expenses and expense offsets incurred by the Funds,
including the advisory fee paid to the investment advisor, transfer agent fees,
shareholder servicing expenses, and printing and postage for mailing statements,
financial reports and prospectuses.
The last section lists the increase or decrease in the value of securities held
in the Funds. Funds realize a gain (or loss) when they sell their position in a
particular security. An unrealized gain (or loss) refers to the change in net
appreciation or depreciation of the Funds during the 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.
5. STATEMENT OF CHANGES IN NET ASSETS
This statement reports the increase or decrease in the Funds' net assets during
the reporting period. Changes in the Funds' net assets are attributable to
investment operations, dividends, distributions and capital share transactions.
This is important to investors because it shows exactly what caused the Funds'
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 Funds' investment performance. The
Funds' net assets may also change as a result of dividend and capital gains
distributions to investors. If investors receive their dividends in cash, money
is taken out of the Fund to pay the distribution. If investors reinvest their
dividends, the Funds' net assets will not be affected. If you compare each
Fund's "Net Decrease from Dividends and Distributions" to the "Reinvested
dividends and distributions," you'll notice that dividend distributions had
little effect on each Fund's net assets. This is because the majority of Janus
investors reinvest their distributions.
The reinvestment of dividends is included under "Capital Share Transactions."
"Capital Shares" refers to the money investors contribute to the Funds through
purchases or withdraw via redemptions. The Funds' net assets will increase and
decrease in value as investors purchase and redeem shares from the Funds.
6. FINANCIAL HIGHLIGHTS
This schedule provides a per-share breakdown of the components that affect the
Funds' NAV for current and past reporting periods. Not only does this table
provide you with total return, it also reports total distributions, asset size,
expense 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 per share,
which comprises dividends and interest income earned on securities held by the
Funds. Following is the total of gains, realized and unrealized. Dividends and
distributions are then subtracted to arrive at the NAV per share at the end of
the period. The next line reflects the average annual total return reported the
last day of the period.
Also included are the expense ratios, or the percentage of net assets that was
used to cover operating expenses during the period. Expense ratios vary across
the Funds for a number of reasons, including the differences in average
shareholder account size, the frequency of dividend payments and the extent of
foreign investments, which entail greater transaction costs.
The Funds' expenses may be reduced through expense-reduction arrangements. These
arrangements may include the use of brokerage commissions, uninvested cash
balances earning interest or balance credits. The Statement of Operations
reflects total expenses before any such offset, the amount of offset and the net
expenses. The expense ratios listed in the Financial Highlights reflect expenses
prior to any expense offset (gross expense ratio) and after expense offsets (net
expense ratio). Both expense ratios reflect expenses after waivers
(reimbursement).
The ratio of net investment income/(loss) summarizes the income earned less
expenses divided by the average net assets of a Fund during the reporting
period. Don't confuse this ratio with a Fund's yield. The net investment income
ratio is not a true measure of a Fund's yield because it doesn't take into
account the dividends distributed to the Fund's investors.
The next ratio is the portfolio turnover rate, which measures the buying and
selling activity in a Fund. Portfolio turnover is affected by market conditions,
changes in the size of a Fund, the nature of the Fund's investments and the
investment style of the portfolio manager. A 100% rate implies that an amount
equal to the value of the entire portfolio is turned over in a 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 portfolio
is sold every six months.
Janus International & Global Funds April 30, 2004 41
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NOTES
42 Janus International & Global Funds April 30, 2004
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NOTES
Janus International & Global Funds April 30, 2004 43
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NOTES
44 Janus International & Global Funds April 30, 2004
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NOTES
Janus International & Global Funds April 30, 2004 45
- -------------------
JANUS PROVIDES ACCESS TO A WIDE RANGE OF INVESTMENT DISCIPLINES.
----------------------------------------------------------------
GROWTH
Janus growth funds focus on companies believed to be the leaders in their
respective industries, with solid management teams, expanding market share,
margins and efficiencies.
INTERNATIONAL & GLOBAL
Janus international and global funds seek to leverage Janus' research
capabilities by taking advantage of inefficiencies in foreign markets,
where accurate information and analytical insight are often at a premium.
CORE
Janus core funds seek investments in more stable and predictable companies.
These funds look for a strategic combination of steady growth and for
certain funds, some degree of income.
RISK-MANAGED
Janus risk-managed funds seek to outperform their respective indices while
maintaining a risk profile equal to or lower than the index itself. Managed
by INTECH, these funds use a mathematical process in an attempt to build a
more "efficient" portfolio than the index.
VALUE
Janus value funds invest in companies they believe are poised for a
turnaround or are trading at a significant discount to fair value. The goal
is to gain unique insight into a company's true value and identify and
evaluate potential catalysts that may unlock shareholder value.
INCOME
Janus income funds attempt to provide less risk relative to equities while
seeking to deliver a competitive total return through high current income
and appreciation.
FOR MORE INFORMATION ABOUT OUR FUNDS, GO TO www.janus.com.
[LOGO] JANUS CAPITAL 151 Detroit Street
Group Denver, CO 80206
1-800-525-3713
This material must be preceded or accompanied by a prospectus.
Funds distributed by Janus Distributors LLC (4/04)
C-0504-157 111-24-104 06-04
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----------------------
2004 SEMIANNUAL REPORT
----------------------
JANUS INCOME FUNDS
------------------------------------------------------------------
Janus Federal Tax-Exempt Fund
Janus Flexible Income Fund
Janus High-Yield Fund
Janus Short-Term Bond Fund
Janus Money Market Fund
Janus Government Money Market Fund
Janus Tax-Exempt Money Market Fund
[LOGO] JANUS CAPITAL
Group
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TABLE OF CONTENTS
Janus Income Funds
Schedules of Investments
Janus Federal Tax-Exempt Fund ............................... 2
Janus Flexible Income Fund .................................. 7
Janus High-Yield Fund ....................................... 16
Janus Short-Term Bond Fund .................................. 24
Janus Money Market Fund ..................................... 29
Janus Government Money Market Fund .......................... 33
Janus Tax-Exempt Money Market Fund .......................... 34
Statements of Assets and Liabilities - Bond Funds .............. 37
Statements of Operations - Bond Funds .......................... 38
Statements of Changes in Net Assets - Bond Funds ............... 39
Financial Highlights - Bond Funds .............................. 40
Statements of Assets and Liabilities - Money Market Funds ...... 42
Statements of Operations - Money Market Funds .................. 43
Statements of Changes in Net Assets - Money Market Funds ....... 44
Financial Highlights - Money Market Funds ...................... 45
Notes to Schedules of Investments .............................. 50
Notes to Financial Statements .................................. 52
Explanations of Charts, Tables and Financial Statements ........ 60
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A MESSAGE REGARDING PORTFOLIO MANAGER COMMENTARY: To provide our shareholders
with more timely and comprehensive updates on their funds, we will now provide
portfolio manager commentaries five times per year. Quarterly commentaries and
other timely fund information will be available in the Fund Updates section of
janus.com and will be offered in place of the portfolio manager letters in April
30 semiannual reports. Shareholders will continue to receive a comprehensive
annual letter from portfolio managers in the October 31 annual report which will
be available at year end. Going forward, semiannual and annual reports will
continue to provide a complete list of fund holdings, performance information
and other important details about Janus funds.
- --------------------------------------------------------------------------------
Below is a schedule of planned communications regarding your investment with
Janus:
INVESTMENT UPDATE: WHEN AVAILABLE: WHERE YOU CAN FIND IT:
Quarterly Review
(prior calendar quarter) January, April, July, www.janus.com;
October Fund Updates section
Annual Review
(funds' fiscal year-
November 1 through
October 31) December www.janus.com;
Fund Updates section
Annual Report (sent by
U.S. mail or e-mail)
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Dear Shareholder,
Let me begin by telling you how excited I am to be associated with Janus. As a
shareholder of the funds, I'm sure you already know many of the things that make
Janus unique. To me, it is a research-driven firm with an impressive heritage of
delivering exceptional long-term performance to its shareholders. I am proud to
be a part of continuing that heritage into the future.
There are three main reasons why I decided to join Janus as Chief Investment
Officer. First, I believe the research at Janus is the best I've ever seen. In a
prior job as a sell-side analyst, I had the opportunity to get an inside look at
the passion, intensity and energy that characterized investment debates at
Janus. That positive impression has only been reinforced in the short time I
have been part of the team. Given my analyst background, I share the same zeal
for getting the story right behind every investment.
Second, the people at Janus are special. From the individuals at our call
center, to the sales and marketing staff, to the person who actually manages
your money, all of our employees are passionate about winning, and passionate
about setting the pace, not following it. The esprit de corps of the firm is
quite remarkable.
Third, Janus is an investment-centric firm. By that I mean we focus on our core
competency of managing our shareholders' money. Delivering performance remains
at the heart of what we do and we constantly reinvest in our core business
toward that end.
My role at Janus will be to oversee the investment team and drive investment
returns. In an attempt to safeguard the consistency and quality of the
investment process, I plan to play devil's advocate with the portfolio managers,
to poke and prod their investment decisions. I will take full responsibility for
the performance of the team, making sure that portfolio managers have the tools
and resources needed to make wise decisions.
Like any solid organization, there is always room to improve. I have
communicated to the investment team the following enhancements that I plan to
focus on during the next two quarters. For starters, I plan on expanding our
coverage of international stocks. In this era of increased globalization, I
believe sectors are more important than countries and our research needs to be
borderless. In addition, we need to make sure that our research edge provides a
solid foundation from which we can invest with conviction. Of course, the
flipside of this exercise is to have the proper risk controls in place to serve
as an early warning system when fundamentals begin to deteriorate and stocks
need to be trimmed or sold.
Furthermore, I want to improve communication so that analysts and portfolio
managers are sharing their best ideas and discussing how topical events may
impact portfolios. Collectively, I believe we can arrive at better investment
decisions through debate and idea sharing versus acting in isolation. These are
the initiatives I will be focusing on in the initial phase of my tenure at
Janus. I look forward to circling back with you in the fall and providing an
update on our progress.
Turning to the markets, after finishing last year on a strong note, stocks have
treaded water during the first few months of 2004, as concerns about rising
interest rates, war, and oil prices have offset good news on job growth and
corporate earnings. Consequently, the S&P 500 Index rose 6.3% during the
six-month time period ended 4/30/04, after rising 15.6% in the six months ended
10/31/03. The S&P outperformed both the Dow Jones Industrial Average and the
Nasdaq Composite, which posted returns of 5.4% and -0.6%, respectively.
Notwithstanding the moderate returns of the market, my message to you today is
that we like what we are hearing from our company contacts. Enterprise spending
is improving as corporate profits accelerate. After two years of balance sheet
repair, CEOs are again thinking strategically about how to grow their
businesses. This is a very encouraging development that we feel is being
underappreciated in the marketplace at the current time. Yes, interest rates are
likely to be higher 12 months from now, but we believe that the strength of the
economy and an improvement in corporate profits will overpower any dampening
effect caused by a rising interest rate environment.
While the market in 2003 could be characterized as broad-based as the economy
began its recovery, we believe that the market will be much more selective in
2004. I think the expected "stock-picker's" market will play to our strength of
identifying companies that are investing in their businesses, growing their
market share, and capitalizing on technological and infrastructural change
throughout the world. Indeed, I believe the recent improved performance of our
funds provides evidence that our research process remains strong and that our
portfolios are properly positioned to capitalize on continuing growth in the
global economy.
It is my belief that Janus' investment process works best during times of
"normal" economic activity (3%-4% GDP growth, 10%-12% corporate profit growth).
We are now moving into the middle innings of this economic recovery, which has
followed fairly normal patterns to date compared to historical recoveries.
Therefore, I am optimistic of continued strong performance by our funds in this
environment.
In closing, let me thank you again for your loyalty to Janus. As a shareholder
of our funds, you have our absolute faithfulness in return. I believe that we
face a very bright future together.
Sincerely,
/s/ Gary Black
Gary Black
President and Chief Investment Officer
Past performance is no guarantee of future results.
Janus Income Funds April 30, 2004 1
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JANUS FEDERAL TAX-EXEMPT FUND (unaudited) Portfolio Manager
Sharon Pichler
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
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Janus Federal Tax-Exempt Fund Lehman Brothers
Municipal Bond Index
[BAR GRAPH]
Bar graph data shown in following table.
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Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
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Janus Federal
Tax-Exempt Fund 0.23% 0.08% 3.57% 5.10% 4.74%
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Lehman Brothers
Municipal Bond Index 1.19% 2.68% 5.44% 6.46% 6.06%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends and capital gains. The returns
shown do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or redemption of Fund shares.
*The Fund's inception date - May 3, 1993
FUND STRATEGY
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To seek as high a level of current income exempt from federal income tax as is
consistent with preservation of capital by investing primarily in municipal
obligations of any maturity whose interest is exempt from federal income tax.
The Fund normally invests at least 80% of its net assets in securities whose
interest is exempt from federal income tax, including the federal alternative
minimum tax.
FUND PROFILE
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April 30, 2004 October 31, 2003
Weighted Average Maturity 10.0 Yrs. 12.2 Yrs.
Average Modified Duration** 6.2 Yrs. 8.3 Yrs.
30-Day Current Yield***
With Reimbursement 2.49% 3.31%
Without Reimbursement 2.05% 3.09%
Weighted Average Fixed
Income Credit Rating A A
Number of Municipal Bonds 91 98
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For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
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2 Janus Income Funds April 30, 2004
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(unaudited)
FUND ASSET MIX - (% of Net Assets)
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[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 0.2%
General Obligation Bonds - 47.0%
Revenue Bonds - 52.8%
TOP 10 STATES (% of Net Assets)
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[BAR GRAPH]
Bar graph data shown in following table
Illinois - 17.5%
Texas - 11.6%
Colorado - 11.1%
Florida - 7.2%
New York - 6.5%
Ohio - 6.2%
Michigan - 5.5%
South Carolina - 4.7%
Washington - 3.6%
North Carolina - 3.0%
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**A theoretical measure of price volatility.
***Yield will fluctuate.
See "Explanations of Charts, Tables and Financial Statements."
Bond funds have the same interest rate, inflation, and credit risks that are
associated with the underlying bonds owned by the fund. Unlike owning individual
bonds, there are ongoing fees and expenses associated with owning shares of bond
funds.
The return of principal is not guaranteed due to net asset value fluctuation
that is caused by changes in the price of specific bonds held in the fund and
selling of bonds within the fund by the portfolio manager.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Income may be subject to state or local taxes and to a limited extent certain
federal taxes. Capital gains are subject to federal, state and local taxes.
Janus Capital Management LLC has contractually agreed to waive the Fund's total
operating expenses to levels indicated in the prospectus until at least March 1,
2005. Without such waivers, yields and total return would have been lower.
Janus Income Funds April 30, 2004 3
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JANUS FEDERAL TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Municipal Securities - 99.8%
Arizona - 1.2%
$ 1,000,000 Mesa Street and Highway Revenue
(FGIC Insured), 6.25%, due 7/1/11 ......... $ 1,168,680
900,000 Winslow Industrial Development Authority
Hospital Revenue, (Winslow Memorial
Hospital Project), 5.50%, due 6/1/22(beta) 674,127
1,842,807
Colorado - 11.1%
2,035,000 Arapahoe County, (Cherry Creek School
District No. 005), 5.50%, due 12/15/09 .... 2,275,476
530,000 Bachelor Gulch Metropolitan District
6.80%, due 12/1/06 ........................ 550,659
Black Hawk Device Tax Revenue:
25,000 6.10%, due 12/1/07 ........................ 25,980
25,000 6.00%, due 12/1/11 ........................ 25,521
475,000 6.00%, due 12/1/11 ........................ 526,907
1,000,000 Castle Rock Golf Enterprise Revenue
6.50%, due 12/1/16 ........................ 1,036,150
2,000,000 Denver City and County, (Medical Facilities)
5.00%, due 8/1/07 ......................... 2,156,500
300,000 Denver Health and Hospital Authority
Healthcare Revenue, Series A, Variable Rate
1.15%, 12/1/31 ............................ 300,000
2,000,000 Department of Transportation Revenue
(MBIA Insured), Series B
5.00%, due 6/15/11 ........................ 2,184,840
Hyland Hills Metropolitan Parks and
Recreation District Special Revenue:
620,000 Series A, 5.00%, due 12/15/06 ............. 654,094
500,000 Series A, 6.75%, due 12/15/15 ............. 530,700
1,000,000 Platte River Power Authority Colorado
Power Revenue, Series EE
5.375%, due 6/1/18 ........................ 1,071,380
Regional Transportation District Sales
Tax Revenue:
1,630,000 (AMBAC Insured), Series B
5.25%, due 12/1/12 ........................ 1,801,818
1,150,000 (FGIC Insured), Series A
5.00%, due 11/1/15 ........................ 1,208,662
100,000 Telluride Excise Tax Revenue
5.75%, due 12/1/12 ........................ 107,456
1,680,000 Westminster Water and Wastewater
Utility Enterprise Revenue
(AMBAC Insured), 5.00%, due 12/1/13 ....... 1,824,295
16,280,438
Connecticut - 0.7%
1,000,000 State Special Tax Obligation Revenue
(Transportation Infrastructure)
(FSA Insured), 5.375%, due 10/1/14 ........ 1,088,100
Shares or Principal Amount Market Value
================================================================================
Florida - 7.2%
$ 1,585,000 Alachua County Public Improvement
Revenue, (FSA Insured), 5.00%, due 8/1/14 . $ 1,655,596
1,615,000 FSU Financial Assistance, (AMBAC Insured)
5.00%, due 10/1/10 ........................ 1,767,359
2,855,000 JEA Electric Systems Revenue
(FSA-CR Insured), Series B
3.75%, due 10/1/10 ........................ 2,892,314
2,000,000 Orange County School Board, Series A
5.375%, due 8/1/22 ........................ 2,091,340
2,000,000 State Board of Education Capital Outlay
Series A, 5.25%, due 6/1/08 ............... 2,173,960
10,580,569
Georgia - 1.4%
1,800,000 Atlanta Airport Facilities Revenue
(AMBAC Insured), 6.00%, due 1/1/07 ........ 1,968,120
60,000 Municipal Electric Authority Power Revenue
(Escrowed to Maturity), (MBIA Insured)
Series Y, 6.50%, due 1/1/17 ............... 71,800
2,039,920
Illinois - 17.5%
2,275,000 Central Lake County Joint Action
Water Agency, (AMBAC Insured)
6.00%, due 2/1/16 ......................... 2,600,666
1,385,000 Coles and Cumberland County
Community Unit School District
No. 002, (FGIC Insured), 5.35%, due 2/1/18 1,462,491
5,995,000 Cook County, (MBIA Insured)
Series A, 6.25%, due 11/15/13 ............. 7,068,225
1,630,000 Du Page and Will Counties
(Community School District No. 204)
6.875%, due 2/30/09 ....................... 1,931,680
2,050,000 Du Page County, (Downer's Grove
Community High School District No. 099)
(FSA Insured), 5.50%, due 12/1/12 ......... 2,268,634
2,000,000 Eastern Illinois University Revenue
(Auxiliary Facilities System)
(AMBAC Insured), 5.375%, due 4/1/18 ....... 2,168,040
Illinois State:
2,000,000 5.00%, due 8/1/07 ......................... 2,159,100
1,000,000 (FSA Insured), 5.375%, due 5/1/12 ......... 1,099,130
2,550,000 Kane County Forest Preservation District
(FGIC Insured), 5.00%, due 12/30/10 ....... 2,781,464
1,070,000 Kendall Kane and Will Counties
Community Unit School District No. 308
(FSA Insured), 5.00%, due 10/1/06 ......... 1,146,312
1,000,000 Metropolitan Pier and Exposition Authority
(McCormick Place Expansion Project)
5.375%, due 12/15/17 ...................... 1,075,730
25,761,472
See Notes to Schedules of Investments and Financial Statements.
4 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Iowa - 1.4%
$ 2,065,000 Grinnell Hospital Revenue
(Grinnell Medical Center), Variable Rate
1.15%, 12/1/21 ............................ $ 2,065,000
Kansas - 1.6%
2,080,000 State Development Financial Authority
Revenue, (Water Pollution Control)
5.25%, due 11/1/09 ........................ 2,302,622
Massachusetts - 1.5%
2,000,000 Massachusetts State, (Conservation Lien)
Series C, 5.50%, due 11/1/15 .............. 2,213,280
Michigan - 5.5%
1,000,000 Haslett Public School District
(Q-SBLF Insured), 5.00%, due 5/1/19 ....... 1,041,530
1,000,000 Michigan Municipal Bond Authority
(State Revolving Fund)
5.10%, due 10/1/11 ........................ 1,081,930
2,500,000 State Trunk Line, Series A
5.50%, due 11/1/18 ........................ 2,712,200
1,000,000 Taylor Tax Increment Finance Authority
(FSA Insured), 5.50%, due 5/1/15 .......... 1,087,510
2,000,000 Walled Lake Consolidated School District
(MBIA Insured), 5.50%, due 5/1/10 ......... 2,189,300
8,112,470
Minnesota - 0%
40,000 Minneapolis Metropolitan Council
(St. Paul Metropolitan Area Sewer)
Series A, 5.00%, due 12/1/07 .............. 43,468
Missouri - 2.4%
1,000,000 Joplin Industrial Development Authority
Revenue, (First Mortgage Spring River)
7.50%, due 7/1/15 ......................... 1,092,580
Missouri Health and Educational
Facilities Authority Revenue:
2,000,000 (Missouri Valley College), Variable Rate
1.15%, 10/1/31 ............................ 2,000,000
375,000 (Saint Louis University), Variable Rate
Series A, 1.15%, 10/1/09 .................. 375,000
3,467,580
Nebraska - 0.1%
200,000 State Educational Financial Authority
Revenue, (Creighton University)
Variable Rate, 1.10%, 3/1/33 .............. 200,000
New Hampshire - 1.3%
1,745,000 State Park System Revenue
(AMBAC Insured), 5.00%, due 2/1/12 ........ 1,880,761
New Jersey - 0.8%
1,000,000 Turnpike Authority Revenue
(FSA Insured), Series C
6.50%, due 1/1/16 ......................... 1,197,310
Shares or Principal Amount Market Value
================================================================================
New York - 6.5%
$ 1,545,000 Metropolitan Transportation
Authority Revenue, Series A
5.50%, due 11/15/17 ....................... $ 1,686,924
1,000,000 New York City Transitional Financial
Authority Revenue, (Future Tax Secured)
(MBIA-IBC Insured), Series B
5.50%, due 2/1/11 ......................... 1,115,290
1,000,000 New York, Series G
5.00%, due 8/1/05 ......................... 1,041,140
1,345,000 St. Lawrence County Industrial
Development Civic Facilities Revenue
(St. Lawrence University Project)
(MBIA Insured), Series A
5.375%, due 7/1/18 ........................ 1,439,970
1,000,000 State Dormitory Authority Revenues
(State University Educational Facilities)
Series A, 5.50%, due 5/15/19 .............. 1,089,920
3,000,000 State Environmental Facilities
(NYC Municipal Water Project)
5.00%, due 6/15/18 ........................ 3,142,830
9,516,074
North Carolina - 3.0%
1,005,000 Buncombe County Certificates of
Participation, (AMBAC Insured)
3.00%, due 10/1/09 ........................ 998,759
1,015,000 Greenville Combined Enterprise System
Revenue, (FSA Insured)
6.00%, due 9/1/16 ......................... 1,179,491
2,000,000 State Highway
5.00%, due 5/1/09 ......................... 2,190,300
4,368,550
Ohio - 6.2%
1,000,000 Cincinnati Water System Revenue
5.00%, due 12/1/16 ........................ 1,052,860
2,500,000 Columbus, Series 1
5.50%, due 11/15/13 ....................... 2,766,175
1,500,000 Northwest Local School District
(MBIA Insured), 5.00%, due 12/1/22 ........ 1,527,405
1,480,000 Olentangy Local School District
(School Facilities Construction
and Improvement), Series A
5.25%, due 12/1/19 ........................ 1,573,654
2,000,000 State Higher Education Capital Facilities
Series 2A, 5.00%, due 12/1/08 ............. 2,185,960
9,106,054
Oklahoma - 1.2%
500,000 McGee Creek Authority Water Revenue
(MBIA Insured), 6.00%, due 1/1/23 ......... 582,040
1,000,000 Tulsa Industrial Authority Revenue
(University of Tulsa), (MBIA Insured)
Series A, 6.00%, due 10/1/16 .............. 1,162,930
1,744,970
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS FEDERAL TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Oregon - 1.1%
$ 1,370,000 Lane County School District No. 052
6.25%, due 6/15/17 ........................ $ 1,592,789
Pennsylvania - 1.6%
2,110,000 Montgomery County
5.375%, due 7/15/12 ....................... 2,310,471
South Carolina - 4.7%
1,000,000 Spartanburg County School District
No. 007, (SCSDE Insured)
5.00%, due 3/1/16 ......................... 1,075,540
3,960,000 State Public Service Authority Revenue
(MBIA Insured), Series A
5.75%, due 1/1/22 ......................... 3,744,061
2,000,000 Transportation Infrastructure
Bank Revenue, (AMBAC Insured)
Series A, 4.625%, due 10/1/30 ............. 2,154,680
6,974,281
Tennessee - 0.7%
1,000,000 Tennessee State, Series A
5.00%, due 5/1/05 ......................... 1,036,240
Texas - 11.6%
1,520,000 Clint Independent School District
(PSF-GTD Insured), 6.00%, due 2/15/14 ..... 1,721,020
1,000,000 Harris County
5.125%, due 10/1/13 ....................... 1,067,200
Houston Water and Sewer Systems Revenue:
1,000,000 (Capital Appreciation Junior Lien)
Series A, 0%, due 12/1/27 ................. 272,010
2,000,000 (Junior Lien), Series B, 5.00%, due 12/1/05 2,103,220
2,000,000 Houston Water Conveyance System Contract
Certificates of Participation, (AMBAC
Insured), Series J, 6.25%, due 12/15/15 ... 2,354,960
1,610,000 Mansfield Independent School District
(PSF-GTD Insured), 6.00%, due 2/15/11 ..... 1,841,566
2,000,000 North Harris Montgomery Community
College District, (FGIC Insured)
5.375%, due 2/15/14 ....................... 2,176,840
2,000,000 Northside Independent School District
Series B, 1.75%, due 8/1/23 ............... 2,002,120
3,165,000 University of Texas, Series B
5.125%, due 8/15/14 ....................... 3,459,504
16,998,440
Shares or Principal Amount Market Value
================================================================================
Utah - 1.6%
$ 1,000,000 Salt Lake City Municipal Building
Authority Lease Revenue
(AMBAC Insured), 5.20%, due 10/15/20 ...... $ 1,038,100
1,195,000 State Board of Regents Auxiliary System
and Student Fee Revenue
(Salt Lake Community College)
(FSA Insured), 5.50%, due 6/1/15 .......... 1,300,638
2,338,738
Virginia - 2.5%
3,500,000 Virginia State
5.125%, due 6/1/15 ........................ 3,686,515
Washington - 3.6%
2,000,000 King County School District
No. 210 Federal Way, 5.75%, due 12/1/12 ... 2,271,080
Washington State:
1,725,000 Series B, 5.50%, due 5/1/18 ............... 1,902,641
1,000,000 Series C, 5.50%, due 7/1/13 ............... 1,111,930
5,285,651
Wisconsin - 1.8%
1,515,000 Southeast Wisconsin Professional
Baseball Park District Sales Tax Revenue
(MBIA Insured), Series B
5.50%, due 12/15/09 ....................... 1,690,725
1,000,000 Waukesha School District, (FSA Insured)
4.10%, due 4/1/10 ......................... 1,038,060
2,728,785
- --------------------------------------------------------------------------------
Total Investments (total cost $146,252,426) - 99.8%.......... 146,763,355
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.2% 350,318
- --------------------------------------------------------------------------------
Net Assets - 100%........................................... $ 147,113,673
- --------------------------------------------------------------------------------
AMBAC - American Municipal Bond Assurance Corp.
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assurance, Inc.
FSA-CR - Financial Security Assurance, Inc. - Custodial Receipts
MBIA - Municipal Bond Investors Assurance Corp.
MBIA-IBC - Municipal Bond Investors Assurance Corp. - Insured Bond Certificates
PSF-GTD - Public School Fund - Guaranteed
Q-SBLF - Qualified School Bond Loan Fund
SCSDE - South Carolina School District Enhancement
See Notes to Schedules of Investments and Financial Statements.
6 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS FLEXIBLE INCOME FUND (unaudited) Portfolio Manager
Ronald Speaker
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Flexible Income Lehman Brothers
Fund Government/Credit Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
- --------------------------------------------------------------------------------
Janus Flexible
Income Fund 1.27% 2.93% 5.48% 7.55% 8.09%
- --------------------------------------------------------------------------------
Lehman Brothers 1.17% 1.80% 6.84% 7.40% 8.12%
Government/Credit Index
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedule of Investments for index definitions.
Total return includes reinvestment of dividends and capital gains. The returns
shown do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or redemption of Fund shares.
*The Fund's inception date - July 7, 1987
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek maximum total return, consistent with preservation of capital primarily
through investments in a wide variety of income-producing securities. The Fund
will invest at least 80% of assets in income-producing securities.
FUND PROFILE
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Weighted Average Maturity 7.7 Yrs. 7.3 Yrs.
Average Modified Duration** 5.4 Yrs. 5.1 Yrs.
30-Day Avg. Yield*** 3.38% 3.41%
Weighted Average Fixed Income
Credit Rating A A
Number of Bonds/Notes 233 232
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
Janus Income Funds April 30, 2004 7
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Preferred Stock - Domestic - 0.5%
Cash and Cash Equivalents - 2.2%
Foreign Bonds/Non Dollar Bonds - 7.1%
U.S. Government Agencies - 11.7%
U.S. Treasury Notes/Bonds - 16.8%
Corporate Bonds - Domestic - 61.7%
TOP 10 INDUSTRIES - (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Flexible Income Fund
Electric - Integrated - 6.0%
Cable Television - 2.9%
Food - Diversified - 2.6%
Finance - Auto Loans - 2.5%
Commercial Banks - 2.1%
Multimedia - 2.1%
Diversified Operations - 2.1%
Medical - HMO - 2.0%
Consumer Products - Miscellaneous - 1.9%
Property and Casualty Insurance - 1.9%
- --------------------------------------------------------------------------------
**A theoretical measure of price volatility.
***Yield will fluctuate.
See "Explanations of Charts, Tables and Financial Statements."
Bond funds have the same interest rate, inflation, and credit risks that are
associated with the underlying bonds owned by the fund. Unlike owning individual
bonds, there are ongoing fees and expenses associated with owning shares of bond
funds.
High-yield/high-risk bonds involve a greater risk of default and price
volatility than U.S. Government and other high-quality bonds.
High-yield/high-risk bonds can experience sudden and sharp price swings which
will affect net asset value.
The return of principal is not guaranteed due to net asset value fluctuation
that is caused by changes in the price of specific bonds held in the fund and
selling of bonds within the fund by the portfolio manager.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Janus Capital Management LLC has agreed to waive a portion of the Fund's
expenses if they exceed the designated cap. If during the periods shown, the
Fund's actual expenses exceeded the cap, its yield and total returns would have
been lower.
8 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 67.2%
Agricultural Operations - 0.4%
$ 5,500,000 Bunge Limited Finance Corp., 4.375%
notes, due 12/15/08 (144A) ................ $ 5,480,948
Airlines - 0.1%
1,123,081 Continental Airlines, Inc., 6.80%
pass thru certificates, due 7/2/07 ........ 1,034,638
Automotive - Cars and Light Trucks - 0.1%
1,750,000 General Motors Corp., 7.125%
senior notes, due 7/15/13 ................. 1,835,687
Beverages - Non-Alocholic - 0.9%
10,750,000 Coca-Cola Enterprises, Inc., 4.375%
notes, due 9/15/09 ........................ 10,861,241
Brewery - 1.3%
Anheuser-Busch Companies, Inc.:
2,250,000 5.95%, debentures, due 1/15/33 ............ 2,237,504
1,250,000 6.00%, bonds, due 11/1/41 ................. 1,224,439
7,000,000 Coors Brewing Co., 6.375%
company guaranteed notes, due 5/15/12 ..... 7,557,892
3,500,000 Miller Brewing Co., 5.50%
notes, due 8/15/13 (144A) ................. 3,542,795
2,000,000 SABMiller PLC, 6.625%
bonds, due 8/15/33 (144A) ................. 2,083,392
16,646,022
Broadcast Services and Programming - 0.1%
1,350,000 Clear Channel Communications, Inc., 4.625%
senior notes, due 1/15/08 ................. 1,377,058
Building - Residential and Commercial - 0.6%
1,750,000 D.R. Horton, Inc., 5.00%
notes, due 1/15/09 ........................ 1,723,750
2,000,000 K. Hovnanian Enterprises, Inc., 6.50%
company guaranteed notes, due 1/15/14 ..... 1,910,000
1,000,000 KB Home, 5.75%
senior notes, due 2/1/14 (144A) ........... 942,500
2,500,000 Toll Brothers, Inc., 6.875%
company guaranteed notes, due 11/15/12 .... 2,696,170
7,272,420
Building Products - Cement and Aggregate - 0.2%
3,000,000 Hanson Australia Funding, Ltd., 5.25%
company guaranteed notes, due 3/15/13 ..... 2,945,472
Cable Television - 2.1%
7,000,000 Comcast Cable Communications, Inc., 6.20%
notes, due 11/15/08 ....................... 7,519,791
9,000,000 Comcast Corp., 5.85%
company guaranteed notes, due 1/15/10 ..... 9,450,638
EchoStar DBS Corp.:
4,000,000 5.75%, senior notes, due 10/1/08 (144A) .. 4,010,000
3,413,000 9.125%, senior notes, due 1/15/09 ........ 3,822,560
1,750,000 Rogers Cable, Inc., 6.25%
secured notes, due 6/15/13 ................ 1,685,149
26,488,138
Shares or Principal Amount Market Value
================================================================================
Cellular Telecommunications - 0.5%
Nextel Communications, Inc.:
$ 4,250,000 9.375%, senior notes, due 11/15/09 ........ $ 4,595,313
2,000,000 7.375%, senior notes, due 8/1/15 .......... 2,077,500
6,672,813
Chemicals - Specialty - 0.2%
2,000,000 Nalco Co., 7.75%
senior notes, due 11/15/11 (144A) ......... 2,105,000
Commercial Banks - 2.1%
4,250,000 BB&T Corp., 5.20%
subordinated notes, due 12/23/15 .......... 4,152,327
750,000 Citizens Banking Corp., 5.75%
subordinated notes, due 2/1/13 ............ 740,817
Hudson United Bancorp:
5,000,000 8.20%, subordinated debentures
due 9/15/06 ............................... 5,514,974
2,250,000 7.00%, subordinated notes, due 5/15/12 .... 2,465,091
5,500,000 Sovereign Bank, 5.125%
subordinated notes, due 3/15/13 ........... 5,367,390
Zions Bancorporation:
4,250,000 2.70%, senior notes, due 5/1/06 ........... 4,239,379
4,000,000 6.00%, subordinated notes, due 9/15/15 .... 4,129,092
26,609,070
Commercial Services - 1.5%
ARAMARK Services, Inc.:
6,000,000 7.00%, company guaranteed notes
due 5/1/07 ................................ 6,558,864
4,250,000 6.375%, company guaranteed notes
due 2/15/08 ............................... 4,538,048
7,000,000 PHH Corp., 6.00%
notes, due 3/1/08 ......................... 7,479,941
18,576,853
Computers - 0.4%
IBM Corp.:
3,000,000 2.375%, notes, due 11/1/06 ................ 2,973,624
2,750,000 5.875%, debentures, due 11/29/32 .......... 2,673,891
5,647,515
Computers - Peripheral Equipment - 0%
Candescent Technologies Corp.:
4,250,000 8.00%, convertible senior subordinated
debentures, due 5/1/03 (144A)(omega),
(delta),(sigma),ss ........................ 0
2,750,000 8.00%, convertible senior subordinated
debentures, due 5/1/03 (144A)(omega),
(alpha),(sigma),ss ........................ 0
Consumer Products - Miscellaneous - 1.9%
Dial Corp.:
12,250,000 7.00%, senior notes, due 8/15/06 .......... 13,298,906
9,770,000 6.50%, senior notes, due 9/15/08 .......... 10,632,007
23,930,913
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 9
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Containers - Metal and Glass - 0.9%
$ 2,500,000 Ball Corp., 6.875%
company guaranteed notes, due 12/15/12 .... $ 2,637,500
Owens-Brockway Glass Container, Inc.:
3,750,000 8.875%, company guaranteed notes
due 2/15/09 ............................... 4,073,438
2,000,000 7.75%, company guaranteed notes
due 5/15/11 ............................... 2,095,000
2,500,000 Owens-Illinois, Inc., 7.15%
senior notes, due 5/15/05 ................. 2,600,000
11,405,938
Containers - Paper and Plastic - 0.2%
3,000,000 Sealed Air Corp., 5.375%
senior notes, due 4/15/08 (144A) .......... 3,122,508
Cosmetics and Toiletries - 1.2%
5,500,000 Gillette Co., 4.125%
senior notes, due 8/30/07(omega) .......... 5,656,937
8,500,000 Procter & Gamble Co., 4.75%
notes, due 6/15/07 ........................ 8,883,231
14,540,168
Data Processing and Management - 0.3%
3,750,000 Fiserv, Inc., 3.00%
notes, due 6/27/08 ........................ 3,576,210
Diversified Financial Services - 0.6%
General Electric Capital Corp.:
6,000,000 3.50%, notes, due 5/1/08 .................. 5,946,852
2,000,000 6.00%, notes, due 6/15/12 ................. 2,132,568
8,079,420
Diversified Operations - 2.1%
2,000,000 Bombardier, Inc., 6.30%
notes, due 5/1/14 (144A) .................. 1,972,256
2,500,000 Hutchison Whampoa International, Ltd.
5.45%, company guaranteed notes
due 11/24/10 (144A) ....................... 2,465,325
Tyco International Group S.A.:
8,500,000 5.80%, company guaranteed notes
due 8/1/06** .............................. 8,917,588
2,000,000 6.125%, company guaranteed notes
due 11/1/08** ............................. 2,111,642
3,750,000 6.375%, company guaranteed notes
due 10/15/11** ............................ 3,948,814
7,000,000 6.00%, company guaranteed notes
due 11/15/13 (144A)** ..................... 7,096,103
26,511,728
Diversified Operations - Commercial Services - 1.1%
Cendant Corp.:
6,500,000 6.25%, senior notes, due 1/15/08 .......... 7,020,351
6,750,000 6.25%, notes, due 3/15/10 ................. 7,276,284
14,296,635
Shares or Principal Amount Market Value
================================================================================
E-Commerce/Services - 0.4%
$ 5,000,000 InterActiveCorp, 7.00%
notes, due 1/15/13 ........................ $ 5,440,215
Electric - Generation - 0.5%
4,000,000 Allegheny Energy Supply Company LLC
8.25%, bonds, due 4/15/12 (144A)(omega),ss 4,010,000
2,500,000 Midwest Generation LLC, 8.75%
secured notes, due 5/1/34 (144A) .......... 2,487,500
6,497,500
Electric - Integrated - 6.0%
2,500,000 AmerenEnergy Generating Co., 7.95%
senior notes, due 6/1/32 .................. 2,935,040
Centerpoint Energy, Inc.:
1,500,000 5.875%, senior notes, due 6/1/08 .......... 1,527,636
2,000,000 6.85%, senior notes, due 6/1/15 ........... 2,030,702
CMS Energy Corp.:
4,050,000 7.50%, senior notes, due 1/15/09 .......... 4,080,375
4,000,000 7.75%, senior notes, due 8/1/10 (144A) .... 4,040,000
3,500,000 Dominion Resources, Inc., 5.125%
senior notes, due 12/15/09 ................ 3,587,707
10,000,000 MidAmerican Energy Holdings Co., 3.50%
senior notes, due 5/15/08 ................. 9,748,769
1,450,000 Northern States Power Co., 2.875%
first mortgage notes, due 8/1/06 .......... 1,443,961
Pacific Gas and Electric Co.:
1,750,000 3.60%, first mortgage notes, due 3/1/09 ... 1,697,528
1,785,000 4.80%, first mortgage notes, due 3/1/14 ... 1,707,858
3,000,000 PSE&G Power LLC, 5.50%
company guaranteed notes
due 12/1/15 ............................... 2,907,321
1,000,000 Public Service Company of Colorado
6.875%, senior notes, due 7/15/09 ......... 1,112,335
Southern California Edison Co.:
2,500,000 7.625%, notes due 1/15/10 ................. 2,857,093
1,500,000 5.00%, first mortgage notes, due 1/15/14 .. 1,471,565
2,500,000 6.00%, first mortgage notes, due 1/15/34 .. 2,411,890
3,000,000 5.75%, first mortgage notes, due 4/1/35 ... 2,783,298
4,500,000 Southwestern Public Service Co., 5.125%
senior notes, due 11/1/06 ................. 4,708,544
TXU Corp.:
5,500,000 6.375%, senior notes, due 6/15/06 ......... 5,846,499
10,250,000 6.375%, notes, due 1/1/08 ................. 10,954,687
4,500,000 7.00%, senior notes, due 3/15/13 .......... 4,974,335
4,800,000 Xcel Energy, Inc., 3.40%
senior notes, due 7/1/08 .................. 4,661,544
77,488,687
See Notes to Schedules of Investments and Financial Statements.
10 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Electronic Components - Semiconductors - 0.1%
$ 1,250,000 Amkor Technology, Inc., 10.50%
senior subordinated notes, due 5/1/09 ..... $ 1,315,625
Fiduciary Banks - 0.5%
6,500,000 Bank of New York Company, Inc., 3.625%
senior notes, due 1/15/09 ................. 6,388,330
Finance - Auto Loans - 2.5%
Ford Motor Credit Co.:
3,750,000 5.80%, senior notes, due 1/12/09 .......... 3,819,431
3,500,000 7.00%, notes, due 10/1/13 ................. 3,599,505
General Motors Acceptance Corp.:
12,750,000 4.50%, notes, due 7/15/06 ................. 13,026,228
3,750,000 5.125%, notes, due 5/9/08 ................. 3,811,654
5,000,000 5.85%, senior unsubordinated notes
due 1/14/09 ............................... 5,157,464
2,500,000 6.875%, notes, due 9/15/11 ................ 2,624,028
32,038,310
Finance - Commercial - 0.5%
Caterpillar Financial Services Corp.:
2,500,000 2.35%, notes, due 9/15/06 ................. 2,464,950
3,420,000 3.10%, notes, due 5/15/07 ................. 3,399,083
5,864,033
Finance - Consumer Loans - 1.3%
7,750,000 Household Finance Corp., 4.625%
notes, due 1/15/08 ........................ 7,970,200
SLM Corp.:
7,000,000 3.95%, notes, due 8/15/08 ................. 6,996,794
1,750,000 4.00%, notes, due 1/31/14(omega) .......... 1,726,148
16,693,142
Finance - Credit Card - 0.4%
4,750,000 Capital One Bank, 5.75%
notes, due 9/15/10 ........................ 4,935,792
Finance - Investment Bankers/Brokers - 1.3%
4,000,000 Citigroup, Inc., 4.875%
subordinated notes, due 5/7/15 ............ 3,807,600
Goldman Sachs Group, Inc.:
1,750,000 5.15%, bonds, due 1/15/14 ................. 1,703,074
3,500,000 6.345%, subordinated notes, due 2/15/34 ... 3,345,433
5,750,000 Jefferies Group, Inc., 5.50%
senior notes due 3/15/16 .................. 5,555,172
1,985,000 Morgan Stanley Co., 4.75%
subordinated notes, due 4/1/14 ............ 1,854,566
16,265,845
Finance - Other Services - 0.4%
4,750,000 Athena Neuro Financial LLC, 7.25%
company guaranteed notes, due 2/21/08 ..... 4,809,375
Food - Dairy Products - 0.8%
9,000,000 Dean Foods Co., 6.625%
senior notes, due 5/15/09 ................. 9,607,500
Shares or Principal Amount Market Value
================================================================================
Food - Diversified - 2.6%
Del Monte Corp.:
$ 1,250,000 9.25%, company guaranteed notes
due 5/15/11 ............................... $ 1,378,125
2,750,000 8.625%, senior subordinated notes
due 12/15/12(omega) ....................... 3,038,750
General Mills, Inc.:
12,500,000 3.875%, notes, due 11/30/07 ............... 12,533,249
5,550,000 6.00%, notes, due 2/15/12 ................. 5,884,548
Kellogg Co.:
10,000,000 2.875%, senior notes, due 6/1/08 .......... 9,613,670
1,750,000 6.60%, notes, due 4/1/11 .................. 1,943,907
34,392,249
Food - Retail - 0.2%
1,000,000 Domino's, Inc., 8.25%
senior subordinated notes, due 7/1/11 ..... 1,080,000
1,750,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 ................. 1,833,125
2,913,125
Foreign Government - 0.5%
United Mexican States:
1,750,000 4.625%, notes, due 10/8/08 ................ 1,741,250
3,250,000 5.875%, notes, due 1/15/14 ................ 3,146,000
1,610,000 7.50%, notes, due 4/8/33 .................. 1,593,900
6,481,150
Funeral Services and Related Items - 0%
284,000 Service Corporation International, 6.00%
notes, due 12/15/05 ....................... 296,780
Gas - Distribution - 0.5%
5,250,000 Southwest Gas Corp. 7.625%
senior notes, due 5/15/12 ................. 5,896,742
Home Decoration Products - 0.1%
1,750,000 Newell Rubbermaid, Inc., 4.00%
notes, due 5/1/10 ......................... 1,669,056
Hotels and Motels - 1.1%
13,000,000 Starwood Hotels & Resorts Worldwide, Inc.
6.75%, notes, due 11/15/05 ................ 13,650,000
Investment Management and Advisory Services - 0.4%
4,500,000 Franklin Resources, Inc., 3.70%
notes, due 4/15/08 ........................ 4,441,482
Leisure, Recreation and Gaming - 0.4%
4,250,000 Hard Rock Hotel, Inc., 8.875%
notes, due 6/1/13 ......................... 4,483,750
Life and Health Insurance - 0.8%
3,500,000 Americo Life, Inc., 7.875%
notes, due 5/1/13 (144A) .................. 3,605,000
6,475,000 StanCorp Financial Group, Inc., 6.875%
senior notes, due 10/1/12 ................. 6,953,749
10,558,749
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 11
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Linen Supply and Related Items - 0.2%
$ 2,000,000 Cintas Corp., 6.00%
company guaranteed notes, due 6/1/12 ...... $ 2,145,140
Machine Tools and Related Products - 0.6%
7,500,000 Kennametal, Inc., 7.20%
senior notes, due 6/15/12 ................. 7,995,855
Medical - HMO - 2.0%
UnitedHealth Group, Inc.:
7,500,000 5.20%, notes, due 1/17/07 ................. 7,888,793
9,750,000 3.30%, senior notes, due 1/30/08 .......... 9,640,741
6,750,000 WellPoint Health Networks, Inc., 6.375%
notes, due 6/15/06 ........................ 7,245,072
24,774,606
Medical - Hospitals - 1.4%
HCA, Inc.:
11,000,000 5.25%, notes, due 11/6/08 ................. 11,004,345
6,250,000 6.95%, senior notes, due 5/1/12 ........... 6,529,781
17,534,126
Medical - Nursing Homes - 0.6%
7,250,000 Manor Care, Inc., 6.25%
company guaranteed notes, due 5/1/13 ...... 7,458,438
Medical Products - 0.1%
1,000,000 Fresenius Medical Care Capital Trust IV
7.875%, company guaranteed notes
due 6/15/11 ............................... 1,095,000
Metal - Diversified - 0.6%
7,000,000 Freeport-McMoRan Copper & Gold, Inc.
10.125%, senior notes, due 2/1/10 ......... 7,700,000
Metal Processors and Fabricators - 0.4%
4,500,000 Precision Castparts Corp., 5.60%
company guaranteed notes
due 12/15/13 (144A) ....................... 4,434,057
Motorcycle and Motor Scooter Manufacturing - 0.3%
3,500,000 Harley-Davidson, Inc., 3.625%
notes, due 12/15/08 (144A) ................ 3,450,881
Multi-Line Insurance - 0.5%
1,750,000 Assurant, Inc., 6.75%
notes, due 2/15/34 (144A) ................. 1,772,390
Farmers Insurance Exchange:
2,000,000 8.50%, notes, due 8/1/04 (144A) ............ 2,023,871
1,750,000 8.625%, notes, due 5/1/24 (144A) ........... 1,979,429
5,775,690
Multimedia - 2.0%
Belo Corp.:
5,500,000 7.125%, senior notes, due 6/1/07 ........... 6,043,604
2,750,000 8.00%, senior unsubordinated notes
due 11/1/08 ............................... 3,151,690
4,000,000 Corus Entertainment, Inc., 8.75%
senior subordinated notes, due 3/1/12 ..... 4,410,000
6,000,000 News America, Inc., 6.625%
senior notes, due 1/9/08 .................. 6,547,901
4,500,000 Time Warner, Inc., 6.875%
company guaranteed notes, due 5/1/12 ...... 4,919,670
25,072,865
Shares or Principal Amount Market Value
================================================================================
Mutual Insurance - 1.0%
Liberty Mutual Group:
$ 5,000,000 5.75%, notes, due 3/15/14 (144A) ........... $ 4,891,430
750,000 8.50%, notes, due 5/15/25 (144A) ........... 856,426
3,750,000 7.00%, bonds, due 3/15/34 (144A) ........... 3,677,869
3,500,000 New York Life Insurance Co., 5.875%
notes, due 5/15/33 (144A) ................. 3,364,893
12,790,618
Non-Hazardous Waste Disposal - 0.9%
9,500,000 Waste Management, Inc., 7.375%
senior notes, due 8/1/10 .................. 10,799,923
Oil - Field Services - 0.2%
2,750,000 Halliburton Co., 5.50%
notes, due 10/15/10 ....................... 2,810,368
Oil Companies - Exploration and Production - 1.5%
8,850,000 Anadarko Petroleum Corp., 3.25%
notes, due 5/1/08 ......................... 8,635,529
6,250,000 Devon Energy Corp., 2.75%
senior notes, due 8/1/06 .................. 6,216,700
2,500,000 Magnum Hunter Resources, Inc., 9.60%
company guaranteed notes, due 3/15/12 ..... 2,775,000
Pemex Project Funding Master Trust:
500,000 6.125%, company guaranteed notes
due 8/15/08 ............................... 520,000
500,000 8.625%, company guaranteed notes
due 2/1/22(omega) ......................... 535,000
500,000 Westport Resources Corp., 8.25%
company guaranteed notes
due 11/1/11 ............................... 561,250
19,243,479
Oil Companies - Integrated - 1.4%
7,500,000 ChevronTexaco Capital Co., 3.50%
company guaranteed notes, due 9/17/07 ..... 7,566,652
Occidental Petroleum Corp.:
6,500,000 5.875%, senior notes, due 1/15/07 .......... 6,931,789
3,250,000 4.25%, notes, due 3/15/10 .................. 3,201,312
17,699,753
Oil Field Machinery and Equipment - 0.2%
3,000,000 Cooper Cameron Corp., 2.65%
senior notes, due 4/15/07 ................. 2,930,745
Oil Refining and Marketing - 0.1%
750,000 Premcor Refining Group, Inc., 6.125%
senior notes, due 5/1/11 .................. 746,250
Paper and Related Products - 0.1%
750,000 Boise Cascade Corp., 6.50%
senior notes, due 11/1/10 ................. 790,203
Pipelines - 1.6%
1,000,000 El Paso Corp., 7.875%
notes, due 6/15/12 ........................ 880,000
1,439,000 Gulfterra Energy Partners L.P., 8.50%
company guaranteed notes, due 6/1/10 ...... 1,604,485
4,250,000 Kaneb Pipe Line Operating Partnership L.P.
5.875%, senior notes, due 6/1/13 .......... 4,259,842
See Notes to Schedules of Investments and Financial Statements.
12 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Pipelines - (continued)
$ 4,306,500 Kern River Funding Corp., 4.893%
company guaranteed notes
due 4/30/18 (144A)(omega) ................. $ 4,200,388
Panhandle Eastern Pipe Line Co.:
1,750,000 2.75%, notes, due 3/15/07 (144A) ........... 1,709,997
3,750,000 4.80%, senior notes, due 8/15/08 ........... 3,808,549
3,750,000 Plains All American Pipeline L.P., 5.625%
senior notes, due 12/15/13 (144A) ......... 3,715,223
20,178,484
Printing - Commercial - 0.2%
2,000,000 R.R. Donnelley & Sons Co., 3.75%
notes, due 4/1/09 (144A) .................. 1,955,138
Property and Casualty Insurance - 1.9%
4,000,000 First American Capital Trust I, 8.50%
company guaranteed notes, due 4/15/12 ..... 4,540,000
3,750,000 Kingsway America, Inc., 7.50%
senior notes, due 2/1/14 (144A) ........... 3,699,165
6,250,000 Markel Corp., 6.80%
notes, due 2/15/13 ........................ 6,542,756
3,750,000 NYMAGIC, Inc., 6.50%
senior notes, due 3/15/14 (144A)ss ........ 3,591,874
2,500,000 Progressive Corp., 6.25%
senior notes, due 12/1/32 ................. 2,529,925
2,750,000 W. R. Berkley Corp., 5.875%
senior notes due 2/15/13 .................. 2,807,076
23,710,796
Publishing - Periodicals - 0.8%
Dex Media East LLC:
1,250,000 9.875%, company guaranteed notes
due 11/15/09 .............................. 1,401,563
3,500,000 12.125%, company guaranteed notes
due 11/15/12 .............................. 4,060,000
1,250,000 Dex Media, Inc., 8.00%
notes, due 11/15/13 (144A) ................ 1,212,500
3,000,000 Dex Media West LLC, 9.875%
senior subordinated notes
due 8/15/13 (144A) ........................ 3,285,000
9,959,063
Radio - 0.1%
1,460,000 XM Satellite Radio Holdings, Inc., 12.00%
secured notes, due 6/15/10 ................ 1,688,125
Real Estate Investment Trusts (REIT) - Shopping Centers - 0.3%
3,500,000 Saul Centers, Inc., 7.50%
secured notes, due 3/1/14 (144A) .......... 3,508,750
Reinsurance - 0.2%
3,250,000 Berkshire Hathaway, Inc., 4.625%
notes, due 10/15/13 (144A) ................ 3,147,554
Retail - Discount - 0.9%
10,000,000 Wal-Mart Stores, Inc., 6.875%
senior notes, due 8/10/09 ................. 11,289,350
Shares or Principal Amount Market Value
================================================================================
Retail - Drug Store - 0.1%
$ 1,000,000 Rite Aid Corp., 7.625%
senior notes, due 4/15/05 ................. $ 1,025,000
Retail - Major Department Stores - 0.4%
3,000,000 J.C. Penney Company, Inc., 6.00%
debentures, due 5/1/06 .................... 3,000,000
2,250,000 Saks, Inc., 8.25%
company guaranteed notes, due 11/15/08 .... 2,480,625
5,480,625
Retail - Restaurants - 0.1%
1,750,000 VICORP Restaurants, Inc., 10.50%
senior notes, due 4/15/11 (144A) .......... 1,732,500
Rubber - Tires - 0.1%
1,250,000 Goodyear Tire & Rubber Co., 8.50%
notes, due 3/15/07 ........................ 1,206,250
Savings/Loan/Thrifts - 0.5%
1,750,000 Chevy Chase Bank FSB, 6.875%
subordinated notes, due 12/1/13 ........... 1,776,250
3,000,000 Webster Bank, 5.875%
subordinated notes, due 1/15/13 ........... 3,107,880
1,000,000 Webster Capital Trust II, 10.00%
company guaranteed notes, due 4/1/27 ...... 1,163,445
6,047,575
Shipbuilding - 0.3%
3,750,000 Ship Finance International, Ltd., 8.50%
senior notes, due 12/15/13 (144A) ......... 3,618,750
Specified Purpose Acquisition Company - 1.2%
4,250,000 Fund American Companies, Inc., 5.875%
notes, due 5/15/13 ........................ 4,274,552
5,000,000 Glencore Funding LLC, 6.00%
company guaranteed notes
due 4/15/14 (144A) ........................ 4,725,160
5,750,000 OneAmerica Financial Partners, 7.00%
bonds, due 10/15/33 (144A) ................ 5,728,329
14,728,041
Super-Regional Banks - 0.2%
2,000,000 U.S. Bancorp, 2.75%
senior notes, due 3/30/06 ................. 2,007,856
Telephone - Integrated - 1.3%
7,500,000 Deutsche Telekom International
Finance B.V., 3.875%, company
guaranteed notes, due 7/22/08** ........... 7,459,597
MCI Communications Corp.:
4,750,000 5.908%, senior notes, due 5/1/07 ........... 4,696,563
3,000,000 7.735%, senior notes, due 5/1/14 ........... 2,782,500
750,000 Qwest Services Corp., 13.50%
notes, due 12/15/10 (144A) ................ 870,000
15,808,660
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 13
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS FLEXIBLE INCOME FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Television - 1.5%
$ 10,000,000 British Sky Broadcasting Group PLC
6.875%, company guaranteed notes
due 2/23/09 ............................... $ 11,057,770
Univision Communications, Inc.:
2,250,000 3.50%, company guaranteed notes
due 10/15/07 .............................. 2,225,516
5,750,000 3.875%, senior notes, due 10/15/08 ........ 5,649,691
18,932,977
Theaters - 0.2%
2,750,000 AMC Entertainment, Inc., 9.875%
senior subordinated notes, due 2/1/12 ..... 2,970,000
Transportation - Railroad - 0.2%
2,500,000 CSX Corp., 4.875%
notes, due 11/1/09 ........................ 2,539,505
Transportation - Services - 0.3%
3,500,000 FedEx Corp., 2.65%
notes, due 4/1/07 (144A) .................. 3,422,895
Veterinary Diagnostics - 0.2%
2,250,000 Vicar Operating, Inc., 9.875%
company guaranteed notes, due 12/1/09 ..... 2,508,750
Wireless Equipment - 0.4%
American Tower Corp.:
3,500,000 9.375%, senior notes, due 2/1/09 .......... 3,753,750
1,000,000 7.50%, senior notes, due 5/1/12 (144A) .... 965,000
4,718,750
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $837,788,207).................... 848,577,223
- --------------------------------------------------------------------------------
Foreign Bonds - 1.6%
Automotive - Truck Parts and Equipment - Original - 0.4%
EUR
3,350,000 TRW Automotive, Inc., 10.125%
senior notes, due 2/15/13** ............... 4,578,037
Cable Television - 0.8%
EUR
6,000,000 Tele Columbus A.G. & Co., 9.375%
senior subordinated notes
due 4/15/12 (144A)** ...................... 6,994,723
EUR
2,500,000 Telenet Communications N.V., 9.00%
senior notes, due 12/15/13 (144A)** ....... 3,071,805
10,066,528
Drug Delivery Systems - 0.3%
EUR
2,750,000 Fresenius Finance B.V., 7.75%
company guaranteed notes
due 4/30/09 (144A)** ...................... 3,601,504
Foreign Government - 0%
EUR 325,000 Deutscheland Republic, 5.00%
bonds, due 7/4/12** ....................... 415,864
Multimedia - 0.1%
EUR
1,250,000 Lighthouse International Company S.A.
8.00%, senior notes, due 4/30/14 (144A)** . 1,513,426
- --------------------------------------------------------------------------------
Total Foreign Bonds (cost $19,008,249)....................... 20,175,359
- --------------------------------------------------------------------------------
Shares or Principal Amount Market Value
================================================================================
Preferred Stock - 0.5%
Finance - Other Services - 0.2%
38,250 Chevy Chase Preferred Capital Corp.
Series A, convertible, 10.375% ............ $ 2,233,800
Real Estate Investment Trusts (REIT) - Shopping Centers - 0%
15,725 Saul Centers, Inc., 8.00% ................... 407,278
Savings/Loan/Thrifts - 0.3%
139,550 Chevy Chase Bank FSB, 8.00% ................. 3,837,625
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $6,096,723)...................... 6,478,703
- --------------------------------------------------------------------------------
Warrants - 0%
Telephone - Integrated - 0%
2,700 Versatel Telecom B.V. - expires 5/15/08*,(beta),(sigma)
(cost $0) ................................. 0
- --------------------------------------------------------------------------------
U.S. Government Agencies - 11.7%
Fannie Mae:
$ 40,460,000 3.25%, due 11/15/07# ...................... 40,257,336
15,500,000 4.00%, due 9/2/08# ........................ 15,495,598
20,200,000 5.25%, due 1/15/09# ....................... 21,350,087
41,350,000 6.25%, due 2/1/11# ........................ 44,829,478
6,500,000 4.625%, due 5/1/13# ....................... 6,220,533
17,975,000 6.625%, due 11/15/30# ..................... 19,970,405
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $146,558,444)........... 148,123,437
- --------------------------------------------------------------------------------
U.S. Treasury Notes/Bonds - 16.8%
U.S. Treasury Note/Bonds:
9,695,000 2.625%, due 11/15/06# ..................... 9,688,184
7,880,000 2.25%, due 2/15/07# ....................... 7,773,494
25,085,000 4.375%, due 5/15/07# ...................... 26,157,961
11,000,000 3.00%, due 2/15/08# ....................... 10,921,372
18,580,000 2.625%, due 3/15/09# ...................... 17,780,911
8,690,000 3.125%, due 4/15/09# ...................... 8,498,890
6,930,000 5.75%, due 8/15/10# ....................... 7,617,047
34,518,320 2.00%, due 1/15/14(pi),# .................. 34,272,929
13,545,000 4.00%, due 2/15/14# ....................... 13,011,666
4,275,000 7.25%, due 5/15/16# ....................... 5,208,151
20,800,000 7.25%, due 8/15/22# ....................... 25,595,378
22,455,000 6.25%, due 8/15/23# ....................... 24,951,367
6,955,000 6.25%, due 5/15/30# ....................... 7,815,953
12,705,000 5.375%, due 2/15/31**,# ................... 12,871,753
- --------------------------------------------------------------------------------
Total U.S. Treasury Notes/Bonds (cost $216,102,955).......... 212,165,056
- --------------------------------------------------------------------------------
Other Securities - 20.0%
State Street Navigator Securities Lending
252,763,011 Prime Portfolio+ (cost $252,763,011) ...... 252,763,011
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
14 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Time Deposits - 0.8%
SouthTrust Bank, ETD
$ 6,500,000 1.04% 5/3/04 .............................. $ 6,500,000
SunTrust Banks, Inc., ETD
3,000,000 1.03125%, 5/3/04 .......................... 3,000,000
- --------------------------------------------------------------------------------
Total Time Deposits (cost $9,500,000)........................ 9,500,000
- --------------------------------------------------------------------------------
Total Investments (total cost $1,487,817,589) - 118.6%....... 1,497,782,789
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (18.6)% (234,716,760)
- --------------------------------------------------------------------------------
Net Assets - 100%............................................ $ 1,263,066,029
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Australia $ 2,945,472 0.2%
Belgium 3,071,805 0.2%
Bermuda 3,618,750 0.3%
Canada 15,634,057 1.0%
Cayman Islands 2,465,325 0.2%
Denmark 6,994,723 0.5%
Germany 7,875,461 0.5%
Luxembourg 23,587,573 1.6%
Mexico 6,481,150 0.4%
Netherlands 3,601,504 0.2%
United Kingdom 13,141,162 0.9%
United States++ 1,408,365,807 94.0%
- --------------------------------------------------------------------------------
Total $1,497,782,789 100.0%
++Includes Short-Term Securities (76.5% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Euro 9/27/04 15,500,000 $ 18,517,384 $ 199,266
- --------------------------------------------------------------------------------
Total $ 18,517,384 $ 199,266
- --------------------------------------------------------------------------------
Financial Futures - Long
121 Contracts S&P 500 E-mini
expires June 2004, principal
amount $6,833,688, value $6,691,300
cumulative depreciation ................... $ (142,388)
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS HIGH-YIELD FUND (unaudited) Portfolio Manager
Gibson Smith
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus High-Yield Fund Lehman Brothers High-Yield
Bond Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Since
Year-to-Date Year Year Inception*
-------------------------------------------------------------------------
Janus High-Yield Fund 3.86% 9.65% 5.26% 8.44%
-------------------------------------------------------------------------
Lehman Brothers High-Yield
Bond Index 5.52% 15.00% 4.79% 6.41%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends and capital gains. The returns
shown do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or redemption of Fund shares.
*The Fund's inception date - December 29, 1995
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek high current income, as well as capital appreciation when consistent
with its high current income objective. The Fund will normally invest at least
80% of its net assets in high-yield/high-risk securities rated below investment
grade.
FUND PROFILE
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Weighted Average Maturity 6.5 Yrs. 6.5 Yrs.
Average Modified Duration** 4.6 Yrs. 4.5 Yrs.
30-Day Average Yield*** 6.05% 6.60%
Weighted Average Fixed Income
Credit Rating B B
Number of Bonds/Notes 191 212
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
16 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following data.
Warrants - 0.1%
Preferred Stock - Domestic - 0.6%
Cash and Cash Equivalents - 6.4%
Foreign Bonds/Non Dollar Bonds - 7.2%
Corporate Bonds - Domestic - 85.7%
TOP 10 INDUSTRIES - (% of Net Assets)
- --------------------------------------------------------------------------------
Janus High-yield Fund
Pipelines - 5.5%
Containers - Metal and Glass - 5.4%
Telephone - Integrated - 5.0%
Building - Residential and Commercial - 4.4%
Oil Companies - Exploration and Production - 3.9%
Electric - Generation - 3.7%
Automotive - Truck Parts and Equipment - Original - 3.6%
Cable Television - 3.3%
Independent Power Producer - 2.6%
Casino Hotels - 2.3%
- --------------------------------------------------------------------------------
**A theoretical measure of price volatility.
***Yield will fluctuate.
See "Explanations of Charts, Tables and Financial Statements."
Bond funds have the same interest rate, inflation, and credit risks that are
associated with the underlying bonds owned by the fund. Unlike owning individual
bonds, there are ongoing fees and expenses associated with owning shares of bond
funds.
The return of principal is not guaranteed due to net asset value fluctuation
that is caused by changes in the price of specific bonds held in the fund and
selling of bonds within the fund by the portfolio manager.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
High-yield/high-risk bonds involve a greater risk of default and price
volatility than U.S. Government and other high-quality bonds.
High-yield/high-risk bonds can experience sudden and sharp price swings which
will affect net asset value.
Effective March 1, 2004, the Fund's redemption fee, that may be imposed on
shares held for 3 months or less, increased from 1% to 2% on shares purchased on
or after that date.
Janus Capital Management LLC has agreed to waive a portion of the Fund's
expenses if they exceed the designated cap. If during the periods shown, the
Fund's actual expenses exceeded the cap, its yield and total returns would have
been lower.
Janus Income Funds April 30, 2004 17
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS HIGH-YIELD FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 92.9%
Advertising Services - 0.3%
$ 1,250,000 R.H. Donnelley Financial Corp., 8.875%
company guaranteed notes, due 12/15/10 .... $ 1,393,750
Aerospace and Defense - 0.3%
1,400,000 Titan Corp., 8.00%
company guaranteed notes
due 5/15/11 (144A) ........................ 1,596,000
Aerospace and Defense - Equipment - 1.1%
3,000,000 BE Aerospace, Inc., 8.50%
senior notes, due 10/1/10 ................. 3,255,000
3,000,000 DRS Technologies, Inc., 6.875%
senior subordinated notes, due 11/1/13 .... 3,015,000
6,270,000
Agricultural Chemicals - 0.7%
4,000,000 IMC Global, Inc., 6.55%
notes, due 1/15/05 ........................ 4,060,000
Airlines - 1.7%
1,000,000 American Airlines, Inc., 7.25%
secured notes, due 2/5/09 (144A) .......... 971,250
Continental Airlines, Inc.:
6,800,000 7.25%, pass thru certificates, due 11/1/05 6,263,861
2,528,998 8.499%,pass thru certificates, due 5/1/11 . 2,197,371
9,432,482
Apparel Manufacturers - 0.7%
2,350,000 Broder Brothers Co., 11.25%
senior notes, due 10/15/10 (144A) ......... 2,279,500
1,500,000 Phillips-Van Heusen Corp., 8.125%
senior notes, due 5/1/13 .................. 1,575,000
3,854,500
Automotive - Truck Parts and Equipment - Original - 3.6%
1,600,000 Dana Corp., 9.00%
notes, due 8/15/11 ........................ 1,888,000
950,000 Metaldyne Corp., 10.00%
company guaranteed notes
due 11/1/13 (144A) ........................ 921,500
6,500,000 Tenneco Automotive, Inc., 11.625%
company guaranteed notes, due 10/15/09 .... 7,117,500
1,150,000 Tower Automotive, Inc., 12.00%
company guaranteed notes, due 6/1/13 ...... 1,124,125
TRW Automotive, Inc.:
4,850,000 9.375%, senior notes, due 2/15/13 ......... 5,553,250
2,600,000 11.00%, senior subordinated notes
due 2/15/13 ............................... 3,094,000
19,698,375
Shares or Principal Amount Market Value
================================================================================
Building - Residential and Commercial - 4.4%
$ 2,500,000 D.R. Horton, Inc., 8.50%
company guaranteed notes, due 4/15/12 ..... $ 2,806,250
3,000,000 K. Hovnanian Enterprises, Inc., 9.125%
company guaranteed notes, due 5/1/09 ...... 3,136,890
2,500,000 Meritage Corp., 9.75%
company guaranteed notes, due 6/1/11 ...... 2,784,375
2,000,000 NVR, Inc., 5.00%
senior notes, due 6/15/10 ................. 1,915,000
5,000,000 WCI Communities, Inc., 10.625%
company guaranteed notes, due 2/15/11 ..... 5,537,500
William Lyon Homes, Inc.:
5,500,000 10.75%, company guaranteed notes
due 4/1/13 ................................ 6,324,999
1,700,000 7.50%, senior notes, due 2/15/14 (144A) ... 1,700,000
24,205,014
Building and Construction Products - Miscellaneous - 0.1%
1,000,000 Associated Materials, Inc., 11.25%
senior notes, due 3/1/14 (144A) ........... 650,000
Cable Television - 3.3%
1,200,000 Cablevision Systems New York Group, 8.00%
senior notes, due 4/15/12 (144A) .......... 1,203,000
5,750,000 Charter Communications Holdings II, 10.25%
senior notes, due 9/15/10 (144A) .......... 5,922,500
1,950,000 Charter Communications Holdings/Charter
Capital, Inc., 10.00%, senior notes
due 4/1/09 ................................ 1,681,875
5,000,000 DIRECTV Holdings LLC, 8.375%
senior notes, due 3/15/13 ................. 5,587,500
800,000 EchoStar DBS Corp., 4.36%
senior notes, due 10/1/08 (144A)(omega) ... 832,000
1,750,000 Mediacom Broadband LLC, 11.00%
company guaranteed notes, due 7/15/13 ..... 1,872,500
700,000 Mediacom LLC/Mediacom Capital Corp.
9.50%, senior notes, due 1/15/13 .......... 696,500
17,795,875
Casino Hotels - 2.3%
3,000,000 Kerzner International, Ltd., 8.875%
company guaranteed notes, due 8/15/11 ..... 3,330,000
1,250,000 MGM Mirage, Inc., 8.375%
company guaranteed notes, due 2/1/11 ...... 1,381,250
2,000,000 MTR Gaming Group, Inc., 9.75%
company guaranteed notes, due 4/1/10 ...... 2,125,000
5,000,000 Venetian Casino Resort LLC, 11.00%
company guaranteed notes, due 6/15/10 ..... 5,850,000
12,686,250
Casino Services - 0.5%
2,500,000 Mikohn Gaming Corp., 11.875%
company guaranteed notes, due 8/15/08 ..... 2,537,500
See Notes to Schedules of Investments and Financial Statements.
18 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Cellular Telecommunications - 1.8%
$ 3,000,000 Centennial Communications Corp., 10.125%
company guaranteed notes, due 6/15/13 ..... $ 3,090,000
1,750,000 MetroPCS, Inc., 10.75%
senior notes, due 10/1/11 ................. 1,846,250
2,675,000 Nextel Partners, Inc., 11.00%
senior notes, due 3/15/10 ................. 3,022,750
2,025,000 Western Wireless Corp., 9.25%
senior notes, due 7/15/13 ................. 2,080,688
10,039,688
Chemicals - Diversified - 1.5%
Lyondell Chemical Co.:
3,100,000 9.50%, company guaranteed notes
due 12/15/08 .............................. 3,239,500
2,250,000 11.125%, secured notes, due 7/15/12 ....... 2,497,500
2,500,000 Phibro Animal Health Corp., 13.00%
units, due 12/1/07 (144A)ss ............... 2,687,500
8,424,500
Chemicals - Specialty - 1.0%
5,375,000 Nalco Co., 8.875%
senior subordinated notes
due 11/15/13 (144A) ....................... 5,670,625
Coal - 0.2%
1,200,000 Peabody Energy Corp., 5.875%
senior notes, due 4/15/16 ................. 1,116,000
Commercial Services - 0.1%
500,000 Iron Mountain, Inc., 7.75%
company guaranteed notes, due 1/15/15 ..... 512,500
Consumer Products - Miscellaneous - 0.2%
1,200,000 Prestige Brands, Inc., 9.25%
senior subordinated notes
due 4/15/12 (144A) ........................ 1,161,000
Containers - Metal and Glass - 5.4%
2,000,000 Anchor Glass Container Corp., 11.00%
secured notes, due 2/15/13 ................ 2,310,000
3,400,000 Ball Corp., 7.75%
company guaranteed notes, due 8/1/06 ...... 3,638,000
5,400,000 Crown Cork & Seal Company, Inc., 7.00%
company guaranteed notes, due 12/15/06 .... 5,535,000
Crown European Holdings S.A.:
2,500,000 9.50%, secured notes, due 3/1/11 .......... 2,803,125
2,250,000 10.875%, secured notes, due 3/1/13 ........ 2,621,250
Owens-Brockway Glass Container, Inc.:
5,000,000 8.875%, company guaranteed notes
due 2/15/09 ............................... 5,431,250
5,000,000 8.25%, company guaranteed notes
due 5/15/13 ............................... 5,162,500
1,950,000 Owens-Illinois, Inc., 7.80%
debentures, due 5/15/18 ................... 1,803,750
29,304,875
Cosmetics and Toiletries - 0.1%
435,000 Elizabeth Arden, Inc., 7.75%
company guaranteed notes
due 1/15/14 (144A) ........................ 449,681
Shares or Principal Amount Market Value
================================================================================
Cruise Lines - 0.6%
$ 3,000,000 Royal Caribbean Cruises, Ltd., 8.00%
senior notes, due 5/15/10 ................. $ 3,270,000
Dialysis Centers - 0.3%
1,250,000 National Nephrology Associates, Inc.
9.00%, senior subordinated notes
due 11/1/11 (144A) ........................ 1,450,000
Distribution/Wholesale - 0.2%
750,000 Ingram Micro, Inc., 9.875%
senior subordinated notes, due 8/15/08 .... 830,625
Diversified Operations - 2.3%
1,600,000 J.B. Poindexter & Co., 8.75%
senior notes, due 3/15/14 (144A) .......... 1,640,000
2,500,000 SPX Corp., 6.25%
senior notes, due 6/15/11 ................. 2,493,750
1,020,000 Stena A.B., 7.50%
senior notes, due 11/1/13 ................. 1,060,800
Tyco International Group S.A.:
3,950,000 6.00%, company guaranteed notes
due 11/15/13 (144A) ....................... 4,004,230
1,250,000 6.875%, company guaranteed notes
due 1/15/29 ............................... 1,260,971
2,000,000 Williams Companies, Inc., 6.25%
debentures, due 2/1/06 .................... 2,075,000
12,534,751
Electric - Distribution - 0.4%
2,000,000 BRL Universal Equipment, Inc., 8.875%
secured notes, due 2/15/08 ................ 2,150,000
Electric - Generation - 3.7%
5,000,000 AES Corp., 9.00%
secured notes, due 5/15/15 (144A) ......... 5,450,000
Allegheny Energy Supply Company LLC:
2,175,000 10.25%, secured notes, due 11/15/07 (144A) 2,403,375
3,650,000 7.80%, notes, due 3/15/11 ................. 3,577,000
3,550,000 8.25%, bonds, due 4/15/12 (144A)(omega),ss 3,558,875
2,100,000 Edison Mission Energy, 7.73%
senior notes, due 6/15/09 ................. 1,984,500
3,100,000 Midwest Generation LLC, 8.56%
pass thru certificates, due 1/2/16 ........ 3,177,500
20,151,250
Electric - Integrated - 2.1%
4,300,000 Allegheny Energy, Inc., 7.75%
notes, due 8/1/05 ......................... 4,472,000
3,000,000 CMS Energy Corp., 9.875%
senior notes, due 10/15/07 ................ 3,285,000
2,250,000 Illinois Power Co., 11.50%
first mortgage notes, due 12/15/10 ........ 2,666,250
285,000 Nevada Power Co., 6.50%
mortgage notes, due 4/15/12 (144A) ........ 282,863
575,000 Sierra Pacific Power Co., 6.25%
mortgage notes, due 4/15/12 (144A) ........ 564,938
11,271,051
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 19
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS HIGH-YIELD FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Electronic Components - Miscellaneous - 0.4%
$ 1,700,000 Aavid Thermal Technologies, Inc., 12.75%
company guaranteed notes, due 2/1/07 ...... $ 1,802,000
425,000 Communications & Power Industries, Inc.
8.00%, senior subordinated notes
due 2/1/12 (144A) ......................... 433,500
2,235,500
Finance - Other Services - 1.6%
3,050,000 Athena Neuro Financial LLC, 7.25%
company guaranteed notes, due 2/21/08 ..... 3,088,125
1,600,000 Madison River Capital LLC/Madison River
Finance Corp., 13.25%, senior notes
due 3/1/10 ................................ 1,736,000
3,500,000 Nexstar Finance LLC/Nexstar Finance, Inc.
12.00%, company guaranteed notes
due 4/1/08 ................................ 3,920,000
8,744,125
Food - Baking - 0.4%
2,400,000 Mrs. Field's Original Cookies, Inc., 11.50%
secured notes, due 3/15/11 (144A)ss ....... 2,376,000
Food - Dairy Products - 0.4%
1,950,000 Dean Foods Co., 8.15%
senior notes, due 8/1/07 .................. 2,159,625
Food - Diversified - 1.7%
1,550,000 B&G Foods, Inc., 9.625%
company guaranteed notes, due 8/1/07 ...... 1,599,724
2,000,000 Chiquita Brands International, Inc., 10.56%
senior notes, due 3/15/09 ................. 2,187,500
Dole Food Company, Inc.:
2,500,000 8.625%, senior notes, due 5/1/09(omega) ... 2,675,000
3,000,000 7.25%, company guaranteed notes
due 6/15/10 ............................... 3,022,500
9,484,724
Food - Retail - 0.5%
2,750,000 Stater Brothers Holdings, Inc., 10.75%
senior notes, due 8/15/06 ................. 2,880,625
Funeral Services and Related Items - 1.5%
3,250,000 Alderwoods Group, Inc., 12.25%
company guaranteed notes, due 1/2/09 ...... 3,623,750
4,000,000 Stewart Enterprises, Inc., 10.75%
company guaranteed notes, due 7/1/08 ...... 4,520,000
8,143,750
Gambling-Non Hotel - 1.8%
Mohegan Tribal Gaming Authority:
4,000,000 6.375%, senior subordinated notes
due 7/15/09 ............................... 4,080,000
3,000,000 8.00%, senior subordinated notes, due 4/1/12 3,255,000
2,150,000 River Rock Entertainment Authority, 9.75%
senior notes, due 11/1/11 (144A) .......... 2,289,750
9,624,750
Shares or Principal Amount Market Value
================================================================================
Gas - Distribution - 0.4%
$ 2,000,000 Colorado Interstate Gas Co., 10.00%
debentures, due 6/15/05 ................... $ 2,100,000
Hospital Beds and Equipment - 0.3%
1,560,000 Kinetic Concepts, Inc., 7.375%
senior subordinated notes, due 5/15/13 .... 1,638,000
Hotels and Motels - 1.0%
4,750,000 John Q. Hamons Hotels, Inc., 8.875%
first mortgage notes, due 5/15/12 ......... 5,225,000
Independent Power Producer - 2.6%
2,750,000 Calpine Corp., 9.875%
secured notes, due 12/1/11 (144A)ss ....... 2,543,750
2,800,000 NRG Energy, Inc., 8.00%
secured notes, due 12/15/13 (144A) ........ 2,821,000
Reliant Energy, Inc.:
2,600,000 9.25%, secured notes, due 7/15/10 ......... 2,782,000
5,450,000 9.50%, secured notes, due 7/15/13 ......... 5,913,249
14,059,999
Instruments - Scientific - 0.5%
2,606,000 Fisher Scientific International, Inc., 8.125%
senior subordinated notes, due 5/1/12 ..... 2,827,510
Machinery - Construction and Mining - 0.3%
1,550,000 Terex Corp., 10.375%
company guaranteed notes, due 4/1/11 ...... 1,763,125
Machinery - Farm - 0.8%
4,000,000 Case New Holland, Inc., 9.25%
senior notes, due 8/1/11 (144A) ........... 4,460,000
Medical - Biomedical and Genetic - 0.5%
2,500,000 Bio-Rad Laboratories, Inc., 7.50%
senior subordinated notes, due 8/15/13 .... 2,700,000
Metal - Diversified - 1.3%
1,500,000 Earle M. Jorgensen Co., 9.75%
secured notes, due 6/1/12 ................. 1,680,000
Freeport-McMoRan Copper & Gold, Inc.:
3,100,000 10.125%, senior notes, due 2/1/10 ......... 3,410,000
2,500,000 6.875%, senior notes, due 2/1/14 (144A) ... 2,250,000
7,340,000
Metal Products - Fasteners - 0.2%
1,100,000 Fastentech, Inc., 11.50%
senior notes, due 5/1/11 (144A) ........... 1,221,000
Miscellaneous Manufacturing - 0.5%
2,500,000 Reddy Ice Group, Inc., 8.875%
senior subordinated notes, due 8/1/11 ..... 2,687,500
Multi-Line Insurance - 0.3%
1,920,000 Fairfax Financial Holdings, Ltd., 7.75%
notes, due 4/26/12 ........................ 1,881,600
Multimedia - 0.5%
2,500,000 LBI Media, Inc., 10.125%
company guaranteed notes, due 7/15/12 ..... 2,850,000
Non-Hazardous Waste Disposal - 0.3%
1,750,000 Allied Waste North America, Inc., 6.125%
secured notes, due 2/15/14 (144A) ......... 1,649,375
See Notes to Schedules of Investments and Financial Statements.
20 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Oil - Field Services - 1.0%
Hanover Compressor Co.:
$ 3,050,000 4.75%, convertible senior notes, due 3/15/08 $ 2,870,813
2,500,000 8.625%, senior notes, due 12/15/10 ........ 2,650,000
5,520,813
Oil Companies - Exploration and Production - 3.9%
550,000 Belden & Blake Corp., 9.875%
company guaranteed notes, due 6/15/07 ..... 548,625
4,000,000 Chesapeake Energy Corp., 7.50%
senior notes, due 9/15/13 ................. 4,320,000
950,000 Encore Acquisition Co., 6.25%
senior subordinated notes
due 4/15/14 (144A) ........................ 935,750
2,000,000 Energy Partners, Ltd., 8.75%
company guaranteed notes, due 8/1/10 ...... 2,110,000
775,000 Evergreen Resources, Inc., 5.875%
senior subordinated notes
due 3/15/12 (144A) ........................ 767,250
Forest Oil Corp.:
950,000 8.00%, senior notes, due 6/15/08 .......... 1,040,250
1,900,000 8.00%, senior notes, due 12/15/11 ......... 2,099,500
2,000,000 Magnum Hunter Resources, Inc., 9.60%
company guaranteed notes, due 3/15/12 ..... 2,220,000
3,000,000 Stone Energy Corp., 8.25%
senior subordinated notes, due 12/15/11 ... 3,240,000
2,000,000 Swift Energy Co., 9.375%
senior subordinated notes, due 5/1/12 ..... 2,220,000
1,500,000 Tom Brown, Inc., 7.25%
units, due 9/15/13 ........................ 1,702,500
21,203,875
Oil Refining and Marketing - 1.0%
Premcor Refining Group, Inc.:
4,600,000 6.75%, senior notes, due 2/1/11 ........... 4,761,000
425,000 6.125%, senior notes, due 5/1/11 .......... 422,875
5,183,875
Paper and Related Products - 1.3%
Georgia-Pacific Corp.:
4,000,000 9.50%, debentures, due 12/1/11 ............ 4,820,000
2,000,000 9.375%, company guaranteed notes
due 2/1/13 ................................ 2,325,000
7,145,000
Pharmacy Services - 0.2%
1,000,000 AdvancePCS, 8.50%
company guaranteed notes, due 4/1/08 ...... 1,110,960
Pipelines - 5.5%
1,000,000 ANR Pipeline, Co., 8.875%
notes, due 3/15/10 ........................ 1,105,000
Aquila, Inc.:
3,280,000 7.00%, senior notes, due 7/15/04 .......... 3,288,200
1,600,000 9.95%, senior notes, due 2/1/11(omega) .... 1,696,000
Shares or Principal Amount Market Value
================================================================================
Pipelines - (continued)
El Paso Corp.:
$ 4,000,000 7.00%, senior notes, due 5/15/11 .......... $ 3,400,000
4,650,000 7.875%, notes, due 6/15/12 ................ 4,092,000
3,599,000 Gulfterra Energy Partners L.P., 8.50%
company guaranteed notes, due 6/1/10 ...... 4,012,885
2,000,000 Northwest Pipeline Corp., 8.125%
company guaranteed notes, due 3/1/10 ...... 2,170,000
1,900,000 Sonat, Inc., 6.875%
notes, due 6/1/05 ......................... 1,900,000
4,250,000 Southern Natural Gas Co., 8.875%
notes, due 3/15/10 ........................ 4,696,249
3,965,000 Williams Companies, Inc., 8.625%
senior notes, due 6/1/10 .................. 4,361,500
30,721,834
Poultry - 0.4%
1,780,000 Pilgrim's Pride Corp., 9.625%
company guaranteed notes, due 9/15/11 ..... 1,940,200
Printing - Commercial - 0.3%
1,750,000 American Color Graphics, Inc., 10.00%
notes, due 6/15/10 ........................ 1,505,000
Private Corrections - 0.3%
1,500,000 Corrections Corporation of America, 7.50%
senior notes, due 5/1/11 .................. 1,571,250
Publishing - Newspapers - 0.7%
1,050,000 MediaNews Group, Inc. 6.375%
senior subordinated notes, due 4/1/14 ..... 997,500
2,500,000 Hollinger International Publishing, Inc.
9.00%, senior notes, due 12/15/10 ......... 2,775,000
3,772,500
Publishing - Periodicals - 1.3%
4,500,000 Dex Media, Inc., 8.00%
notes, due 11/15/13 (144A) ................ 4,365,000
2,500,000 Dex Media West LLC, 9.875%
senior subordinated notes
due 8/15/13 (144A) ........................ 2,737,500
7,102,500
Real Estate Investment Trusts (REIT) - Health Care - 0.5%
2,500,000 Senior Housing Properties Trust, 8.625%
senior notes, due 1/15/12 ................. 2,800,000
Real Estate Investment Trusts (REIT) - Hotels - 0.3%
1,250,000 La Quinta Properties, Inc., 8.875%
senior notes, due 3/15/11 ................. 1,387,500
Real Estate Investment Trusts (REIT) - Shopping Centers - 0.4%
2,000,000 Saul Centers, Inc., 7.50%
secured notes, due 3/1/14 (144A) .......... 2,005,000
Real Estate Management/Services - 1.0%
5,250,000 LNR Property Corp., 7.625%
senior subordinated notes, due 7/15/13 .... 5,407,500
Recycling - 0.3%
1,400,000 IMCO Recycling, Inc., 10.375%
secured notes, due 10/15/10 ............... 1,494,500
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 21
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JANUS HIGH-YIELD FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Rental Auto/Equipment - 0.5%
$ 2,900,000 United Rentals North America, Inc., 6.50%
company guaranteed notes
due 2/15/12 (144A) ........................ $ 2,798,500
Resorts and Theme Parks - 0.6%
3,000,000 Booth Creek Ski Holdings, Inc., 12.50%
company guaranteed notes, due 3/15/07 ..... 3,030,000
Retail - Automobile - 0.4%
1,900,000 Group 1 Automotive, Inc., 8.25%
senior subordinated notes, due 8/15/13 .... 2,075,750
Retail - Major Department Stores - 0.3%
1,375,000 Saks, Inc., 8.25%
company guaranteed notes, due 11/15/08 .... 1,515,938
Retail - Propane Distribution - 0.9%
Ferrellgas Partners L.P.:
2,600,000 8.75%, senior notes, due 6/15/12 .......... 2,847,000
1,950,000 6.75%, senior notes, due 5/1/14 (144A) .... 1,950,000
4,797,000
Retail - Regional Department Stores - 0.7%
3,525,000 Dillard's, Inc., 6.625%
notes, due 11/15/08 ....................... 3,560,250
Retail - Restaurants - 0.5%
2,900,000 VICORP Restaurants, Inc., 10.50%
senior notes, due 4/15/11 (144A) .......... 2,871,000
Retail - Sporting Goods - 0.2%
997,000 Big 5 Corp., 10.875%
senior notes, due 11/15/07 ................ 1,031,895
Rubber - Tires - 0.6%
Goodyear Tire & Rubber Co.:
775,000 6.625%, notes, due 12/1/06 ................ 759,500
2,500,000 8.50%, notes, due 3/15/07 ................. 2,412,500
3,172,000
Satellite Telecommunications - 0.8%
750,000 Inmarsat Finance PLC, 7.625%
senior notes, due 6/30/12 (144A)ss ........ 765,000
4,000,000 PanAmSat Corp., 6.875%
debentures, due 1/15/28 ................... 3,680,000
4,445,000
Savings/Loan/Thrifts - 0.2%
1,000,000 Chevy Chase Bank FSB, 6.875%
subordinated notes, due 12/1/13 ........... 1,015,000
Shipbuilding - 1.2%
6,500,000 Ship Finance International, Ltd., 8.50%
senior notes, due 12/15/13 (144A) ......... 6,272,500
Specified Purpose Acquisition Company - 1.0%
2,700,000 Elan Pharmaceutical Investments, Ltd.
7.62%, company guaranteed notes
due 3/15/05 (144A)ss ...................... 2,713,500
800,000 Interactive Health LLC, 7.25%
senior notes, due 4/1/11 (144A) ........... 696,000
Shares or Principal Amount Market Value
================================================================================
Specified Purpose Acquisition Company - (continued)
$ 900,000 KRATON Polymers LLC, 8.125%
senior subordinated notes
due 1/15/14 (144A) ........................ $ 958,500
1,050,000 New ASAT Finance, Ltd., 9.25%
senior notes, due 2/1/11 (144A) ........... 1,107,750
5,475,750
Steel - Producers - 0.8%
1,750,000 AK Steel Holding Corp., 7.875%
company guaranteed notes, due 2/15/09 ..... 1,610,000
2,523,000 United States Steel Corp., 9.75%
senior notes, due 5/15/10 ................. 2,857,298
4,467,298
Telecommunication Equipment - 0.5%
1,300,000 Avaya, Inc., 11.125%
secured notes, due 4/1/09 ................. 1,534,000
1,200,000 Eschelon Telecom, Inc., 8.375%
company guaranteed notes
due 3/15/10 (144A) ........................ 1,026,000
2,560,000
Telecommunication Services - 1.0%
2,896,489 Calpoint Receivable Structured Trust 2001
7.44%, notes, due 12/10/06 (144A) ......... 2,896,489
2,500,000 Qwest Corp., 8.875%
notes, due 3/15/12 (144A) (omega) ......... 2,656,250
5,552,739
Telephone - Integrated - 5.0%
4,250,000 Cincinnati Bell, Inc., 8.375%
senior subordinated notes, due 1/15/14 .... 4,016,250
3,500,000 LCI International, Inc., 7.25%
senior notes due 6/15/07 .................. 3,080,000
MCI Communications Corp.:
7,350,000 5.908%, senior notes, due 5/1/07 .......... 7,267,312
1,400,000 6.688%, senior notes, due 5/1/09 .......... 1,330,000
2,750,000 7.735%, senior notes, due 5/1/14 .......... 2,550,625
3,700,000 NTL Cable PLC, 8.75%
senior notes, due 4/15/14 (144A) .......... 3,820,250
4,600,000 Qwest Services Corp., 13.50%
notes, due 12/15/10 (144A) ................ 5,336,000
27,400,437
Theaters - 0.8%
AMC Entertainment, Inc.:
2,500,000 9.875%, senior subordinated notes
due 2/1/12 ................................ 2,700,000
550,000 8.00%, senior subordinated notes
due 3/1/14 (144A) ......................... 539,000
1,235,000 Carmike Cinemas, Inc., 7.50%
senior subordinated notes
due 2/15/14 (144A) ........................ 1,247,350
4,486,350
See Notes to Schedules of Investments and Financial Statements.
22 Janus Income Funds April 30, 2004
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SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Transportation - Marine - 0.8%
$ 3,750,000 General Maritime Corp., 10.00%
senior notes, due 3/15/13 ................. $ 4,218,750
Wireless Equipment - 1.0%
American Tower Corp.:
4,000,000 9.375%, senior notes, due 2/1/09 .......... 4,290,000
1,200,000 7.50%, senior notes, due 5/1/12 (144A) .... 1,158,000
5,448,000
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $495,182,088).................... 506,634,964
- --------------------------------------------------------------------------------
Preferred Stock - 0.6%
Publishing - Periodicals - 0.6%
33,500 Primedia, Inc., Series D, 10.00%
(cost $3,286,069) ......................... 3,149,000
- --------------------------------------------------------------------------------
Warrants - 0.1%
Casino Services - 0.1%
166,722 Mikohn Gaming Corp. - expires 8/15/08*,(beta),
(sigma) (cost $167) ....................... 346,782
- --------------------------------------------------------------------------------
Time Deposits - 4.2%
SouthTrust Bank, ETD
$ 18,100,000 1.04%, 5/3/04 ............................. 18,100,000
SunTrust Banks Inc., ETD
4,800,000 1.03125%, 5/3/04 .......................... 4,800,000
- --------------------------------------------------------------------------------
Total Time Deposits (cost $22,900,000)....................... 22,900,000
- --------------------------------------------------------------------------------
Total Investments (total cost $521,368,324) - 97.8%.......... 533,030,746
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 2.2% 12,220,311
- --------------------------------------------------------------------------------
Net Assets - 100%............................................ $ 545,251,057
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Bahamas $ 3,330,000 0.6%
Bermuda 8,986,000 1.7%
Canada 1,881,600 0.4%
Cayman Islands 1,107,750 0.2%
France 5,424,375 1.0%
Liberia 3,270,000 0.6%
Luxembourg 5,265,201 1.0%
Marshall Islands 4,218,750 0.8%
Sweden 1,060,800 0.2%
United Kingdom 4,585,250 0.8%
United States++ 493,901,020 92.7%
- --------------------------------------------------------------------------------
Total $533,030,746 100.0%
++Includes Short-Term Securities (88.4% excluding Short-Term Securities)
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 23
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JANUS SHORT-TERM BOND FUND (unaudited) Portfolio Manager
Gibson Smith
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - For the Periods Ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Short-Term Bond Lehman Brothers
Fund Government/Credit 1-3 Year
Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
- --------------------------------------------------------------------------------
Janus Short-Term
Bond Fund 1.58% 2.79% 5.01% 5.44% 5.15%
- --------------------------------------------------------------------------------
Lehman Brothers
Government/Credit 0.80% 1.67% 5.60% 6.01% 5.64%
1-3 Year Index
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends and capital gains. The returns
shown do not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or redemption of Fund shares.
*The Funds inception date - September 1, 1992
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek as high a level of current income as is consistent with preservation of
capital by investing primarily in short- and intermediate-term fixed-income
securities. The Fund normally invests at least 80% of its net assets in debt
securities such as corporate bonds or notes, or government securities, including
agency securities.
FUND PROFILE
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Weighted Average Maturity 2.2 Yrs. 2.7 Yrs.
Average Modified Duration** 2.1 Yrs. 2.5 Yrs.
30-Day Current Yield***
With Reimbursement 1.67% 1.85%
Without Reimbursement 1.30% 1.54%
Weighted Average Fixed Income
Credit Rating A A
Number of Notes/Bonds 73 67
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
24 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 3.9%
Foreign Bonds/Non Dollar Bonds - 5.2%
U.S. Government Agencies - 11.5%
U.S. Treasury Notes - 32.6%
Corporate Bonds - Domestic - 46.8%
TOP 10 INDUSTRIES - (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Short-term Bond Fund
[BAR GRAPH]
Bar graph data shown in following table.
Electric - Integrated - 11.7%
Finance - Auto Loans - 4.0%
Diversified Financial Services - 3.2%
Pipelines - 3.2%
Diversified Operations - 2.8%
Cable Television - 2.3%
Food - Diversified - 2.0%
Medical - Nursing Homes - 1.6%
Containers - Metal and Glass - 1.6%
Finance - Investment Bankers/Brokers - 1.5%
- --------------------------------------------------------------------------------
**A theoretical measure of price volatility.
***Yield will fluctuate.
See "Explanations of Charts, Tables and Financial Statements."
Bond funds have the same interest rate, inflation, and credit risks that are
associated with the underlying bonds owned by the fund. Unlike owning individual
bonds, there are ongoing fees and expenses associated with owning shares of
bonds funds.
The return of principal is not guaranteed due to net asset value fluctuation
that is caused by changes in the price of specific bonds held in the fund and
selling of bonds within the fund by the portfolio manager.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Janus Capital Management LLC has contractually agreed to waive the Fund's total
operating expenses to levels indicated in the prospectus until at least March 1,
2005. Without such waivers, yields and total return would have been lower.
Janus Income Funds April 30, 2004 25
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JANUS SHORT-TERM BOND FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Corporate Bonds - 52.0%
Agricultural Chemicals - 0.3%
$ 1,000,000 IMC Global, Inc., 6.55%
notes, due 1/15/05 ........................ $ 1,015,000
Automotive - Truck Parts and Equipment - Original - 1.1%
3,000,000 Lear Corp., 7.96%
company guaranteed notes, due 5/15/05 ..... 3,157,500
Beverages - Non-Alocholic - 1.2%
2,000,000 Bottling Group LLC, 2.45%
senior notes, due 10/16/06 ................ 1,983,508
1,500,000 Coca-Cola Enterprises, Inc., 2.50%
notes, due 9/15/06 ........................ 1,489,143
3,472,651
Building - Residential and Commercial - 0.7%
1,250,000 D.R. Horton, Inc., 7.50%
company guaranteed notes, due 12/1/07 ..... 1,362,500
715,000 K. Hovnanian Enterprises, Inc., 9.125%
company guaranteed notes, due 5/1/09 ...... 747,625
2,110,125
Cable Television - 2.3%
4,500,000 EchoStar DBS Corp., 4.36%
senior notes, due 10/1/08 (144A)(omega) ... 4,680,000
1,875,000 Lenfest Communications, Inc., 10.50%
senior subordinated notes, due 6/15/06 .... 2,154,636
6,834,636
Commercial Banks - 1.3%
4,000,000 Zions Bancorporation, 2.70%
senior notes, due 5/1/06 .................. 3,990,004
Containers - Metal and Glass - 1.6%
2,000,000 Ball Corp., 7.75%
company guaranteed notes, due 8/1/06 ...... 2,140,000
2,500,000 Owens-Illinois, Inc., 7.15%
senior notes, due 5/15/05 ................. 2,600,000
4,740,000
Diversified Financial Services - 3.2%
General Electric Capital Corp.:
6,250,000 2.85%, notes, due 1/30/06 ................. 6,292,431
3,250,000 3.50%, notes, due 8/15/07 ................. 3,257,680
9,550,111
Diversified Operations - 2.8%
8,000,000 Tyco International Group S.A., 5.80%
company guaranteed notes, due 8/1/06 ...... 8,393,024
Electric - Generation - 0.5%
1,250,000 Allegheny Energy Supply Statutory Trust 2001
10.25%, secured notes, due 11/15/07 (144A) 1,381,250
Shares or Principal Amount Market Value
================================================================================
Electric - Integrated - 11.7%
$ 4,000,000 CMS Energy Corp., 7.625%
senior notes, due 11/15/04 ................ $ 4,090,000
4,750,000 Dominion Resources, Inc., 2.80%
notes, due 2/15/05 ........................ 4,783,397
4,250,000 FirstEnergy Corp., 5.50%
notes, due 11/15/06 ....................... 4,434,612
5,000,000 Northern States Power Co., 2.875%
first mortgage notes, due 8/1/06 .......... 4,979,174
Pacific Gas and Electric Co.:
3,000,000 1.81%, first mortgage notes, due 4/3/06(omega) 3,001,158
1,750,000 3.60%, first mortgage notes, due 3/1/09 ... 1,697,528
750,000 Public Service Company of Colorado, 6.375%
collateralized trust notes, due 11/1/05 ... 792,711
Southern California Edison Co.:
1,000,000 5.875%, first refunding mortgage, due 9/1/04 1,012,051
1,250,000 6.375%, notes, due 1/15/06 ................ 1,321,891
3,250,000 8.00%, first refunding mortgage, due 2/15/07 3,644,017
4,575,000 TXU Corp., 6.375%
senior notes, due 6/15/06 ................. 4,863,225
34,619,764
Finance - Auto Loans - 4.0%
3,750,000 Ford Motor Credit Co., 5.625%
notes, due 10/1/08 ........................ 3,823,413
General Motors Acceptance Corp.:
2,000,000 4.50%, notes, due 7/15/06 ................. 2,043,330
3,000,000 5.125%, notes, due 5/9/08 ................. 3,049,323
2,875,000 5.85%, senior unsubordinated notes
due 1/14/09 ............................... 2,965,542
11,881,608
Finance - Commercial - 1.1%
3,250,000 CIT Group, Inc., 4.125%
senior notes, due 2/21/06 ................. 3,332,215
Finance - Consumer Loans - 0.6%
1,900,000 John Deere Capital Corp., 3.90%
notes, due 1/15/08 ........................ 1,908,655
Finance - Investment Bankers/Brokers - 1.5%
4,500,000 Citigroup, Inc., 3.50%
notes, due 2/1/08 ......................... 4,471,097
Food - Diversified - 2.0%
1,250,000 Chiquita Brands International, Inc., 10.56%
senior notes, due 3/15/09 ................. 1,367,188
4,500,000 General Mills, Inc., 3.875%
notes, due 11/30/07 ....................... 4,511,970
5,879,158
See Notes to Schedules of Investments and Financial Statements.
26 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Funeral Services and Related Items - 0.1%
$ 162,000 Service Corporation International, 6.00%
notes, due 12/15/05 ....................... $ 169,290
Gas - Transportation - 0.4%
1,000,000 Williams Gas Pipelines Central, Inc., 7.375%
senior notes, due 11/15/06 (144A) ......... 1,082,500
Machinery - Farm - 0.5%
1,250,000 AGCO Corp., 9.50%
company guaranteed notes, due 5/1/08 ...... 1,368,750
Machinery - Pumps - 0.2%
500,000 Flowserve Corp., 12.25%
company guaranteed notes, due 8/15/10 ..... 575,000
Medical - HMO - 0.5%
1,500,000 UnitedHealth Group, Inc., 3.30%
senior notes, due 1/30/08 ................. 1,483,191
Medical - Hospitals - 1.0%
HCA, Inc.:
2,000,000 6.91%, notes, due 6/15/05 ................. 2,081,332
1,000,000 5.25%, notes, due 11/6/08 ................. 1,000,395
3,081,727
Medical - Nursing Homes - 1.6%
4,500,000 Manor Care, Inc., 7.50%
senior notes, due 6/15/06 ................. 4,871,250
Medical - Wholesale Drug Distributors - 0.3%
1,000,000 Bergen Brunswig Corp., 7.25%
senior notes, due 6/1/05 .................. 1,052,500
Multi-Line Insurance - 1.3%
1,250,000 Farmers Insurance Exchange, 8.50%
notes, due 8/1/04 (144A) .................. 1,264,920
2,500,000 SAFECO Corp., 4.20%
senior notes, due 2/1/08 .................. 2,551,208
3,816,128
Oil Companies - Integrated - 0.7%
2,000,000 BP Capital Markets PLC, 2.75%
company guaranteed notes, due 12/29/06 .... 2,000,268
Pharmacy Services - 0.4%
1,000,000 Caremark Rx, Inc., 7.375%
senior notes, due 10/1/06 ................. 1,090,000
Pipelines - 3.2%
Panhandle Eastern Pipe Line Co.:
1,500,000 2.75%, notes, due 3/15/07 (144A) .......... 1,465,712
3,000,000 4.80%, senior notes, due 8/15/08 .......... 3,046,838
1,000,000 Transcontinental Gas Pipe Line Corp.
6.125%, notes, due 1/15/05 ................ 1,005,000
1,000,000 Western Gas Resources, Inc., 10.00%
company guaranteed notes, due 6/15/09 ..... 1,050,000
2,750,000 Williams Companies, Inc., 6.50%
notes, due 8/1/06 ......................... 2,877,188
9,444,738
Shares or Principal Amount Market Value
================================================================================
Reinsurance - 1.1%
$ 3,250,000 Berkshire Hathaway, Inc., 3.375%
notes, due 10/15/08 (144A) ................ $ 3,177,460
Retail - Apparel and Shoe - 0.9%
2,500,000 Gap, Inc., 6.90%
notes, due 9/15/07 ........................ 2,750,000
Telecommunication Services - 0.8%
1,000,000 Qwest Corp., 7.20%
notes, due 11/1/04 ........................ 1,012,500
1,500,000 Verizon Global Funding Corp., 4.00%
notes, due 1/15/08 ........................ 1,515,651
2,528,151
Telephone - Integrated - 1.4%
3,000,000 Deutsche Telekom International Finance B.V.
3.875%, company guaranteed notes
due 7/22/08 ............................... 2,983,839
1,100,000 US West Communications, Inc., 6.00%
debentures, due 8/1/07 .................... 1,089,000
4,072,839
Television - 0.6%
1,750,000 British Sky Broadcasting Group PLC
7.30%, company guaranteed notes
due 10/15/06 .............................. 1,918,236
Tools - Hand Held - 1.1%
3,250,000 Stanley Works, 3.50%
notes, due 11/1/07 ........................ 3,266,393
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $152,712,720).................... 154,485,219
- --------------------------------------------------------------------------------
U.S. Government Agencies - 11.5%
Fannie Mae:
10,430,000 1.875%, due 12/15/04 ...................... 10,464,951
18,000,000 2.125%, due 4/15/06# ...................... 17,868,204
5,590,000 Freddie Mac
7.00% due 7/15/05# ........................ 5,931,264
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $34,357,503)............ 34,264,419
- --------------------------------------------------------------------------------
U.S. Treasury Notes - 32.6%
U.S. Treasury Notes:
17,825,000 1.50%, due 2/28/05**,# .................... 17,831,970
10,135,000 1.50%, due 7/31/05# ....................... 10,099,761
8,430,000 1.625%, due 10/31/05# ..................... 8,386,864
5,100,000 2.25%, due 4/30/06 ........................ 5,094,023
7,250,000 4.625%, due 5/15/06# ...................... 7,575,402
3,010,000 2.375%, due 8/15/06# ...................... 3,001,181
23,240,000 3.50%, due 11/15/06# ...................... 23,726,598
16,967,433 3.375%, due 1/15/07(pi),# ................. 18,295,661
3,040,000 2.25%, due 2/15/07# ....................... 2,998,911
- --------------------------------------------------------------------------------
Total U.S. Treasury Notes (cost 97,238,635).................. 97,010,371
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 27
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS SHORT-TERM BOND FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Other Securities - 26.0%
State Street Navigator Securities Lending
$ 77,358,491 Prime Portfolio + (cost $77,358,491) ...... $ 77,358,491
- --------------------------------------------------------------------------------
Time Deposit - 2.9%
SouthTrust Bank ETD
8,500,000 1.04%, 5/3/04 (cost $8,500,000) ........... 8,500,000
- --------------------------------------------------------------------------------
Total Investments (total cost $370,167,349) - 125.0%......... 371,618,500
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (25.0)% (74,343,767)
- --------------------------------------------------------------------------------
Net Assets - 100%............................................ $ 297,274,733
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
Country Market Value % of Investment Securities
- --------------------------------------------------------------------------------
Germany $ 2,983,839 0.8%
Luxembourg 8,393,024 2.3%
United Kingdom 3,918,504 1.0%
United States++ 356,323,133 95.9%
- --------------------------------------------------------------------------------
Total $371,618,500 100.0%
++Includes Short-Term Securities (72.8% excluding Short-Term Securities)
- --------------------------------------------------------------------------------
Financial Futures - Short
375 Contracts U.S. Treasury - 5-year Note
expires June 2004, principal
amount $42,090,000, value $41,226,563
cumulative depreciation ................... $ 863,437
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
28 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS MONEY MARKET FUNDS (unaudited)
JANUS MONEY MARKET FUND Portfolio Managers,
Average Annual Total Return Sharon Pichler
For the Periods Ended April 30, 2004 J. Eric Thorderson
- --------------------------------------------------------------------------------
Investor Shares
Fiscal Year-to-Date 0.29%
1 Year 0.62%
5 Year 3.06%
Since Inception (February 14, 1995) 4.03%
- --------------------------------------------------------------------------------
Institutional Shares
Fiscal Year-to-Date 0.50%
1 Year 1.05%
5 Year 3.50%
Since Inception (April 14, 1995) 4.45%
- --------------------------------------------------------------------------------
Service Shares
Fiscal Year-to-Date 0.37%
1 Year 0.80%
5 Year 3.24%
Since Inception (November 22, 1996) 3.93%
- --------------------------------------------------------------------------------
Seven-Day Current Yield
Investor Shares:
With Reimbursement 0.59%
Without Reimbursement 0.49%
Institutional Shares:
With Reimbursement 1.01%
Without Reimbursement 0.84%
Service Shares:
With Reimbursement 0.76%
Without Reimbursement 0.59%
JANUS TAX-EXEMPT MONEY MARKET FUND Portfolio Manager
Average Annual Total Return Sharon Pichler
For the Periods Ended April 30, 2004
- --------------------------------------------------------------------------------
Investor Shares
Fiscal Year-to-Date 0.26%
1 Year 0.53%
5 Year 1.96%
Since Inception (February 14, 1995) 2.53%
- --------------------------------------------------------------------------------
Institutional Shares
Fiscal Year-to-Date 0.47%
1 Year 0.96%
5 Year 2.40%
Since Inception (April 14, 1995) 2.96%
- --------------------------------------------------------------------------------
Service Shares
Fiscal Year-to-Date 0.34%
1 Year 0.70%
5 Year 2.16%
Since Inception (November 22, 1996) 2.55%
- --------------------------------------------------------------------------------
Seven-Day Current Yield
Investor Shares:
With Reimbursement 0.55%
Without Reimbursement 0.45%
Institutional Shares:
With Reimbursement 0.97%
Without Reimbursement 0.80%
Service Shares:
With Reimbursement 0.72%
Without Reimbursement 0.55%
JANUS GOVERNMENT MONEY MARKET FUND Portfolio Managers
Average Annual Total Return J. Eric Thorderson
For the Periods Ended April 30, 2004 Jeanine Morroni
- --------------------------------------------------------------------------------
Investor Shares
Fiscal Year-to-Date 0.26%
1 Year 0.56%
5 Year 2.98%
Since Inception (February 14, 1995) 3.94%
- --------------------------------------------------------------------------------
Institutional Shares
Fiscal Year-to-Date 0.48%
1 Year 1.02%
5 Year 3.45%
Since Inception (April 14, 1995) 4.37%
- --------------------------------------------------------------------------------
Service Shares
Fiscal Year-to-Date 0.36%
1 Year 0.76%
5 Year 3.19%
Since Inception (November 22, 1996) 3.85%
- --------------------------------------------------------------------------------
Seven-Day Current Yield
Investor Shares:
With Reimbursement 0.51%
Without Reimbursement 0.40%
Institutional Shares:
With Reimbursement 0.96%
Without Reimbursement 0.75%
Service Shares:
With Reimbursement 0.71%
Without Reimbursement 0.51%
- --------------------------------------------------------------------------------
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
An investment in a money market fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the Funds
seek to preserve the value of your investment at $1.00 per share, it is possible
to lose money by investing in the Funds.
See "Explanations of Charts, Tables and Financial Statements."
Income may be subject to state or local taxes and to a limited extent certain
federal tax.
Effective February 27, 2004, Eric Thorderson joined Sharon Pichler as a
co-portfolio manager of Janus Money Market Fund.
The yield more closely reflects the current earnings of each Money Market Fund
than the total return.
Total return includes reinvestment of dividends and capital gains.
Janus Capital Management LLC has contractually agreed to waive each Fund's total
operating expenses to the level indicated in the prospectus until at least March
1, 2005. Without such waivers yields and total returns would have been lower.
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 29
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JANUS MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Certificates of Deposit - 10.5%
ABN AMRO Bank N.V., New York:
$ 25,000,000 1.33%, 2/28/05 ............................ $ 25,000,000
45,000,000 1.47%, 4/14/05 ............................ 45,000,000
Canadian Imperial Bank of Commerce
New York:
25,000,000 1.19%, 7/30/04 ............................ 24,999,383
22,000,000 1.11%, 12/20/04 ........................... 21,978,691
25,000,000 Credit Agricole, New York
1.30%, 8/4/04 ............................. 25,000,000
50,000,000 Credit Lyonnais Bank, New York
1.71%, 4/25/05 ............................ 50,000,000
HSH Nordbank A.G., New York:
50,000,000 1.38%, 8/26/04 ............................ 49,998,398
25,000,000 1.40%, 2/2/05 ............................. 25,009,758
Natexis Banques Populaires, New York:
25,000,000 1.09%, 8/20/04 ............................ 25,000,000
25,000,000 1.35%, 1/24/05 ............................ 25,000,000
30,000,000 1.36%, 3/31/05 ............................ 30,000,000
Norddeutsche Landesbank Girozentrale
New York:
50,000,000 1.38%, 8/26/04 ............................ 49,998,398
50,000,000 1.45%, 11/10/04 ........................... 49,997,359
Societe Generale, New York:
25,000,000 1.45%, 2/2/05 ............................. 25,000,000
25,000,000 1.35%, 2/28/05 ............................ 25,000,000
50,000,000 1.48%, 4/6/05 ............................. 50,000,000
25,000,000 Standard Chartered Bank, New York
1.15%, 7/19/04 ............................ 25,000,000
50,000,000 Svenska Handelsbanken, New York
1.32%, 8/23/04 ............................ 49,998,438
Swedbank, New York:
25,000,000 1.32%, 8/4/04 ............................. 25,000,000
25,000,000 1.455%, 11/10/04 .......................... 24,999,340
Westdeutsche Landesbank Girozentrale
New York:
50,000,000 1.38%, 8/5/04 ............................. 50,000,000
75,000,000 1.41%-1.45%, 2/2/05 ....................... 75,000,000
- --------------------------------------------------------------------------------
Total Certificates of Deposit (cost $796,979,765)............ 796,979,765
- --------------------------------------------------------------------------------
Commercial Paper - 10.4%
BCP Finance Bank, Ltd.:
25,000,000 1.11%, 6/22/04 ............................ 24,959,917
25,000,000 1.11%, 6/23/04 ............................ 24,959,146
25,000,000 1.11%, 6/24/04 ............................ 24,958,375
45,000,000 1.10%, 7/9/04 ............................. 44,905,125
Check Point Charlie, Inc.:
50,000,000 1.10%, 5/10/04 (Section 4(2)) ............. 49,986,250
42,200,000 1.08%, 5/17/04 (Section 4(2)) ............. 42,179,744
49,750,000 1.09%, 5/24/04 (Section 4(2)) ............. 49,715,673
25,125,000 1.13%, 6/15/04 (Section 4(2)) ............. 25,089,511
35,190,000 1.11%, 6/16/04 (Section 4(2)) ............. 35,140,089
23,000,000 1.09%, 6/28/04 (Section 4(2)) ............. 22,959,609
59,300,000 Medical Building Funding IV, Series 2003
1.25%, 5/14/04 ............................ 59,273,232
Principal Amount Market Value
================================================================================
Rhineland Funding Capital Corp.:
$ 22,920,000 1.07%, 5/10/04 (Section 4(2)) ............. $ 22,913,869
35,000,000 1.11%, 5/12/04 (Section 4(2)) ............. 34,988,129
33,534,000 1.11%, 5/21/04 (Section 4(2)) ............. 33,513,321
41,407,000 1.10%, 5/26/04 (Section 4(2)) ............. 41,375,370
30,088,000 1.11%, 5/27/04 (Section 4(2)) ............. 30,063,879
38,040,000 1.08%, 6/3/04 (Section 4(2)) .............. 38,002,340
20,000,000 1.10%, 6/8/04 (Section 4(2)) .............. 19,976,778
55,628,000 1.10%-1.11%, 7/7/04 (Section 4(2)) ........ 55,513,573
38,119,000 1.13%, 7/13/04 (Section 4(2)) ............. 38,031,655
27,556,000 1.13%, 7/23/04 (Section 4(2)) ............. 27,484,209
39,162,000 1.16%, 8/2/04 (Section4(2)) ............... 39,044,645
- --------------------------------------------------------------------------------
Total Commercial Paper (cost $785,034,439)................... 785,034,439
- --------------------------------------------------------------------------------
Floating Rate Notes - 57.5%
11,120,000 Arbor Station IV
1.14%, 2/1/24 ............................. 11,120,000
75,000,000 Ares VII CLO Ltd., Class A-1A
1.18%, 5/8/15 (144A)ss .................... 75,000,000
Associated Bank N.A., Green Bay:
50,000,000 1.13%, 2/3/05 ............................. 50,000,000
30,000,000 1.11%, 3/11/05 ............................ 29,997,395
75,000,000 Associates Corp. N.A.
1.21%, 6/25/04 ............................ 75,000,000
350,000,000 Bank of America Securities LLC
(same day put), 1.16%, 5/3/04 ............. 350,000,000
100,000,000 Blue Heron Funding II, Ltd., Class A
1.13%, 3/18/05 (144A)ss ................... 100,000,000
100,000,000 Blue Heron Funding IV, Ltd., Series 4A
Class A, 1.13%, 12/17/04 (144A)ss ......... 100,000,000
100,000,000 Blue Heron Funding V, Ltd., Class A-1
1.13%, 2/23/05 (144A) ..................... 100,000,00
150,000,000 Blue Heron Funding VI, Ltd., Class A-1
1.13%, 5/19/04 (144A)ss ................... 150,000,000
75,000,000 Blue Heron Funding VII, Ltd., Series 7A
Class A-1, 1.13%, 5/28/04 (144A)ss ........ 75,000,000
14,980,000 Breckenridge Terrace LLC
1.10%, 5/1/39 ............................. 14,980,000
22,560,000 Brosis Finance LLC
1.10%, 9/1/19 ............................. 22,560,000
35,815,000 Cambridge Health Center of San Diego
1.15%, 12/1/28 ............................ 35,815,000
32,610,000 Cambridge-Plano Partners
1.15%, 10/1/28 ............................ 32,610,000
20,400,000 Champions Gate Apartments
1.20%, 1/1/24 ............................. 20,400,000
50,000,000 CIT Group, Inc.
1.7625%, 5/3/04 ........................... 50,001,664
16,025,000 Colorado Natural Gas, Inc., Series 2004
1.20%, 7/1/32 ............................. 16,025,000
27,055,000 Colorado Springs, Colorado Utilities
System Revenue, Series C, 1.10%, 11/1/27 .. 27,055,000
33,800,000 Cook County, Illinois, Series A
1.15%, 11/1/23 ............................ 33,800,000
Cornerstone Funding Corporation I
Series 2003E :
10,350,000 1.18%, 4/1/13 ............................. 10,350,000
11,145,000 1.18%, 7/1/30 ............................. 11,145,000
315,000,000 EMC Mortgage Corp. (same day put)
1.2225%, 5/7/04 ........................... 315,000,000
See Notes to Schedules of Investments and Financial Statements.
30 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
$ 13,540,000 Gary, Indiana Redevelopment District
Economic Growth Revenue
Series A, 1.22%, 1/8/06 ................... $ 13,540,000
410,000,000 GMAC Mortgage Corp. of Pennsylvania
1.5481%, 5/26/04 .......................... 409,559,340
25,758,929 GMACCM Mortgage Trust III Series
2000 - Class A
(credit enhanced and liquidity
provided by Freddie Mac), 1.15%
9/20/05 (144A)ss .......................... 25,758,929
40,000,000 Gulf States Paper Corp.
1.08%, 11/1/18 ............................ 40,000,000
16,605,000 HHH Supply and Investment Co.
1.22%, 7/1/29 ............................. 16,605,000
17,845,000 Hillcrest Medical Plaza
1.10%, 9/1/23 ............................. 17,845,000
18,178,000 Holston Medical Group
1.20%, 1/1/13 ............................. 18,178,000
50,000,000 Household Finance Corp.
1.12%, 8/18/04 ............................ 50,000,000
520,000,000 J.P. Morgan Securities, Inc. (seven day put)
1.08%, 10/19/04 ........................... 520,000,000
Lehman Brothers, Inc.:
80,000,000 (90 day put), 1.2425%, 1/3/05(beta) ....... 80,000,000
475,000,000 (same day put), 1.2125%, 3/17/05 .......... 475,000,000
10,800,000 Lenexa, Kansas Industrial Revenue
(Labone, Inc. Project)
Series A, 1.18%, 9/1/09 ................... 10,800,000
23,000,000 Los Angeles, California County Fair
Association, 1.12%, 11/1/16 ............... 23,000,000
20,675,000 Louisiana Health Systems Corp. Revenue
Series B, 1.15%, 10/1/22 .................. 20,675,000
501,000,000 Merrill Lynch & Company, Inc.
(seven day put), 1.2125%, 3/28/05 ......... 501,000,000
20,000,000 Mississippi Business Finance Corp.
1.15%, 10/1/18 ............................ 20,000,000
32,875,000 Montgomery, Alabama BMC Special Care
Facilities Financing Authority (Baptist
Medical Center), Series C, 1.11%, 11/15/29 32,875,000
14,700,000 Morganite Industries, Inc.
1.10%, 7/1/18 ............................. 14,700,000
19,200,000 Municipal Gas Authority of Georgia
(Gas Portfolio III Project), Series A
1.13%, 2/1/15 ............................. 19,200,000
Principal Amount Market Value
================================================================================
$ 50,000,000 Natexis Banques Populaires, New York
1.05%, 6/9/04 ............................. $ 49,998,926
31,500,000 Olympic Club, California Revenue
Series 2002, 1.16%, 10/1/32 ............... 31,500,000
15,000,000 Patrick Schaumburg Automobiles, Inc.
1.15%, 7/1/08 ............................. 15,000,000
50,000,000 Putnam Structured Product Funding LLC
Series 2003-1, Class A-15, 1.12%
10/15/38 (144A) ........................... 50,000,000
10,500,000 Racetrac Capital LLC, Series 1998-A
1.10%, 4/1/18 ............................. 10,500,000
25,000,000 Rehau, Inc.
1.33%, 10/1/19 ............................ 25,000,000
31,500,000 Shoosmith Brothers, Inc.
1.10%, 3/1/15 ............................. 31,500,000
15,300,000 St. Francis Place L.P.
1.15%, 12/1/08 (144A) ..................... 15,300,000
20,000,000 St. George Wellness Center
1.07%, 9/1/40 ............................. 20,000,000
37,500,000 Texas State Veterans Housing Assistance
Program, Series A-2, 1.07%, 12/1/29 ....... 37,500,000
19,025,000 Timber Ridge County Affordable Housing
Corporation, Series 2003, 1.20%, 12/1/32 .. 19,025,000
4,610,000 Union City, Tennessee Industrial
Development Board, (Cobank LLC Project)
1.20%, 1/1/25 ............................. 4,610,000
38,975,000 Westchester County, New York Industrial
Development Agency, (Fortwest II Facility)
Series 2002, 1.35%, 5/1/32 ................ 38,975,000
- --------------------------------------------------------------------------------
Total Floating Rate Notes (cost $4,363,504,254).............. 4,363,504,254
- --------------------------------------------------------------------------------
Repurchase Agreements - 20.5%
50,000,000 CDC Securities, Inc., 1.1825%
dated 4/30/04, maturing 5/3/04
to be repurchased at $50,004,927
collateralized by $55,005,420
in Collateralized Mortgage
Obligations; 0%, 5/14/04
with a value of $55,005,420 ............... 50,000,000
385,000,000 Goldman Sachs and Co., 1.1325%
dated 4/30/04, maturing 5/3/04
to be repurchased at $385,036,334
collateralized by $5,200,074,664
in Collateralized Mortgage Obligations
0% - 31.64%, AAA - BBB, 3/25/18 - 3/25/43
with a value of $395,758,428 .............. 385,000,000
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 31
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Repurchase Agreements - (continued)
$200,000,000 Banc One Corp., 1.13%
dated 4/30/04, maturing 5/3/04
to be repurchased at $200,018,833
collateralized by $67,020,000
in Asset Backed Securities
0% - 5.28%, 4/9/07 - 11/15/11, AA - BBB
$9,225,000 in Collateralized
Mortgage Obligations; 1.49% - 7.19%
12/1/06 - 4/25/34, AAA - A
$88,063,000 in Commercial Paper
0%, 5/7/04 - 6/7/04, A-1 - A-2
$43,240,000 in Corporate Bonds
2.75% - 9.50%, 3/15/05 - 2/1/08
BBB+ - BBB-; with respective values
of $67,391,711, $6,681,580, $87,909,578
and $45,267,904 ........................... $ 200,000,000
130,000,000 Bear Stearns & Company, Inc., 1.1325%
dated 4/30/04, maturing 5/3/04
to be repurchased at $130,012,269
collateralized by $177,138,000
in Collateralized Mortgage Obligations
1.55% - 5.85203%, 10/25/33 - 4/28/35, AAA
with a value of $132,603,419 .............. 130,000,000
482,400,000 Citigroup Global Markets, Inc., 1.1125%
dated 4/30/04, maturing 5/3/04
to be repurchased at $482,444,723
collateralized by $1,392,937,234
in U.S. Government Agencies
0% - 7.00%, 9/1/10 - 7/1/34
with a value of $492,048,000 .............. 482,400,000
50,000,000 Credit Suisse First Boston, Inc., 1.1125%
dated 4/30/04, maturing 5/3/04
to be repurchased at $50,004,635
collateralized by $237,743,525
in U.S. Government Agencies
0.10% - 19.34999%, 7/15/17 - 1/15/34
with a value of $51,000,110 ............... 50,000,000
257,100,000 J.P. Morgan Securities, Inc., 1.11%
dated 4/30/04, maturing 5/3/04
to be repurchased at $257,123,782
collateralized by $1,603,812,796
in U.S. Government Agencies
00% - 7.05%, 11/15/17 - 3/16/46
with a value of $262,243,343 .............. 257,100,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (cost $1,554,500,000)............ 1,554,500,000
- --------------------------------------------------------------------------------
Principal Amount Market Value
================================================================================
Short-Term Corporate Notes - 0.8%
CC USA, Inc.:
$ 25,000,000 1.15%, 7/26/04 (144A) ..................... $ 25,000,000
37,000,000 1.475%, 4/18/05 (144A) .................... 37,000,000
- --------------------------------------------------------------------------------
Total Short-Term Corporate Notes (cost $62,000,000).......... 62,000,000
- --------------------------------------------------------------------------------
U.S. Government Agency Variable Note - 0.2%
Freddie Mac
15,000,000 1.12%, 1/15/42 (cost $15,000,000).......... 15,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $7,577,018,455) - 99.9%........ 7,577,018,458
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.1% 4,099,653
- --------------------------------------------------------------------------------
Net Assets - 100%............................................ $ 7,581,118,111
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
32 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GOVERNMENT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
U.S. Government Agency Floating Rate Notes - 26.6%
Fannie Mae:
$ 10,000,000 0.965%, 5/27/04 ........................... $ 9,999,607
10,000,000 1.05%, 9/10/04 ............................ 10,000,000
10,000,000 1.00%, 12/20/04 ........................... 9,996,793
10,000,000 1.004%, 1/18/05 ........................... 9,998,095
10,000,000 1.04%, 2/18/05 ............................ 9,999,195
10,000,000 1.04%, 2/18/05 ............................ 9,998,300
20,000,000 1.04%, 3/23/05 ............................ 19,997,177
Federal Farm Credit Bank:
10,000,000 0.97%, 5/3/04 ............................. 9,999,978
5,350,000 0.97%, 5/5/04 ............................. 5,349,976
5,000,000 1.04%, 6/2/04 ............................. 5,000,000
17,000,000 0.98%, 8/24/04 ............................ 16,997,670
15,000,000 1.03%, 2/25/05 ............................ 15,000,000
Federal Home Loan Bank:
10,000,000 1.00%, 7/14/04 ............................ 9,999,594
10,000,000 1.00%, 8/11/04 ............................ 9,999,442
20,000,000 0.98%, 8/11/04 ............................ 19,998,324
15,000,000 0.985%, 8/25/04 ........................... 14,998,330
15,000,000 0.975%, 9/20/04 ........................... 14,997,520
15,000,000 0.996%, 11/24/04 .......................... 14,997,974
15,000,000 1.05%, 4/7/05 ............................. 14,999,999
5,000,000 1.005%, 8/2/05 ............................ 4,999,026
7,310,000 Freddie Mac
1.12%, 1/15/42 ............................ 7,310,000
- --------------------------------------------------------------------------------
Total U.S. Government Agency Floating Rate Notes
(cost $244,637,000) ....................... 244,637,000
- --------------------------------------------------------------------------------
U.S Government Agency Notes - 14.4%
Fannie Mae:
10,200,000 7.40%, 7/1/04 ............................. 10,305,547
10,000,000 1.28%, 7/23/04 ............................ 9,970,489
10,000,000 6.50%, 8/15/04 ............................ 10,152,715
5,000,000 1.351%, 10/15/04 .......................... 4,968,664
5,000,000 1.42%, 11/12/04 ........................... 4,961,542
5,000,000 1.385%, 4/1/05 ............................ 4,935,559
5,000,000 1.45%, 4/1/05 ............................. 4,932,535
5,000,000 1.565%, 4/1/05 ............................ 4,927,184
Federal Home Loan Bank System:
20,000,000 1.51%, 12/27/04 ........................... 20,000,000
5,000,000 1.45%, 1/11/05 ............................ 5,000,000
5,000,000 4.625%, 4/15/05 ........................... 5,150,954
Freddie Mac:
5,000,000 1.27%, 6/14/04 ............................ 4,992,239
7,113,000 3.00%, 7/15/04 ............................ 7,140,267
10,000,000 1.40%, 8/11/04 ............................ 10,000,000
10,000,000 1.375%, 8/12/04 ........................... 9,960,660
5,000,000 1.28%, 10/7/04 ............................ 4,971,733
5,000,000 1.44%, 11/4/04 ............................ 4,962,600
5,000,000 1.52%, 12/2/04 ............................ 4,954,611
- --------------------------------------------------------------------------------
Total U.S Government Agency Notes (cost $132,287,299)........ 132,287,299
- --------------------------------------------------------------------------------
Principal Amount Market Value
================================================================================
Floating Rate Note - 0.3%
$ 2,862,103 GMACCM Mortgage Trust III
Series 2000 - Class A, (Credit enhanced
and liquidity provided by Freddie Mac)
1.15%, 9/20/05 (144A)ss.
(cost $2,862,103) ......................... $ 2,862,103
- --------------------------------------------------------------------------------
Repurchase Agreements - 58.6%
150,000,000 Bear Stearns & Company, Inc., 1.1125%
dated 4/30/04, maturing 5/3/04
to be repurchased at $150,013,906
collateralized by $238,917,106 in
U.S. Government Agencies
0% - 6.01%, 12/15/08 - 4/20/34
with a value of $153,003,114 .............. 150,000,000
137,700,000 ABN Amro Bank N.V., 1.01%
dated 4/30/04, maturing 5/3/04
to be repurchased at $137,711,590
collateralized by $144,964,695
in U.S. Government Agencies
4.00% - 5.875%, 3/21/11 - 4/1/19
with a value of $140,454,022 .............. 137,700,000
100,000,000 Credit Suisse First Boston, Inc., 1.1125%
dated 4/30/04, maturing 5/3/04
to be repurchased at $100,009,271
collateralized by $465,831,951
in U.S. Government Agencies
0% - 23.571428%, 9/25/04 - 7/25/33
with a value of $102,004,022 .............. 100,000,000
151,400,000 Citigroup Global Markets, Inc., 1.1125%
dated 4/30/04, maturing 5/3/04
to be repurchased at $151,414,036
collateralized by $437,169,770
in U.S. Government Agencies
0% - 7.00%, 9/1/10 - 7/1/34
with a value of $154,428,000 .............. 151,400,000
- --------------------------------------------------------------------------------
Total Repurchase Agreements (cost $539,100,000).............. 539,100,000
- --------------------------------------------------------------------------------
Total Investments (total cost $918,886,402) - 99.9%.......... 918,886,402
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities-- 0.1% 739,222
- --------------------------------------------------------------------------------
Net Assets - 100%............................................ $ 919,625,624
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 33
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Municipal Securities - 100.4%
Alabama - 1.4%
$ 2,400,000 Daphne-Villa Mercy Special Care
Facilities Financing Authority Revenue
(Mercy Medical), Variable Rate
1.09%, 12/1/30 ............................ $ 2,400,000
Colorado - 20.6%
1,000,000 Arvada, Variable Rate
1.25%, 11/1/20 ............................ 1,000,000
1,565,000 Aurora Centretech Metropolitan District
Series A, Variable Rate, 1.30%, 12/1/28 ... 1,565,000
3,000,000 Bachelor Gulch Metropolitan District
Variable Rate, 1.20%, 12/1/23 ............. 3,000,000
1,095,000 Boulder County Industrial Development
Revenue, (Mental Health Center)
Variable Rate, 1.22%, 11/1/14 ............. 1,095,000
3,820,000 Castle Rock Metropolitan District No. 7
Variable Rate, 1.30%, 12/1/30 ............. 3,820,000
5,580,000 Centennial Downs Metropolitan District
Variable Rate, 1.22%, 12/1/28 ............. 5,580,000
Cherry Creek South Metropolitan District No. 1:
3,011,000 Series A, Variable Rate
1.40%, 12/15/21 ........................... 3,011,000
1,000,000 Series B, Variable Rate
1.40%, 12/15/33 ........................... 1,000,000
400,000 Colorado Housing and Finance Authority
Multifamily Housing Revenue
(Winridge Apartments), Variable Rate
1.08%, 2/15/28 ............................ 400,000
1,500,000 Colorado Housing and Finance Authority
Multifamily Housing Revenue, Series A-1
Variable Rate, 1.09%, 10/1/30 ............. 1,500,000
2,000,000 Colorado School of Mines Development Corp.
Revenue, Variable Rate, 1.17%, 9/1/26 ..... 2,000,000
1,100,000 Colorado Springs Industrial Development
Revenue, (Cook Communications Project)
Variable Rate, 1.17%, 3/1/17 .............. 1,100,000
400,000 Denver Health and Hospital Authority
Healthcare Revenue, Series A
Variable Rate, 1.15%, 12/1/31 ............. 400,000
1,600,000 Grand County Revenue
(YMCA of the Rockies), Variable Rate
1.12%, 12/1/23 ............................ 1,600,000
2,750,000 NBC Metropolitan District, Variable Rate
1.19%, 12/1/30 ............................ 2,750,000
4,000,000 Pinery West Metropolitan District No. 2
Variable Rate, 1.20%, 11/1/32 ............. 4,000,000
2,000,000 Triview Metropolitan District, Variable Rate
1.375%, 1/1/23 ............................ 2,000,000
35,821,000
Principal Amount Market Value
================================================================================
Florida - 5.4%
$ 1,300,000 Dade County Industrial Development
Authority Revenue
(Dolphins Stadium Project)
Series B, Variable Rate, 1.08%, 1/1/16 .... $ 1,300,000
300,000 Gulf Breeze Healthcare Facilities Revenue
(Heritage Healthcare), Variable Rate
1.18%, 1/1/24 ............................. 300,000
3,500,000 Jacksonville Industrial Development Revenue
(Airport Hotel), Variable Rate, 1.08%, 7/1/13 3,500,000
2,290,000 Saint Johns County School District
Variable Rate, 2.00%, 12/1/04 ............. 2,303,021
1,925,000 Volusia County Health Facilities
Authority Revenue, (Pooled Hospital Loan)
Variable Rate, 1.07%, 11/1/15 ............. 1,925,000
9,328,021
Georgia - 2.9%
5,125,000 Burke County Development Authority
Pollution Control Revenue
(Georgia Power Co.), Series 1
Variable Rate, 1.08%, 9/1/30 .............. 5,125,000
Illinois - 7.4%
4,600,000 Chicago Tax Increment, Series B
Variable Rate, 1.22%, 12/1/14 ............. 4,600,000
8,025,000 Illinois Development Finance Authority
Revenue, (Illinois Central College), Series A
Variable Rate, 1.34%, 6/1/33 .............. 8,025,000
150,000 Illinois Health Facilities Authority Revenue
(Blessing Hospital), Series B, Variable Rate
1.13%, 11/15/29 ........................... 150,000
12,775,000
Indiana - 3.1%
Indiana Health Facilities Financing
Authority Revenue:
400,000 (Capital Access), Variable Rate
1.09%, 4/1/13 ............................. 400,000
530,000 (Capital Access),Variable Rate
1.09%, 1/1/16 ............................. 530,000
3,900,000 (Margaret Mary Community Hospital)
Variable Rate, 1.15%, 12/1/29 ............. 3,900,000
550,000 Logansport Economic Development Revenue
(Modine Manufacturing Co.), Variable Rate
1.30%, 1/1/08 ............................. 550,000
5,380,000
Iowa - 6.7%
5,250,000 Buffalo Pollution Control Revenue
(LaFarge Corp.), Series B, Variable Rate
1.35%, 10/1/10 ............................ 5,250,000
1,550,000 Cerro Gordo County Private School Facility
Revenue, (Newman Catholic School System)
Variable Rate, 1.20%, 5/1/32 .............. 1,550,000
1,600,000 Iowa Finance Authority Private College
Revenue, (Drake University), Variable Rate
1.10%, 7/1/24 ............................. 1,600,000
1,275,000 Iowa Finance Authority Small Business
Development Revenue
(Terrace Center Association), Variable Rate
1.24%, 3/1/22 ............................. 1,275,000
2,000,000 Iowa Higher Education Loan Authority
Revenue, (Private College Facilities
- Wartburg Project), Variable Rate
1.15%, 3/1/30 ............................. 2,000,000
11,675,000
See Notes to Schedules of Investments and Financial Statements.
34 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Kansas - 1.3%
$ 1,200,000 Salina Revenue, (Salina Central Mall
- Dillards), Variable Rate, 1.30%, 12/1/14 $ 1,200,000
1,000,000 Shawnee Industrial Revenue
(Shawnee Village Association)
1.15%, 12/1/09 ............................ 1,000,000
2,200,000
Michigan - 4.2%
1,000,000 Eastern Michigan University Revenue
Variable Rate, 1.10%, 6/1/27 .............. 1,000,000
6,300,000 Holland Economic Development Corp.
(Thrifty Holland, Inc.), Variable Rate
1.09%, 3/1/13 ............................. 6,300,000
7,300,000
Minnesota - 4.1%
4,000,000 Eden Prairie Independent School
District No. 272, Series A
1.625%, 9/30/04 ........................... 4,009,771
1,800,000 Mankato Multifamily Housing Revenue
(Highland Hills of Mankato)
Variable Rate, 1.15%, 5/1/27 .............. 1,800,000
1,250,000 St. Paul Housing and Redevelopment
Authority Revenue, (Goodwill/Easter Seals)
Variable Rate, 1.24%, 8/1/25 .............. 1,250,000
7,059,771
Missouri - 6.9%
400,000 Missouri Development Finance Board
Infrastructure Facilities Revenue
(St Louis Convention Center), Series C
Variable Rate, 1.15%, 12/1/20 ............. 400,000
Missouri Health and Educational Facilities
Authority Revenue:
7,435,000 (Hannibal - LaGrange College)
Variable Rate, 1.20%, 7/1/31 .............. 7,435,000
2,000,000 (Rockhurst High School)
Series B, Variable Rate, 1.14%, 6/1/23 .... 2,000,000
35,000 (Rockhurst University)
Variable Rate, 1.10%, 11/1/32 ............. 35,000
1,000,000 Variable Rate, 1.15%, 8/15/28 ............. 1,000,000
1,170,000 St. Louis Land Clearance Redevelopment
Authority, (Lammert Building Project)
Variable Rate, 1.25%, 6/1/05 .............. 1,170,000
12,040,000
Nebraska - 2.9%
3,115,000 Lincoln Waterworks Revenue
5.00%, 8/15/04 ............................ 3,150,820
1,900,000 Norfolk Industrial Development Revenue
(Supervalu, Inc.), Variable Rate
1.19%, 11/1/14 ............................ 1,900,000
5,050,820
Principal Amount Market Value
================================================================================
Nevada - 1.1%
$ 2,000,000 Clark County Economic Development
Revenue, (Lutheran Secondary School
Association), Variable Rate, 1.35%, 2/1/30 $ 2,000,000
Ohio - 5.8%
10,000,000 Cuyahoga County Hospital Facilities
Revenue, (Sisters of Charity Health System)
Variable Rate, 1.15%, 11/1/30 ............. 10,000,000
Oklahoma - 0.5%
800,000 Oklahoma City Industrial and Cultural
Facilities Trust Revenue
(Oklahoma Christian College)
Variable Rate, 1.34%, 7/1/15 .............. 800,000
Pennsylvania - 9.4%
3,000,000 Allegheny County Industrial
Development Authority Revenue
(Our Lady of the Sacred Heart
High School), Variable Rate
1.15%, 6/1/22 ............................. 3,000,000
5,000,000 Allegheny County Port Authority
(Great Atlantic), 2.00%, 6/30/04 .......... 5,008,110
2,800,000 Pennsylvania Higher Educational
Facilities Authority Revenue
(Susquehanna University), Series H9
Variable Rate, 1.15%, 5/1/31 .............. 2,800,000
State Higher Education, (Independent
Colleges and Universities):
1,000,000 Series G-3, 1.125%, 11/1/20(beta) ......... 1,000,000
2,500,000 Series I-2, 1.125%, 11/1/21 ............... 2,500,000
2,000,000 Washington County Hospital Authority
Revenue, Variable Rate, 1.05%, 7/1/31 ..... 2,000,000
16,308,110
Texas - 13.0%
4,675,000 Alamo Heights Higher Education
Facilities Corp. Revenue, (University
of the Incarnate Word), Variable Rate
1.20%, 4/1/19 ............................. 4,675,000
1,600,000 Bell County Health Facilities
Development Corp. Revenue
(Scott & White Memorial Hospital)
Series B1, Variable Rate, 1.10%, 8/15/29 .. 1,600,000
4,805,000 Bexar County Housing Finance Corp.
Multifamily Housing Revenue
(Mitchell Village Apartments), Series A
Variable Rate, 1.09%, 2/15/30 ............. 4,805,000
Northside Independent School District:
4,000,000 (School Building), Variable Rate
1.02%, 6/15/33 ............................ 4,000,000
1,500,000 Series A, 1.00%, 8/1/31 ................... 1,500,000
1,000,000 San Antonio Water Revenue, Series B
Variable Rate, 1.08%, 5/15/33 ............. 1,000,000
5,000,000 Texas State, (Tax and Revenue Anticipation)
2.00%, 8/31/04 ............................ 5,014,513
22,594,513
See Notes to Schedules of Investments and Financial Statements.
Janus Income Funds April 30, 2004 35
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS TAX-EXEMPT MONEY MARKET FUND
SCHEDULE OF INVESTMENTS (unaudited)
Principal Amount Market Value
================================================================================
Wisconsin - 3.7%
Wisconsin Health and Educational
Facilities Authority Revenue:
$ 2,900,000 (Felician Services), Series B, Variable Rate
1.09%, 1/1/27 ............................. $ 2,900,000
1,000,000 (Mequon Jewish Project), Variable Rate
1.14%, 7/1/28 ............................. 1,000,000
2,600,000 (Riverview Hospital Association)
Variable Rate, 1.15%, 10/1/30 ............. 2,600,000
6,500,000
- --------------------------------------------------------------------------------
Total Investments (total cost $174,357,235) - 100.4%......... 174,357,235
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.4)% (694,080)
- --------------------------------------------------------------------------------
Net Assets - 100%............................................ $ 173,663,155
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
36 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES - BOND FUNDS
As of April 30, 2004 (unaudited) Janus Janus Janus
(all numbers in thousands except Federal Flexible Janus Short-Term
net asset value per share) Tax-Exempt Income High-Yield Bond
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------
Assets:
Investments at cost(1) $ 146,252 $ 1,487,818 $ 521,368 $ 370,167
Investments at value(1) $ 146,763 $ 1,497,783 $ 533,031 $ 371,619
Cash 53 2,075 621 70
Receivables:
Investments sold -- 18,170 17,178 --
Fund shares sold 18 433 296 198
Dividends -- 70 84 --
Interest 2,320 19,368 11,455 3,400
Other assets 1 15 8 3
Forward currency contracts -- 199 -- --
- ---------------------------------------------------------------------------------------------------------------------
Total Assets 149,155 1,538,113 562,673 375,290
- ---------------------------------------------------------------------------------------------------------------------
Liabilities
Payables:
Securities loaned (Note 1) -- 252,763 -- 77,358
Investments purchased 1,688 17,482 14,995 --
Fund shares repurchased 236 3,113 1,592 375
Dividends and distributions 47 375 327 20
Advisory fees 21 610 325 70
Transfer agent fees and expenses 42 272 120 81
Accrued expenses 7 46 63 35
Variation Margin -- 386 -- 76
- ---------------------------------------------------------------------------------------------------------------------
Total Liabilities 2,041 275,047 17,422 78,015
- ---------------------------------------------------------------------------------------------------------------------
Net Assets $ 147,114 $ 1,263,066 $ 545,251 $ 297,275
- ---------------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid in surplus)* $ 150,371 $ 1,258,904 $ 569,278 $ 295,591
Undistributed net investment income/(loss)* 1 2,866 (76) 78
Undistributed net realized gain/(loss) from
investments and foreign currency transactions* (3,769) (12,795) (35,613) (709)
Unrealized appreciation/(depreciation) of
investments and foreign currency translations 511 14,091 11,662 2,315
- ---------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 147,114 $ 1,263,066 $ 545,251 $ 297,275
- ---------------------------------------------------------------------------------------------------------------------
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 21,109 130,843 56,926 101,265
- ---------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 6.97 $ 9.65 $ 9.58 $ 2.94
- ---------------------------------------------------------------------------------------------------------------------
* See Note 3 in Notes to Financial Statements.
(1) Investments at cost and value include $247,751,643 and $75,799,650 of
securities loaned for Janus Flexible Income Fund and Janus Short-Term Bond
Fund, respectively (Note 1).
See Notes to Financial Statements.
Janus Income Funds April 30, 2004 37
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS - BOND FUNDS
For the six month period ended Janus Janus Janus
April 30, 2004 (unaudited) Federal Flexible Janus Short-Term
(all numbers in thousands) Tax-Exempt Income High-Yield Bond
Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Interest $ 3,271 $ 35,743 $ 25,321 $ 5,200
Securities lending income -- 131 -- 39
Dividends -- 253 326 --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income 3,271 36,127 25,647 5,239
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 494 3,955 2,232 1,030
Transfer agent fees and expenses 216 1,579 731 420
Registration fees 11 28 37 24
Postage and mailing expenses 16 134 39 37
Custodian fees 3 36 18 10
Printing expenses 34 179 58 43
Audit fees 3 8 16 6
Trustees' fees and expenses 3 12 7 4
Other expenses 47 83 35 28
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 827 6,014 3,173 1,602
- ----------------------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (1) (8) (9) (2)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 826 6,006 3,164 1,600
- ----------------------------------------------------------------------------------------------------------------------------------
Less: Excess Expense Reimbursement (291) -- -- (559)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Expenses after Expense Reimbursement 535 6,006 3,164 1,041
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) 2,736 30,121 22,483 4,198
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 1,433 33,883 25,206 401
Net realized gain/(loss) from foreign currency transactions -- 2,726 -- --
Net realized gain/(loss) from futures contracts -- (8,233) -- (998)
Change in net unrealized appreciation/(depreciation)
of investments and foreign currency translations (3,106) (37,566) (20,774) 953
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments (1,673) (9,190) 4,432 356
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations $ 1,063 $ 20,931 $ 26,915 $ 4,554
- ----------------------------------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
38 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS - BOND FUNDS
For the six month period ended April 30, 2004 Janus Janus
(unaudited) and for the fiscal year Federal Tax-Exempt Flexible Income
ended October 31, 2003 Fund Fund
(all numbers in thousands) 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 2,736 $ 8,196 $ 30,121 $ 77,496
Net realized gain/(loss) from investment
and foreign currency transactions 1,433 492 28,376 40,159
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations (3,106) 186 (37,566) 105
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting
from Operations 1,063 8,874 20,931 117,760
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (2,735) (8,196) (30,395) (77,509)
Net realized gain/(loss) from investment transactions* -- -- -- --
Tax return of capital* -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Dividends and Distributions (2,735) (8,196) (30,395) (77,509)
- ----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 11,233 133,263 110,188 655,662
Redemption fee N/A N/A N/A N/A
Reinvested dividends and distributions 2,393 7,278 27,824 71,515
Shares repurchased (48,509) (187,627) (399,422) (818,596)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (34,883) (47,086) (261,410) (91,419)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (36,555) (46,408) (270,874) (51,168)
Net Assets:
Beginning of period 183,669 230,077 1,533,940 1,585,108
- ----------------------------------------------------------------------------------------------------------------------------
End of period $ 147,114 $ 183,669 $ 1,263,066 $ 1,533,940
- ----------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securitites
(excluding short-term securities):
Purchase of securities $ 68,314 $ 87,102 $ 459,258 $ 1,395,607
Proceeds from sales of securities 97,660 139,105 712,125 1,269,339
Purchases of long-term U.S. Government obligations -- -- 602,505 1,320,606
Proceeds from sales of long-term U.S.
Government obligations -- -- 623,902 1,498,801
- ----------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ 1 -- $ 2,866 $ 3,141
- ----------------------------------------------------------------------------------------------------------------------------
For the six month period ended April 30, 2004 Janus Janus
(unaudited) and for the fiscal year High-Yield Short-Term Bond
ended October 31, 2003 Fund Fund
(all numbers in thousands) 2004 2003 2004 2003
- ----------------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 22,483 $ 58,141 $ 4,198 $ 12,254
Net realized gain/(loss) from investment
and foreign currency transactions
25,206 21,289 (597) 16,582
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations (20,774) 40,142 953 (9,463)
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting
from Operations 26,915 119,572 4,554 19,373
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (22,564) (58,135) (4,135) (12,239)
Net realized gain/(loss) from investment transactions* -- -- (4,274) --
Tax return of capital* -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Dividends and Distributions (22,564) (58,135) (8,409) (12,239)
- ----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 78,290 844,526 48,694 207,781
Redemption fee 55 373 N/A N/A
Reinvested dividends and distributions 19,901 51,688 8,099 11,679
Shares repurchased (325,379) (763,379) (121,700) (353,114)
Net Increase/(Decrease) from Capital Share Transactions (227,133) 133,208 (64,907) (133,654)
Net Increase/(Decrease) in Net Assets (222,782) 194,645 (68,762) (126,520)
Net Assets:
Beginning of period 768,033 573,388 366,037 492,557
- ----------------------------------------------------------------------------------------------------------------------------
End of period $ 545,251 $ 768,033 $ 297,275 $ 366,037
- ----------------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securitites
(excluding short-term securities):
Purchase of securities $ 450,556 $ 1,666,779 $ 75,401 $ 393,228
Proceeds from sales of securities 688,276 1,498,812 83,781 503,044
Purchases of long-term U.S. Government obligations -- 37,274 106,707 649,693
Proceeds from sales of long-term U.S.
Government obligations -- 38,138 171,709 672,463
- ----------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ (76) $ 5 $ 78 $ 15
- ----------------------------------------------------------------------------------------------------------------------------
*See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
Janus Income Funds April 30, 2004 39
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - BOND FUNDS
For a share outstanding during the Janus Federal Tax-Exempt Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 7.07 $ 7.05 $ 7.01 $ 6.74 $ 6.66 $ 7.27
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) 0.12 0.26 0.27 0.31 0.34 0.34
Net gain/(loss) on securities
(both realized and unrealized) (0.10) 0.02 0.04 0.27 0.08 (0.61)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.02 0.28 0.31 0.58 0.42 (0.27)
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (0.12) (0.26) (0.27) (0.31) (0.34) (0.34)
Distributions (from capital gains)* -- -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.12) (0.26) (0.27) (0.31) (0.34) (0.34)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 6.97 $ 7.07 $ 7.05 $ 7.01 $ 6.74 $ 6.66
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.23% 3.97% 4.56% 8.80% 6.47% (4.04)%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 147,114 $ 183,669 $ 230,077 $ 128,951 $ 80,056 $ 96,199
Average Net Assets for the Period
(in thousands) $ 165,469 $ 228,760 $ 148,070 $ 105,066 $ 77,794 $ 102,366
Ratio of Gross Expenses to
Average Net Assets***(1) 0.65%(2) 0.65%(2) 0.66%(2) 0.68%(2) 0.67%(2) 0.66%(2)
Ratio of Net Expenses to
Average Net Assets***(1) 0.65% 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 3.33% 3.58% 3.83% 4.50% 5.09% 4.79%
Portfolio Turnover Rate*** 86% 39% 58% 60% 115% 62%
For a share outstanding during the Janus Flexible Income Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 9.74 $ 9.51 $ 9.49 $ 8.99 $ 9.35 $ 9.91
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) 0.22 0.46 0.49 0.58 0.65 0.63
Net gain/(loss) on securities
(both realized and unrealized) (0.09) 0.21 0.02 0.50 (0.35) (0.45)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 0.13 0.67 0.51 1.08 0.30 0.18
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (0.22) (0.44) (0.49) (0.58) (.66)(3) (0.63)
Distributions (from capital gains)* -- -- -- -- -- (0.11)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (0.22) (0.44) (0.49) (0.58) (0.66) (0.74)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.65 $ 9.74 $ 9.51 $ 9.49 $ 8.99 $ 9.35
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 1.27% 7.12% 5.63% 12.41% 3.31% 1.75%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $1,263,066 $1,533,940 $1,585,108 $1,326,110 $1,080,423 $1,279,398
Average Net Assets for the Period
(in thousands) $1,391,405 $1,731,995 $1,347,054 $1,147,222 $1,137,973 $1,266,098
Ratio of Gross Expenses to
Average Net Assets***(1) 0.87% 0.83% 0.81% 0.79% 0.81% 0.82%
Ratio of Net Expenses to
Average Net Assets***(1) 0.87% 0.83% 0.81% 0.77% 0.79% 0.81%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 4.35% 4.47% 5.24% 6.33% 7.31% 6.54%
Portfolio Turnover Rate*** 156% 163% 243% 284% 173% 119%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) See "Explanations of Charts, Tables and Financial Statements."
(2) The ratio was 1.01% in 2004, 0.90% in 2003, 0.92% in 2002, 1.05% in 2001,
1.02% in 2000 and 1.01% in 1999 before waiver of certain fees incurred by
the Fund.
(3) Dividends (from net investment income) includes tax return of capital, less
than $0.01 per share.
See Notes to Financial Statements.
40 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For a share outstanding during the Janus High-Yield Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001(1) 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 9.55 $ 8.82 $ 9.28 $ 9.84 $ 10.03 $ 10.25
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .34 .64 .65 .78 .86 .89
Net gain/(loss) on securities
(both realized and unrealized) .03 .72 (.46) (.57) (.19) (.22)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .37 1.36 .19 .21 .67 .67
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.34) (.64) (.65) (.78)(2) (.86)(2) (.89)
Distributions (from capital gains)* -- -- -- -- -- --
Redemption Fees --(3) .01 --(3) .01 --(3) N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions and Other (.34) (.63) (.65) (.77) (.86) (.89)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.58 $ 9.55 $ 8.82 $ 9.28 $ 9.84 $ 10.03
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 3.86% 16.00% 1.97% 2.23% 6.72% 6.34%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 545,251 $ 768,033 $ 573,388 $ 409,366 $ 299,924 $ 264,476
Average Net Assets for the Period
(in thousands) $ 644,516 $ 842,175 $ 490,524 $ 382,153 $ 285,821 $ 296,586
Ratio of Gross Expenses to
Average Net Assets***(4) 0.99% 0.95% 0.96% 1.03% 1.03%(5) 1.02%(5)
Ratio of Net Expenses to
Average Net Assets***(4) 0.99% 0.95% 0.96% 0.99% 1.00% 1.00%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 7.02% 6.90% 7.02% 8.04% 8.43% 8.48%
Portfolio Turnover Rate*** 147% 203% 161% 358% 295% 310%
For a share outstanding during the Janus Short-Term Bond Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 2.97 $ 2.93 $ 2.97 $ 2.86 $ 2.83 $ 2.91
Income from Investment Operations:
Net investment income/(loss) .04 .08 .10 .14 .16 .16
Net gain/(loss) on securities
(both realized and unrealized) .01 .04 (.04) .11 .03 (.08)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .05 .12 .06 .25 .19 .08
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.04) (.08) (.10)(2) (.14) (.16) (.16)
Distributions (from capital gains)* (.04) -- -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.08) (.08) (.10) (.14) (.16) (.16)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 2.94 $ 2.97 $ 2.93 $ 2.97 $ 2.86 $ 2.83
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 1.58% 4.12% 2.22% 9.50% 6.65% 2.82%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 297,275 $ 366,037 $ 492,557 $ 523,600 $ 139,899 $ 139,008
Average Net Assets for the Period
(in thousands) $ 322,114 $ 456,695 $ 499,807 $ 284,977 $ 128,788 $ 135,882
Ratio of Gross Expenses to
Average Net Assets***(4) 0.65%(6) 0.65%(6) 0.65%(6) 0.66%(6) 0.66%(6) 0.66%(6)
Ratio of Net Expenses to
Average Net Assets***(4) 0.65% 0.65% 0.65% 0.65% 0.65% 0.65%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 2.62% 2.68% 3.55% 4.70% 5.74% 5.59%
Portfolio Turnover Rate*** 115% 238% 164% 201% 134% 101%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Certain prior year amounts have been reclassified to conform with current
year presentation.
(2) Dividends (from net investment income) includes tax return of capital, less
than $0.01 per share.
(3) Redemption fees aggregated less than $.01 on a per share basis for the
fiscal year or period ended.
(4) See "Explanations of Charts, Tables and Financial Statements."
(5) The ratio was 1.05% in 2000 and 1.05% in 1999 before waiver of certain fees
incurred by the Fund.
(6) The ratio was 1.00% in 2004, 0.91% in 2003, 0.88% in 2002, 0.98% in 2001,
1.03% in 2000 and 1.03% in 1999 before waiver of certain fees incurred by
the Fund.
See Notes to Financial Statements.
Janus Income Funds April 30, 2004 41
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES - MONEY MARKET FUNDS
As of April 30, 2004 (unaudited) Janus Janus
(all numbers in thousands except Janus Government Tax-Exempt
net asset value per share) Money Market Money Market Money Market
Fund Fund Fund
- --------------------------------------------------------------------------------------------------
Assets:
Investments at amortized cost $ 7,577,018 $ 918,886 $ 174,357
Cash 26 60 51
Receivables:
Fund shares sold 4,868 675 210
Interest 7,577 865 532
- --------------------------------------------------------------------------------------------------
Total Assets 7,589,489 920,486 175,150
- --------------------------------------------------------------------------------------------------
Liabilities
Payables:
Investments purchased -- -- 1,100
Fund shares repurchased 4,328 273 319
Dividends and distributions 2,193 345 2
Advisory fees 675 76 14
Administrative fees for Investor Shares 712 101 48
Administrative fees for Institutional Shares 425 20 4
Administrative fees for Service Shares 1 7 --
Service fees for Service Shares 4 37 --
Accrued expenses 33 1 --
- --------------------------------------------------------------------------------------------------
Total Liabilities 8,371 860 1,487
- --------------------------------------------------------------------------------------------------
Net Assets $ 7,581,118 $ 919,626 $ 173,663
- --------------------------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid in surplus)* $ 7,580,971 $ 919,608 $ 173,662
Undistributed net investment income/(loss)* 49 -- --
Undistributed net realized gain/
(loss) from investments* 98 18 1
- --------------------------------------------------------------------------------------------------
Total Net Assets $ 7,581,118 $ 919,626 $ 173,663
- --------------------------------------------------------------------------------------------------
Net Assets - Investor Shares $ 1,715,252 $ 241,479 $ 117,312
Shares Outstanding, 0.01 Par Value
(unlimited shares authorized) $ 1,715,219 241,474 117,311
- --------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------
Net Assets - Institutional Shares $ 5,850,556 $ 473,520 $ 56,260
Shares Outstanding, 0.01 Par Value
(unlimited shares authorized) $ 5,850,442 473,510 56,260
- --------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------
Net Assets - Service Shares $ 15,310 $ 204,627 $ 91
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 15,310 204,624 91
- --------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------
* See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
42 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS - MONEY MARKET FUNDS
For the six month period ended Janus Janus
April 30, 2004 (unaudited) Janus Government Tax-Exempt
(all numbers in thousands) Money Market Money Market Money Market
Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------
Investment Income:
Interest $ 58,620 $ 6,088 $ 1,055
- -----------------------------------------------------------------------------------------------------------
Total Investment Income: 58,620 6,088 1,055
- -----------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 9.879 1,086 188
Administrative fees for Investor Shares 4,753 673 318
Administrative fees for Institutional Shares 5,946 484 46
Administrative fees for Service Shares 38 129 --
Service fees for Service Shares 63 214 --
Audit fees 8 5 1
Trustees' fees and expenses 116 11 4
- -----------------------------------------------------------------------------------------------------------
Total Expenses 20,803 2,602 557
- -----------------------------------------------------------------------------------------------------------
Less: Excess Expense Reimbursement (7,732) (952) (115)
- -----------------------------------------------------------------------------------------------------------
Net Expenses after Expense Reimbursement 13,071 1,650 442
- -----------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) 45,549 4,438 613
- -----------------------------------------------------------------------------------------------------------
Net Realized Gain/(Loss) on Investments:
Net realized gain/(loss) from investment transactions 98 18 1
- -----------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations $ 45,647 $ 4,456 $ 614
- -----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
Janus Income Funds April 30, 2004 43
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS - MONEY MARKET FUNDS
Janus Janus Government
Money Market Money Market
For the six month period ended April 30, 2004 (unaudited) Fund Fund
and for the fiscal year ended October 31, 2003
(all numbers in thousands) 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------------
Operation
Net investment income/(loss) $ 45,549 $ 147,911 $ 4,438 $ 17,822
Net realized gain/(loss) from investment
transactions 98 70 18 --
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 45,647 147,981 4,456 17,822
- -----------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income:*
Investor Shares (5,544) (21,184) (697) (2,828)
Institutional Shares (39,766) (126,083) (3,126) (13,263)
Service Shares (190) (645) (615) (1,731)
Net realized gain from investment transactions:*
Investor Shares -- (14) -- --
Institutional Shares -- (55) -- --
Service Shares -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (45,500) (147,981) (4,438) (17,822)
- -----------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold:
Investor Shares 579,048 1,773,435 56,813 179,426
Institutional Shares 39,425,681 159,420,727 3,458,446 14,566,499
Service Shares 415,676 801,892 437,490 1,316,848
Reinvested dividends and distributions:
Investor Shares 5,377 20,556 674 2,747
Institutional Shares 20,024 48,412 1,006 5,061
Service Shares 66 177 79 315
Shares repurchased:
Investor Shares (1,066,373) (2,638,462) (129,705) (315,794)
Institutional Shares (42,736,429) (160,869,172) (3,761,767) (15,070,385)
Service Shares (460,759) (840,385) (423,858) (1,299,542)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital
Share Transactions (3,817,689) (2,282,820) (360,822) (614,825)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (3,817,542) (2,282,820) (360,804) (614,825)
Net Assets:
Beginning of period 11,398,660 13,681,480 1,280,430 1,895,255
- -----------------------------------------------------------------------------------------------------------------------------
End of period $ 7,581,118 $ 11,398,660 $ 919,626 $ 1,280,430
- -----------------------------------------------------------------------------------------------------------------------------
Janus Tax-Exempt
Money Market
For the six month period ended April 30, 2004 (unaudited) Fund
and for the fiscal year ended October 31, 2003
(all numbers in thousands) 2004 2003
- ---------------------------------------------------------------------------------------
Operation
Net investment income/(loss) $ 613 $ 2,207
Net realized gain/(loss) from investment
transactions 1 --
- ---------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 614 2,207
- ---------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income:*
Investor Shares (328) (1,117)
Institutional Shares (285) (1,088)
Service Shares -- (2)
Net realized gain from investment transactions:*
Investor Shares -- 150(1)
Institutional Shares -- 123(1)
Service Shares --(1)
- ---------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (613) (2,207)
- ---------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold:
Investor Shares 49,148 156,474
Institutional Shares 41,499 274,935
Service Shares -- --
Reinvested dividends and distributions:
Investor Shares 316 1,068
Institutional Shares 276 1,065
Service Shares -- 2
Shares repurchased:
Investor Shares (72,240) (204,726)
Institutional Shares (58,554) (307,971)
Service Shares -- (574)
- ---------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital
Share Transactions (39,555) (79,727)
- ---------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (39,554) (79,727)
Net Assets:
Beginning of period 213,217 292,944
- ---------------------------------------------------------------------------------------
End of period $ 173,663 $ 213,217
- ---------------------------------------------------------------------------------------
* See Note 3 in Notes to Financial Statements.
(1) Net realized gain from investment transaction amounts are not in thousands.
See Notes to Financial Statements.
44 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - MONEY MARKET FUNDS
For a share outstanding during the Janus Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Investor Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .02 .04 .06 .05
Net gains/(losses) on securities
(both realized and unrealized) -- --(2) --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .02 .04 .06 .05
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.02) (.04) (.06) (.05)
Distributions (from capital gains)* -- --(2) --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.02) (.04) (.06) (.05)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.29% 0.79% 1.53% 4.52% 5.88% 4.69%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $1,715,252 $2,197,167 $3,041,637 $3,614,097 $3,165,642 $2,309,109
Average Net Assets for the Period
(in thousands) $1,911,503 $2,658,402 $3,180,307 $3,629,621 $2,982,106 $1,808,653
Ratio of Expenses to
Average Net Assets***(3) 0.60%(4) 0.60%(4) 0.60%(4) 0.60%(4) 0.60%(4) 0.60%(4)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 0.14% 0.80% 1.53% 4.43% 5.77% 4.61%
For a share outstanding during the Janus Government Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Investor Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .01 .04 .06 .04
Net gains/(losses) on securities
(both realized and unrealized) -- -- --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .01 .04 .06 .04
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.01) (.04) (.06) (.04)
Distributions (from capital gains)* -- -- --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.01) (.04) (.06) (.04)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.26% 0.72% 1.49% 4.47% 5.76% 4.56%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 241,479 $ 313,691 $ 447,313 $ 471,335 $ 330,396 $ 360,604
Average Net Assets for the Period
(in thousands) $ 270,650 $ 388,077 $ 431,132 $ 402,844 $ 340,813 $ 230,784
Ratio of Expenses to
Average Net Assets***(3) 0.60%(5) 0.60%(5) 0.60%(5) 0.60%(5) 0.60%(5) 0.60%(5)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 0.13% 0.73% 1.48% 4.25% 5.61% 4.50%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Net investment income/(loss) and dividends (from net investment income)
aggregated less than $.01 on a per share basis for the period ended.
(2) Net gain/(loss) on securities (both realized and unrealized) and
distributions (from capital gains) aggregated less than $.01 on a per share
basis for the fiscal year ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 0.70% in 2004, 0.70% in 2003, 0.70% in 2002, 0.70% in 2001,
0.70% in 2000 and 0.70% in 1999 before waiver of certain fees incurred by
the Fund.
(5) The ratio was 0.70% in 2004, 0.70% in 2003, 0.70% in 2002, 0.70% in 2001,
0.70% in 2000 and 0.70% in 1999 before waiver of certain fees incurred by
the Fund.
See Notes to Financial Statements.
Janus Income Funds April 30, 2004 45
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - MONEY MARKET FUNDS (continued)
For a share outstanding during the Janus Tax-Exempt Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Investor Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .01 .03 .04 .03
Net gains/(losses) on securities
(both realized and unrealized) -- --(2) -- -- --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .01 .03 .04 .03
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.01) (.03) (.04) (.03)
Distributions (from capital gains)* -- --(2) -- -- --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.01) (.03) (.04) (.03)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.26% 0.64% 1.09% 2.84% 3.58% 2.83%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 117,312 $ 140,087 $ 187,272 $ 205,510 $ 171,383 $ 146,656
Average Net Assets for the Period
(in thousands) $ 127,693 $ 173,152 $ 192,498 $ 190,597 $ 168,435 $ 122,946
Ratio of Expenses to
Average Net Assets***(3) 0.61%(4) 0.60%(4) 0.60%(4) 0.61%(4) 0.60%(4) 0.60%(4)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 0.13% 0.65% 1.08% 2.79% 3.53% 2.80%
For a share outstanding during the Janus Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Institutional Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .01 .01 .02 .05 .06 .05
Net gains/(losses) on securities
(both realized and unrealized) -- --(2) --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .01 .01 .02 .05 .06 .05
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.01) (.01) (.02) (.05) (.06) (.05)
Distributions (from capital gains)* -- --(2) --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.01) (.01) (.02) (.05) (.06) (.05)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.50% 1.22% 1.96% 4.96% 6.35% 5.16%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $5,850,556 $9,141,167 $10,541,200 $13,268,612 $7,308,448 $4,498,950
Average Net Assets for the Period
(in thousands) $7,971,498 $10,403,767 $12,632,647 $10,427,053 $6,804,495 $5,445,434
Ratio of Expenses to
Average Net Assets***(3) 0.18%(5) 0.18%(5) 0.18%(5) 0.18%(5) 0.16%(5) 0.15%(5)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 0.25% 1.21% 1.95% 4.70% 6.22% 5.04%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Net investment income/(loss) and dividends (from net investment income)
aggregated less than $.01 on a per share basis for the period ended.
(2) Net gain/(loss) on securities (both realized and unrealized) and
distributions (from capital gains) aggregated less than $.01 on a per share
basis for the fiscal year ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 0.71% in 2004, 0.70% in 2003, 0.70% in 2002, 0.71% in 2001,
0.70% in 2000 and 0.70% in 1999 before waiver of certain fees incurred by
the Fund.
(5) The ratio was 0.35% in 2004, 0.35% in 2003, 0.35% in 2002, 0.35% in 2001,
0.33% in 2000 and 0.32% in 1999 before waiver of certain fees incurred by
the Fund.
See Notes to Financial Statements.
46 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For a share outstanding during the Janus Government Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Institutional Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .02 .05 .06 .05
Net gains/(losses) on securities
(both realized and unrealized) -- -- --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .02 .05 .06 .05
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.02) (.05) (.06) (.05)
Distributions (from capital gains)* -- -- --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.02) (.05) (.06) (.05)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.48% 1.18% 1.95% 4.93% 6.24% 5.03%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 473,520 $ 775,826 $1,274,650 $ 933,973 $ 782,370 $ 761,488
Average Net Assets for the Period
(in thousands) $ 649,256 $1,136,909 $1,250,675 $ 751,585 $ 741,708 $ 770,224
Ratio of Expenses to
Average Net Assets***(3) 0.15%(4) 0.15%(4) 0.15%(4) 0.15%(4) 0.15%(4) 0.15%(4)
Ratio of Net Investment Income/(Loss)
to Average Net Assets ***(3) 0.24% 1.17% 1.90% 4.72% 6.07% 4.94%
For a share outstanding during the Janus Tax-Exempt Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Institutional Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .02 .03 .04 .03
Net gains/(losses) on securities
(both realized and unrealized) -- --(2) -- -- --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .02 .03 .04 .03
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.02) (.03) (.04) (.03)
Distributions (from capital gains)* -- --(2) -- -- --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.02) (.03) (.04) (.03)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.47% 1.07% 1.51% 3.27% 4.03% 3.29%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 56,260 $ 73,039 $ 105,009 $ 136,557 $ 56,172 $ 138,864
Average Net Assets for the Period
(in thousands) $ 61,141 $ 101,230 $ 109,354 $ 61,859 $ 73,351 $ 91,837
Ratio of Expenses to
Average Net Assets***(3) 0.19%(5) 0.18%(5) 0.18%(5) 0.19%(5) 0.16%(5) 0.15%(5)
Ratio of Net Investment Income/(Loss)
to Average Net Assets ***(3) 0.23% 1.07% 1.51% 3.10% 4.00% 3.25%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Net investment income/(loss) and dividends (from net investment income)
aggregated less than $.01 on a per share basis for the period ended.
(2) Net gain/(loss) on securities (both realized and unrealized) and
distributions (from capital gains) aggregated less than $.01 on a per share
basis for the fiscal year ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 0.35% in 2004, 0.35% in 2003, 0.35% in 2002, 0.35% in 2001,
0.35% in 2000 and 0.35% in 1999 before waiver of certain fees incurred by
the Fund.
(5) The ratio was 0.36% in 2004, 0.35% in 2003, 0.35% in 2002, 0.36% in 2001,
0.33% in 2000 and 0.32% in 1999 before waiver of certain fees incurred by
the Fund.
See Notes to Financial Statements.
Janus Income Funds April 30, 2004 47
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - MONEY MARKET FUNDS
For a share outstanding during the Janus Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Service Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .02 .05 .06 .05
Net gains/(losses) on securities
(both realized and unrealized) -- --(2) --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .02 .05 .06 .05
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.02) (.05) (.06) (.05)
Distributions (from capital gains)* -- --(2) --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.02) (.05) (.06) (.05)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.37% 0.96% 1.70% 4.70% 6.08% 4.89%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 15,310 $ 60,326 $ 98,643 $ 74,515 $ 129,634 $ 28,748
Average Net Assets for the Period
(in thousands) $ 50,525 $ 68,106 $ 80,774 $ 99,861 $ 59,503 $ 31,250
Ratio of Expenses to
Average Net Assets***(3) 0.43%(4) 0.43%(4) 0.43%(4) 0.43%(4) 0.42%(4) 0.40%(4)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 0.19% 0.95% 1.71% 4.62% 6.02% 4.82%
For a share outstanding during the Janus Government Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Service Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .02 .05 .06 .05
Net gains/(losses) on securities
(both realized and unrealized) -- -- --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .02 .05 .06 .05
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.02) (.05) (.06) (.05)
Distributions (from capital gains)* -- -- --(2) --(2) --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.02) (.05) (.06) (.05)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.36% 0.92% 1.69% 4.67% 5.97% 4.77%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 204,627 $ 190,913 $ 173,292 $ 85,589 $ 78,877 $ 51,343
Average Net Assets for the Period
(in thousands) $ 172,424 $ 189,811 $ 118,192 $ 103,932 $ 63,802 $ 45,587
Ratio of Expenses to
Average Net Assets***(3) 0.40%(5) 0.40%(5) 0.40%(5) 0.40%(5) 0.40%(5) 0.40%(5)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 0.18% 0.91% 1.64% 4.57% 5.86% 4.67%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Net investment income/(loss) and dividends (from net investment income)
aggregated less than $.01 on a per share basis for the period ended.
(2) Net gain/(loss) on securities (both realized and unrealized) and
distributions (from capital gains) aggregated less than $.01 on a per share
basis for the fiscal year ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 0.60% in 2004, 0.60% in 2003, 0.60% in 2002, 0.60% in 2001,
0.59% in 2000 and 0.57% in 1999 before waiver of certain fees incurred by
the Fund.
(5) The ratio was 0.60% in 2004, 0.60% in 2003, 0.60% in 2002, 0.60% in 2001,
0.60% in 2000 and 0.60% in 1999 before waiver of certain fees incurred by
the Fund.
See Notes to Financial Statements.
48 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For a share outstanding during the Janus Tax-Exempt Money Market Fund
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31
Service Shares 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(1) .01 .01 .03 .04 .03
Net gains/(losses) on securities
(both realized and unrealized) -- --(2) -- -- --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations -- .01 .01 .03 .04 .03
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* --(1) (.01) (.01) (.03) (.04) (.03)
Distributions (from capital gains)* -- --(2) -- -- --(2) --(2)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.01) (.03) (.04) (.03)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 0.34% 0.81% 1.27% 3.02% 3.81% 3.06%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 91 $ 91 $ 663 $ 10 $ 10 $ 1,042
Average Net Assets for the Period
(in thousands) $ 91 $ 233 $ 192 $ 10 $ 737 $ 4,090
Ratio of Expenses to
Average Net Assets***(3) 0.44%(4) 0.43%(4) 0.43(4) 0.43%(4) 0.41%(4) 0.40%(4)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 0.17% 89% 1.21% 2.98% 3.67% 3.10%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Net investment income/(loss) and dividends (from net investment income)
aggregated less than $.01 on a per share basis for the period ended.
(2) Net gain/(loss) on securities (both realized and unrealized) and
distributions (from capital gains) aggregated less than $.01 on a per share
basis for the fiscal year ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 0.61% in 2004, 0.60% in 2003, 0.60% in 2002, 0.60% in 2001,
0.58% in 2000 and 0.57% in 1999 before waiver of certain fees incurred by
the Fund.
See Notes to Financial Statements.
Janus Income Funds April 30, 2004 49
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (unaudited)
Dow Jones Industrial Average A price-weighted average of 30 actively traded
Blue-Chip Stocks.
Lehman Brothers The Lehman Brothers Government/Credit Index is
Government/Credit Index composed of all bonds that are of investment
grade with at least one year until maturity.
Lehman Brothers Government/ The Lehman Brothers Government/Credit 1-3 Year
Credit 1-3 Year Index Index is composed of all bonds of investment
grade with a maturity between one and three
years.
Lehman Brothers Municipal The Lehman Brothers Municipal Bond Index is
Bond Index composed of approximately 1,100 bonds; 60%
of which are revenue bonds and 40% of which are
state government obligations.
Lehman Brothers The Lehman Brothers High-Yield Bond Index is
High-Yield Bond Index composed of fixed rate, publicly issued,
non-investment grade debt.
NASDAQ Composite The National Association of Securities Dealers
Stock Index Automated Quotation System is a nationwide
computerized quotation system for over 5,500
over-the-counter stocks. The index is compiled
of more than 4,800 stocks that are traded via
this system.
S&P 500(R) Index The S&P 500(R) Index is the Standard & Poor's
composite index of 500 Index stocks, a widely
recognized, unmanaged index of common stock
prices.
144A 144A Securities sold under Rule 144A of the
Securities Act of 1933 and are subject to legal
and/or contractual restrictions on resale and
may not be publicly sold without registration
under the 1933 Act.
ETD Euro Time Deposit
PLC Public Limited Company
Section 4(2) Securities subject to legal and/or contractual
restrictions on resale and may not be publicly
sold without registration under the Securities
Act of 1933.
* Non-income-producing security.
** A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts, forward
currency contracts and when-issued securities.
(omega) Rate is subject to change. Rate shown reflects current rate.
(delta) Security is a defaulted security in Janus Flexible Income Fund with
accrued interest in the amount of $170,000 that was written-off December
10, 2001.
(alpha) Security is a defaulted security in Janus Flexible Income Fund with
accrued interest in the amount of $110,000 that was written-off December
10, 2001.
(pi) Security is a U.S. Treasury Inflation-Protected Security (TIPS).
(beta) Security is illiquid.
(sigma) Security is fair valued.
# Loaned security, a portion or all of the security is on loan as of April
30, 2004.
50 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ss. SCHEDULE OF RESTRICTED AND ILLIQUID SECURITIES
Value as
Acquisition Acquisition % of
Date Cost Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------
Janus Flexible Income Fund
Allegheny Energy Supply Company LLC, 8.25%
bonds, due 4/15/12 (144A) 3/12/04 - 3/24/04 $ 3,989,894 $ 4,010,000 0.3%
Candescent Technologies Corp., 8.00%
convertible senior subordinated 4/17/98 4,250,000 0 0%
debentures, due 5/1/03 (144A)(sigma)
Candescent Technologies Corp., 8.00%
convertible senior subordinated 3/6/00 2,200,000 0 0%
debentures, due 5/1/03 (144A)(sigma)
NYMAGIC, Inc., 6.50%
senior notes, due 3/15/14 (144A) 3/4/04 3,741,113 3,591,874 0.3%
- --------------------------------------------------------------------------------------------------------------------------
$ 14,181,007 $ 7,601,874 0.6%
==========================================================================================================================
Janus High-Yield Fund
Allegheny Energy Supply Company LLC, 8.25%
bonds, due 4/15/12 (144A) 2/9/04 - 4/2/04 $ 3,543,625 $ 3,558,875 0.7%
Calpine Corp., 9.875%
secured notes, due 12/1/11 (144A) 3/8/04 - 3/30/04 2,714,500 2,543,750 0.5%
Elan Pharmaceutical Investments, Ltd., 7.62%
company guaranteed notes, due 3/15/05 (144A) 2/19/04 - 3/4/04 2,729,625 2,713,500 0.5%
Inmarsat Finance PLC, 7.625%
senior notes, due 6/30/12 (144A) 4/23/04 768,750 765,000 0.1%
Mrs. Field's Original Cookies, Inc., 11.50%
secured notes, due 3/15/11 (144A) 3/9/04 2,400,000 2,376,000 0.4%
Phibro Animal Health Corp., 13.00%
units, due 12/1/07 (144A) 10/10/03 - 10/15/03 2,540,000 2,687,500 0.5%
- --------------------------------------------------------------------------------------------------------------------------
$ 14,696,500 $ 14,644,625 2.7%
==========================================================================================================================
Janus Money Market Fund
Ares VII CLO Ltd., Class A-1A,
1.18%, 5/8/15 (144A) 5/7/03 $ 75,000,000 $ 75,000,000 1.0%
Blue Heron Funding II, Ltd., Class A
1.13%, 3/18/05 (144A) 3/19/04 100,000,000 100,000,000 1.3%
Blue Heron Funding IV, Ltd., Series 4A, Class A
1.13%, 12/17/04 (144A) 12/19/03 100,000,000 100,000,000 1.3%
Blue Heron Funding VI, Ltd., Class A-1
1.13%, 5/19/04 (144A) 5/21/03 150,000,000 150,000,000 2.0%
Blue Heron Funding VII, Ltd., Series 7A, Class A-1
1.13%, 5/28/04 (144A) 7/29/03 75,000,000 75,000,000 1.0%
GMACCM Mortgage Trust III Series 2000 - Class A
(credit enhanced and liquidity provided by Freddie Mac)
1.15%, 9/20/05 (144A) 12/7/00 25,758,929 25,758,929 0.3%
- --------------------------------------------------------------------------------------------------------------------------
$ 525,758,929 $ 525,758,929 6.9%
==========================================================================================================================
Janus Government Money Market Fund
GMACCM Mortgage Trust III Series 2000 - Class A
(credit enhanced and liquidity provided by Freddie Mac),
1.15%, 9/20/05 (144A) 12/7/00 $ 2,862,103 $ 2,862,103 0.3%
- --------------------------------------------------------------------------------------------------------------------------
The funds have registration rights for certain restricted securities held as of
April 30, 2004. The issuer incurs all registration costs.
Variable rate notes are notes which the interest rate is based on an index or
market interest rates and is subject to change. Rates in the security
description are as of April 30, 2004.
Money market funds may hold securities with stated maturities of greater than
397 days when those securities have features that allow a Fund to "put" back the
security to the issuer or to a third party within 397 days of acquisition. The
maturity dates shown in the security descriptions are the stated maturity dates.
Repurchase Agreements held by a fund are fully collateralized, and such
collateral is in the possession of the fund's custodian or subcustodian. The
collateral is evaluated daily to ensure its market value equals or exceeds the
current market value of the repurchase agreements, including accrued interest.
In the event of default on the obligation to repurchase, the fund has the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
Janus Income Funds April 30, 2004 51
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
The following section describes the organization and significant accounting
policies and provides more detailed information about the schedules and tables
that appear throughout this report. In addition, the Notes to Financial
Statements explain the methods used in preparing and presenting this report.
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Janus Federal Tax-Exempt Fund, Janus Flexible Income Fund, Janus High-Yield Fund
and Janus Short-Term Bond Fund (collectively the "Bond Funds") and Janus Money
Market Fund, Janus Government Money Market Fund and Janus Tax-Exempt Money
Market Fund (collectively the "Money Market Funds") are series funds. The Bond
Funds and the Money Market Funds (collectively the "Funds" and individually the
"Fund") are part of Janus Investment Fund (the "Trust") which was organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 (the "1940 Act") as an open-end management investment company. The Bond
Funds invest primarily in income-producing securities, and the Money Market
Funds invest exclusively in high-quality money market instruments. Each of the
Bond funds in this report are classified as diversified as defined in the 1940
Act. The Funds are no-load investments.
The Money Market Funds offer three classes of shares: "Investor Shares" are
available to the general public, "Institutional Shares" are available only to
investors that meet certain minimum dollar limits, and "Service Shares" are
available through banks and other financial institutions.
The following accounting policies have been consistently followed by the Funds
and are in conformity with accounting principles generally accepted in the
United States of America in the investment company industry.
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a principal
securities exchange (U.S. or foreign) and on the NASDAQ National Market.
Securities traded on over-the-counter markets and listed securities for which no
sales are reported are valued at the latest bid price (or yield equivalent
thereof) obtained from one or more dealers making a market for such securities
or by a pricing service approved by the Funds' Trustees. Short-term investments
maturing within 60 days for the Bond Funds and all money market securities in
the Money Market Funds are valued at amortized cost, which approximates market
value. Currently, foreign securities and currencies are converted to U.S.
dollars using the applicable rate in effect as of 1:00 p.m. (New York time). It
is anticipated that sometime during the third calendar quarter, the conversion
to U.S. dollars will use the applicable exchange rate in effect as of the close
of the New York Stock Exchange ("NYSE"). The Bond Funds are valued at market
value or, if a market quotation is not readily available or is deemed not to be
reliable because events or circumstances that may affect the value of portfolio
securities are identified between the closing of their principal markets and the
closing of the NYSE, then their fair value determined in good faith under
procedures established by and under the supervision of the Funds' Trustees. The
Funds may use a systematic fair valuation model provided by an independent third
party to value international equity securities in order to adjust for stale
pricing, which may occur between the close of the foreign exchanges and the
close of the NYSE.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold
(trade date). Dividend income is recorded on the ex-dividend date. Certain
dividends from foreign securities will be recorded as soon as the Trust is
informed of the dividend if such information is obtained subsequent to the
ex-dividend date. Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. 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 for each of the Money Market Funds based
upon the ratio of net assets represented by each class as a percentage of total
net assets.
SECURITIES LENDING
Under procedures adopted by the Trustees, the Funds may lend securities to
qualified parties (typically brokers or other financial institutions) who need
to borrow securities in order to complete certain transactions such as covering
short sales, avoiding failures to deliver securities or completing arbitrage
activities. The Funds may seek to earn additional income through securities
lending. 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,
such loans will only be made if Janus Capital Management LLC ("Janus Capital")
believes the benefit from granting such loans justifies the risk. A Fund will
not have the right to vote on securities while they are being lent, however, the
Fund will attempt to call back the loan and vote the proxy if time permits. All
loans will be continuously secured by collateral which consists of cash, U.S.
Government securities, domestic and foreign short-term debt instruments, letters
of credit and such other collateral permitted by the Securities Exchange
Commission ("SEC"). The lending agent may also invest the cash collateral in the
State Street Navigator Securities Lending Prime Portfolio or investments in
unaffiliated money market funds or
52 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
accounts that comply with Rule 2a-7 of the 1940 Act relating to money market
funds and mutually agreed to by the Funds and the lending agent.
As of April 30, 2004, the following Funds had on loan securities as indicated:
Value at
Fund April 30, 2004
- --------------------------------------------------------------------------------
Janus Flexible Income Fund $247,751,643
Janus Short-Term Bond Fund 75,799,650
As of April 30, 2004, the following Funds received cash collateral in accordance
with securities lending activity as indicated:
Cash Collateral at
Fund April 30, 2004
- --------------------------------------------------------------------------------
Janus Flexible Income Fund $252,763,011
Janus Short-Term Bond Fund 77,358,491
All cash collateral received was invested into the State Street Navigator
Securities Lending Prime Portfolio.
The borrower pays fees at the Funds' direction to its lending agent. The lending
agent may retain a portion of the interest earned. The cash collateral invested
by the lending agent is disclosed in the Schedule of Investments. The lending
fees and the Funds' portion of the interest income earned on cash collateral is
included on the Statement of Operations.
FORWARD CURRENCY TRANSACTIONS
The Bond Funds may enter into forward currency contracts in order to reduce
their exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to lock in the U.S. dollar cost of firm purchase and sale
commitments for securities denominated in or exposed to foreign currencies. A
forward currency contract is a commitment to purchase or sell a foreign currency
at a future date at a negotiated rate. The gain or loss arising from the
difference between the U.S. dollar cost of the original contract and the value
of the foreign currency in U.S. dollars upon closing such a contract is included
in net realized gain or loss from foreign currency transactions in the Statement
of Operations.
Forward currency contracts held by the Bond Funds are fully collateralized by
other securities which are denoted in the accompanying Schedule of Investments.
Such collateral is in the possession of the Bond Funds' custodians. The
collateral is evaluated daily to ensure its market value equals or exceeds the
current market value of the corresponding forward currency contracts.
FUTURE CONTRACTS
The Bond Funds may enter into futures contracts. The Bond Funds intend to use
such derivative instruments primarily 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 value of the contracts and the underlying
securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked to market daily, and the daily variation margin is
recorded as an unrealized gain or loss. When a contract is closed, a realized
gain or loss is recorded equal to the difference between the opening and closing
value of the contract. Generally, futures contracts are marked to market (i.e.,
treated as realized and subject to distribution) for federal income tax purposes
at fiscal year-end. Securities designated as collateral for market value on
futures contracts are noted in the Schedule of Investments.
WHEN-ISSUED SECURITIES
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. The price of the underlying securities and date when the securities will
be delivered and paid for are fixed at the time the transaction is negotiated.
Losses may arise due to changes in the market value of the securities or from
the inability of counterparties to meet the terms of the contract. In connection
with such purchases, the Funds are required to hold liquid assets as collateral
with the Fund's custodian sufficient to cover the purchase price.
FOREIGN CURRENCY TRANSLATION
The Funds do not isolate that portion of the results of operations resulting
from 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 on investments
and foreign currency translation arise from changes in the value of assets and
liabilities, including investments in securities 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 security transactions and income.
Foreign-denominated assets and forward currency contracts may involve more risks
than domestic transactions, including currency risk, political and economic
risk, regulatory risk and market risk. Risks may arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
Janus Income Funds April 30, 2004 53
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
INITIAL PUBLIC OFFERINGS
The Funds may invest in initial public offerings ("IPOs"). A Fund's performance
may be significantly affected, positively or negatively, by investments in IPOs.
IPOs and other investment techniques may have a magnified performance impact on
a fund with a small asset base. The Funds may not experience similar performance
as their assets grow.
ADDITIONAL INVESTMENT RISK
Janus High-Yield Fund is, and Janus Flexible Income Fund may be, invested in
lower-rated debt securities that have a higher risk of default or loss of value
because of changes in the economy, political environment, or adverse
developments specific to the issuer.
RESTRICTED SECURITY TRANSACTIONS
Restricted securities held by a Fund may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. 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 a fund to sell a security at a fair price and may substantially delay the
sale of the security which each Fund seeks to sell. In addition, these
securities may exhibit greater price volatility than securities for which
secondary markets exist.
DIVIDEND DISTRIBUTIONS
Dividends representing substantially all of the net investment income and any
net realized capital gains on sales of securities are declared daily and
distributed monthly. The majority of dividends and capital gains distributions
from a Fund will be automatically reinvested into additional shares of that
Fund.
ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of 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.
FEDERAL INCOME TAXES
No provision for income taxes is included in the accompanying financial
statements as the Funds intend to distribute to shareholders all taxable
investment income and realized gains and otherwise comply with Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
PROXY VOTING
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to their portfolio securities is available (i) without
charge, upon request, by calling 1-800-525-3713 (toll free); (ii) on the Fund's
website at www.janus.com; and (iii) on the SEC's website at http://www.sec.gov.
Starting in August 2004, each Fund's proxy voting record for the one-year period
ending each June 30th will be available through www.janus.com and from the SEC
through the SEC's website at www.sec.gov.
2. AGREEMENTS
The advisory agreements with the Bond Funds describe the fees that the Funds
must pay. The advisory fee is calculated daily and paid monthly. Each of the
Bond Funds is subject to the following schedule:
Average
Daily Net Annual Rate Expense Limit
Fee Schedule Assets of Fund Percentage (%) Percentage (%)
================================================================================
Janus Federal First $300 Million .60 .65*
Tax-Exempt Fund Over $300 Million .55
- --------------------------------------------------------------------------------
Janus Flexible Income First $300 Million .65 1.00*
Fund Over $300 Million .55
- --------------------------------------------------------------------------------
Janus High-Yield Fund First $300 Million .75 1.00*
Over $300 Million .65
- --------------------------------------------------------------------------------
Janus Short-Term First $300 Million .65 .65*
Bond Fund Over $300 Million .55
- --------------------------------------------------------------------------------
* Janus Capital will waive certain fees and expenses to the extent that net
expenses exceed the stated limits. Janus Capital has agreed to continue such
waivers until at least March 1, 2005.
Each of the Money Market Funds pays Janus Capital .20% of average daily net
assets as an investment advisory fee. Janus Capital has agreed to reduce its
advisory fee for each of the Money Market Funds to .10%. In addition, each class
of shares of each of the Money Market Funds pays Janus Capital an administrative
fee. This fee is .50%, .15%, and .40% of average daily net assets for the
Investor Shares, Institutional Shares, and Service Shares, respectively. Janus
Capital agreed to reduce the administrative fee to .08% and .33% on the
Institutional Shares and Service Shares, respectively, for both Janus Money
Market Fund and Janus Tax-Exempt Money Market Fund. The administrative fee was
reduced to .05% and .30% on the Institutional Shares and Service Shares,
respectively, for Janus Government Money Market Fund. For the Service Shares of
each of the Money Market Funds, a portion of the administrative fee, designated
separately as service fees, is used to compensate Financial Institutions for
providing administrative services to their customers who invest in the shares.
All other expenses
54 Janus Income Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
of the Money Market Funds except interest and taxes, fees and expenses of
Trustees who are not interested persons of Janus Capital, audit fees and
expenses and extraordinary costs are paid by Janus Capital.
A 2.00% redemption fee may be imposed on shares of Janus High-Yield Fund held
for three months or less. Effective March 1, 2004, the redemption fee for the
Fund increased from 1.00% to 2.00% on shares purchased on or after that date.
The redemption fee is designed to offset transaction costs and other expenses
associated with short-term redemptions.This fee is paid to the Fund rather than
Janus Capital, and is designed to deter excessive short-term trading and to
offset the brokerage commissions, market impact, and other costs associated with
changes in the Fund's asset level and cash flow due to short-term money
movements in and out of the Fund. The redemption fee is accounted for as an
addition to Paid-in-Capital. Total redemption fees received by Janus High-Yield
Fund were $54,666 for the six month period ended April 30, 2004.
Each of the Bond Funds pays Janus Services LLC ("Janus Services"), a wholly
owned subsidiary of Janus Capital, an asset-weighted average annual fee based on
the proportion of each of the Bond Funds' total net assets sold directly and the
proportion of each of the Bond Funds' net assets sold through financial
intermediaries. The applicable fee rates are .16% of net assets on the
proportion of assets sold directly and .21% on the proportion of assets sold
through intermediaries. In addition, Janus Services receives $4.00 per
shareholder account from each of the Bond Funds for transfer agent services plus
reimbursement of certain out-of-pocket expenses.
Certain officers and trustees of the Funds may also be officers and/or directors
of Janus Capital; however, such officers and trustees receive no compensation
from the Funds.
The Bond Funds' expenses may be reduced by voluntary brokerage credits from
affiliated or unaffiliated brokers or expense offsets from an unaffiliated
custodian. Such credits or offsets are included in Expense and Fee Offsets on
the Statement of Operations. Brokerage commissions paid to the brokers reduce
transfer agent fees and expenses. Custody Credits received reduce custodian
fees. The Funds could have employed the assets used by the broker and/or
custodian to produce income if it had not entered into an expense offset
arrangement.
DST Systems, Inc. ("DST"), an affiliate of Janus Capital Group Inc. ("JCGI"),
parent to the Funds' adviser, provides a shareholder accounting system to the
Funds for a fee. As of December 1, 2003, following a share exchange transaction
in which JCGI exchanged 32.3 million shares of its holdings of DST common stock
for all of the stock of a wholly-owned subsidiary of DST, JCGI owned
approximately 9% of the outstanding common shares of DST. DST fees are included
in Transfer Agent Fees and Expenses on the Statement of Operations. Fees paid to
DST for the six month period ended April 30, 2004, are noted below.
DST FEES
Janus Federal Tax-Exempt Fund $34,808
Janus Flexible Income Fund 193,187
Janus High-Yield Fund 64,003
Janus Short-Term Bond Fund 73,444
Janus Income Funds April 30, 2004 55
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
The funds may invest in money market funds, including funds managed by Janus
Capital. During the six month period ended April 30, 2004, the following Money
Market Funds had the following affiliated purchases and sales and recorded
distributions to affiliated investment companies:
Dividends Market Value
Subscriptions Redemptions Paid at 4/30/04
- -----------------------------------------------------------------------------------------------
Janus Government Money Market Fund
Janus Mid Cap Value Fund $ 50,000,000 $ 50,000,000 $ 26,776 --
Janus Small Cap Value Fund 160,000,000 100,000,000 356,789 $ 60,000,000
Janus Worldwide Fund 30,000,000 45,000,000 28,032 --
- -----------------------------------------------------------------------------------------------
$240,000,000 $195,000,000 $ 411,597 $ 60,000,000
3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
accounting principles generally accepted in the United States of America. These
differences are due to differing treatments for items such as deferral of wash
sales, foreign currency transactions, net operating losses and capital loss
carryovers.
The Funds have elected to treat gains and losses on forward foreign currency
contracts as capital gains and losses. 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 October 31, 2003 that may be available to offset future realized capital
gains and thereby reduce future taxable gain distributions. These carryovers
expire between October 31, 2007 and October 31, 2010.
The aggregate cost of investments and the composition of unrealized appreciation
and depreciation of investments for federal income tax purposes as of April 30,
2004 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude
appreciation/depreciation on foreign currency translations. The primary
difference between book and tax appreciation or depreciation of investments is
wash sale loss deferrals.
Accumulated Federal Tax Unrealized Unrealized Net Appreciation/
Capital Losses Cost Appreciation (Depreciation) (Depreciation)
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Janus Federal Tax-Exempt Fund $ (5,201,666) $ 146,252,426 $ 2,192,633 $ (1,681,704) $ 510,929
Janus Flexible Income Fund (41,207,437) 1,490,371,749 33,630,854 (26,219,814) 7,411,040
Janus High-Yield Fund (60,709,157) 521,368,324 17,414,134 (5,751,712) 11,662,422
Janus Short-Term Bond Fund -- 370,632,432 2,335,940 (1,349,872) 986,068
Janus Money Market Fund -- 7,577,018,455 -- -- --
Janus Government Money Market Fund -- 918,886,402 -- -- --
Janus Tax-Exempt Money Market Fund -- 174,357,235 -- -- --
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4. EXPENSES
Each Bond Fund bears expenses incurred specifically on its behalf as well as a
portion of general expenses. Each class of shares of each Money Market Fund
bears expenses incurred specifically on its behalf and, in addition, each class
bears a portion of general expenses, based upon relative net assets of each
class.
56 Janus Income Funds April 30, 2004
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5. CAPITAL SHARES TRANSACTIONS
For the six month period ended April 30, 2004
(unaudited) and for the fiscal year Janus Janus
ended October 31, 2003 Federal Tax-Exempt Flexible Income
(all numbers in thousands) Fund Fund
Bond Funds 2004 2003 2004 2003
- ------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 1,569 18,733 11,181 67,674
Reinvested distributions 335 1,022 2,837 7,352
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Total 1,904 19,755 14,018 75,026
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Shares Repurchased (6,791) (26,378) (40,709) (84,204)
Net Increase/(Decrease) in Fund Shares (4,887) (6,623) (26,691) (9,178)
Shares Outstanding, Beginning of Period 25,996 32,619 157,534 166,712
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Shares Outstanding, End of Period 21,109 25,996 130,843 157,534
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For the six month period ended April 30, 2004
(unaudited) and for the fiscal year Janus Janus
ended October 31, 2003 High-Yield Short-Term Bond
(all numbers in thousands) Fund Fund
Bond Funds 2004 2003 2004 2003
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Transactions in Fund Shares
Shares sold 8,078 91,859 16,471 70,206
Reinvested distributions 2,060 5,575 2,749 3,954
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Total 10,138 97,434 19,220 74,160
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Shares Repurchased (33,659) (82,026) (41,160) (119,300)
Net Increase/(Decrease) in Fund Shares (23,521) 15,408 (21,940) (45,140)
Shares Outstanding, Beginning of Period 80,447 65,039 123,205 168,345
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Shares Outstanding, End of Period 56,926 80,447 101,265 123,205
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For the six month period ended April 30, 2004 Janus Janus
(unaudited) and for the fiscal year Money Market Government Money
ended October 31, 2003 Fund Market Fund
(all numbers in thousands)
Money Market Funds 2004 2003 2004 2003
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Transactions in Fund Shares - Investor Shares
Shares sold 579,048 1,773,435 56,813 179,426
Reinvested dividends and distributions 5,377 20,556 674 2,747
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Total 584,425 1,793,991 57,487 182,173
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Shares Repurchased (1,066,373) (2,638,462) (129,704) (315,795)
Net Increase/(Decrease) in Fund Shares (481,948) (844,471) (72,217) (133,622)
Shares Outstanding, Beginning of Period 2,197,167 3,041,637 313,691 447,313
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Shares Outstanding, End of Period 1,715,219 2,197,167 241,474 313,691
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Transactions in Fund Shares - Institutional Shares
Shares sold 39,425,681 159,420,727 3,458,446 14,566,499
Reinvested dividends and distributions 20,024 48,412 1,006 5,061
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Total 39,445,705 158,469,139 3,459,452 14,571,560
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Shares Repurchased (42,736,430) (160,869,172) (3,761,768) (15,070,384)
Net Increase/(Decrease) in Fund Shares (3,290,725) (1,400,033) (302,316) (498,824)
Shares Outstanding, Beginning of Period 9,141,167 10,541,200 775,826 1,274,650
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Shares Outstanding, End of Period 5,850,442 9,141,167 473,510 775,826
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Transactions in Fund Shares - Service Shares
Shares sold 415,676 801,892 437,490 1,316,848
Reinvested dividends and distributions 66 177 79 315
- ---------------------------------------------------------------------------------------------------------------------
Total 415,742 802,069 437,569 1,317,163
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Shares Repurchased (460,758) (840,386) (423,858) (1,299,542)
Net Increase/(Decrease) in Fund Shares (45,016) (38,317) 13,711 17,621
Shares Outstanding, Beginning of Period 60,326 98,643 190,913 173,292
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Shares Outstanding, End of Period 15,310 60,326 204,624 190,913
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For the six month period ended April 30, 2004 Janus
(unaudited) and for the fiscal year Tax-Exempt Money
ended October 31, 2003 Market Fund
(all numbers in thousands)
Money Market Funds 2004 2003
- -----------------------------------------------------------------------------------
Transactions in Fund Shares - Investor Shares
Shares sold 49,148 156,474
Reinvested dividends and distributions 316 1,068
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Total 49,464 157,542
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Shares Repurchased (72,240) (204,727)
Net Increase/(Decrease) in Fund Shares (22,776) (47,185)
Shares Outstanding, Beginning of Period 140,087 187,272
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Shares Outstanding, End of Period 117,311 140,087
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Transactions in Fund Shares - Institutional Shares
Shares sold 41,499 274,935
Reinvested dividends and distributions 276 1,065
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Total 41,775 276,000
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Shares Repurchased (58,554) (307,970)
Net Increase/(Decrease) in Fund Shares (16,779) (31,970)
Shares Outstanding, Beginning of Period 73,039 105,009
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Shares Outstanding, End of Period 56,260 73,039
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Transactions in Fund Shares - Service Shares
Shares sold -- --
Reinvested dividends and distributions -- 2
- -----------------------------------------------------------------------------------
Total -- 2
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Shares Repurchased -- (574)
Net Increase/(Decrease) in Fund Shares -- (572)
Shares Outstanding, Beginning of Period 91 663
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Shares Outstanding, End of Period 91 91
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Janus Income Funds April 30, 2004 57
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
6. LEGAL MATTERS
In September 2003, the Securities and Exchange Commission ("SEC") and the Office
of the New York State Attorney General ("NYAG") publicly announced that they
were investigating trading practices in the mutual fund industry. The
investigations were prompted by the NYAG's settlement with a hedge fund, Canary
Capital, which allegedly engaged in irregular trading practices with certain
mutual fund companies. While Janus Capital was not named as a defendant in the
NYAG complaint against the hedge fund, Janus Capital was mentioned in the
complaint as having allowed Canary Capital to "market time" certain Janus funds.
Market timing is an investment technique involving frequent short-term trading
of mutual fund shares that is designed to exploit market movements or
inefficiencies in the way mutual fund companies price their shares. The NYAG
complaint alleged that this practice is in contradiction to policies stated in
the prospectuses for certain Janus funds.
The investigations by the NYAG, the SEC, and certain other agencies, including
the Colorado Division of Securities and the Colorado Attorney General ("COAG"),
also sought to determine whether late trading occurred in mutual funds managed
by Janus Capital. The term "late trading" generally refers to the practice of
permitting or processing a fund purchase or redemption in a manner that
improperly allows the current day's fund share price to be used for an order
that was placed or improperly processed at a time following the deadline for
obtaining that day's share price (normally, 4:00 p.m. (eastern time)). Because
many mutual fund transactions are cleared and settled through financial
intermediaries, Janus Capital cannot exclude the possibility that one or more
intermediaries may have submitted improper or unauthorized late trade
transactions to Janus Capital in violation of Janus Capital's agreements with
those intermediaries.
Other documentation and information sought by various regulatory agencies,
including the National Association of Securities Dealers, the West Virginia
Attorney General, the Florida Department of Financial Services, the NYAG, the
SEC, the COAG, the Colorado Division of Securities and one or more U.S. Attorney
offices, relate to a variety of matters, including but not limited to: improper
disclosure of portfolio holdings, trading by executives in Fund shares, certain
revenue sharing arrangements, information related to cash and non-cash
compensation paid to brokers, trading by Janus Capital investment personnel in
portfolio securities owned by certain Janus funds, information provided to the
Trustees in connection with the review and approval of management contracts
related to the Funds, information related to certain types of distribution and
sales arrangements with brokers and other distributors of mutual fund products,
and other topics related to the foregoing. The Janus funds, Janus Capital Group
Inc. and its subsidiaries have either complied with or intend to comply with
these subpoenas and other document and information requests.
On April 27, 2004, Janus Capital announced agreements in principle with the
NYAG, the COAG and the Colorado Division of Securities setting forth financial
agreements and certain corporate governance and compliance initiatives that will
be required by such regulators. Janus Capital also announced an agreement in
principle with respect to monetary terms with the SEC, subject to the approval
of the SEC Commissioners. Pursuant to such agreements, Janus Capital will
establish a pool of $100 million that will be available to compensate investors
for the adverse effects of frequent trading and other mutual fund practices. Of
this amount, $50 million will be in the form of a civil money penalty. Janus
Capital also agreed to reduce its management fees in the amount of $25 million
per annum, in the aggregate, for at least a five year period. Janus also agreed
to make $1.2 million in other settlement-related payments required by the State
of Colorado.
Subsequent to the initiation of the regulatory investigations, a number of civil
lawsuits were brought against Janus Capital and certain of its affiliates, the
Janus funds, and related entities and individuals on behalf of Fund shareholders
and shareholders of Janus Capital Group Inc. The factual allegations made in
these actions are generally based on the NYAG complaint against Canary Capital
and in general allege that Janus Capital allowed certain hedge funds and other
investors to engage in "market timing" trades in certain Janus funds. Such
lawsuits allege a variety of theories for recovery including, but not limited
to: (i) violation of various provisions of the federal securities laws; (ii)
breach of fiduciary duties, as established by state common law or federal law,
to the funds and/or individual investors; (iii) breach of contract; (iv) unjust
enrichment; and (v) violations of Section 1962 of the Racketeering Influenced
and Corrupt Organizations Act.
The "market timing" lawsuits include actions purportedly on behalf of a class of
Fund investors, cases allegedly brought on behalf of the Funds themselves, a
case asserting claims both on behalf of an investor class and derivatively on
behalf of the Funds, cases brought on behalf of shareholders of Janus Capital
Group Inc. on a derivative basis against the Board of Directors of Janus Capital
Group Inc., purported ERISA actions against the managers of the Janus 401(k)
plan, and a non-class "representative action"
58 Janus Income Funds April 30, 2004
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purportedly brought on behalf of the general public. The complaints also name
various defendants. One or more Janus entities (Janus Capital Group Inc., Janus
Capital Management LLC or Janus Capital Corporation) are named in every action.
In addition, actions have been brought against Janus Investment Fund and/or one
or more of the individual Funds, the Janus fund Trustees, officers of the Funds,
officers of Janus Capital, officers of Janus Capital Group Inc., and directors
of Janus Capital Group Inc.
The "market timing" lawsuits were filed in a number of state and federal
jurisdictions. The Judicial Panel on Multidistrict Litigation has finally or
conditionally transferred all but one of these actions to the United States
District Court for the District of Maryland for coordinated proceedings. One
action (alleging failure to adequately implement fair value pricing) has been
remanded to state court in Madison County, Illinois and is not subject to the
federal transfer procedures.
In addition to the "market timing" actions described above, civil lawsuits have
been filed against Janus Capital challenging the investment advisory fees
charged by Janus Capital to certain Funds. Additional lawsuits may be filed
against certain of the Janus funds, Janus Capital and related parties in the
future.
Janus Capital does not currently believe that any of the pending actions will
materially affect its ability to continue to provide to the Funds the services
it has agreed to provide.
Janus Income Funds April 30, 2004 59
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EXPLANATIONS OF CHARTS, TABLES AND FINANCIAL STATEMENTS
(unaudited)
1. PERFORMANCE OVERVIEWS
Average annual total returns are quoted for each Fund and each class of the
Money Market Funds. 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 redemption of Fund shares.
When comparing the performance of a Fund with an index, keep in mind that market
indices do not include brokerage commissions that would be incurred if you
purchased the individual securities in the index. They also do not include taxes
payable on dividends and interest or operating expenses incurred if you
maintained a portfolio invested in the index.
2. SCHEDULES OF INVESTMENTS
Following the performance overview section is each Fund's Schedule of
Investments. This schedule reports the industry concentrations and types of
securities held in each 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 market 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. Short-term investments maturing within 60 days are valued at
amortized cost, which approximates market value.
Funds that invest in foreign securities also provide a summary of investments by
country. This summary reports the Fund's exposure to different countries by
providing the percentage of securities invested in each country. The country of
each security represents the country in which the company is incorporated.
2A. FORWARD CURRENCY CONTRACTS
A table listing forward currency contracts follows each Fund's Schedule of
Investments (if applicable). Forward currency contracts are agreements to
deliver or receive a preset amount of currency at a future date. Forward
currency contracts are used to hedge against foreign currency risk in the Fund's
long-term holdings.
The table provides the name of the foreign currency, the settlement date of the
contract, the amount of the contract, the value of the currency in U.S. dollars
and the amount of unrealized gain or loss. The amount of unrealized gain or loss
reflects the change in currency exchange rates from the time the contract was
opened to the last day of the reporting period.
2B. FUTURES
A table listing futures contracts follows each Fund's Schedule of Investments
(if applicable). Futures contracts are contracts that obligate the buyer to
receive and the seller to deliver an instrument or money at a specified price on
a specified date. Futures are used to hedge against adverse movements in
securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the
expiration date, the principal amount, value and the amount of unrealized gain
or loss. The amount of unrealized gain or loss reflects the marked to market
amount for the last day of the fiscal period.
3. STATEMENT OF ASSETS AND LIABILITIES
This statement is often referred to as the "balance sheet." It lists the assets
and liabilities of the Funds on the last day of the reporting period.
The Funds' 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 stocks owned and the receivable for
fund shares sold to investors but not yet settled. The Funds' 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 titled "Net Assets Consist of" breaks down the components of the
Funds' net assets. Because Funds 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 Funds' net asset value ("NAV")
per share on the last day of the reporting period. The NAV is calculated by
dividing the Funds' net assets (assets minus liabilities) by the number of
shares outstanding.
60 Janus Income Funds April 30, 2004
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4. STATEMENT OF OPERATIONS
This statement details the Funds' income, expenses, gains and losses on
securities and currency transactions, and appreciation or depreciation of
current portfolio holdings.
The first section in this statement, titled "Investment Income," reports the
dividends earned from stocks, interest earned from interest-bearing securities
in the Funds.
The next section reports the expenses and expense offsets incurred by the Funds,
including the advisory fee paid to the investment advisor, transfer agent fees,
and printing and postage for mailing statements, financial reports and
prospectuses.
The last section lists the increase or decrease in the value of securities held
in the Funds. Funds realize a gain (or loss) when they sell their position in a
particular security. An unrealized gain (or loss) refers to the change in net
appreciation or depreciation of the Funds during the 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.
5. STATEMENT OF CHANGES IN NET ASSETS
This statement reports the increase or decrease in the Funds' net assets during
the reporting period. Changes in the Funds' net assets are attributable to
investment operations, dividends, distributions and capital share transactions.
This is important to investors because it shows exactly what caused the Funds'
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 Funds' investment performance. The
Funds' net assets may also change as a result of dividend and capital gains
distributions to investors. If investors receive their dividends in cash, money
is taken out of the Fund to pay the distribution. If investors reinvest their
dividends, the Funds' net assets will not be affected. If you compare each
Fund's "Net Decrease from Dividends and Distributions" to the "Reinvested
dividends and distributions," you'll notice that dividend distributions had
little effect on each Fund's net assets. This is because the majority of Janus
investors reinvest their distributions.
The reinvestment of dividends is included under "Capital Share Transactions."
"Capital Shares" refers to the money investors contribute to the Funds through
purchases or withdrawals via redemptions. The Funds' net assets will increase
and decrease in value as investors purchase and redeem shares from the Funds.
The section titled "Net Assets Consist of" breaks down the components of the
Funds' net assets. Because Funds must distribute substantially all earnings,
you'll notice that a significant portion of net assets is shareholder capital.
6. FINANCIAL HIGHLIGHTS
This schedule provides a per-share breakdown of the components that affect the
NAV for current and past reporting periods for the Bond Funds and each class of
the Money Market Funds. Not only does this table provide you with total return,
it also reports total distributions, asset size, expense ratios and portfolio
turnover rate (as applicable).
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 per share,
which comprises dividends and interest income earned on securities held by the
Funds. Following is the total of gains, realized and unrealized. Dividends and
distributions are then subtracted to arrive at the NAV per share at the end of
the period.The next line reflects the average annual total return reported the
last day of the period.
Also included are the expense ratios, or the percentage of net assets that was
used to cover operating expenses during the period. Expense ratios vary across
the Funds for a number of reasons, including the differences in management fees,
the average shareholder account size, the frequency of dividend payments and the
extent of foreign investments, which entail greater transaction costs.
The expenses may be reduced through expense-reduction arrangements. These
arrangements may include the use of brokerage commissions, uninvested cash
balances earning interest or balance credits. The Statement of Operations
reflects total expenses before any such offset (Gross Expense Ratio) and after
expense offsets (Net Expense Ratio). The expense ratios
Janus Income Funds April 30, 2004 61
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EXPLANATIONS OF CHARTS, TABLES AND FINANCIAL STATEMENTS
(unaudited) (continued)
listed in the Financial Highlights reflect total expenses prior to any waivers
or reimbursements. The ratio of net investment income summarizes the income
earned divided by the average net assets of a Fund during the reporting period.
Don't confuse this ratio with a Fund's yield. The net investment income ratio is
not a true measure of a Fund's yield because it doesn't take into account the
dividends distributed to the Fund's investors.
The next ratio is the portfolio turnover rate, which measures the buying and
selling activity in a Fund. Portfolio turnover is affected by market conditions,
changes in the size of a Fund, the nature of the Fund's investments and the
investment style of the portfolio manager. A 100% rate implies that an amount
equal to the value of the entire portfolio is turned over in a 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 portfolio
is sold every six months.
62 Janus Income Funds April 30, 2004
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NOTES
Janus Income Funds April 30, 2004 63
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NOTES
64 Janus Income Funds April 30, 2004
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NOTES
Janus Income Funds April 30, 2004 65
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NOTES
66 Janus Income Funds April 30, 2004
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NOTES
Janus Income Funds April 30, 2004 67
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NOTES
68 Janus Income Funds April 30, 2004
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NOTES
69 Janus Income Funds April 30, 2004
- -------------------
JANUS PROVIDES ACCESS TO A WIDE RANGE OF INVESTMENT DISCIPLINES.
----------------------------------------------------------------
GROWTH
Janus growth funds focus on companies believed to be the leaders in their
respective industries, with solid management teams, expanding market share,
margins and efficiencies.
INTERNATIONAL & GLOBAL
Janus international and global funds seek to leverage Janus' research
capabilities by taking advantage of inefficiencies in foreign markets,
where accurate information and analytical insight are often at a premium.
CORE
Janus core funds seek investments in more stable and predictable companies.
These funds look for a strategic combination of steady growth and for
certain funds, some degree of income.
RISK-MANAGED
Janus risk-managed funds seek to outperform their respective indices while
maintaining a risk profile equal to or lower than the index itself. Managed
by INTECH, these funds use a mathematical process in an attempt to build a
more "efficient" portfolio than the index.
VALUE
Janus value funds invest in companies they believe are poised for a
turnaround or are trading at a significant discount to fair value. The goal
is to gain unique insight into a company's true value and identify and
evaluate potential catalysts that may unlock shareholder value.
INCOME
Janus income funds attempt to provide less risk relative to equities while
seeking to deliver a competitive total return through high current income
and appreciation.
FOR MORE INFORMATION ABOUT OUR FUNDS, GO TO www.janus.com.
[LOGO] JANUS CAPITAL 151 Detroit Street
Group Denver, CO 80206
1-800-525-3713
This material must be preceded or accompanied by a prospectus.
Funds distributed by Janus Distributors LLC (4/04)
C-0504-156 111-24-102 06-04
- --------------
----------------------
2004 SEMIANNUAL REPORT
----------------------
JANUS CORE, RISK-MANAGED AND VALUE FUNDS
------------------------------------------------------------------
Janus Balanced Fund
Janus Core Equity Fund
Janus Growth and Income Fund
Janus Special Equity Fund
Janus Risk-Managed Stock Fund
Janus Mid Cap Value Fund
Janus Small Cap Value Fund
[LOGO] JANUS CAPITAL
Group
- --------------
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TABLE OF CONTENTS
Janus Core, Risk-Managed and Value Funds
Schedules of Investments
Janus Balanced Fund ....................................... 2
Janus Core Equity Fund .................................... 8
Janus Growth and Income Fund .............................. 12
Janus Special Equity Fund ................................. 16
Janus Risk-Managed Stock Fund ............................. 20
Janus Mid Cap Value Fund .................................. 28
Janus Small Cap Value Fund ................................ 34
Statements of Assets and Liabilities ........................... 38
Statements of Operations ....................................... 40
Statements of Changes in Net Assets ............................ 42
Financial Highlights ........................................... 45
Notes to Schedules of Investments .............................. 50
Notes to Financial Statements .................................. 52
Explanations of Charts, Tables and Financial Statements ........ 62
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A MESSAGE REGARDING PORTFOLIO MANAGER COMMENTARY: To provide our shareholders
with more timely and comprehensive updates on their funds, we will now provide
portfolio manager commentaries five times per year. Quarterly commentaries and
other timely fund information will be available in the Fund Updates section of
janus.com and will be offered in place of the portfolio manager letters in April
30 semiannual reports. Shareholders will continue to receive a comprehensive
annual letter from portfolio managers in the October 31 annual report which will
be available at year end. Going forward, semiannual and annual reports will
continue to provide a complete list of fund holdings, performance information
and other important details about Janus funds.
- --------------------------------------------------------------------------------
Below is a schedule of planned communications regarding your investment with
Janus:
INVESTMENT UPDATE: WHEN AVAILABLE: WHERE YOU CAN FIND IT:
Quarterly Review
(prior calendar quarter) January, April, July, www.janus.com;
October Fund Updates section
Annual Review
(funds' fiscal year-
November 1 through
October 31) December www.janus.com;
Fund Updates section
Annual Report (sent by
U.S. mail or e-mail)
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Dear Shareholder,
Let me begin by telling you how excited I am to be associated with Janus. As a
shareholder of the funds, I'm sure you already know many of the things that make
Janus unique. To me, it is a research-driven firm with an impressive heritage of
delivering exceptional long-term performance to its shareholders. I am proud to
be a part of continuing that heritage into the future.
There are three main reasons why I decided to join Janus as Chief Investment
Officer. First, I believe the research at Janus is the best I've ever seen. In a
prior job as a sell-side analyst, I had the opportunity to get an inside look at
the passion, intensity and energy that characterized investment debates at
Janus. That positive impression has only been reinforced in the short time I
have been part of the team. Given my analyst background, I share the same zeal
for getting the story right behind every investment.
Second, the people at Janus are special. From the individuals at our call
center, to the sales and marketing staff, to the person who actually manages
your money, all of our employees are passionate about winning, and passionate
about setting the pace, not following it. The esprit de corps of the firm is
quite remarkable.
Third, Janus is an investment-centric firm. By that I mean we focus on our core
competency of managing our shareholders' money. Delivering performance remains
at the heart of what we do and we constantly reinvest in our core business
toward that end.
My role at Janus will be to oversee the investment team and drive investment
returns. In an attempt to safeguard the consistency and quality of the
investment process, I plan to play devil's advocate with the portfolio managers,
to poke and prod their investment decisions. I will take full responsibility for
the performance of the team, making sure that portfolio managers have the tools
and resources needed to make wise decisions.
Like any solid organization, there is always room to improve. I have
communicated to the investment team the following enhancements that I plan to
focus on during the next two quarters. For starters, I plan on expanding our
coverage of international stocks. In this era of increased globalization, I
believe sectors are more important than countries and our research needs to be
borderless. In addition, we need to make sure that our research edge provides a
solid foundation from which we can invest with conviction. Of course, the
flipside of this exercise is to have the proper risk controls in place to serve
as an early warning system when fundamentals begin to deteriorate and stocks
need to be trimmed or sold.
Furthermore, I want to improve communication so that analysts and portfolio
managers are sharing their best ideas and discussing how topical events may
impact portfolios. Collectively, I believe we can arrive at better investment
decisions through debate and idea sharing versus acting in isolation. These are
the initiatives I will be focusing on in the initial phase of my tenure at
Janus. I look forward to circling back with you in the fall and providing an
update on our progress.
Turning to the markets, after finishing last year on a strong note, stocks have
treaded water during the first few months of 2004, as concerns about rising
interest rates, war, and oil prices have offset good news on job growth and
corporate earnings. Consequently, the S&P 500 Index rose 6.3% during the
six-month time period ended 4/30/04, after rising 15.6% in the six months ended
10/31/03. The S&P outperformed both the Dow Jones Industrial Average and the
Nasdaq Composite, which posted returns of 5.4% and -0.6%, respectively.
Notwithstanding the moderate returns of the market, my message to you today is
that we like what we are hearing from our company contacts. Enterprise spending
is improving as corporate profits accelerate. After two years of balance sheet
repair, CEOs are again thinking strategically about how to grow their
businesses. This is a very encouraging development that we feel is being
underappreciated in the marketplace at the current time. Yes, interest rates are
likely to be higher 12 months from now, but we believe that the strength of the
economy and an improvement in corporate profits will overpower any dampening
effect caused by a rising interest rate environment.
While the market in 2003 could be characterized as broad-based as the economy
began its recovery, we believe that the market will be much more selective in
2004. I think the expected "stock-picker's" market will play to our strength of
identifying companies that are investing in their businesses, growing their
market share, and capitalizing on technological and infrastructural change
throughout the world. Indeed, I believe the recent improved performance of our
funds provides evidence that our research process remains strong and that our
portfolios are properly positioned to capitalize on continuing growth in the
global economy.
It is my belief that Janus' investment process works best during times of
"normal" economic activity (3%-4% GDP growth, 10%-12% corporate profit growth).
We are now moving into the middle innings of this economic recovery, which has
followed fairly normal patterns to date compared to historical recoveries.
Therefore, I am optimistic of continued strong performance by our funds in this
environment.
In closing, let me thank you again for your loyalty to Janus. As a shareholder
of our funds, you have our absolute faithfulness in return. I believe that we
face a very bright future together.
Sincerely,
/s/ Gary Black
Gary Black
President and Chief Investment Officer
Past performance is no guarantee of future results.
Janus Core, Risk-Managed and Value Funds April 30, 2004 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS BALANCED FUND (unaudited) Portfolio Manager
Karen Reidy
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Balanced Fund Lehman Brothers Government/
Credit Index
S&P 500(R) Index
Balanced Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
- --------------------------------------------------------------------------------
Janus Balanced Fund 3.42% 9.98% 2.06% 11.05% 11.48%
- --------------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% 11.36% 10.90%
- --------------------------------------------------------------------------------
Lehman Brothers Government/
Credit Index 1.17% 1.80% 6.84% 7.40% 7.03%
- --------------------------------------------------------------------------------
Balanced Index 3.98% 13.39% 1.84% 9.58% 9.16%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - September 1, 1992
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term capital growth, consistent with preservation of capital and
balanced by current income, by normally investing 40-60% of its assets in
securities selected primarily for their growth potential and 40-60% of its
assets in securities selected primarily for their income potential. This Fund
normally invests at least 25% of its assets in fixed-income senior securities,
which include debt securities and preferred stocks.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Foreign Bonds/Non Dollar Bonds - 2.9%
Cash and Cash Equivalents - 4.2%
U.S. Treasury Notes/Bonds - 8.3%
U.S. Government Agencies - 9.1%
Common Stock - Foreign - 12.4%
Corporate Bonds - Domestic - 20.8%
Common Stock - Domestic - 42.3%
Number of Stocks: 60
Number of Bonds: 99
Top 10 Equities: 19.3%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
2 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Tyco International, Ltd.
(New York Shares) 3.1% 1.9%
Roche Holding A.G. 2.5% 1.4%
Time Warner, Inc. 2.3% 1.4%
3M Co. 1.7% 1.6%
General Electric Co. 1.7% 1.1%
Freddie Mac 1.7% 0.9%
Citigroup, Inc. 1.6% 2.2%
Marriott International, Inc. - Class A 1.6% 1.3%
Samsung Electronics Company, Ltd. 1.6% 0.6%
Aetna, Inc. 1.5% 0.6%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Balanced Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Balanced Fund S&P 500(R)Index
Diversified Operations 11.2% 5.3%
Finance - Investment Bankers/Brokers 4.9% 5.1%
Medical - Drugs 4.0% 6.7%
Multimedia 3.8% 2.0%
Hotel and Motels 3.0% 0.2%
Finance - Mortgage Loan Banker 2.7% 1.2%
Oil Companies - Integrated 2.6% 4.5%
Medical - HMO 2.4% 0.8%
Computers 1.9% 3.1%
Beverages - Non-Alcoholic 1.9% 2.3%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
indices. The indices are not available for direct investment; therefore their
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Janus Core, Risk-Managed and Value Funds April 30, 2004 3
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS BALANCED FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 54.7%
Applications Software - 1.1%
1,220,785 Microsoft Corp. ............................. $ 31,703,786
Beverages - Non-Alcoholic - 0.9%
466,425 PepsiCo, Inc. ............................... 25,415,498
Brewery - 0.4%
208,415 Anheuser-Busch Companies, Inc. .............. 10,679,185
Broadcast Services and Programming - 0.3%
883,020 Liberty Media Corp. - Class A* .............. 9,660,239
Chemicals - Specialty - 0.6%
164,889 Syngenta A.G. ............................... 13,193,918
292,395 Syngenta A.G. (ADR) ......................... 4,657,852
17,851,770
Computers - 1.6%
294,710 Dell, Inc.* ................................. 10,229,384
433,020 IBM Corp. ................................... 38,179,374
48,408,758
Computers - Peripheral Equipment - 0.6%
208,850 Lexmark International Group, Inc. - Class A* 18,892,571
Cosmetics and Toiletries - 1.4%
406,755 Procter & Gamble Co. ........................ 43,014,341
Diversified Operations - 8.8%
610,570 3M Co. ...................................... 52,802,093
1,732,725 General Electric Co. ........................ 51,895,114
925,070 Honeywell International, Inc. ............... 31,988,921
488,934 Louis Vuitton Moet Hennessy S.A.** .......... 34,463,333
3,347,105 Tyco International, Ltd. (New York Shares) . 91,878,031
263,027,492
E-Commerce/Products - 0.4%
258,495 Amazon.com, Inc.*,# ......................... 11,234,193
E-Commerce/Services - 0.5%
205,205 eBay, Inc.* ................................. 16,379,463
Electric Products - Miscellaneous - 1.6%
98,570 Samsung Electronics Company, Ltd.** ......... 46,792,083
Electronic Components - Semiconductors - 1.5%
1,793,075 Texas Instruments, Inc. ..................... 45,006,183
Enterprise Software/Services - 0.2%
440,055 Oracle Corp.* ............................... 4,937,417
Entertainment Software - 0.6%
382,025 Electronic Arts, Inc.* ...................... 19,338,106
Finance - Credit Card - 0.4%
266,900 American Express Co. ........................ 13,064,755
Finance - Investment Bankers/Brokers - 3.6%
999,917 Citigroup, Inc. ............................. 48,086,008
201,775 Goldman Sachs Group, Inc. ................... 19,471,288
1,076,030 J.P. Morgan Chase & Co.# .................... 40,458,727
108,016,023
Finance - Mortgage Loan Banker - 2.3%
305,955 Countrywide Financial Corp. ................. 18,143,132
859,090 Freddie Mac ................................. 50,170,856
68,313,988
Hotels and Motels - 2.9%
1,003,015 Marriott International, Inc. - Class A ...... 47,302,187
1,020,550 Starwood Hotels & Resorts Worldwide, Inc. ... 40,607,685
87,909,872
Shares or Principal Amount Market Value
================================================================================
Medical - Biomedical and Genetic - 0.6%
337,070 Amgen, Inc.* ................................ $ 18,966,929
Medical - Drugs - 4.0%
129,362 Novartis A.G. ............................... 5,766,716
1,127,455 Pfizer, Inc. ................................ 40,317,791
701,251 Roche Holding A.G.# ......................... 73,554,014
12,355 Roche Holding A.G. (ADR)# ................... 1,294,186
120,932,707
Medical - Generic Drugs - 0.5%
353,550 Barr Pharmaceuticals, Inc.* ................. 14,644,041
Medical - HMO - 2.2%
543,950 Aetna, Inc. ................................. 45,011,863
341,380 UnitedHealth Group, Inc.# ................... 20,988,042
65,999,905
Medical Instruments - 0.2%
78,445 Guidant Corp. ............................... 4,942,819
Multimedia - 2.3%
4,176,900 Time Warner, Inc.* .......................... 70,255,458
Networking Products - 1.1%
1,600,125 Cisco Systems, Inc.* ........................ 33,394,609
Non-Hazardous Waste Disposal - 0.6%
652,875 Waste Management, Inc. ...................... 18,541,650
Oil Companies - Integrated - 2.5%
193,940 BP PLC (ADR)**,# ............................ 10,259,426
969,005 Exxon Mobil Corp. ........................... 41,231,162
119,778 Total S.A. - Class B** ...................... 22,155,048
73,645,636
Pharmacy Services - 0.9%
760,430 Caremark Rx, Inc.* .......................... 25,740,556
Publishing - Newspapers - 0.9%
118,485 Dow Jones & Company, Inc.# .................. 5,460,974
265,685 Gannett Company, Inc. ....................... 23,029,575
28,490,549
Reinsurance - 1.2%
11,602 Berkshire Hathaway, Inc. - Class B* ......... 36,186,638
Retail - Discount - 0.6%
413,670 Target Corp. ................................ 17,940,868
Retail - Major Department Stores - 0.7%
585,000 J.C. Penney Company, Inc.# .................. 19,808,100
Semiconductor Components/Integrated Circuits - 0.5%
178,410 Linear Technology Corp. ..................... 6,356,748
198,560 Maxim Integrated Products, Inc. ............. 9,131,775
15,488,523
Semiconductor Equipment - 0.3%
464,315 Applied Materials, Inc.* .................... 8,464,462
Soap and Cleaning Preparations - 1.1%
1,254,099 Reckitt Benckiser PLC** ..................... 32,603,459
Super-Regional Banks - 0.9%
317,330 Bank of America Corp. ....................... 25,541,892
Television - 0.2%
534,429 British Sky Broadcasting Group PLC** ........ 6,311,929
Transportation - Railroad - 1.0%
799,302 Canadian National Railway Co.
(New York Shares) ......................... 30,189,637
Transportation - Services - 0.6%
234,590 FedEx Corp. ................................. 16,869,367
See Notes to Schedules of Investments and Financial Statements.
4 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Web Portals/Internet Service Providers - 1.0%
623,670 Yahoo!, Inc.*,# ............................. $ 31,470,388
Wireless Equipment - 1.1%
1,864,320 Motorola, Inc. .............................. 34,023,840
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,424,598,347) .................... 1,640,099,685
- --------------------------------------------------------------------------------
Corporate Bonds - 23.7%
Aerospace and Defense - 0.8%
Lockheed Martin Corp.:
$ 5,555,000 8.20%, notes, due 12/1/09 ................. 6,598,335
14,045,000 7.65%, company guaranteed notes
due 5/1/16 ................................ 16,575,024
23,173,359
Automotive - Truck Parts and Equipment - Original - 1.3%
6,555,000 Delphi Corp., 6.55%
notes, due 6/15/06 ........................ 6,953,701
16,789,000 Lear Corp., 7.96%
company guaranteed notes, due 5/15/05 ..... 17,670,423
12,793,000 Tenneco Automotive, Inc., 11.625%
company guaranteed notes, due 10/15/09 .... 14,008,335
38,632,459
Beverages - Non-Alcoholic - 1.0%
Coca-Cola Enterprises, Inc.:
8,820,000 5.375%, notes, due 8/15/06 ................ 9,322,237
5,850,000 4.375%, notes, due 9/15/09 ................ 5,910,536
8,095,000 7.125%, notes, due 9/30/09 ................ 9,217,485
6,255,000 6.125%, notes, due 8/15/11 ................ 6,780,426
31,230,684
Brewery - 1.4%
Anheuser-Busch Companies, Inc.:
6,255,000 5.65%, notes, due 9/15/08 ................. 6,643,367
1,610,000 5.75%, notes, due 4/1/10 .................. 1,716,592
5,885,000 6.00%, senior notes, due 4/15/11 .......... 6,344,454
5,050,000 7.55%, debentures, due 10/1/30 ............ 6,034,553
5,300,000 6.80%, debentures, due 1/15/31 ............ 5,815,049
3,410,000 6.80%, debentures, due 8/20/32 ............ 3,749,087
Miller Brewing Co.:
8,530,000 4.25%, notes, due 8/15/08 (144A) .......... 8,559,342
4,615,000 5.50%, notes, due 8/15/13 (144A) .......... 4,671,428
43,533,872
Broadcast Services and Programming - 0.4%
Clear Channel Communications, Inc.:
5,025,000 6.00%, senior notes, due 11/1/06 .......... 5,346,123
7,920,000 4.625%, senior notes, due 1/15/08 ......... 8,078,740
13,424,863
Cable Television - 1.0%
6,574,000 Comcast Cable Communications, Inc., 6.75%
senior notes, due 1/30/11 ................. 7,204,387
2,155,000 Comcast Corp., 6.50%
company guaranteed notes, due 1/15/15 ..... 2,271,801
7,506,000 EchoStar DBS Corp., 5.75%
senior notes, due 10/1/08 (144A) .......... 7,524,765
TCI Communications, Inc.:
7,122,000 6.875%, senior notes, due 2/15/06 ......... 7,608,127
3,358,000 7.875%, debentures, due 8/1/13 ............ 3,875,199
28,484,279
Casino Hotels - 0.3%
8,195,000 Mandalay Resort Group, 6.50%
senior notes, due 7/31/09 ................. 8,563,775
Shares or Principal Amount Market Value
================================================================================
Cellular Telecommunications - 0.1%
$ 3,772,000 AT&T Wireless Services, Inc., 7.35%
senior notes, due 3/1/06 .................. $ 4,081,561
Chemicals - Specialty - 0.5%
12,560,000 International Flavors & Fragrances, Inc., 6.45%
notes, due 5/15/06 ........................ 13,408,780
Commercial Banks - 0.2%
6,255,000 First Bank National Association, 5.70%
subordinated notes, due 12/15/08 .......... 6,688,209
Computers - 0.3%
9,262,000 Hewlett-Packard Co., 3.625%
notes, due 3/15/08 ........................ 9,232,352
Containers - Metal and Glass - 0.2%
4,510,000 Owens-Illinois, Inc., 7.15%
senior notes, due 5/15/05 ................. 4,690,400
Containers - Paper and Plastic - 0.4%
Sealed Air Corp.:
8,890,000 5.625%, notes, due 7/15/13 (144A) ......... 8,968,552
2,810,000 6.875%, bonds, due 7/15/33 (144A) ......... 2,905,408
11,873,960
Diversified Financial Services - 1.3%
General Electric Capital Corp.:
3,865,000 4.25%, notes, due 1/28/05 ................. 3,939,664
9,600,000 2.85%, notes, due 1/30/06 ................. 9,665,174
14,740,000 5.35%, notes, due 3/30/06 ................. 15,497,003
9,245,000 6.75%, notes, due 3/15/32 ................. 9,953,241
39,055,082
Diversified Operations - 2.4%
Honeywell International, Inc.:
12,080,000 5.125%, notes, due 11/1/06 ................ 12,708,280
6,945,000 6.125%, bonds, due 11/1/11 ................ 7,501,399
Tyco International Group S.A.:
9,465,000 5.875%, company guaranteed notes
due 11/1/04** ............................. 9,651,101
16,190,000 6.375%, company guaranteed notes
due 2/15/06** ............................. 17,056,893
11,570,000 6.375%, company guaranteed notes
due 10/15/11** ............................ 12,183,407
12,355,000 6.00%, company guaranteed notes
due 11/15/13 (144A)** ..................... 12,524,622
2,180,000 6.00%, company guaranteed notes
due 11/15/13** ............................ 2,209,929
73,835,631
E-Commerce/Products - 0.3%
8,547,000 Amazon.com, Inc., 4.75%
convertible subordinated debentures
due 2/1/09 ................................ 8,685,889
Electric - Integrated - 1.0%
1,900,000 American Electric Power Company, Inc.
5.375%, senior notes, due 3/15/10 ......... 1,964,727
CMS Energy Corp.:
7,560,000 9.875%, senior notes, due 10/15/07 ........ 8,278,200
5,735,000 7.50%, senior notes, due 1/15/09 .......... 5,778,013
9,070,000 MidAmerican Energy Holdings Co., 3.50%
senior notes, due 5/15/08 ................. 8,842,135
Pacific Gas and Electric Co.:
1,130,000 1.81%, first mortgage notes, due 4/3/06(omega) 1,130,436
770,000 3.60%, first mortgage notes, due 3/1/09 ... 746,912
2,640,000 4.20%, first mortgage notes, due 3/1/11 ... 2,533,030
29,273,453
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS BALANCED FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Finance - Auto Loans - 0.5%
General Motors Acceptance Corp.:
$ 5,885,000 4.375%, notes, due 12/10/07 ............... $ 5,882,364
7,765,000 6.875%, notes, due 8/28/12 ................ 8,096,239
13,978,603
Finance - Credit Card - 0.1%
3,940,000 American Express Co., 4.875%
notes, due 7/15/13 ........................ 3,880,861
Finance - Investment Bankers/Brokers - 1.3%
12,355,000 Charles Schwab Corp., 8.05%
senior notes, due 3/1/10 .................. 14,147,142
5,275,000 Citigroup Global Markets Holdings, Inc.
6.50%, notes, due 2/15/08 ................. 5,790,737
Citigroup, Inc.:
8,930,000 7.25%, subordinated notes, due 10/1/10 .... 10,199,283
7,850,000 6.625%, subordinated notes, due 6/15/32 ... 8,236,809
38,373,971
Finance - Mortgage Loan Banker - 0.4%
10,975,000 Countrywide Financial Corp., 2.875%
company guaranteed notes, due 2/15/07 ..... 10,822,107
Food - Dairy Products - 0.4%
Dean Foods Co.:
2,430,000 6.75%, senior notes, due 6/15/05 .......... 2,508,975
8,379,000 6.625%, senior notes, due 5/15/09 ......... 8,944,583
1,703,000 6.90%, senior notes, due 10/15/17 ......... 1,737,060
13,190,618
Food - Diversified - 0.4%
Kellogg Co.:
5,610,000 2.875%, senior notes, due 6/1/08 .......... 5,393,269
4,915,000 7.45%, debentures, due 4/1/31 ............. 5,685,195
11,078,464
Food - Retail - 0.1%
2,775,000 Fred Meyer, Inc., 7.45%
company guaranteed notes, due 3/1/08 ...... 3,121,850
Food - Wholesale/Distribution - 0.2%
4,385,000 Pepsi Bottling Holdings, Inc., 5.625%
company guaranteed notes
due 2/17/09 (144A) ........................ 4,702,000
Hotels and Motels - 0.1%
3,050,000 John Q. Hamons Hotels, Inc., 8.875%
first mortgage notes, due 5/15/12 ......... 3,355,000
Insurance Brokers - 0.3%
7,265,000 Marsh & McLennan Companies, Inc., 5.375%
senior notes, due 3/15/07 ................. 7,682,912
Investment Companies - 0.3%
9,415,000 Credit Suisse First Boston USA, Inc., 3.875%
notes, due 1/15/09 ........................ 9,291,889
Medical - HMO - 0.2%
UnitedHealth Group, Inc.:
1,985,000 7.50%, notes, due 11/15/05 ................ 2,135,302
3,145,000 5.20%, notes, due 1/17/07 ................. 3,308,034
5,443,336
Multi-Line Insurance - 0.3%
8,995,000 AIG SunAmerica Global Financial IX, Inc.
5.10%, notes, due 1/17/07 (144A) .......... 9,437,824
Shares or Principal Amount Market Value
================================================================================
Multimedia - 1.5%
$ 6,205,000 Historic TW, Inc., 9.15%
debentures, due 2/1/23 .................... $ 7,749,505
Time Warner, Inc.:
16,949,000 5.625%, company guaranteed notes
due 5/1/05 ................................ 17,564,062
11,486,000 6.15%, company guaranteed notes
due 5/1/07 ................................ 12,288,389
5,785,000 7.70%, company guaranteed notes
due 5/1/32 ................................ 6,392,240
43,994,196
Music - 0.1%
3,720,000 Warner Music Group, 7.375%
senior subordinated notes
due 4/15/14 (144A) ........................ 3,738,600
Oil - Field Services - 0.1%
2,857,000 Hanover Equipment Trust 2001A, 8.50%
secured notes, due 9/1/08(omega) .......... 3,028,420
Oil Companies - Exploration and Production - 0.1%
2,785,000 Burlington Resources Finance Co., 7.20%
company guaranteed notes, due 8/15/31 ..... 3,109,207
Oil Companies - Integrated - 0.1%
4,121,000 El Paso CGP Co., 6.20%
notes, due 5/15/04 ........................ 4,121,000
Paper and Related Products - 0.2%
5,145,000 Georgia-Pacific Corp., 8.875%
company guaranteed notes, due 2/1/10 ...... 5,942,475
Pharmacy Services - 0.4%
11,569,000 Medco Health Solutions, Inc., 7.25%
senior notes, due 8/15/13 ................. 12,482,511
Pipelines - 0.6%
13,920,000 El Paso Corp., 7.00%
senior notes, due 5/15/11 ................. 11,832,000
5,725,000 Sonat, Inc., 6.875%
notes, due 6/1/05 ......................... 5,725,000
17,557,000
Retail - Discount - 0.9%
4,350,000 Target Corp., 5.50%
notes, due 4/1/07 ......................... 4,630,336
Wal-Mart Stores, Inc.:
12,245,000 5.45%, senior notes, due 8/1/06 ........... 12,952,981
9,605,000 6.875%, senior notes, due 8/10/09 ......... 10,843,421
28,426,738
Shipbuilding - 0.1%
3,760,000 Ship Finance International, Ltd., 8.50%
senior notes, due 12/15/13 (144A) ......... 3,628,400
Specified Purpose Acquisition Company - 0.1%
2,677,000 Gemstone Investor, Ltd., 7.71%
company guaranteed notes
due 10/31/04 (144A) ....................... 2,707,116
Telecommunication Services - 0.6%
Verizon Global Funding Corp.:
7,125,000 6.125%, notes, due 6/15/07 ................ 7,686,528
10,315,000 4.00%, notes, due 1/15/08 ................. 10,422,627
18,109,155
See Notes to Schedules of Investments and Financial Statements.
6 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Telephone - Integrated - 0.9%
$ 10,000,000 Deutsche Telekom International Finance B.V.
3.875%, company guaranteed notes
due 7/22/08** ............................. $ 9,946,130
MCI Communications Corp.:
12,679,000 5.908%, senior notes, due 5/1/07 .......... 12,536,361
834,000 6.688%, senior notes, due 5/1/09 .......... 792,300
715,000 7.735%, senior notes, due 5/1/14 .......... 663,163
1,150,000 NTL Cable PLC, 8.75%
senior notes, due 4/15/14 (144A)** ........ 1,187,375
1,315,000 Verizon Maryland, Inc., 5.125%
bonds, due 6/15/33 ........................ 1,091,501
26,216,830
Television - 0.4%
11,305,000 British Sky Broadcasting Group PLC
6.875%, company guaranteed notes
due 2/23/09** ............................. 12,500,809
Textile-Home Furnishings - 0.1%
2,650,000 Mohawk Industries, Inc., 7.20%
notes, due 4/15/12 ........................ 2,976,138
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $689,750,996) ................... 710,766,638
- --------------------------------------------------------------------------------
Warrants - 0%
Finance - Other Services - 0%
6,900 Ono Finance PLC - expires 5/31/09*,**,(beta)
(cost $0) ................................. 83
- --------------------------------------------------------------------------------
U.S. Government Agencies - 9.1%
Fannie Mae:
$ 23,568,000 1.875%, due 12/15/04# ..................... 23,646,976
26,718,000 2.125%, due 4/15/06# ...................... 26,522,371
19,560,000 5.50%, due 5/2/06 ......................... 20,624,827
10,250,000 4.75%, due 1/2/07# ........................ 10,681,125
25,235,000 5.00%, due 1/15/07# ....................... 26,545,529
12,010,000 3.25%, due 11/15/07# ...................... 11,949,842
4,840,000 2.50%, due 6/15/08# ....................... 4,625,530
9,225,000 5.25%, due 1/15/09# ....................... 9,750,225
1,650,000 6.375%, due 6/15/09# ...................... 1,829,406
9,129,000 6.25%, due 2/1/11# ........................ 9,897,178
17,433,000 5.375%, due 11/15/11# ..................... 18,218,583
11,700,000 Federal Home Loan Bank System
2.25%, due 5/15/06# ....................... 11,642,822
Freddie Mac:
28,388,000 1.875%, due 1/15/05# ...................... 28,480,716
19,260,000 4.25%, due 6/15/05# ....................... 19,787,088
29,165,000 2.375%, due 4/15/06# ...................... 29,143,069
5,010,000 5.75%, due 4/15/08# ....................... 5,407,138
2,155,000 5.75%, due 3/15/09# ....................... 2,322,327
2,040,000 7.00%, due 3/15/10# ....................... 2,325,694
3,712,000 5.875%, due 3/21/11# ...................... 3,942,868
5,901,000 6.25%, due 7/15/32# ....................... 6,266,903
- --------------------------------------------------------------------------------
Total U.S. Government Agencies (cost $271,052,379) .......... 273,610,217
- --------------------------------------------------------------------------------
Shares or Principal Amount Market Value
================================================================================
U.S. Treasury Notes/Bonds - 8.3%
U.S. Treasury Notes/Bonds:
$ 5,760,000 6.50%, due 5/15/05# ....................... $ 6,044,849
12,343,000 4.625%, due 5/15/06# ...................... 12,896,991
21,045,000 3.50%, due 11/15/06# ...................... 21,485,640
9,058,000 2.625%, due 5/15/08# ...................... 8,822,347
20,435,000 5.625%, due 5/15/08# ...................... 22,206,306
7,070,000 3.125%, due 4/15/09 ....................... 6,914,517
18,802,000 6.00%, due 8/15/09# ....................... 20,855,536
4,960,000 5.75%, due 8/15/10# ....................... 5,451,739
3,940,000 5.00%, due 8/15/11# ....................... 4,142,540
18,175,000 7.25%, due 5/15/16# ....................... 22,142,257
3,542,000 8.125%, due 8/15/19# ...................... 4,670,736
15,655,000 7.875%, due 2/15/21# ...................... 20,330,710
13,744,000 7.25%, due 8/15/22# ....................... 16,912,638
25,977,000 6.25%, due 8/15/23# ....................... 28,864,915
16,627,000 6.00%, due 2/15/26# ....................... 17,980,538
8,736,000 5.25%, due 2/15/29# ....................... 8,591,314
11,139,000 6.25%, due 5/15/30# ....................... 12,517,886
8,760,000 5.375%, due 2/15/31# ...................... 8,874,975
- --------------------------------------------------------------------------------
Total U.S. Treasury Notes/Bonds (cost $248,937,925) ......... 249,706,434
- --------------------------------------------------------------------------------
Other Securities - 16.8%
State Street Navigator Securities Lending
502,398,529 Prime Portfolio+(cost $502,398,529) ....... 502,398,529
- --------------------------------------------------------------------------------
Time Deposit - 2.2%
SouthTrust Bank, ETD
65,600,000 1.04%, 5/3/04 (cost $65,600,000) .......... 65,600,000
- --------------------------------------------------------------------------------
Total Investments (total cost $3,202,338,176) - 114.8% ...... 3,442,181,586
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (14 8)% (444,821,919)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 2,997,359,667
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 95,506,432 2.8%
Canada 33,298,844 1.0%
Cayman Islands 2,707,116 0.1%
France 56,618,380 1.6%
Germany 9,946,130 0.3%
Luxembourg 53,625,952 1.5%
South Korea 46,792,083 1.4%
Switzerland 98,466,687 2.9%
United Kingdom 62,863,081 1.8%
United States++ 2,982,356,881 86.6%
- --------------------------------------------------------------------------------
Total $ 3,442,181,586 100.0%
++Includes Short-Term Securities (70.1% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 9/27/04 10,600,000 $ 18,546,052 $ 565,747
Euro 9/27/04 24,300,000 29,030,480 506,170
South Korean Won
5/14/04 20,900,000,000 17,793,140 (120,731)
- --------------------------------------------------------------------------------
Total $ 65,369,672 $ 951,186
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 7
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS CORE EQUITY FUND (unaudited) Portfolio Manager
Karen Reidy
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Core Equity Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Since
Year-to-Date Year Year Inception*
---------------------------------------------------------------------------
Janus Core Equity Fund 5.89% 18.71% (0.39)% 11.97%
---------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% 8.27%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - June 28, 1996
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by normally investing at least 80% of its
assets in equity securities selected for their growth potential. The fund may
invest in companies of any size.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Preferred Stock - 0.5%
Cash and Cash Equivalents - 4.3%
Common Stock - Foreign - 22.0%
Common Stock - Domestic - 73.2%
Number of Stocks: 78
Top 10 Equities: 32.3%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
8 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Tyco International, Ltd.
(New York Shares) 4.9% 3.0%
Roche Holding A.G. 3.8% 2.1%
Time Warner, Inc. 3.6% 2.5%
Freddie Mac 3.4% 1.2%
3M Co. 3.1% 2.7%
Marriott International, Inc. - Class A 3.0% 2.1%
General Electric Co. 2.9% 2.3%
Citigroup, Inc. 2.8% 3.1%
Texas Instruments, Inc. 2.4% 2.5%
Exxon Mobil Corp. 2.4% 1.9%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Core Equity Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Core Equity Fund S&P 500(R) Index
Diversified Operations 15.1% 5.3%
Hotels and Motels 6.0% 0.2%
Medical - Drugs 5.4% 6.7%
Finance - Investment Bankers/Brokers 5.3% 5.1%
Finance - Mortgage Loan Banker 4.4% 1.2%
Oil Companies - Integrated 3.9% 4.5%
Multimedia 3.6% 2.0%
Medical - HMO 2.7% 0.8%
Electronic Components - Semiconductors 2.4% 2.7%
Computers 2.3% 3.1%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Janus Core, Risk-Managed and Value Funds April 30, 2004 9
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS CORE EQUITY FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 95.2%
Advertising Sales - 1.3%
202,195 Lamar Advertising Co.* ...................... $ 8,302,127
Agricultural Chemicals - 1.1%
90,395 Potash Corporation of Saskatchewan, Inc.
(New York Shares) ......................... 7,363,577
Applications Software - 1.2%
293,015 Microsoft Corp. ............................. 7,609,600
Audio and Video Products - 0.3%
26,025 Harman International Industries, Inc.# ...... 1,973,996
Automotive - Truck Parts and Equipment - Original - 0.6%
68,160 Lear Corp.* ................................. 4,131,859
Beverages - Non-Alcoholic - 1.2%
145,195 PepsiCo, Inc. ............................... 7,911,676
Brewery - 0.6%
73,465 Anheuser-Busch Companies, Inc. .............. 3,764,347
Broadcast Services and Programming - 1.0%
85,075 Clear Channel Communications, Inc. .......... 3,529,762
261,715 Liberty Media Corp. - Class A* .............. 2,863,162
6,392,924
Building Products - Air and Heating - 0.6%
34,605 American Standard Companies, Inc.* .......... 3,640,100
Casino Hotels - 0.4%
44,430 Mandalay Resort Group ....................... 2,552,504
Cellular Telecommunications - 0.5%
141,380 Western Wireless Corp. - Class A* ........... 2,943,532
Chemicals - Diversified - 0.7%
107,005 Dow Chemical Co. ............................ 4,247,028
Chemicals - Specialty - 1.1%
1,502 Syngenta A.G. ............................... 120,185
422,565 Syngenta A.G. (ADR) ......................... 6,731,461
6,851,646
Computers - 2.3%
83,665 Dell, Inc.* ................................. 2,904,012
137,790 IBM Corp. ................................... 12,148,944
15,052,956
Computers - Peripheral Equipment - 0.9%
63,680 Lexmark International Group, Inc.
- Class A*,# .............................. 5,760,493
Cosmetics and Toiletries - 2.1%
127,200 Procter & Gamble Co. ........................ 13,451,400
Diversified Operations - 15.1%
232,150 3M Co. ...................................... 20,076,331
612,985 General Electric Co. ........................ 18,358,901
361,465 Honeywell International, Inc. ............... 12,499,460
158,941 Louis Vuitton Moet Hennessy S.A.** .......... 11,203,223
295,932 Smiths Group PLC** .......................... 3,665,694
1,138,315 Tyco International, Ltd. (New York Shares) .. 31,246,746
97,050,355
E-Commerce/Products - 0.4%
52,800 Amazon.com, Inc.* ........................... 2,294,688
E-Commerce/Services - 0.7%
59,030 eBay, Inc.* ................................. 4,711,775
Electric Products - Miscellaneous - 2.0%
27,275 Samsung Electronics Company, Ltd.** ......... 12,947,693
Shares or Principal Amount Market Value
================================================================================
Electronic Components - Semiconductors - 2.4%
626,405 Texas Instruments, Inc. ..................... $ 15,722,766
Enterprise Software/Services - 0.5%
274,190 Oracle Corp.* ............................... 3,076,412
Entertainment Software - 0.8%
97,685 Electronic Arts, Inc.* ...................... 4,944,815
Finance - Credit Card - 0.5%
59,690 American Express Co. ........................ 2,921,826
Finance - Investment Bankers/Brokers - 5.3%
377,260 Citigroup, Inc. ............................. 18,142,432
59,675 Goldman Sachs Group, Inc. ................... 5,758,638
271,795 J.P. Morgan Chase & Co. ..................... 10,219,492
34,120,562
Finance - Mortgage Loan Banker - 4.4%
113,914 Countrywide Financial Corp. ................. 6,755,100
368,685 Freddie Mac ................................. 21,531,203
28,286,303
Financial Guarantee Insurance - 1.2%
106,825 MGIC Investment Corp. ....................... 7,864,457
Hotels and Motels - 6.0%
77,305 Four Seasons Hotels, Inc. ................... 4,135,818
408,680 Marriott International, Inc. - Class A ...... 19,273,348
386,860 Starwood Hotels & Resorts Worldwide, Inc. ... 15,393,159
38,802,325
Machinery - Construction and Mining - 1.0%
1,117,000 Komatsu, Ltd. ............................... 6,366,662
Medical - Biomedical and Genetic - 1.6%
112,220 Amgen, Inc.* ................................ 6,314,620
70,415 Celgene Corp.*,# ............................ 3,639,751
9,954,371
Medical - Drugs - 5.4%
22,820 Novartis A.G. (ADR) ......................... 1,022,336
262,005 Pfizer, Inc. ................................ 9,369,299
230,404 Roche Holding A.G.# ......................... 24,167,008
34,558,643
Medical - Generic Drugs - 0.8%
121,642 Barr Pharmaceuticals, Inc.* ................. 5,038,412
Medical - HMO - 2.7%
147,100 Aetna, Inc. ................................. 12,172,525
83,810 UnitedHealth Group, Inc. .................... 5,152,639
17,325,164
Medical Instruments - 0.7%
15,305 Guidant Corp. ............................... 964,368
34,045 Medtronic, Inc. ............................. 1,717,911
23,905 St. Jude Medical, Inc.* ..................... 1,822,995
4,505,274
Multimedia - 3.6%
1,385,400 Time Warner, Inc.* .......................... 23,302,428
Networking Products - 1.9%
581,840 Cisco Systems, Inc.* ........................ 12,143,001
Non-Hazardous Waste Disposal - 0.9%
206,375 Waste Management, Inc.# ..................... 5,861,050
See Notes to Schedules of Investments and Financial Statements.
10 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Oil Companies - Integrated - 3.9%
55,360 BP PLC (ADR)** .............................. $ 2,928,544
366,020 Exxon Mobil Corp. ........................... 15,574,150
36,404 Total S.A. - Class B** ...................... 6,733,560
25,236,254
Pharmacy Services - 1.6%
307,970 Caremark Rx, Inc.* .......................... 10,424,785
Pipelines - 0.4%
66,034 Kinder Morgan Management LLC* ............... 2,449,861
Publishing - Newspapers - 1.2%
41,710 Dow Jones & Company, Inc.# .................. 1,922,414
63,270 Gannett Company, Inc. ....................... 5,484,244
7,406,658
Reinsurance - 2.3%
4,732 Berkshire Hathaway, Inc. - Class B* ......... 14,759,108
Retail - Discount - 0.9%
126,945 Target Corp. ................................ 5,505,605
Retail - Major Department Stores - 0.6%
109,525 J.C. Penney Company, Inc. ................... 3,708,517
Semiconductor Components/Integrated Circuits - 0.8%
71,835 Linear Technology Corp. ..................... 2,559,481
52,465 Maxim Integrated Products, Inc. ............. 2,412,865
4,972,346
Semiconductor Equipment - 0.3%
98,260 Applied Materials, Inc.* .................... 1,791,280
Soap and Cleaning Preparations - 1.4%
357,233 Reckitt Benckiser PLC** ..................... 9,287,171
Super-Regional Banks - 1.4%
109,360 Bank of America Corp. ....................... 8,802,386
Television - 0.3%
139,580 British Sky Broadcasting Group PLC** ........ 1,648,524
Therapeutics - 0.8%
80,580 Neurocrine Biosciences, Inc.* ............... 5,288,465
Transportation - Railroad - 1.8%
308,677 Canadian National Railway Co.
(New York Shares) ......................... 11,658,730
Transportation - Services - 0.8%
73,685 FedEx Corp. ................................. 5,298,688
Web Portals/Internet Service Providers - 1.5%
188,240 Yahoo!, Inc.*,# ............................. 9,498,590
Wireless Equipment - 1.4%
510,390 Motorola, Inc. .............................. 9,314,618
- --------------------------------------------------------------------------------
Total Common Stock (cost $523,256,631) ...................... 610,800,333
- --------------------------------------------------------------------------------
Shares or Principal Amount Market Value
================================================================================
Preferred Stock - 0.5%
Automotive - Cars and Light Trucks - 0.5%
5,076 Porsche A.G.** (cost $1,880,906) ............ $ 3,158,048
- --------------------------------------------------------------------------------
Other Securities - 5.0%
State Street Navigator Securities Lending
$ 32,424,633 Prime Portfolio+ (cost $32,424,633) ....... 32,424,633
- --------------------------------------------------------------------------------
Time Deposit - 3.8%
SouthTrust Bank, ETD
24,300,000 1.04%, 5/3/04 (cost $24,300,000) .......... 24,300,000
- --------------------------------------------------------------------------------
Total Investments (total cost $581,862,170) - 104.5% ........ 670,683,014
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (4.5)% (29,013,264)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 641,669,750
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 31,246,747 4.7%
Canada 23,158,124 3.4%
France 17,936,783 2.7%
Germany 3,158,048 0.5%
Japan 6,366,662 0.9%
South Korea 12,947,693 1.9%
Switzerland 32,040,991 4.8%
United Kingdom 17,529,933 2.6%
United States++ 526,298,033 78.5%
- --------------------------------------------------------------------------------
Total $ 670,683,014 100.0%
++Includes Short-Term Securities (70.0% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
British Pound 9/27/04 850,000 $ 1,487,184 $ 45,367
British Pound 11/19/04 2,200,000 3,832,491 88,746
Euro 9/27/04 9,025,000 10,781,896 187,991
South Korean Won
5/14/04 5,575,000,000 4,746,256 (38,318)
- --------------------------------------------------------------------------------
Total $ 20,847,827 $ 283,786
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 11
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GROWTH AND INCOME FUND (unaudited) Portfolio Manager
Minyoung Sohn
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Growth and Income S&P 500(R) Index
Fund
[BAR GRAPH]
Bar graph data is shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten Since
Year-to-Date Year Year Year Inception*
- --------------------------------------------------------------------------------
Janus Growth and
Income Fund 5.47% 16.86% (0.52)% 12.94% 13.35%
- --------------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (2.26)% 11.36% 11.09%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - May 15, 1991
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term capital growth and current income by normally investing up to
75% of its assets in equity securities selected primarily for their growth
potential and at least 25% of its assets in securities that the portfolio
manager believes have income potential.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 0.4%
Corporate Bonds - Domestic - 0.8%
Preferred Stock - Domestic - 0.9%
Preferred Stock - Foreign - 1.4%
Common Stock - Foreign - 18.3%
Common Stock - Domestic - 78.2%
Number of Stocks: 81
Number of Bonds: 6
Top 10 Equities: 27.9%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
12 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Tyco International, Ltd.
(New York Shares) 4.6% 3.3%
Citigroup, Inc. 3.8% 4.9%
Exxon Mobil Corp. 3.2% 3.4%
Roche Holding A.G. 3.0% 2.2%
Microsoft Corp. 2.4% 2.7%
Berkshire Hathaway, Inc. - Class B 2.4% 2.0%
UnitedHealth Group, Inc. 2.2% 1.6%
Cisco Systems, Inc. 2.2% 2.0%
Maxim Integrated Products, Inc. 2.1% 2.3%
Procter & Gamble Co. 2.0% 2.4%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Growth and Income Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Growth and Income Fund S&P 500(R) Index
Diversified Operations 9.7% 5.3%
Finance - Investment Bankers/Brokers 6.0% 5.1%
Medical - Drugs 4.7% 6.7%
Electronic Components - Semiconductors 4.7% 2.7%
Oil Companies - Integrated 4.5% 4.5%
Medical - HMO 3.8% 0.8%
Multimedia 3.7% 2.0%
Cable Television 3.3% 0.7%
Broadcast Services and Programming 3.3% 0.2%
Pharmacy Services 3.2% 0.3%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Janus Core, Risk-Managed and Value Funds April 30, 2004 13
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 96.5%
Advertising Sales - 1.0%
1,350,845 Lamar Advertising Co.* ...................... $ 55,465,696
Applications Software - 2.4%
5,160,762 Microsoft Corp. ............................. 134,024,989
Audio and Video Products - 0.7%
461,915 Harman International Industries, Inc. ....... 35,036,253
Beverages - Non-Alcoholic - 1.6%
1,570,533 PepsiCo, Inc. ............................... 85,578,343
Brewery - 0.5%
514,139 Anheuser-Busch Companies, Inc. .............. 26,344,482
Broadcast Services and Programming - 3.3%
1,822,311 Clear Channel Communications, Inc. .......... 75,607,683
9,726,994 Liberty Media Corp. - Class A* .............. 106,413,315
182,020,998
Building - Residential and Commercial - 0.2%
19,205 NVR, Inc.* .................................. 8,661,455
Cable Television - 3.2%
3,268,095 Comcast Corp. - Special Class A* ............ 94,742,074
2,497,980 Cox Communications, Inc. - Class A*,# ....... 81,658,966
176,401,040
Computers - 2.2%
1,031,861 Dell, Inc.* ................................. 35,815,895
977,423 IBM Corp. ................................... 86,179,386
121,995,281
Computers - Memory Devices - 0.4%
959,735 SanDisk Corp.*,# ............................ 22,179,476
Computers - Peripheral Equipment - 0.6%
392,770 Lexmark International Group, Inc. - Class A* 35,529,974
Cosmetics and Toiletries - 2.7%
984,325 International Flavors & Fragrances, Inc. .... 35,681,781
1,045,205 Procter & Gamble Co. ........................ 110,530,429
146,212,210
Disposable Medical Products - 0.8%
380,220 C.R. Bard, Inc.# ............................ 40,405,979
Diversified Operations - 9.7%
912,722 3M Co. ...................................... 78,932,199
3,102,001 General Electric Co. ........................ 92,904,930
1,226,080 Honeywell International, Inc. ............... 42,397,846
492,089 Louis Vuitton Moet Hennessy S.A.** .......... 34,685,718
2,380,947 Smiths Group PLC ............................ 29,492,666
9,111,640 Tyco International, Ltd. (New York Shares) .. 250,114,517
528,527,876
E-Commerce/Products - 0.7%
872,815 Amazon.com, Inc.* ........................... 37,932,540
E-Commerce/Services - 0.5%
347,630 eBay, Inc.* ................................. 27,747,827
Electric Products - Miscellaneous - 2.4%
93,283 Samsung Electronics Company, Ltd. ........... 44,282,295
379,125 Samsung Electronics Company, Ltd.
(144A) (GDR)ss. ........................... 89,189,156
133,471,451
Shares or Principal Amount Market Value
================================================================================
Electronic Components - Semiconductors - 4.7%
5,025,715 Advanced Micro Devices, Inc.*,# ............. $ 71,465,667
2,031,135 Intel Corp. ................................. 52,261,104
1,643,245 NVIDIA Corp.*,# ............................. 33,752,252
3,920,873 Texas Instruments, Inc. ..................... 98,413,912
255,892,935
Enterprise Software/Services - 2.0%
2,972,525 Computer Associates International, Inc. ..... 79,693,395
2,720,775 Oracle Corp.* ............................... 30,527,096
110,220,491
Entertainment Software - 1.4%
1,494,652 Electronic Arts, Inc.* ...................... 75,659,284
Finance - Commercial - 0.7%
1,077,255 CIT Group, Inc. ............................. 37,025,254
Finance - Credit Card - 0.7%
3,056,525 Providian Financial Corp.*,# ................ 37,075,648
Finance - Investment Bankers/Brokers - 6.0%
4,329,615 Citigroup, Inc. ............................. 208,211,184
794,125 Goldman Sachs Group, Inc. ................... 76,633,063
1,221,415 J.P. Morgan Chase & Co. ..................... 45,925,204
330,769,451
Finance - Mortgage Loan Banker - 2.1%
392,640 Countrywide Financial Corp. ................. 23,283,552
1,305,707 Fannie Mae .................................. 89,728,185
113,011,737
Hotels and Motels - 3.1%
2,396,268 Fairmont Hotels & Resorts, Inc.
(New York Shares)# ........................ 59,187,820
656,835 Four Seasons Hotels, Inc. ................... 35,140,673
1,927,255 Starwood Hotels & Resorts Worldwide, Inc. ... 76,685,476
171,013,969
Medical - Biomedical and Genetic - 1.5%
1,439,135 Amgen, Inc.* ................................ 80,980,126
Medical - Drugs - 4.7%
2,526,504 Pfizer, Inc. ................................ 90,347,783
1,587,622 Roche Holding A.G.**,# ...................... 166,525,213
256,872,996
Medical - HMO - 3.8%
1,045,900 Aetna, Inc. ................................. 86,548,225
1,949,558 UnitedHealth Group, Inc. .................... 119,858,826
206,407,051
Medical Instruments - 1.6%
1,774,470 Medtronic, Inc. ............................. 89,539,756
Multi-Line Insurance - 1.7%
1,325,154 American International Group, Inc. .......... 94,947,284
Multimedia - 3.7%
6,040,190 Time Warner, Inc.* .......................... 101,595,996
1,359,504 Viacom, Inc. - Class B ...................... 52,544,830
2,141,874 Walt Disney Co. ............................. 49,327,358
203,468,184
Networking Products - 2.2%
5,712,425 Cisco Systems, Inc.* ........................ 119,218,310
Non-Hazardous Waste Disposal - 0.1%
122,985 Waste Management, Inc.# ..................... 3,492,774
See Notes to Schedules of Investments and Financial Statements.
14 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Oil Companies - Exploration and Production - 1.6%
2,236,589 EnCana Corp. (New York Shares) .............. $ 87,719,021
Oil Companies - Integrated - 3.8%
499,503 ConocoPhillips .............................. 35,614,564
4,089,030 Exxon Mobil Corp. ........................... 173,988,226
209,602,790
Pharmacy Services - 3.2%
3,039,360 Caremark Rx, Inc.*,# ........................ 102,882,336
2,086,885 Medco Health Solutions, Inc.* ............... 73,875,729
176,758,065
Pipelines - 0.7%
648,705 Kinder Morgan, Inc. ......................... 39,058,528
Reinsurance - 2.4%
41,333 Berkshire Hathaway, Inc. - Class B* ......... 128,917,627
Retail - Auto Parts - 0.3%
203,435 AutoZone, Inc.* ............................. 17,814,803
Retail - Automobile - 0.1%
219,575 CarMax, Inc.*,# ............................. 5,691,384
Retail - Pet Food and Supplies - 0.6%
1,218,645 PETsMART, Inc.# ............................. 33,756,467
Semiconductor Components/Integrated Circuits - 3.1%
1,608,545 Linear Technology Corp. ..................... 57,312,458
2,484,480 Maxim Integrated Products, Inc. ............. 114,261,236
171,573,694
Semiconductor Equipment - 0.9%
2,799,890 Applied Materials, Inc.* .................... 51,041,995
Soap and Cleaning Preparations - 0.4%
758,906 Reckitt Benckiser PLC ....................... 19,729,671
Super-Regional Banks - 1.4%
2,959,998 U.S. Bancorp ................................ 75,894,349
Telecommunication Equipment - 1.1%
4,317,650 Nokia Oyj (ADR)** ........................... 60,490,277
Television - 1.3%
6,202,669 British Sky Broadcasting Group PLC .......... 73,257,269
Tobacco - 0.7%
697,925 Altria Group, Inc. .......................... 38,651,087
Toys - 0.3%
922,017 Marvel Enterprises, Inc.* ................... 17,509,103
Transportation - Railroad - 1.0%
1,361,497 Canadian National Railway Co.
(New York Shares) ......................... 51,423,742
Web Portals/Internet Service Providers - 0.7%
741,080 Yahoo!, Inc.* ............................... 37,394,897
- --------------------------------------------------------------------------------
Total Common Stock (cost $4,700,105,367) .................... 5,279,415,889
- --------------------------------------------------------------------------------
Corporate Bonds - 0.8%
Advertising Sales - 0.1%
$ 5,745,000 Lamar Advertising Co., 2.875%
convertible senior notes, due 12/31/10 .... 6,218,963
Cable Television - 0.1%
6,280,000 Cox Communications, Inc., 7.125%
notes, due 10/1/12 ........................ 6,954,598
Electric - Integrated - 0.1%
6,170,000 CMS Energy Corp., 7.625%
senior notes, due 11/15/04 ................ 6,308,825
Shares or Principal Amount Market Value
================================================================================
Non-Hazardous Waste Disposal - 0.1%
$ 3,080,000 Allied Waste North America, Inc., 7.875%
senior notes, due 4/15/13 ................. $ 3,311,000
Telephone - Integrated - 0.1%
8,750,000 MCI Communications Corp., 6.688%
senior notes, due 5/1/09 .................. 8,312,500
Toys - 0.3%
13,900,000 Mattel, Inc., 6.125%
notes, due 7/15/05 ........................ 14,409,559
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $43,372,839) .................... 45,515,445
- --------------------------------------------------------------------------------
Preferred Stock - 2.3%
Automotive - Cars and Light Trucks - 0.8%
74,360 Porsche A.G.** .............................. 46,263,282
Non-Hazardous Waste Disposal - 0.2%
135,425 Allied Waste Industries, Inc.
convertible, 6.25% ........................ 9,412,038
Oil Companies - Integrated - 0.7%
579,900 Amerada Hess Corp., convertible, 7.00% ...... 38,905,491
Property and Casualty Insurance - 0.6%
1,212,750 XL Capital, Ltd., convertible, 6.50% ........ 30,767,468
- --------------------------------------------------------------------------------
Total Preferred Stock (cost $92,320,846) .................... 125,348,279
- --------------------------------------------------------------------------------
Other Securities - 4.2%
State Street Navigator Securities Lending
$230,558,629 Prime Portfolio+ (cost $230,558,629) ...... 230,558,629
- --------------------------------------------------------------------------------
Time Deposit - 0.4%
SouthTrust Bank, ETD
23,300,000 1.04%, 5/3/04 (cost $23,300,000) .......... 23,300,000
- --------------------------------------------------------------------------------
Total Investments (total cost $5,089,657,681) - 104.2% ...... 5,704,138,242
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (4.2)% (228,327,331)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 5,475,810,911
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 250,114,517 4.4%
Canada 233,471,256 4.1%
Cayman Islands 30,767,468 0.5%
Finland 60,490,277 1.1%
France 34,685,718 0.6%
Germany 46,263,282 0.8%
South Korea 133,471,451 2.3%
Switzerland 166,525,213 2.9%
United Kingdom 122,479,606 2.2%
United States++ 4,625,869,454 81.1%
- --------------------------------------------------------------------------------
Total $ 5,704,138,242 100.0%
++Includes Short-Term Securities (76.6% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
Euro 9/27/04 40,500,000 $ 48,384,133 $ 786,917
Swiss Franc 9/27/04 38,000,000 29,430,368 590,173
Swiss Franc 10/15/04 26,300,000 20,379,740 (117,799)
- --------------------------------------------------------------------------------
Total $ 98,194,241 $ 1,259,291
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS SPECIAL EQUITY FUND (unaudited) Portfolio Manager
David Decker
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Special Equity S&P 500(R) Index
Fund
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Since
Year-to-Date Year Inception*
---------------------------------------------------------------------------
Janus Special Equity Fund 11.13% 47.34% 3.17%
---------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% (3.49)%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - February 29, 2000
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by normally investing at least 80% of its
net assets in equity securities with the potential for long-term growth of
capital.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Cash and Cash Equivalents - 0.1%
Corporate Bonds - Domestic - 0.3%
Preferred Stock - Domestic - 0.4%
Common Stock - Foreign - 36.1%
Common Stock - Domestic - 63.1%
Number of Stocks: 52
Number of Bonds: 2
Top 10 Equities: 49.0%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio manager commentary
and updated performance, visit the Fund Updates section of janus.com.
16 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Liberty Media Corp. - Class A 6.9% 6.5%
Tyco International, Ltd.
(New York Shares) 5.8% 4.4%
Computer Associates
International, Inc. 5.4% 4.9%
Reliance Industries, Ltd. 5.2% 4.9%
Ceridian Corp. 4.7% 5.7%
SK Corp. 4.6% 2.0%
Lear Corp. 4.5% 5.5%
Station Casinos, Inc. 4.1% 2.7%
Freddie Mac 4.1% 3.9%
Berkshire Hathaway, Inc. - Class B 3.7% 3.1%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Special Equity Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Special Equity Fund S&P 500(R) Index
Broadcast Services and Programming 7.1% 0.2%
Diversified Operations 5.8% 5.3%
Finance - Mortgage Loan Banker 5.8% 1.2%
Enterprise Software/Services 5.4% 0.9%
Petrochemicals 5.2% N/A
Computer Services 4.7% 0.3%
Oil Refining and Marketing 4.6% 0.1%
Automotive - Truck Parts and Equipment
- Original 4.5% 0.2%
Casino Hotels 4.1% 0.1%
Reinsurance 3.7% N/A
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Returns have sustained significant gains and losses due to market volatility in
the consumer discretionary and information technology sectors.
This Fund buys stock in overlooked or underappreciated companies of any size, in
any sector. Overlooked and underappreciated stocks present special risks.
A fund that is classified as "nondiversified" has the ability to take larger
positions in a smaller number of issuers than a fund that is classified as
"diversified." Nondiversified funds may experience greater price volatility.
Foreign investing involves special risks such as currency fluctuations and
political uncertainty.
Janus Core, Risk-Managed and Value Funds April 30, 2004 17
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS SPECIAL EQUITY FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 99.2%
Advertising Agencies - 1.6%
2,599,590 Interpublic Group of Companies, Inc.*,# ..... $ 40,787,567
Apparel Manufacturers - 1.1%
803,275 Liz Claiborne, Inc. ......................... 28,194,953
Automotive - Cars and Light Trucks - 1.6%
3,918,074 Tata Motors, Ltd. ........................... 41,669,735
Automotive - Truck Parts and Equipment - Original - 4.5%
1,916,810 Lear Corp.* ................................. 116,197,022
Broadcast Services and Programming - 7.1%
16,073,721 Liberty Media Corp. - Class A* .............. 175,846,507
1,000,000 UnitedGlobalCom, Inc. - Class A* ............ 7,480,000
183,326,507
Building Products - Cement and Aggregate - 3.1%
2,142,075 Cemex S.A. de C.V. (ADR)# ................... 63,084,109
2,352,455 Gujarat Ambuja Cements, Ltd. ................ 17,594,480
80,678,589
Cable Television - 3.5%
2,698,930 EchoStar Communications Corp. - Class A* .... 89,577,487
Casino Hotels - 4.1%
2,355,150 Station Casinos, Inc.# ...................... 106,170,162
Computer Services - 4.7%
5,688,040 Ceridian Corp.* ............................. 121,610,295
Computers - 2.8%
2,801,087 Apple Computer, Inc.* ....................... 72,071,969
Containers - Paper and Plastic - 0.8%
973,315 Packaging Corporation of America* ........... 21,393,464
Diversified Operations - 5.8%
5,394,490 Tyco International, Ltd. (New York Shares) .. 148,078,751
Electric - Integrated - 0.8%
1,014,060 Duke Energy Corp.# .......................... 21,356,104
Electronic Components - Semiconductors - 2.5%
4,455,400 Advanced Micro Devices, Inc.*,# ............. 63,355,788
Electronic Design Automation - 1.5%
3,032,770 Cadence Design Systems, Inc.*,# ............. 38,880,111
Enterprise Software/Services - 5.4%
5,154,840 Computer Associates International, Inc. ..... 138,201,260
Finance - Consumer Loans - 0.3%
214,800 SLM Corp. ................................... 8,228,988
Finance - Investment Bankers/Brokers - 2.1%
4,660,336 E*TRADE Financial Corp.*,# .................. 52,941,417
Finance - Mortgage Loan Banker - 5.8%
409,760 Fannie Mae .................................. 28,158,707
1,790,290 Freddie Mac ................................. 104,552,936
1,125,370 Housing Development Finance
Corporation, Ltd. ......................... 15,052,172
147,763,815
Shares or Principal Amount Market Value
================================================================================
Independent Power Producer - 0.5%
1,529,945 Reliant Energy, Inc.* ....................... $ 12,713,843
Insurance Brokers - 0.8%
543,000 Willis Group Holdings, Ltd.# ................ 19,716,330
Metal Processors and Fabricators - 0.2%
216,903 Bharat Forge, Ltd. .......................... 3,775,195
Money Center Banks - 2.0%
7,087,091 ICICI Bank, Ltd. ............................ 50,232,766
Multi-Line Insurance - 0.8%
700,000 CNA Financial Corp.# ........................ 19,187,000
Multimedia - 1.3%
1,500,000 Walt Disney Co. ............................. 34,545,000
Non-Hazardous Waste Disposal - 0.7%
1,497,165 Allied Waste Industries, Inc.*,# ............ 18,849,307
Oil Companies - Exploration and Production - 2.1%
328,090 Anadarko Petroleum Corp. .................... 17,579,062
2,206,875 Magnum Hunter Resources, Inc.*,# ............ 22,664,607
781,360 Oil and Natural Gas Corporation, Ltd. ....... 14,759,217
55,002,886
Oil Companies - Integrated - 2.4%
1,009,775 BP PLC (ADR) ................................ 53,417,097
349,335 Suncor Energy, Inc. (New York Shares) ....... 8,349,107
61,766,204
Oil Refining and Marketing - 4.6%
2,812,680 SK Corp.** .................................. 117,939,111
Paper and Related Products - 0.6%
10,011,611 Ballarpur Industries, Ltd. .................. 14,622,310
Petrochemicals - 5.2%
11,371,335 Reliance Industries, Ltd. ................... 134,604,694
Pipelines - 2.3%
1,584,701 Kinder Morgan Management LLC* ............... 58,792,407
Publishing - Periodicals - 0.8%
1,474,700 Playboy Enterprises, Inc. - Class B*,(pound),# 19,244,835
Recreational Centers - 0.1%
573,165 Bally Total Fitness Holding Corp.*,(pound),# 2,361,440
Reinsurance - 3.7%
30,061 Berkshire Hathaway, Inc. - Class B* ......... 93,760,259
Retail - Discount - 0.5%
656,521 Fred's, Inc. ................................ 12,191,595
Retail - Home Furnishings - 0.2%
263,040 Pier 1 Imports, Inc. ........................ 5,434,406
Soap and Cleaning Preparations - 2.0%
1,968,642 Reckitt Benckiser PLC ....................... 51,179,802
Steel - Producers - 1.3%
4,048,904 Tata Iron and Steel Company, Ltd. ........... 32,576,970
Super-Regional Banks - 1.8%
600,000 Bank One Corp. .............................. 29,622,000
299,535 Wells Fargo & Co. ........................... 16,911,746
46,533,746
See Notes to Schedules of Investments and Financial Statements.
18 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Television - 3.3%
2,061,990 SBS Broadcasting S.A.
(New York Shares)*,(pound) ................ $ 64,932,065
1,520,070 Sinclair Broadcast Group, Inc. - Class A*,# . 18,788,065
83,720,130
Tobacco - 2.9%
7,399,753 Swedish Match A.B.**,# ...................... 74,584,032
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,896,454,195) .................... 2,543,818,252
- --------------------------------------------------------------------------------
Corporate Bonds - 0.3%
Retail - Discount - 0%
$ 16,925,000 Ames Department Stores, Inc., 10.00%
senior notes, due 4/15/06(beta),(sigma).... 0
Tobacco - 0.3%
10,000,000 Vector Group, Ltd., 6.25%
convertible subordinated notes
due 7/15/08 (144A)#,ss. ................... 8,825,000
- --------------------------------------------------------------------------------
Total Corporate Bonds (cost $17,900,645) .................... 8,825,000
- --------------------------------------------------------------------------------
Preferred Stock - 0.4%
Advertising Agencies - 0.4%
195,300 Interpublic Group of Companies, Inc.
Series A, 5.375% (cost $10,078,540) ....... 11,237,562
- --------------------------------------------------------------------------------
Other Securities - 7.8%
State Street Navigator Securities Lending
$200,115,934 Prime Portfolio+ (cost $200,115,934) ...... 200,115,934
- --------------------------------------------------------------------------------
Short-Term U.S. Government Agency - 0%
Freddie Mac
800,000 0.85%, 5/3/04 (amortized cost $799,962) ... 799,962
- --------------------------------------------------------------------------------
Total Investments (total cost $2,125,349,276) - 107.7% ...... 2,764,796,710
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (7.7)% (198,206,862)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 2,566,589,848
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 167,795,081 6.1%
Canada 8,349,107 0.3%
India 324,887,539 11.7%
Luxembourg 64,932,065 2.3%
Mexico 63,084,109 2.3%
South Korea 117,939,111 4.3%
Sweden 74,584,032 2.7%
United Kingdom 104,596,900 3.8%
United States++ 1,838,628,766 66.5%
- --------------------------------------------------------------------------------
Total $ 2,764,796,710 100.0%
++Includes Short-Term Securities (59.2% excluding Short-Term Securities)
Forward Currency Contracts, Open at April 30, 2004
Currency Sold and Currency Currency Unrealized
Settlement Date Units Sold Value in $ U.S. Gain/(Loss)
- --------------------------------------------------------------------------------
South Korean Won
5/14/04 124,550,000,000 $ 106,035,195 $ (777,659)
Swedish Krona
10/15/04 493,000,000 64,299,064 (610,556)
- --------------------------------------------------------------------------------
Total $ 170,334,259 $ (1,388,215)
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 19
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS RISK-MANAGED STOCK FUND (unaudited) Managed
by INTECH
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Risk-Managed Stock Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Since
Year-to-Date Year Inception*
---------------------------------------------------------------------------
Janus Risk-Managed
Stock Fund 8.56% 26.57% 29.36%
---------------------------------------------------------------------------
S&P 500(R)Index 6.27% 22.88% 28.73%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
* The Fund's inception date - February 28, 2003
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek long-term growth of capital by normally investing at least 80% of its
net assets in common stocks selected for their growth potential. The Fund seeks
to control risks by applying a mathematical management process and selecting
stocks only from a predefined universe of common stocks within the Fund's
benchmark index. The primary aim of the strategy is to outperform the benchmark
index.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Common Stock - Foreign - 1.7%
Cash and Cash Equivalents - 5.8%
Common Stock - Domestic - 92.5%
Number of Stocks: 361
Top 10 Equities: 12.8%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio managers' commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
20 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Boston Scientific Corp. 1.7% 2.0%
General Electric Co. 1.4% 1.7%
Bank of America Corp. 1.4% 1.1%
eBay, Inc. 1.3% 1.7%
Exxon Mobil Corp. 1.2% 1.4%
Pfizer, Inc. 1.2% 1.3%
International Game Technology 1.2% 1.0%
Citigroup, Inc. 1.2% 1.3%
Countrywide Financial Corp. 1.1% 1.0%
Apollo Group, Inc. - Class A 1.1% 1.1%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Risk-Managed Stock Fund S&P 500(R) Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Risk-Managed
Stock Fund S&P 500(R) Index
Electric - Integrated 5.1% 2.4%
Diversified Operations 4.5% 5.3%
Super-Regional Banks 3.8% 5.2%
Medical Instruments 3.7% 1.2%
Oil Companies - Integrated 3.2% 4.5%
Finance - Investment Bankers/Brokers 2.7% 5.1%
Medical Products 2.1% 2.3%
Medical - Drugs 2.1% 6.7%
Commercial Banks 1.8% 1.0%
Oil Companies - Exploration and Production 1.5% 0.7%
- --------------------------------------------------------------------------------
The proprietary mathematical process used by Enhanced Investment Technologies,
LLC ("INTECH") may not achieve the desired results. Rebalancing techniques used
may result in a higher portfolio turnover rate and higher expenses compared to a
"buy and hold" or index fund strategy. This increases the likelihood of higher
net taxable gains or losses for investors.
See "Explanations of Charts, Tables and Financial Statements."
INTECH is a subsidiary of Janus Capital Group Inc.
Effective March 1, 2004, the Fund's redemption fee, that may be imposed on
shares held for 3 months or less, increased from 1% to 2% on shares purchased on
or after that date.
The index is not available for direct investment; therefore its performance does
not reflect the expenses associated with the active management of an actual
portfolio.
A voluntary waiver is in place for this Fund to the extent of management fees.
This waiver could change or be terminated at any time at the option of Janus
Capital Management LLC. Without such waiver, total returns would have been
lower.
Janus Core, Risk-Managed and Value Funds April 30, 2004 21
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS RISK-MANAGED STOCK FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 94.2%
Advertising Agencies - 0%
100 Omnicom Group, Inc. ......................... $ 7,951
Aerospace and Defense - 0.8%
4,100 Boeing Co. .................................. 175,029
4,700 General Dynamics Corp. ...................... 440,014
1,300 Lockheed Martin Corp. ....................... 62,010
1,300 Northrop Grumman Corp. ...................... 129,025
6,900 Rockwell Collins, Inc. ...................... 222,525
1,028,603
Aerospace and Defense - Equipment - 0.5%
12,700 B.F. Goodrich Co. ........................... 365,633
3,000 United Technologies Corp. ................... 258,780
624,413
Agricultural Operations - 0.5%
19,500 Monsanto Co. ................................ 674,505
Apparel Manufacturers - 0.1%
2,600 Jones Apparel Group, Inc. ................... 95,160
2,400 Liz Claiborne, Inc. ......................... 84,240
179,400
Appliances - 0%
500 Whirlpool Corp. ............................. 32,755
Applications Software - 0.8%
38,000 Microsoft Corp. ............................. 986,860
Athletic Footwear - 0.2%
3,900 NIKE, Inc. - Class B ........................ 280,605
600 Reebok International, Ltd. .................. 21,828
302,433
Automotive - Cars and Light Trucks - 0.2%
9,400 Ford Motor Co. .............................. 144,384
3,700 General Motors Corp. ........................ 175,454
319,838
Automotive - Medium and Heavy Duty Trucks - 0.8%
400 Navistar International Corp.* ............... 18,060
17,250 PACCAR, Inc. ................................ 973,935
991,995
Automotive - Truck Parts and Equipment - Original - 0.8%
9,600 Dana Corp. .................................. 193,536
15,100 Johnson Controls, Inc. ...................... 828,386
7,200 Visteon Corp. ............................... 78,192
1,100,114
Beverages - Non-Alcoholic - 0.7%
5,600 Coca-Cola Co. ............................... 283,192
5,000 Coca-Cola Enterprises, Inc. ................. 135,000
6,700 Pepsi Bottling Group, Inc. .................. 196,109
5,800 PepsiCo, Inc. ............................... 316,042
930,343
Beverages - Wine and Spirits - 0.3%
8,500 Brown-Forman Corp. - Class B ................ 398,310
Brewery - 0.2%
1,900 Adolph Coors Co. - Class B .................. 124,849
3,900 Anheuser-Busch Companies, Inc. .............. 199,836
324,685
Building - Residential and Commercial - 0.6%
11,000 Centex Corp. ................................ 527,450
4,600 Pulte Homes, Inc. ........................... 226,182
753,632
Shares or Principal Amount Market Value
================================================================================
Building and Construction Products - Miscellaneous - 0.4%
6,200 Masco Corp. ................................. $ 173,662
7,200 Vulcan Materials Co. ........................ 332,928
506,590
Building Products - Air and Heating - 0.4%
4,400 American Standard Companies, Inc.* .......... 462,836
Cable Television - 0.1%
2,100 Comcast Corp. - Class A* .................... 63,210
Casino Hotels - 0.2%
3,800 Harrah's Entertainment, Inc. ................ 202,084
Casino Services - 1.2%
41,000 International Game Technology ............... 1,547,340
Cellular Telecommunications - 0.9%
51,400 Nextel Communications, Inc. - Class A* ...... 1,226,404
Chemicals - Diversified - 0.4%
6,800 Dow Chemical Co. ............................ 269,892
1,900 PPG Industries, Inc. ........................ 112,689
3,800 Rohm & Haas Co. ............................. 147,364
529,945
Chemicals - Specialty - 0.8%
8,400 Ashland, Inc. ............................... 402,360
6,700 Eastman Chemical Co. ........................ 285,219
2,600 Ecolab, Inc. ................................ 77,480
3,800 Engelhard Corp. ............................. 110,352
10,500 Hercules, Inc.* ............................. 116,655
300 Sigma-Aldrich Corp. ......................... 16,992
1,009,058
Coatings and Paint Products - 0%
700 Sherwin-Williams Co. ........................ 26,635
Commercial Banks - 1.8%
7,300 AmSouth Bancorporation ...................... 160,746
7,300 BB&T Corp. .................................. 251,777
1,500 First Horizon National Corp. ................ 65,940
1,300 M&T Bank Corp. .............................. 110,500
7,300 Marshall & Ilsley Corp. ..................... 268,421
15,200 North Fork Bancorporation, Inc. ............. 564,224
900 Regions Financial Corp. ..................... 31,239
14,900 SouthTrust Corp. ............................ 463,092
9,600 Synovus Financial Corp. ..................... 229,152
4,600 Zions Bancorporation ........................ 259,992
2,405,083
Commercial Services - Finance - 0.5%
400 H&R Block, Inc. ............................. 18,044
8,500 Moody's Corp. ............................... 548,335
1,300 Paychex, Inc. ............................... 48,464
614,843
Computer Aided Design - 0.1%
4,900 Autodesk, Inc. .............................. 164,150
Computer Services - 0.2%
1,500 Affiliated Computer Services, Inc. - Class A* 72,750
15,300 Unisys Corp.* ............................... 199,359
272,109
Computers - 1.4%
7,400 Apple Computer, Inc.* ....................... 190,402
25,700 Dell, Inc.* ................................. 892,047
11,300 Hewlett-Packard Co. ......................... 222,610
6,500 IBM Corp. ................................... 573,105
1,878,164
See Notes to Schedules of Investments and Financial Statements.
22 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Computers - Integrated Systems - 0.3%
7,800 NCR Corp.* .................................. $ 348,582
Computers - Memory Devices - 0.2%
23,300 EMC Corp.* .................................. 260,028
Computers - Peripheral Equipment - 0.2%
2,500 Lexmark International Group, Inc. - Class A* 226,150
Consumer Products - Miscellaneous - 1.2%
7,600 American Greetings Corp. - Class A* ......... 155,800
7,300 Clorox Co. .................................. 377,994
14,500 Fortune Brands, Inc. ........................ 1,105,625
1,639,419
Containers - Paper and Plastic - 0.1%
3,600 Sealed Air Corp.* ........................... 176,688
Cosmetics and Toiletries - 1.5%
5,350 Alberto-Culver Co. .......................... 252,306
8,800 Avon Products, Inc. ......................... 739,200
600 Gillette Co. ................................ 24,552
700 International Flavors & Fragrances, Inc. .... 25,375
2,900 Kimberly-Clark Corp. ........................ 189,805
7,000 Procter & Gamble Co. ........................ 740,250
1,971,488
Cruise Lines - 0.4%
12,000 Carnival Corp. (New York Shares) ............ 512,040
Data Processing and Management - 0.2%
2,000 Automatic Data Processing, Inc. ............. 87,620
7,100 VERITAS Software Corp.* ..................... 189,357
276,977
Disposable Medical Products - 0.5%
5,700 C.R. Bard, Inc. ............................. 605,739
Diversified Operations - 4.5%
9,700 3M Co. ...................................... 838,856
9,900 Cooper Industries, Ltd. - Class A ........... 543,609
7,300 Crane Co. ................................... 224,913
3,400 Danaher Corp. ............................... 314,568
4,300 Dover Corp. ................................. 172,129
6,700 Eaton Corp. ................................. 397,846
61,500 General Electric Co. ........................ 1,841,925
100 Illinois Tool Works, Inc. ................... 8,621
5,300 Ingersoll-Rand Co. - Class A ................ 342,115
1,500 ITT Industries, Inc. ........................ 118,935
9,700 Textron, Inc. ............................... 535,246
19,700 Tyco International, Ltd. (New York Shares) .. 540,765
5,879,528
Diversified Operations - Commercial Services - 0.5%
26,800 Cendant Corp. ............................... 634,624
E-Commerce/Services - 1.3%
21,500 eBay, Inc.* ................................. 1,716,130
Electric - Integrated - 5.1%
1,600 Ameren Corp. ................................ 69,952
5,300 American Electric Power Company, Inc. ....... 161,332
7,800 Cinergy Corp. ............................... 295,932
2,000 Consolidated Edison, Inc. ................... 82,420
13,600 Constellation Energy Group, Inc. ............ 523,328
600 DTE Energy Co. .............................. 23,412
5,400 Duke Energy Corp. ........................... 113,724
37,400 Edison International ........................ 875,160
12,000 Entergy Corp. ............................... 655,200
8,000 Exelon Corp. ................................ 535,520
Shares or Principal Amount Market Value
================================================================================
Electric - Integrated (continued)
1,800 FirstEnergy Corp. ........................... $ 70,380
2,400 FPL Group, Inc. ............................. 152,688
46,600 PG&E Corp.* ................................. 1,282,432
7,200 PPL Corp. ................................... 308,520
1,000 Progress Energy, Inc. ....................... 42,770
1,500 Public Service Enterprise Group, Inc. ....... 64,350
13,100 Southern Co. ................................ 376,756
13,100 TECO Energy, Inc. ........................... 166,763
5,700 TXU Corp. ................................... 194,598
41,600 Xcel Energy, Inc. ........................... 695,968
6,691,205
Electric Products - Miscellaneous - 0%
300 Emerson Electric Co. ........................ 18,066
800 Molex, Inc. ................................. 23,824
41,890
Electronic Components - Miscellaneous - 0.1%
900 Jabil Circuit, Inc.* ........................ 23,751
4,800 Sanmina Corp.* .............................. 48,096
71,847
Electronic Components - Semiconductors - 1.3%
24,400 Advanced Micro Devices, Inc.* ............... 346,968
4,400 Altera Corp.* ............................... 88,044
2,100 Broadcom Corp. - Class A* ................... 79,296
22,000 Intel Corp. ................................. 566,060
1,500 Micron Technology, Inc.* .................... 20,430
9,800 National Semiconductor Corp.* ............... 399,742
7,200 PMC-Sierra, Inc.* ........................... 87,480
3,100 Texas Instruments, Inc. ..................... 77,810
1,665,830
Electronic Forms - 0%
200 Adobe Systems, Inc. ......................... 8,268
Electronic Measuring Instruments - 0.2%
6,900 Agilent Technologies, Inc.* ................. 186,369
4,800 Tektronix, Inc. ............................. 142,080
328,449
Engines - Internal Combustion - 0.1%
3,300 Cummins, Inc. ............................... 197,373
Enterprise Software/Services - 0.9%
31,700 Computer Associates International, Inc. ..... 849,877
29,300 Novell, Inc.* ............................... 282,452
1,132,329
Entertainment Software - 0.6%
15,300 Electronic Arts, Inc.* ...................... 774,486
Fiduciary Banks - 0.4%
1,800 Bank of New York Company, Inc. .............. 52,452
2,600 Mellon Financial Corp. ...................... 77,064
2,600 Northern Trust Corp. ........................ 109,928
5,500 State Street Corp. .......................... 268,400
507,844
Filtration and Separations Products - 0.2%
12,300 Pall Corp. .................................. 292,494
Finance - Consumer Loans - 0.4%
13,900 SLM Corp. ................................... 532,509
Finance - Credit Card - 1.1%
15,600 American Express Co. ........................ 763,620
5,300 Capital One Financial Corp. ................. 347,309
12,600 MBNA Corp. .................................. 307,188
4,500 Providian Financial Corp.* .................. 54,585
1,472,702
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 23
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS RISK-MANAGED STOCK FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Finance - Investment Bankers/Brokers - 2.7%
3,300 Bear Stearns Companies, Inc. ................ $ 264,462
32,000 Citigroup, Inc. ............................. 1,538,880
4,200 E*TRADE Financial Corp.* .................... 47,712
2,200 Goldman Sachs Group, Inc. ................... 212,300
16,900 J.P. Morgan Chase & Co. ..................... 635,440
2,100 Lehman Brothers Holdings, Inc. .............. 154,140
11,400 Merrill Lynch & Company, Inc. ............... 618,222
1,300 Morgan Stanley Co. .......................... 66,807
3,537,963
Finance - Mortgage Loan Banker - 1.2%
25,400 Countrywide Financial Corp. ................. 1,506,220
500 Freddie Mac ................................. 29,200
1,535,420
Financial Guarantee Insurance - 0.5%
3,300 Ambac Financial Group, Inc. ................. 227,700
5,100 MBIA, Inc. .................................. 300,339
1,100 MGIC Investment Corp. ....................... 80,982
609,021
Food - Confectionary - 0.1%
2,100 Hershey Foods Corp. ......................... 186,669
Food - Diversified - 0.5%
1,800 Campbell Soup Co. ........................... 49,734
4,700 ConAgra Foods, Inc. ......................... 135,783
500 General Mills, Inc. ......................... 24,375
3,600 H.J. Heinz Co. .............................. 137,484
1,400 Kellogg Co. ................................. 60,060
5,900 McCormick & Company, Inc. ................... 201,544
4,600 Sara Lee Corp. .............................. 106,168
715,148
Food - Flour and Grain - 0.3%
22,200 Archer-Daniels-Midland Co. .................. 389,832
Food - Retail - 0.1%
2,900 Kroger Co.* ................................. 50,750
1,200 Safeway, Inc.* .............................. 27,540
78,290
Food - Wholesale/Distribution - 0.6%
15,500 Supervalu, Inc. ............................. 477,245
7,600 Sysco Corp. ................................. 290,700
767,945
Forestry - 0.1%
3,300 Plum Creek Timber Company, Inc. ............. 97,548
Gas - Distribution - 0.4%
2,000 Peoples Energy Corp. ........................ 83,600
14,600 Sempra Energy Co. ........................... 463,550
547,150
Gold Mining - 0.7%
24,600 Newmont Mining Corp. ........................ 920,040
Health Care Cost Containment - 0%
800 McKesson Corp. .............................. 26,288
Hotels and Motels - 0.5%
7,700 Hilton Hotels Corp. ......................... 134,673
4,200 Marriott International, Inc. - Class A ...... 198,072
7,900 Starwood Hotels & Resorts Worldwide, Inc. ... 314,341
647,086
Shares or Principal Amount Market Value
================================================================================
Identification Systems and Devices - 0.2%
18,100 Symbol Technologies, Inc. ................... $ 217,200
Industrial Automation and Robotics - 0.3%
11,800 Rockwell Automation, Inc. ................... 385,742
Industrial Gases - 0.2%
5,600 Praxair, Inc. ............................... 204,680
Instruments - Controls - 0.1%
1,800 Parker Hannifin Corp. ....................... 99,522
1,800 Thermo Electron Corp.* ...................... 52,560
152,082
Instruments - Scientific - 0.3%
7,100 PerkinElmer, Inc. ........................... 136,675
4,800 Waters Corp.* ............................... 207,120
343,795
Insurance Brokers - 0%
1,400 Marsh & McLennan Companies, Inc. ............ 63,140
Internet Security - 0.2%
6,300 Symantec Corp.* ............................. 283,815
Investment Management and Advisory Services - 0.9%
11,100 Franklin Resources, Inc. .................... 608,613
12,400 T. Rowe Price Group, Inc. ................... 635,872
1,244,485
Leisure and Recreation Products - 0.3%
9,500 Brunswick Corp. ............................. 390,545
Life and Health Insurance - 0.4%
7,000 AFLAC, Inc. ................................. 295,610
1,700 Jefferson-Pilot Corp. ....................... 84,303
400 Principal Financial Group, Inc. ............. 14,120
3,000 Torchmark Corp. ............................. 156,120
550,153
Linen Supply and Related Items - 0.2%
5,600 Cintas Corp. ................................ 251,776
Machinery - Construction and Mining - 0.8%
13,300 Caterpillar, Inc. ........................... 1,033,809
Machinery - Farm - 0.3%
6,300 Deere & Co. ................................. 428,652
Medical - Biomedical and Genetic - 1.1%
11,100 Amgen, Inc.* ................................ 624,597
5,200 Chiron Corp.* ............................... 241,280
12,000 Genzyme Corp.* .............................. 522,720
500 Millipore Corp.* ............................ 26,215
1,414,812
Medical - Drugs - 2.1%
900 Abbott Laboratories ......................... 39,618
4,200 Eli Lilly and Co. ........................... 310,002
9,600 Forest Laboratories, Inc.* .................. 619,008
3,200 King Pharmaceuticals, Inc.* ................. 55,200
3,000 Merck & Company, Inc. ....................... 141,000
44,880 Pfizer, Inc. ................................ 1,604,909
1,200 Wyeth ....................................... 45,684
2,815,421
Medical - Generic Drugs - 0.4%
13,000 Watson Pharmaceuticals, Inc.* ............... 462,930
See Notes to Schedules of Investments and Financial Statements.
24 Janus, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Medical - HMO - 1.2%
7,600 Aetna, Inc. ................................. $ 628,900
500 Anthem, Inc.* ............................... 44,290
21,500 Humana, Inc.* ............................... 350,235
7,400 UnitedHealth Group, Inc. .................... 454,952
1,300 WellPoint Health Networks, Inc.* ............ 145,197
1,623,574
Medical - Hospitals - 0.3%
4,700 HCA, Inc. ................................... 190,961
11,500 Health Management Associates, Inc. ..........
- Class A ................................. 265,995
456,956
Medical - Nursing Homes - 0.3%
11,300 Manor Care, Inc. ............................ 366,572
Medical Information Systems - 0.4%
20,800 IMS Health, Inc. ............................ 525,200
Medical Instruments - 3.7%
55,100 Boston Scientific Corp.* .................... 2,269,569
21,900 Guidant Corp. ............................... 1,379,919
6,000 Medtronic, Inc. ............................. 302,760
12,100 St. Jude Medical, Inc.* ..................... 922,746
4,874,994
Medical Labs and Testing Services - 0.1%
2,100 Quest Diagnostics, Inc.* .................... 177,135
Medical Products - 2.1%
7,600 Baxter International, Inc. .................. 240,540
600 Becton, Dickinson and Co. ................... 30,330
1,300 Biomet, Inc. ................................ 51,350
8,300 Johnson & Johnson ........................... 448,449
9,400 Stryker Corp. ............................... 929,942
14,000 Zimmer Holdings, Inc.* ...................... 1,117,900
2,818,511
Metal - Aluminum - 0.1%
5,200 Alcoa, Inc. ................................. 159,900
Metal - Copper - 0.5%
10,100 Phelps Dodge Corp.* ......................... 664,883
Metal - Diversified - 0.6%
27,900 Freeport-McMoRan Copper & Gold, Inc.
- Class B ................................. 850,950
Metal Processors and Fabricators - 0%
2,800 Worthington Industries, Inc. ................ 50,540
Motorcycle and Motor Scooter Manufacturing - 0.2%
3,600 Harley-Davidson, Inc. ....................... 202,752
Multi-Line Insurance - 1.1%
5,900 Allstate Corp. .............................. 270,810
6,500 American International Group, Inc. .......... 465,725
6,000 Hartford Financial Services Group, Inc. ..... 366,480
400 Loews Corp. ................................. 23,204
500 MetLife, Inc. ............................... 17,250
2,700 Prudential Financial, Inc. .................. 118,638
2,900 SAFECO Corp. ................................ 126,991
1,389,098
Multimedia - 0.2%
500 McGraw-Hill Companies, Inc. ................. 39,430
3,600 Meredith Corp. .............................. 183,384
2,100 Time Warner, Inc.* .......................... 35,322
258,136
Shares or Principal Amount Market Value
================================================================================
Networking Products - 0.7%
44,500 Cisco Systems, Inc.* ........................ $ 928,715
Non-Hazardous Waste Disposal - 0.2%
7,800 Waste Management, Inc. ...................... 221,520
Office Automation and Equipment - 0%
3,000 Xerox Corp.* ................................ 40,290
Office Supplies and Forms - 0%
500 Avery Dennison Corp. ........................ 32,115
Oil - Field Services - 1.1%
1,200 BJ Services Co.* ............................ 53,400
40,500 Halliburton Co. ............................. 1,206,900
2,700 Schlumberger, Ltd. (New York Shares) ........ 158,031
1,418,331
Oil and Gas Drilling - 0.1%
600 Nabors Industries, Ltd.* .................... 26,616
600 Noble Corp.* ................................ 22,296
3,000 Transocean, Inc.* ........................... 83,310
132,222
Oil Companies - Exploration and Production - 1.5%
19,560 Apache Corp. ................................ 818,977
8,600 Burlington Resources, Inc. .................. 578,522
2,600 Devon Energy Corp. .......................... 159,120
500 EOG Resources, Inc. ......................... 24,625
1,300 Kerr-McGee Corp. ............................ 63,609
10,800 Unocal Corp. ................................ 389,232
2,034,085
Oil Companies - Integrated - 3.2%
5,500 Amerada Hess Corp. .......................... 391,215
2,600 ChevronTexaco Corp. ......................... 237,900
5,300 ConocoPhillips .............................. 377,890
38,200 Exxon Mobil Corp. ........................... 1,625,410
15,600 Marathon Oil Corp. .......................... 523,536
23,200 Occidental Petroleum Corp. .................. 1,095,040
4,250,991
Oil Refining and Marketing - 0.4%
7,300 Sunoco, Inc. ................................ 459,170
1,500 Valero Energy Corp. ......................... 95,640
554,810
Optical Supplies - 0.5%
3,100 Allergan, Inc. .............................. 272,955
5,300 Bausch & Lomb, Inc. ......................... 332,999
605,954
Paper and Related Products - 0.7%
17,100 Georgia-Pacific Corp. ....................... 600,210
11,200 Louisiana-Pacific Corp. ..................... 264,208
1,900 Temple-Inland, Inc. ......................... 117,363
981,781
Pharmacy Services - 0.7%
5,000 Caremark Rx, Inc.* .......................... 169,250
22,117 Medco Health Solutions, Inc.* ............... 782,942
952,192
Pipelines - 0.4%
8,000 Kinder Morgan, Inc. ......................... 481,680
4,600 Williams Companies, Inc. .................... 47,380
529,060
Power Converters and Power Supply Equipment - 0%
2,500 American Power Conversion Corp. ............. 46,650
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 25
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS RISK-MANAGED STOCK FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Printing - Commercial - 0.3%
14,000 R.R. Donnelley & Sons Co. ................... $ 411,880
Property and Casualty Insurance - 1.2%
3,400 Chubb Corp. ................................. 234,600
16,000 Progressive Corp. ........................... 1,400,320
1,634,920
Publishing - Newspapers - 0.5%
4,200 Gannett Company, Inc. ....................... 364,056
2,100 Knight-Ridder, Inc. ......................... 162,624
3,300 Tribune Co. ................................. 158,004
684,684
Real Estate Investment Trusts (REIT) - Apartments - 0.2%
10,800 Equity Residential Properties Trust ......... 296,568
Real Estate Investment Trusts (REIT) - Office Property - 0.1%
6,000 Equity Office Properties Trust .............. 151,020
Real Estate Investment Trusts (REIT) - Regional Malls - 0.9%
24,100 Simon Property Group, Inc. .................. 1,161,861
Real Estate Investment Trusts (REIT) -
Warehouse and Industrial - 0.2%
10,100 ProLogis .................................... 297,142
Retail - Apparel and Shoe - 1.0%
30,100 Gap, Inc. ................................... 662,501
4,600 Limited, Inc. ............................... 94,944
17,000 Nordstrom, Inc. ............................. 605,710
1,363,155
Retail - Auto Parts - 0.2%
2,700 AutoZone, Inc.* ............................. 236,439
Retail - Automobile - 0.3%
19,700 Auto Nation, Inc.* .......................... 335,294
Retail - Building Products - 0.4%
2,900 Home Depot, Inc. ............................ 102,051
6,800 Lowe's Companies, Inc. ...................... 354,008
456,059
Retail - Consumer Electronics - 0.7%
12,600 Best Buy Company, Inc. ...................... 683,550
11,100 Circuit City Stores, Inc. ................... 129,648
3,100 RadioShack Corp. ............................ 95,356
908,554
Retail - Discount - 1.4%
3,600 Big Lots, Inc.* ............................. 50,976
32,200 Dollar General Corp. ........................ 604,072
1,600 Family Dollar Stores, Inc. .................. 51,424
1,500 Target Corp. ................................ 65,055
1,800 TJX Companies, Inc. ......................... 44,226
17,700 Wal-Mart Stores, Inc. ....................... 1,008,900
1,824,653
Retail - Drug Store - 0.2%
6,600 CVS Corp. ................................... 254,958
Retail - Jewelry - 0.2%
5,200 Tiffany & Co. ............................... 202,800
Retail - Major Department Stores - 0.7%
1,700 J.C. Penney Company, Inc. ................... 57,562
11,100 May Department Stores Co. ................... 341,880
13,600 Sears, Roebuck and Co. ...................... 544,680
944,122
Shares or Principal Amount Market Value
================================================================================
Retail - Office Supplies - 0.2%
7,600 Staples, Inc. ............................... $ 195,776
Retail - Regional Department Stores - 0.4%
12,000 Federated Department Stores, Inc. ........... 588,000
Retail - Restaurants - 1.2%
29,700 McDonald's Corp. ............................ 808,731
9,600 Starbucks Corp.* ............................ 373,056
6,400 Wendy's International, Inc. ................. 249,600
3,500 Yum! Brands, Inc.* .......................... 135,765
1,567,152
Rubber - Tires - 0%
2,400 Cooper Tire & Rubber Co. .................... 51,336
Savings/Loan/Thrifts - 0.9%
9,700 Golden West Financial Corp. ................. 1,019,567
4,100 Washington Mutual, Inc. ..................... 161,499
1,181,066
Schools - 1.1%
15,900 Apollo Group, Inc. - Class A* ............... 1,444,992
Semiconductor Components/Integrated Circuits - 0%
1,300 Analog Devices, Inc. ........................ 55,380
Steel - Producers - 0.3%
15,400 United States Steel Corp. ................... 440,902
Super-Regional Banks - 3.8%
22,163 Bank of America Corp. ....................... 1,783,900
10,200 Bank One Corp. .............................. 503,574
2,100 Comerica, Inc. .............................. 108,423
2,500 Fifth Third Bancorp ......................... 134,150
6,300 Huntington Bancshares, Inc. ................. 134,820
2,300 KeyCorp ..................................... 68,310
2,700 National City Corp. ......................... 93,609
3,100 SunTrust Banks, Inc. ........................ 210,955
21,300 U.S. Bancorp ................................ 546,132
700 Union Planters Corp. ........................ 19,460
18,100 Wachovia Corp. .............................. 828,075
9,800 Wells Fargo & Co. ........................... 553,308
4,984,716
Telecommunication Equipment - 0.7%
6,700 Andrew Corp.* ............................... 113,565
37,000 Avaya, Inc.* ................................ 506,160
11,300 Scientific-Atlanta, Inc. .................... 366,007
985,732
Telecommunication Equipment - Fiber Optics - 0.1%
7,700 Corning, Inc.* .............................. 84,931
Telephone - Integrated - 0.3%
4,500 AT&T Corp. .................................. 77,175
1,200 BellSouth Corp. ............................. 30,972
2,900 CenturyTel, Inc. ............................ 83,752
1,400 Citizens Communications Co.* ................ 18,256
6,900 Sprint Corp. ................................ 123,441
300 Verizon Communications, Inc. ................ 11,322
344,918
Tobacco - 1.0%
8,800 Altria Group, Inc. .......................... 487,344
8,400 R.J. Reynolds Tobacco Holdings, Inc. ........ 544,068
7,500 UST, Inc. ................................... 279,075
1,310,487
See Notes to Schedules of Investments and Financial Statements.
26 Janus, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Tools - Hand Held - 0.3%
1,900 Black & Decker Corp. ........................ $ 109,915
8,000 Stanley Works ............................... 340,080
449,995
Toys - 0.2%
13,600 Hasbro, Inc. ................................ 256,904
Transportation - Railroad - 0.1%
1,500 Burlington Northern Santa Fe Corp. .......... 49,050
1,000 Union Pacific Corp. ......................... 58,930
107,980
Transportation - Services - 1.5%
11,500 FedEx Corp. ................................. 826,965
7,100 Ryder System, Inc. .......................... 261,209
13,300 United Parcel Service, Inc. - Class B ....... 932,995
2,021,169
Web Portals/Internet Service Providers - 1.1%
28,600 Yahoo!, Inc.* ............................... 1,443,156
Wireless Equipment - 0.5%
20,900 Motorola, Inc. .............................. 381,425
5,400 QUALCOMM, Inc. .............................. 337,284
718,709
- --------------------------------------------------------------------------------
Total Common Stock (cost $112,815,297) ...................... 124,375,671
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 1.3%
AIG Funding, Inc.
$ 1,700,000 0.97%, 5/3/04 (amortized cost $1,699,908) . 1,699,908
- --------------------------------------------------------------------------------
Short-Term U.S. Government Agency - 4.5%
Freddie Mac
6,000,000 0.85%, 5/3/04 (amortized cost $5,999,717) . 5,999,717
- --------------------------------------------------------------------------------
Short-Term U.S. Treasury Bill - 0.5%
U.S. Treasury Bill
600,000 0.92%, 6/24/04** (amortized cost $599,172) 599,172
- --------------------------------------------------------------------------------
Total Investments (total cost $121,114,094) - 100.5% ........ 132,674,468
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (0.5)% (671,087)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 132,003,381
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 1,453,105 1.1%
Cayman Islands 105,606 0.1%
Netherlands 158,031 0.1%
Panama 512,040 0.4%
United States++ 130,445,686 98.3%
- --------------------------------------------------------------------------------
Total $ 132,674,468 100.0%
++Includes Short-Term Securities (92.1% excluding Short-Term Securities)
- --------------------------------------------------------------------------------
Financial Futures - Long
121 Contracts S&P 500(R)E-mini
expires June 2004, principal
amount $6,833,688, value $6,691,300
cumulative depreciation ................... $ (142,388)
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 27
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS MID CAP VALUE FUND (unaudited) Managed by Perkins, Wolf,
McDonnell and Company, LLC
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Mid Cap Value Fund Russell Midcap Value
- - Investor Shares Index
Janus Mid Cap Value Fund
- - Institutional Shares(1)
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Since
Year-to-Date Year Year Inception*
---------------------------------------------------------------------------
Janus Mid Cap Value Fund
Investor Shares 11.50% 39.40% 16.51% 18.69%
Institutional Shares(1) 11.63% 39.78% 16.64% 18.81%
---------------------------------------------------------------------------
Russell Midcap Value Index 8.30% 34.92% 7.65% 8.84%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
*The Fund's inception date - August 12, 1998
(1) Closed to new investors.
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek capital appreciation by primarily investing at least 80% in common
stocks of mid-sized companies whose stock prices are believed to be undervalued.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Common Stock - Foreign - 6.5%
Cash and Cash Equivalents - 14.7%
Common Stock - Domestic - 78.8%
Number of Stocks: 128
Top 10 Equities: 13.1%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio managers' commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
28 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Washington Federal, Inc. 1.7% 1.5%
Genuine Parts Co. 1.4% 1.4%
Old Republic International Corp. 1.4% 1.1%
Hillenbrand Industries, Inc. 1.4% 1.2%
W.W. Grainger, Inc. 1.3% 1.2%
ALLTEL Corp. 1.2% --
CIT Group, Inc. 1.2% 1.4%
Laidlaw International, Inc. 1.2% --
McKesson Corp. 1.2% 0.9%
Lubrizol Corp. 1.1% 0.6%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Mid Cap Value Fund Russell Midcap Value Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Mid Cap Russell Midcap
Value Fund Value Index
Oil Companies - Exploration and Production 6.5% 1.9%
Commercial Banks 4.2% 7.9%
Savings/Loan/Thrifts 3.0% 1.6%
Distribution/Wholesale 2.7% 0.8%
Multi-Line Insurance 2.4% 1.4%
Oil - Field Services 2.2% 0.1%
Telephone - Integrated 2.0% 1.2%
Medical Labs and Testing Services 1.7% 0.0%
Medical - Hospitals 1.7% 0.4%
Paper and Related Products 1.6% 1.4%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
Berger Mid Cap Value Fund was reorganized into the Fund on April 21, 2003. The
returns shown prior to April 21, 2003 for Janus Mid Cap Value Fund - Investor
Shares are those of Berger Mid Cap Value Fund - Investor Shares. The returns
shown prior to April 21, 2003 for Janus Mid Cap Value Fund - Institutional
Shares are those of Berger Mid Cap Value Fund - Institutional Shares for the
period May 17, 2002 to April 17, 2003 and Berger Mid Cap Value Fund - Investor
Shares for periods prior to May 17, 2002.
Due to market volatility, the Fund may have an increased position in cash for
temporary defensive purposes.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
This Fund is designed for long-term investors who can accept the special risks
associated with value investing.
Janus Capital Management LLC has contractually agreed to waive the Fund's
Institutional Shares total operating expenses to the level indicated in the
prospectus until at least March 1, 2005. Without such waivers, total return
would have been lower.
Returns have sustained significant gains and losses due to market volatility in
the financials and information technology sectors.
Janus Capital Group Inc. has a 30% ownership stake in the investment advisory
business of Perkins, Wolf, McDonnell and Company, LLC.
Janus Core, Risk-Managed and Value Funds April 30, 2004 29
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS MID CAP VALUE FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 85.3%
Agricultural Operations - 0.6%
400,000 Bunge, Ltd# ................................. $ 14,820,000
Applications Software - 0.5%
1,650,000 Pinnacle Systems, Inc.*,# ................... 12,985,500
Automotive - Truck Parts and Equipment - Original - 1.5%
200,000 Autoliv, Inc. ............................... 8,506,000
380,000 Magna International, Inc.
- Class A (New York Shares) ............... 29,982,000
38,488,000
Broadcast Services and Programming - 0.8%
1,900,000 Liberty Media Corp. - Class A* .............. 20,786,000
Building - Residential and Commercial - 1.4%
550,000 Pulte Homes, Inc. ........................... 27,043,500
200,000 Standard Pacific Corp.# ..................... 10,088,000
37,131,500
Chemicals - Specialty - 1.1%
950,000 Lubrizol Corp. .............................. 30,210,000
Coal - 0.7%
600,000 Arch Coal, Inc.# ............................ 18,366,000
Commercial Banks - 4.2%
750,000 Compass Bancshares, Inc.# ................... 28,770,000
70,000 Marshall & Ilsley Corp. ..................... 2,573,900
480,000 Mercantile Bankshares Corp. ................. 20,601,600
1,100,000 National Commerce Financial Corp. ........... 29,249,000
950,000 SouthTrust Corp. ............................ 29,526,000
110,720,500
Commercial Services - 0.6%
1,400,000 ServiceMaster Co. ........................... 16,982,000
Commercial Services - Finance - 0.5%
280,000 H&R Block, Inc. ............................. 12,630,800
Computer Aided Design - 0.5%
420,000 Autodesk, Inc. .............................. 14,070,000
Computers - Memory Devices - 1.3%
204,640 Advanced Digital Information Corp.* ......... 2,173,277
450,000 Imation Corp.# .............................. 17,536,500
2,300,000 Maxtor Corp.* ............................... 14,973,000
34,682,777
Consumer Products - Miscellaneous - 0.6%
816,900 American Greetings Corp. - Class A*,# ....... 16,746,450
Data Processing and Management - 0.4%
400,000 SEI Investments Co. ......................... 11,808,000
Decision Support Software - 0.4%
900,000 NetIQ Corp.* ................................ 11,574,000
Diagnostic Equipment - 0.7%
830,000 Cytyc Corp.* ................................ 17,762,000
Distribution/Wholesale - 2.7%
1,050,000 Genuine Parts Co. ........................... 37,590,000
630,000 W.W. Grainger, Inc. ......................... 33,012,000
70,602,000
Diversified Operations - 1.4%
550,000 Federal Signal Corp.# ....................... 10,010,000
225,000 Harsco Corp. ................................ 9,794,250
100,000 Pentair, Inc. ............................... 5,959,000
400,000 Trinity Industries, Inc.# ................... 12,116,000
37,879,250
Shares or Principal Amount Market Value
================================================================================
Diversified Operations - Commercial Services - 0.1%
100,000 Cendant Corp. ............................... $ 2,368,000
Electronic Components - Semiconductors - 0.5%
350,000 QLogic Corp.* ............................... 9,446,500
300,000 Zoran Corp.* ................................ 4,959,000
14,405,500
Electronic Design Automation - 0.8%
800,000 Synopsys, Inc.*,# ........................... 21,384,000
Engineering - Research and Development Services - 1.0%
375,000 Fluor Corp. ................................. 14,310,000
280,000 Jacobs Engineering Group, Inc.* ............. 11,678,800
25,988,800
Fiduciary Banks - 0.4%
340,000 Wilmington Trust Corp. ...................... 11,821,800
Finance - Commercial - 1.2%
930,000 CIT Group, Inc. ............................. 31,964,100
Food - Diversified - 0.9%
600,000 H.J. Heinz Co. .............................. 22,914,000
Food - Retail - 0.6%
700,000 Safeway, Inc.* .............................. 16,065,000
Food - Wholesale/Distribution - 1.3%
445,200 Fresh Del Monte Produce, Inc.# .............. 10,395,420
800,000 Supervalu, Inc. ............................. 24,632,000
35,027,420
Forestry - 0.6%
550,000 Plum Creek Timber Company, Inc. ............. 16,258,000
Gas - Distribution - 0.5%
650,000 ONEOK, Inc.# ................................ 13,617,500
Health Care Cost Containment - 1.2%
925,000 McKesson Corp. .............................. 30,395,500
Home Furnishings - 0.7%
950,000 La-Z-Boy, Inc.# ............................. 19,798,000
Hospital Beds and Equipment - 1.4%
550,000 Hillenbrand Industries, Inc. ................ 37,125,000
Hotels and Motels - 0.7%
800,000 Fairmont Hotels & Resorts, Inc.
(New York Shares) ......................... 19,760,000
Industrial Gases - 0.8%
400,000 Air Products and Chemicals, Inc. ............ 19,924,000
Instruments - Controls - 0.5%
300,000 Mettler-Toledo International, Inc.*,# ....... 13,446,000
Internet Security - 1.3%
800,000 Check Point Software Technologies, Ltd. .....
(New York Shares)* ........................ 18,744,000
1,200,000 Internet Security Systems, Inc.*,# .......... 15,948,000
34,692,000
Investment Management and Advisory Services - 1.4%
650,000 Federated Investors, Inc. - Class B ......... 19,110,000
750,000 Waddell & Reed Financial, Inc. - Class A .... 16,672,500
35,782,500
Life and Health Insurance - 0.3%
200,000 Lincoln National Corp. ...................... 8,976,000
See Notes to Schedules of Investments and Financial Statements.
30 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Machinery - Construction and Mining - 0.5%
550,000 Joy Global, Inc.# ........................... $ 14,437,500
Machinery - General Industrial - 0.1%
95,445 Albany International Corp. - Class A ........ 2,911,073
Medical - Drugs - 0.6%
850,000 Priority Healthcare Corp. - Class B*,# ...... 17,042,500
Medical - Generic Drugs - 1.0%
1,100,000 Mylan Laboratories, Inc. .................... 25,201,000
Medical - Hospitals - 1.7%
450,000 HCA, Inc. ................................... 18,283,500
405,000 LifePoint Hospitals, Inc.*,# ................ 14,482,800
700,000 Province Healthcare Co.*,# .................. 11,193,000
43,959,300
Medical - Nursing Homes - 0.6%
480,000 Manor Care, Inc. ............................ 15,571,200
Medical Labs and Testing Services - 1.7%
450,000 Covance, Inc.* .............................. 15,183,000
750,000 Laboratory Corporation of
America Holdings*,# ....................... 29,805,000
44,988,000
Medical Products - 0.3%
200,000 Invacare Corp.# ............................. 7,966,000
Medical Sterilization Products - 1.1%
1,275,000 Steris Corp.* ............................... 28,254,000
Multi-Line Insurance - 2.4%
630,000 Cincinnati Financial Corp. .................. 25,823,700
1,600,000 Old Republic International Corp. ............ 37,152,000
62,975,700
Multimedia - 1.5%
600,000 Belo Corp. - Class A ........................ 17,076,000
275,000 McGraw-Hill Companies, Inc. ................. 21,686,500
38,762,500
Networking Products - 0.6%
2,500,000 3Com Corp.*,# ............................... 15,400,000
Non-Hazardous Waste Disposal - 1.1%
1,000,000 Republic Services, Inc. ..................... 28,820,000
Office Automation and Equipment - 0.6%
1,150,000 Xerox Corp.*,# .............................. 15,444,500
Oil - Field Services - 2.2%
750,000 Cal Dive International, Inc.*,# ............. 20,280,000
1,200,000 Key Energy Services, Inc.* .................. 12,792,000
750,000 Varco International, Inc.* .................. 15,517,500
200,000 Weatherford International, Ltd*,# ........... 8,696,000
57,285,500
Oil and Gas Drilling - 1.0%
500,000 Global Santa Fe Corp. ....................... 13,185,000
300,000 Precision Drilling Corp.* ................... 14,370,000
27,555,000
Shares or Principal Amount Market Value
================================================================================
Oil Companies - Exploration and Production - 6.5%
300,000 Anadarko Petroleum Corp. .................... $ 16,074,000
200,000 Burlington Resources, Inc. .................. 13,454,000
330,000 Devon Energy Corp. .......................... 20,196,000
550,000 EOG Resources, Inc. ......................... 27,087,500
800,000 Forest Oil Corp.* ........................... 21,000,000
478,900 Newfield Exploration Co.* ................... 25,228,452
450,000 Noble Energy, Inc. .......................... 20,745,000
575,000 Tom Brown, Inc.*,# .......................... 27,530,999
171,315,951
Oil Companies - Integrated - 0.7%
550,000 Marathon Oil Corp. .......................... 18,458,000
Oil Field Machinery and Equipment - 1.2%
500,000 Cooper Cameron Corp.*,# ..................... 24,175,000
300,000 National-Oilwell, Inc.*,# ................... 8,376,000
32,551,000
Paper and Related Products - 1.6%
625,000 Rayonier, Inc.# ............................. 24,375,000
270,000 Temple-Inland, Inc. ......................... 16,677,900
41,052,900
Pharmacy Services - 0.7%
420,000 Omnicare, Inc. .............................. 17,421,600
Power Converters and Power Supply Equipment - 0.7%
1,000,000 American Power Conversion Corp.# ............ 18,660,000
Property and Casualty Insurance - 0.7%
349,400 Mercury General Corp.# ...................... 17,815,906
Publishing - Periodicals - 0.2%
450,000 Reader's Digest Association, Inc.# .......... 6,448,500
Real Estate Investment Trusts (REIT) - Apartments - 0.9%
150,000 Avalonbay Communities, Inc. ................. 7,444,500
400,000 Home Properties, Inc. ....................... 14,936,000
22,380,500
Real Estate Investment Trusts (REIT) - Office Property - 0.9%
700,000 Prentiss Properties Trust ................... 22,428,000
Real Estate Investment Trusts (REIT)
- Shopping Centers - 0.4%
350,000 Weingarten Realty Investors ................. 10,118,500
Real Estate Investment Trusts (REIT) - Warehouse and
Industrial - 0.3%
300,000 Duke Realty Corp. ........................... 8,748,000
Reinsurance - 1.5%
180,000 Everest Re Group, Ltd. ...................... 15,332,400
650,000 IPC Holdings, Ltd. .......................... 23,920,000
39,252,400
Retail - Apparel and Shoe - 0.6%
450,000 Talbots, Inc.# .............................. 15,727,500
Retail - Discount - 0.9%
1,600,000 Big Lots, Inc.* ............................. 22,656,000
Retail - Drug Store - 0.8%
550,000 CVS Corp. ................................... 21,246,500
Retail - Restaurants - 1.0%
700,000 Brinker International, Inc.* ................ 26,922,000
Retail - Toy Store - 0.6%
1,041,700 Toys R Us, Inc.* ............................ 16,094,265
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 31
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS MID CAP VALUE FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Savings/Loan/Thrifts - 3.0%
400,000 Astoria Financial Corp. ..................... $ 13,768,000
400,000 People's Bank# .............................. 16,884,000
297,750 Provident Financial Services, Inc. .......... 5,359,500
1,870,000 Washington Federal, Inc. .................... 43,683,200
79,694,700
Semiconductor Components/Integrated Circuits - 0.7%
1,400,000 Integrated Device Technology, Inc.*,# ....... 18,830,000
Steel - Producers - 0.8%
900,000 Steel Dynamics, Inc.*,# ..................... 21,663,000
Super-Regional Banks - 1.0%
510,000 PNC Bank Corp. .............................. 27,081,000
Telecommunication Equipment - 0.1%
150,000 Advanced Fibre Communications, Inc.* ........ 2,505,000
Telecommunication Equipment - Fiber Optics - 0.4%
700,000 Newport Corp.*,# ............................ 10,388,000
Telephone - Integrated - 2.0%
650,000 ALLTEL Corp. ................................ 32,721,000
850,000 IDT Corp.*,# ................................ 15,793,000
200,000 IDT Corp. Class B*,# ........................ 3,724,000
52,238,000
Toys - 0.6%
950,000 Mattel, Inc. ................................ 16,112,000
Transportation - Air Freight - 0.8%
600,000 CNF, Inc. ................................... 21,936,000
Transportation - Marine - 0.1%
50,000 Teekay Shipping Corp. (New York Shares)# .... 3,040,000
Transportation - Railroad - 0.6%
1,200,000 Kansas City Southern*,# ..................... 16,620,000
Transportation - Services - 1.2%
2,300,000 Laidlaw International, Inc.* ................ 31,878,000
Transportation - Truck - 0.5%
350,000 USF Corp.# .................................. 11,637,500
Wireless Equipment - 0.2%
500,000 Wireless Facilities, Inc.*,# ................ 4,795,000
- --------------------------------------------------------------------------------
Total Common Stock (cost $1,977,224,728) .................... 2,254,247,392
- --------------------------------------------------------------------------------
Shares or Principal Amount Market Value
================================================================================
Other Securities - 4.8%
State Street Navigator Securities Lending
$127,061,337 Prime Portfolio+ (cost $127,061,337) ...... $ 127,061,337
- --------------------------------------------------------------------------------
Repurchase Agreement - 4.9%
130,000,000 J.P. Morgan Securities, Inc., 1.11%
dated 4/30/04, maturing 5/3/04
to be repurchased at $130,012,025
collateralized by $810,951,628
in U.S. Government Agencies
0% - 7.05%, 11/15/17 - 3/16/46
with a value of $132,600,679
(cost $130,000,000) ....................... 130,000,000
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 0.4% AIG Funding, Inc.
9,300,000 0.97%, 5/3/04 (amortized cost $9,299,499) . 9,299,499
- --------------------------------------------------------------------------------
Time Deposits - 9.8%
SouthTrust Bank, ETD
130,000,000 1.04%, 5/3/04 ............................. 130,000,000
SunTrust Bank, Inc., ETD
130,000,000 1.01325%, 5/3/04 .......................... 130,000,000
- --------------------------------------------------------------------------------
Total Time Deposits (cost $260,000,000) ..................... 260,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $2,503,585,564) - 105.2% ...... 2,780,608,228
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (5.2)% (137,279,484)
- --------------------------------------------------------------------------------
Net Assets - 100%............................................ $ 2,643,328,744
- --------------------------------------------------------------------------------
See Notes to Schedules of Investments and Financial Statements.
32 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 62,768,400 2.3%
Canada 64,112,000 2.3%
Cayman Islands 23,580,420 0.8%
Isreal 18,744,000 0.7%
Marshall Islands 3,040,000 0.1%
United States++ 2,608,363,408 93.8%
- --------------------------------------------------------------------------------
Total $ 2,780,608,228 100.0%
++Includes Short-Term Securities (74.9% excluding Short-Term Securities)
See Notes to Schedules of Investments and Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 33
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS SMALL CAP VALUE FUND Managed by Perkins, Wolf,
(unaudited) (closed to new investors) McDonnell and Company, LLC
PERFORMANCE
================================================================================
AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004
- --------------------------------------------------------------------------------
Janus Small Cap Value Fund Russell 2000 Value Index
- - Investor Shares
Janus Small Cap Value Fund
- - Institutional Shares
[BAR GRAPH]
Bar graph data shown in following table.
- --------------------------------------------------------------------------------
Fiscal One Five Ten
Year-to-Date Year Year Year
---------------------------------------------------------------------------
Janus Small Cap Value Fund
Investor Shares 10.01% 36.58% 13.84% 16.64%
Institutional Shares 10.15% 36.84% 14.15% 16.90%
---------------------------------------------------------------------------
Russell 2000 Value Index 9.09% 42.45% 12.92% 12.90%
================================================================================
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-3713 or visit janus.com for current month end performance.
See Notes to Schedules of Investments for index definitions.
Total return includes reinvestment of dividends, distributions and capital
gains. The returns shown do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
FUND STRATEGY
- --------------------------------------------------------------------------------
To seek capital appreciation by normally investing at least 80% of its assets in
common stocks of small companies whose stock prices are believed to be
undervalued.
FUND ASSET MIX - (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART]
Pie chart data shown in following table.
Common Stock - Foreign - 1.9%
Cash and Cash Equivalents - 11.8%
Common Stock - Domestic - 86.3%
Number of Stocks: 89
Top 10 Equities: 18.7%
- --------------------------------------------------------------------------------
For the latest information on your fund including portfolio managers' commentary
and updated performance, visit the Fund Updates section of janus.com.
- --------------------------------------------------------------------------------
34 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(unaudited)
TOP 10 EQUITY HOLDINGS - (% of Net Assets)
- --------------------------------------------------------------------------------
April 30, 2004 October 31, 2003
Lubrizol Corp. 2.2% 1.0%
Home Properties, Inc. 2.0% 2.0%
La-Z-Boy, Inc. 1.9% 1.7%
Steris Corp. 1.9% --
Tom Brown, Inc. 1.8% 1.2%
Washington Federal, Inc. 1.8% 1.0%
Superior Industries International, Inc. 1.8% 1.5%
Wolverine World Wide, Inc. 1.8% 1.8%
Rayonier, Inc. 1.8% 1.7%
Manor Care, Inc. 1.7% 1.9%
TOP INDUSTRIES - Fund vs. Index (% of Net Assets)
- --------------------------------------------------------------------------------
Janus Small Cap Value Fund Russell 2000 Value Index
[BAR GRAPH]
Bar graph data shown in following table.
Janus Small Cap Russell 2000
Value Fund Value Index
Savings/Loan/Thrifts 8.1% 4.2%
Diversified Operations 5.1% 1.6%
Oil Companies - Exploration and Production 4.8% 3.4%
Commercial Banks 3.1% 9.8%
Real Estate Investment Trusts (REIT) -
Office Property 3.1% 2.1%
Oil - Field Services 2.7% 0.5%
Multi-Line Insurance 2.4% 0.7%
Metal Processors and Fabricators 2.3% 0.6%
Chemicals - Specialty 2.2% 2.0%
Medical - Hospitals 2.1% 0.1%
- --------------------------------------------------------------------------------
See "Explanations of Charts, Tables and Financial Statements."
Berger Small Cap Value Fund was reorganized into the Fund on April 21, 2003. The
returns shown prior to April 21, 2003 for Janus Small Cap Value Fund - Investor
Shares are those of Berger Small Cap Value Fund - Investor Shares for the period
February 14, 1997 to April 17, 2003 and Berger Small Cap Value Fund -
Institutional Shares (then known as The Omni Investment Fund) for periods prior
to February 14, 1997. The returns shown for Janus Small Cap Value Fund -
Institutional Shares are those of Berger Small Cap Value Fund - Institutional
Shares for the periods prior to April 21, 2003.
Janus Capital Group Inc. has a 30% ownership stake in the investment advisory
business of Perkins, Wolf, McDonnell and Company, LLC.
Due to market volatility, the Fund may have an increased position in cash for
temporary defensive purposes.
The Fund's portfolio may differ significantly from the securities held in the
index. The index is not available for direct investment; therefore its
performance does not reflect the expenses associated with the active management
of an actual portfolio.
Funds that emphasize investments in smaller companies may experience greater
price volatility. This Fund is designed for long-term investors who can accept
the special risks associated with value investing.
Returns have sustained significant gains and losses due to market volatility in
the information technology, industrials, and financials sectors.
Janus Capital Management LLC has contractually agreed to waive the Fund's
Institutional Shares total operating expenses to the level indicated in the
prospectus until at least March 1, 2005. Without such waivers total return would
have been lower.
Janus Core, Risk-Managed and Value Funds April 30, 2004 35
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
JANUS SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Common Stock - 88.2%
Applications Software - 0.9%
3,500,000 Pinnacle Systems, Inc.*,#,(pound) ........... $ 27,545,000
Automotive - Truck Parts and Equipment - Original - 1.8%
1,680,000 Superior Industries International, Inc.#,(pound) 57,254,400
Building - Residential and Commercial - 1.2%
720,000 Standard Pacific Corp.# ..................... 36,316,800
Building Products - Cement and Aggregate - 0.8%
375,000 Eagle Materials, Inc.# ...................... 24,637,500
Chemicals - Plastics - 0.8%
1,180,000 A. Schulman, Inc.#,(pound) .................. 23,600,000
Chemicals - Specialty - 2.2%
2,100,000 Lubrizol Corp.# ............................. 66,780,000
Coal - 1.4%
1,450,000 Arch Coal, Inc.# ............................ 44,384,500
Commercial Banks - 3.1%
450,000 Chittenden Corp.# ........................... 13,689,000
1,992,000 F.N.B. Corp.# ............................... 39,043,200
1,890,000 Susquehanna Bancshares, Inc.#,(pound) ....... 44,226,000
96,958,200
Communications Software - 0.4%
520,000 Inter-Tel, Inc.# ............................ 12,448,800
Computer Services - 0.4%
900,000 Covansys Corp.*,(pound) ..................... 12,582,000
Computers - Memory Devices - 0.8%
740,000 Advanced Digital Information Corp.* ......... 7,814,400
440,000 Imation Corp.# .............................. 17,146,800
24,961,200
Consumer Products - Miscellaneous - 0.7%
1,050,000 American Greetings Corp. - Class A* ......... 21,525,000
Decision Support Software - 0.8%
2,000,000 NetIQ Corp.*,# .............................. 25,720,000
Diagnostic Equipment - 0.8%
1,170,000 Cytyc Corp.*,# .............................. 25,038,000
Diversified Operations - 5.1%
1,275,000 A.O. Smith Corp.#,(pound) ................... 38,122,500
1,000,000 Federal Signal Corp.# ....................... 18,200,000
950,000 Harsco Corp. ................................ 41,353,500
823,500 Lancaster Colony Corp.# ..................... 34,010,550
750,000 Trinity Industries, Inc.# ................... 22,717,500
154,404,050
Electronic Components - Semiconductors - 0.2%
460,000 Zoran Corp.* ................................ 7,603,800
Engineering - Research and Development Services - 1.5%
1,134,100 EMCOR Group, Inc.*,#,(pound) ................ 46,384,690
Enterprise Software/Services - 0.5%
2,300,000 Informatica Corp.* .......................... 16,652,000
Food - Diversified - 0.4%
450,000 American Italian Pasta Co.# ................. 13,932,000
Food - Wholesale/Distribution - 1.7%
1,710,000 Supervalu, Inc. ............................. 52,650,900
Footwear and Related Apparel - 1.8%
2,100,000 Wolverine World Wide, Inc.#,(pound) ......... 56,448,000
Home Furnishings - 1.9%
2,900,000 La-Z-Boy, Inc.#,(pound) ..................... 60,436,000
Shares or Principal Amount Market Value
================================================================================
Human Resources - 1.0%
3,259,100 Spherion Corp.*,#,(pound) ................... $ 32,102,135
Instruments - Controls - 1.4%
980,000 Mettler-Toledo International, Inc.*,# ....... 43,923,600
Internet Applications Software - 0.3%
700,000 Verity, Inc.*,# ............................. 8,680,000
Internet Security - 0.6%
1,320,000 Internet Security Systems, Inc.*,# .......... 17,542,800
Machine Tools and Related Products - 0.5%
460,000 Lincoln Electric Holdings, Inc.# ............ 14,503,800
Machinery - Construction and Mining - 1.5%
1,800,000 Joy Global, Inc.#,(pound) ................... 47,250,000
Machinery - General Industrial - 0.3%
350,000 Albany International Corp. - Class A ........ 10,675,000
Medical - Biomedical and Genetic - 0.5%
320,000 Charles River Laboratories
International, Inc.* ...................... 14,720,000
Medical - Drugs - 1.0%
1,500,000 Priority Healthcare Corp. - Class B*,# ...... 30,075,000
Medical - Generic Drugs - 1.1%
1,580,000 Perrigo Co.# ................................ 34,080,600
Medical - Hospitals - 2.1%
850,000 LifePoint Hospitals, Inc.*,# ................ 30,396,000
2,220,000 Province Healthcare Co.*,# .................. 35,497,800
65,893,800
Medical - Nursing Homes - 1.7%
1,650,000 Manor Care, Inc. ............................ 53,526,000
Medical Labs and Testing Services - 0.4%
355,000 Covance, Inc.*,# ............................ 11,977,700
Medical Products - 0.6%
490,000 Invacare Corp.# ............................. 19,516,700
Medical Sterilization Products - 1.9%
2,600,000 Steris Corp.* ............................... 57,616,000
Metal Processors and Fabricators - 2.3%
1,556,100 Kaydon Corp.#,(pound) ....................... 43,524,117
1,600,000 Worthington Industries, Inc. ................ 28,880,000
72,404,117
Multi-Line Insurance - 2.4%
2,070,000 Horace Mann Educators Corp.(pound) .......... 32,312,700
1,800,000 Old Republic International Corp. ............ 41,796,000
74,108,700
Oil - Field Services - 2.7%
1,500,000 Cal Dive International, Inc.*,#,(pound) ..... 40,560,000
4,000,000 Key Energy Services, Inc.*,# ................ 42,640,000
83,200,000
Oil Companies - Exploration and Production - 4.8%
750,000 Energy Partners, Ltd.*,# .................... 10,500,000
1,650,000 Forest Oil Corp.*,# ......................... 43,312,500
708,500 Newfield Exploration Co.* ................... 37,323,780
1,200,000 Tom Brown, Inc.*,# .......................... 57,456,000
148,592,280
Oil Field Machinery and Equipment - 0.5%
710,000 Maverick Tube Corp.*,# ...................... 16,067,300
See Notes to Schedules of Investments and Financial Statements.
36 Janus, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (unaudited)
Shares or Principal Amount Market Value
================================================================================
Paper and Related Products - 1.8%
1,394,808 Rayonier, Inc. .............................. $ 54,397,512
Property and Casualty Insurance - 0.5%
815,300 Harleysville Group, Inc.# ................... 15,490,700
Publishing - Periodicals - 1.2%
2,700,000 Reader's Digest Association, Inc.# .......... 38,691,000
Real Estate Investment Trusts (REIT) - Apartments - 2.0%
1,631,000 Home Properties, Inc.(pound) ................ 60,901,540
Real Estate Investment Trusts (REIT) -
Manufactured Homes - 1.0%
1,000,900 Manufactured Home Communities, Inc. ......... 31,328,170
Real Estate Investment Trusts (REIT) - Office Property - 3.1%
1,800,000 Brandywine Realty Trust, Inc. ............... 45,612,000
241,200 Kilroy Realty Corp. ......................... 7,561,620
1,300,000 Prentiss Properties Trust ................... 41,652,000
94,825,620
Real Estate Investment Trusts (REIT) - Warehouse and
Industrial - 1.4%
330,000 EastGroup Properties, Inc.# ................. 9,553,500
1,000,000 First Industrial Realty Trust, Inc.# ........ 33,650,000
43,203,500
Reinsurance - 1.2%
975,000 IPC Holdings, Ltd. .......................... 35,880,000
Retail - Apparel and Shoe - 0.5%
875,000 Too, Inc.*,#,(pound) ........................ 15,347,500
Retail - Convenience Stores - 1.0%
1,960,000 Casey's General Stores, Inc.# ............... 32,457,600
Retail - Discount - 1.1%
2,450,000 Big Lots, Inc.* ............................. 34,692,000
Rubber - Tires - 1.0%
1,500,000 Cooper Tire & Rubber Co. .................... 32,085,000
Savings/Loan/Thrifts - 8.1%
2,800,000 Brookline Bancorp, Inc.# .................... 39,648,000
3,525,000 First Niagara Financial Group, Inc.# ........ 44,415,000
1,821,745 Provident Financial Services, Inc.# ......... 32,791,410
1,445,000 Seacoast Financial Services Corp.(pound) .... 46,731,300
2,453,000 Washington Federal, Inc.# ................... 57,302,080
1,050,000 Waypoint Financial Corp.# ................... 27,174,000
248,061,790
Semiconductor Equipment - 0.2%
472,500 Ultratech, Inc.*,# .......................... 7,611,975
Steel - Producers - 0.9%
1,215,000 Steel Dynamics, Inc.*,# ..................... 29,245,050
Telecommunication Equipment - Fiber Optics - 0.5%
1,000,000 Newport Corp.*,# ............................ 14,840,000
Transportation - Air Freight - 0.8%
705,000 CNF, Inc. ................................... 25,774,800
Transportation - Equipment and Leasing - 0.5%
680,000 GATX Corp.# ................................. 15,980,000
Transportation - Marine - 0.7%
360,000 Teekay Shipping Corp. (New York Shares)# .... 21,888,000
Transportation - Railroad - 0.9%
2,003,000 Kansas City Southern*,# ..................... 27,741,550
Transportation - Services - 1.3%
3,000,000 Laidlaw International, Inc.* ................ 41,580,000
Shares or Principal Amount Market Value
================================================================================
Transportation - Truck - 1.0%
600,000 Swift Transportation Company, Inc.* ......... $ 10,152,000
660,000 USF Corp.# .................................. 21,945,000
32,097,000
Wireless Equipment - 0.7%
3,600,000 Stratex Networks, Inc.* ..................... 11,772,000
1,050,000 Wireless Facilities, Inc.*,# ................ 10,069,500
21,841,500
- --------------------------------------------------------------------------------
Total Common Stock (cost $2,178,995,300) .................... 2,740,680,179
- --------------------------------------------------------------------------------
Money Market - 1.9%
Janus Government Money Market Fund
$ 60,000,000 0.94% (cost $60,000,000) .................. 60,000,000
- --------------------------------------------------------------------------------
Other Securities - 10.6%
State Street Navigator Securities Lending
330,352,246 Prime Portfolio+ (cost $330,352,246) ...... 330,352,246
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 0.2% AIG Funding, Inc.
3,700,000 0.97%, 5/3/04 (amortized cost $3,699,801) . 3,699,801
- --------------------------------------------------------------------------------
Time Deposits - 10.0%
SouthTrust Bank, ETD
155,000,000 1.04%, 5/3/04 ............................. 155,000,000
SunTrust Banks, Inc., ETD
155,000,000 1.03125%, 5/3/04 .......................... 155,000,000
- --------------------------------------------------------------------------------
Total Time Deposits (cost $310,000,000) ..................... 310,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $2,883,047,347) - 110.9% ...... 3,444,732,226
- --------------------------------------------------------------------------------
Liabilities, net of Cash, Receivables and Other Assets - (10 9)% (338,987,105)
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 3,105,745,121
- --------------------------------------------------------------------------------
Summary of Investments by Country, April 30, 2004
% of Investment
Country Market Value Securities
- --------------------------------------------------------------------------------
Bermuda $ 35,880,000 1.0%
Marshall Islands 21,888,000 0.6%
United States++ 3,386,964,226 98.4%
- --------------------------------------------------------------------------------
Total $ 3,444,732,226 100.0%
++Includes Short-Term Securities (77.9% excluding Short-Term Securities)
See Notes to Schedules of Investments and Financial Statements.
Janus, Risk-Managed and Value Funds April 30, 2004 37
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
As of April 30, 2004 (unaudited)
(all numbers in thousands except Janus Janus
net asset value per share) Balanced Core Equity
Fund Fund
- -----------------------------------------------------------------------------------
Assets:
Investments at cost(1) $ 3,202,338 $ 581,862
Investments at value(1) $ 3,442,182 $ 670,683
Cash 6,141 1,036
Receivables:
Investments sold 46,593 11,369
Fund shares sold 1,680 272
Dividends 1,664 565
Interest 19,334 12
Due from adviser -- --
Other assets 27 5
Forward currency contracts 1,072 322
- -----------------------------------------------------------------------------------
Total Assets $ 3,518,693 $ 684,264
- -----------------------------------------------------------------------------------
Liabilities:
Payables:
Securities loaned (Note 1) 502,399 32,425
Investments purchased 4,561 9,024
Fund shares repurchased 11,860 479
Dividends -- --
Advisory fees 1,653 355
Transfer agent fees and expenses 607 165
Administrative services fees -- --
Foreign tax liability -- --
Accrued expenses 132 108
Variation margin -- --
Forward currency contracts 121 38
- -----------------------------------------------------------------------------------
Total Liabilities 521,333 42,594
- -----------------------------------------------------------------------------------
Net Assets $ 2,997,360 $ 641,670
- -----------------------------------------------------------------------------------
Net Assets Consists of:
Capital (par value and paid-in-surplus)* $ 3,206,614 $ 738,025
Undistributed net investment income/(loss)* 8,128 316
Undistributed net realized gain/(loss) from
investments and foreign currency transactions* (458,140) (185,755)
Unrealized appreciation/(depreciation) of
investments and foreign currency translations 240,758 89,084
- -----------------------------------------------------------------------------------
Total Net Assets $ 2,997,360 $ 641,670
- -----------------------------------------------------------------------------------
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 151,304 35,683
- -----------------------------------------------------------------------------------
Net Asset Value Per Share $ 19.81 $ 17.98
- -----------------------------------------------------------------------------------
Net Assets - Investor Shares N/A N/A
Shares Outstanding N/A N/A
- -----------------------------------------------------------------------------------
Net Asset Value Per Share N/A N/A
- -----------------------------------------------------------------------------------
Net Assets - Institutional Shares N/A N/A
Shares Outstanding N/A N/A
- -----------------------------------------------------------------------------------
Net Asset Value Per Share N/A N/A
- -----------------------------------------------------------------------------------
* See Note 3 in Notes to Financial Statements.
(1) Investments at cost and value include $490,729,012, $31,211,288,
$222,063,086, $193,183,357, $123,667,669 and $321,906,699 of securities
loaned for Janus Balanced Fund, Janus Core Equity Fund, Janus Growth and
Income Fund, Janus Special Equity Fund, Janus Mid Cap Value Fund and Janus
Small Cap Value Fund, respectively (Note 1).
(2) Net of foreign taxes on investments of $11,888,056 for Janus Special Equity
Fund.
See Notes to Financial Statements.
38 Janus Core, Risk-Managed and Value Funds April 30, 2004
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
As of April 30, 2004 (unaudited) Janus Janus Janus Janus Janus
(all numbers in thousands except Growth and Special Risk-Managed Mid Cap Small Cap
net asset value per share) Income Equity Stock Value Value
Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Assets:
Investments at cost(1) $ 5,089,658 $ 2,125,349 $ 121,114 $ 2,503,586 $ 2,883,047
Investments at value(1) $ 5,704,138 $ 2,764,797 $ 132,674 $ 2,780,608 $ 3,444,732
Cash 1,066 4,841 198 1,747 532
Receivables:
Investments sold 28,697 34,984 1,417 19,835 21,692
Fund shares sold 2,207 640 375 7,763 3,426
Dividends 4,774 2,241 73 989 1,751
Interest 647 230 -- 28 96
Due from adviser -- -- 70 -- --
Other assets 42 16 -- 11 22
Forward currency contracts 1,377 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets $ 5,742,948 $ 2,807,749 $ 134,807 $ 2,810,981 $ 3,472,251
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payables:
Securities loaned (Note 1) 230,559 200,116 -- 127,061 330,352
Investments purchased 27,341 23,421 2,555 34,744 30,398
Fund shares repurchased 4,856 1,949 42 3,672 3,099
Dividends -- -- 1 -- --
Advisory fees 3,048 1,422 70 1,414 1,986
Transfer agent fees and expenses 1,194 683 30 422 319
Administrative services fees -- -- 5 109 133
Foreign tax liability -- 11,888 -- -- --
Accrued expenses 21 292 50 191 219
Variation margin -- -- 51 39 --
Forward currency contracts 118 1,388 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 267,137 241,159 2,804 167,652 366,506
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $ 5,475,811 $ 2,566,590 $ 132,003 $ 2,643,329 $ 3,105,745
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets Consists of:
Capital (par value and paid-in-surplus)* $ 5,900,290 $ 2,571,147 $ 115,897 $ 2,190,143 $ 2,371,218
Undistributed net investment income/(loss)* 3,568 (783) 272 3,805 22,041
Undistributed net realized gain/(loss) from
investments and foreign currency transactions* (1,043,908) (629,846) 4,419 172,358 150,801
Unrealized appreciation/(depreciation) of
investments and foreign currency translations 615,861 626,072(2) 11,415 277,023 561,685
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 5,475,811 $ 2,566,590 $ 132,003 $ 2,643,329 $ 3,105,745
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 191,807 231,565 10,011 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share $ 28.55 $ 11.08 $ 13.19 N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - Investor Shares N/A N/A N/A $ 2,241,935 $ 1,635,763
Shares Outstanding N/A N/A N/A 106,686 52,147
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share N/A N/A N/A $ 21.01 $ 31.37
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets - Institutional Shares N/A N/A N/A $ 401,394 $ 1,469,982
Shares Outstanding N/A N/A N/A 19,044 46,614
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value Per Share N/A N/A N/A $ 21.08 $ 31.54
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Core, Risk-Managed and Value Funds April 30, 2004 39
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the six month period ended Janus Janus
April 30, 2004 (unaudited) Balanced Core Equity
(all numbers in thousands) Fund Fund
- -----------------------------------------------------------------------------------
Investment Income:
Interest $ 35,545 $ 75
Securities lending income 283 43
Dividends 12,968 4,112
Dividends from affiliates -- --
Foreign tax withheld (398) (128)
- -----------------------------------------------------------------------------------
Total Investment Income 48,398 4,102
- -----------------------------------------------------------------------------------
Expenses:
Advisory fees 11,526 2,230
Transfer agent fees and expenses 3,907 891
Registration fees 36 23
Postage and mailing expenses 134 94
Custodian fees 79 30
Printing expenses 162 115
Audit fees 10 8
Trustees' fees and expenses 26 8
Administrative service fees -- --
Other expenses 77 29
- -----------------------------------------------------------------------------------
Total Expenses 15,957 3,428
- -----------------------------------------------------------------------------------
Expense and Fee Offsets (49) (10)
- -----------------------------------------------------------------------------------
Net Expenses 15,908 3,418
- -----------------------------------------------------------------------------------
Less: Excess Expense Reimbursement -- --
- -----------------------------------------------------------------------------------
Net Expenses after Expense Reimbursement 15,908 3,418
- -----------------------------------------------------------------------------------
Net Investment Income/(Loss) 32,490 684
- -----------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 186,515 47,064
Net realized gain/(loss) from foreign
currency transactions (7,353) (1,355)
Net realized gain/(loss) from futures contracts -- --
Change in net unrealized appreciation/(depreciation)
of investments and foreign currency translations (73,086) (5,348)
- -----------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments 106,076 40,361
- -----------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations $ 138,566 $ 41,045
- -----------------------------------------------------------------------------------
(1) Net of foreign taxes on investments of $11,888,056 for Janus Special Equity
Fund.
See Notes to Financial Statements.
40 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Janus Janus Janus Janus Janus
For the six month period ended Growth and Special Risk-Managed Mid Cap Small Cap
April 30, 2004 (unaudited) Income Equity Stock Value Value
(all numbers in thousands) Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Interest $ 1,809 $ 374 $ 31 $ 1,524 $ 1,634
Securities lending income 299 143 -- 101 209
Dividends 35,232 13,010 684 16,999 26,527
Dividends from affiliates -- -- -- 78 6,895
Foreign tax withheld (926) (901) -- (29) --
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 36,414 12,626 715 18,673 35,265
- --------------------------------------------------------------------------------------------------------------------------------
Expenses:
Advisory fees 18,988 8,471 357 7,312 12,133
Transfer agent fees and expenses 6,795 3,461 148 2,280 3,060
Registration fees 7 45 12 91 52
Postage and mailing expenses 331 255 10 66 113
Custodian fees 94 107 14 30 38
Printing expenses 596 412 26 125 147
Audit fees 7 14 19 21 22
Trustees' fees and expenses 51 19 2 26 62
Administrative service fees -- -- 27 563 812
Other expenses 107 49 20 42 62
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses 26,976 12,833 635 10,556 16,501
- --------------------------------------------------------------------------------------------------------------------------------
Expense and Fee Offsets (46) (26) -- (11) (21)
- --------------------------------------------------------------------------------------------------------------------------------
Net Expenses 26,930 12,807 635 10,545 16,480
- --------------------------------------------------------------------------------------------------------------------------------
Less: Excess Expense Reimbursement -- -- (357) (237) (1,371)
- --------------------------------------------------------------------------------------------------------------------------------
Net Expenses after Expense Reimbursement 26,930 12,807 278 10,308 15,109
- --------------------------------------------------------------------------------------------------------------------------------
Net Investment Income/(Loss) 9,484 (181) 437 8,365 20,156
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments:
Net realized gain/(loss) from securities transactions 276,922 62,747 4,087 193,450 269,032
Net realized gain/(loss) from foreign
currency transactions (4,993) (1,930) -- -- --
Net realized gain/(loss) from futures contracts -- -- 378 (1,152) --
Change in net unrealized appreciation/(depreciation)
of investments and foreign currency translations 46,278 213,256(1) 2,728 13,064 25,538
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss) on Investments 318,207 274,073 7,193 205,362 294,570
- --------------------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations $ 327,691 $ 273,892 $ 7,630 $ 213,727 $ 314,726
- --------------------------------------------------------------------------------------------------------------------------------
Janus Core, Risk-Managed and Value Funds April 30, 2004 41
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the six month period ended April 30, 2004 (unaudited) Janus Balanced
and for the fiscal year or period ended October 31, 2003 Fund
(all numbers in thousands) 2004 2003
- --------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 32,490 $ 80,232
Net realized gain/(loss) from investment
and foreign currency transactions 179,162 (75,850)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations (73,086) 355,638
- --------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 138,566 360,020
- --------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (33,539) (86,845)
Net realized gain from investment transactions* -- --
Tax return of capital* -- --
- --------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (33,539) (86,845)
- --------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 252,422 870,908
Redemption fees N/A N/A
Shares issued in connection with acquisition* N/A 47,443
Reinvested dividends and distributions 33,026 85,339
Shares repurchased (1,321,680) (1,284,293)
- --------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (1,036,232) (280,603)
- --------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (931,205) (7,428)
Net Assets:
Beginning of period 3,928,565 3,935,993
- --------------------------------------------------------------------------------------
End of period $ 2,997,360 $ 3,928,565
- --------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 641,088 $ 2,382,262
Proceeds from sales of securities 1,647,420 2,102,098
Purchases of long-term U.S. Government obligations 46,341 336,401
Proceeds from sales of long-term
U.S. Government obligations 130,288 573,063
- --------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ 8,128 $ 9,177
- --------------------------------------------------------------------------------------
* See Notes 3 and 5 in Notes to Financial Statements.
(1) Fiscal period from February 28, 2003 (inception date) through October 31,
2003.
See Notes to Financial Statements.
42 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For the six month period ended April 30, 2004 (unaudited) Janus Core Janus Growth and
and for the fiscal year or period ended October 31, 2003 Equity Fund Income Fund
(all numbers in thousands) 2004 2003 2004 2003
- -----------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 684 $ 2,862 $ 9,484 $ 38,339
Net realized gain/(loss) from investment
and foreign currency transactions 45,709 (29,498) 271,929 (159,191)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations (5,348) 122,404 46,278 955,437
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 41,045 95,768 327,691 834,585
- -----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (2,483) (5,303) (11,222) (41,245)
Net realized gain from investment transactions* -- -- -- --
Tax return of capital* -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (2,483) (5,303) (11,222) (41,245)
- -----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 43,071 159,586 394,432 1,173,372
Redemption fees N/A N/A N/A N/A
Shares issued in connection with acquisition* N/A N/A N/A 181,669
Reinvested dividends and distributions 2,392 5,117 10,865 39,718
Shares repurchased (150,207) (253,864) (1,249,095) (1,512,633)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (104,744) (89,161) (843,798) (117,874)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (66,182) 1,304 (527,329) 675,466
Net Assets:
Beginning of period 707,852 706,548 6,003,140 5,327,674
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 641,670 $ 707,852 $ 5,475,811 $ 6,003,140
- -----------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 191,477 $ 505,510 $ 1,033,579 $ 2,867,872
Proceeds from sales of securities 315,548 549,715 1,876,880 2,223,329
Purchases of long-term U.S. Government obligations -- -- -- 187,581
Proceeds from sales of long-term
U.S. Government obligations -- 2,342 -- 495,001
- -----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ 316 $ 2,116 $ 3,568 $ 5,306
- -----------------------------------------------------------------------------------------------------------------------
For the six month period ended April 30, 2004 (unaudited) Janus Special Janus Risk-Managed
and for the fiscal year or period ended October 31, 2003 Equity Fund Stock Fund
(all numbers in thousands) 2004 2003 2004 2003(1)
- ----------------------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ (181) $ (3,251) $ 437 $ 83
Net realized gain/(loss) from investment
and foreign currency transactions 60,817 40,939 4,465 1,927
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 213,256 725,440 2,728 8,688
- ----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 273,892 763,128 7,630 10,698
- ----------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* -- (595) (249) --
Net realized gain from investment transactions* -- -- (1,972) --
Tax return of capital* -- (455) -- --
- ----------------------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions -- (1,050) (2,221) --
- ----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 186,158 375,308 52,812 101,154
Redemption fees N/A N/A 23 32
Shares issued in connection with acquisition* N/A 557,487 N/A N/A
Reinvested dividends and distributions -- 1,026 2,184 --
Shares repurchased (392,296) (484,557) (17,361) (22,948)
- ----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (206,138) 449,264 37,658 78,238
- ----------------------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 67,754 1,211,342 43,067 88,936
Net Assets:
Beginning of period 2,498,836 1,287,494 88,936 --
- ----------------------------------------------------------------------------------------------------------------------
End of period $ 2,566,590 $ 2,498,836 $ 132,003 $ 88,936
- ----------------------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 429,921 $ 827,073 $ 61,923 $ 88,222
Proceeds from sales of securities 654,162 940,276 28,935 13,928
Purchases of long-term U.S. Government obligations -- -- -- --
Proceeds from sales of long-term
U.S. Government obligations -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ (783) $ (602) $ 272 $ 83
- ----------------------------------------------------------------------------------------------------------------------
Janus Core, Risk-Managed and Value Funds April 30, 2004 43
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (continued)
For the six month period ended April 30, 2004
(unaudited), the six month fiscal period
ended October 31, 2003 and through the seven Janus Mid Cap
month fiscal period ended April 30, 2003 Value Fund(1)
(all numbers in thousands) 2004 2003 2003
- ------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 8,365 $ 3,738 $ 3,083
Net realized gain/(loss) from investment
and foreign currency transactions 192,298 49,657 (48,634)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 13,064 271,409 150,184
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 213,727 324,804 104,633
- ------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income*
Investor Shares (8,528) -- (1,929)
Institutional Shares (2,335) -- (343)
Net realized gain from investment transactions*
Investor Shares -- -- --
Institutional Shares -- -- --
- ------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (10,863) -- (2,272)
- ------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Investor Shares 846,827 434,785 356,776
Institutional Shares 101,956 86,010 71,344
Reinvested dividends and distributions
Investor Shares 7,653 -- 1,701
Institutional Shares 2,291 -- 336
Shares repurchased
Investor Shares (276,272) (248,429) (194,431)
Institutional Shares (28,644) (21,056) (20,748)
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions 653,811 251,310 214,978
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets 856,675 576,114 317,339
Net Assets:
Beginning of period 1,786,654 1,210,540 893,201
- ------------------------------------------------------------------------------------------------------
End of period $ 2,643,329 $ 1,786,654 $ 1,210,540
- ------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 1,341,623 $ 766,729 $ 712,843
Proceeds from sales of securities 813,310 631,328 505,695
Purchases of long-term U.S. Government obligations -- -- --
Proceeds from sales of long-term
U.S. Government obligations -- -- --
- ------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ 3,805 $ 6,259 $ 2,521
- ------------------------------------------------------------------------------------------------------
For the six month period ended April 30, 2004
(unaudited), the six month fiscal period
ended October 31, 2003 and through the seven Janus Small Cap
month fiscal period ended April 30, 2003 Value Fund(2)
(all numbers in thousands) 2004 2003 2003
- ------------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 20,156 $ 11,641 $ 5,304
Net realized gain/(loss) from investment
and foreign currency transactions 269,032 22,839 (140,984)
Change in unrealized net appreciation/(depreciation)
of investments and foreign currency translations 25,538 610,947 380,551
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets
Resulting from Operations 314,726 645,427 244,871
- ------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income*
Investor Shares (6,832) -- (1,664)
Institutional Shares (9,867) -- (3,526)
Net realized gain from investment transactions*
Investor Shares -- -- (61,256)
Institutional Shares -- -- (51,913)
- ------------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (16,699) -- (118,359)
- ------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold
Investor Shares 180,393 208,701 228,047
Institutional Shares 140,542 178,555 162,124
Reinvested dividends and distributions
Investor Shares 5,698 -- 54,232
Institutional Shares 8,735 -- 48,381
Shares repurchased
Investor Shares (367,050) (362,193) (333,666)
Institutional Shares (316,245) (278,000) (206,981)
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (347,927) (252,937) (47,863)
- ------------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (49,900) 392,490 78,649
Net Assets:
Beginning of period 3,155,645 2,763,155 2,684,506
- ------------------------------------------------------------------------------------------------------
End of period $ 3,105,745 $ 3,155,645 $ 2,763,155
- ------------------------------------------------------------------------------------------------------
Purchases and Sales of Investment Securities:
(excluding short-term securities)
Purchases of securities $ 810,779 $ 787,773 $ 616,399
Proceeds from sales of securities 1,099,828 1,051,801 854,826
Purchases of long-term U.S. Government obligations -- -- _
Proceeds from sales of long-term
U.S. Government obligations -- -- _
- ------------------------------------------------------------------------------------------------------
Undistributed net investment income/(loss)* $ 22,041 $ 16,699 $ 5,058
- ------------------------------------------------------------------------------------------------------
* See Note 3 in Notes to Financial Statements.
(1) Berger Mid Cap Value Fund prior to reorganization (Note 1).
(2) Berger Small Cap Value Fund prior to reorganization (Note 1).
See Notes to Financial Statements.
44 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding during the
six month period ended April 30, 2004 Janus Balanced Fund
(unaudited) and through each fiscal
year ended October 31 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 19.34 $ 18.08 $ 19.27 $ 22.83 $ 21.79 $ 17.22
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .20 .38 .47 .56 .61 .42
Net gain/(loss) on securities
(both realized and unrealized) .46 1.28 (1.20) (2.48) 1.33 4.69
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations .66 1.66 (.73) (1.92) 1.94 5.11
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.19) (.40) (.46) (.61) (.58) (.43)
Distributions (from capital gains)* -- -- -- (1.03) (.32) (.11)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.19) (.40) (.46) (1.64) (.90) (.54)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 19.81 $ 19.34 $ 18.08 $ 19.27 $ 22.83 $ 21.79
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 3.42% 9.34% (3.85)% (8.83)% 8.93% 29.89%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $2,997,360 $3,928,565 $3,935,993 $4,410,240 $4,773,381 $2,929,769
Average Net Assets for the Period
(in thousands) $3,565,865 $4,004,101 $4,278,174 $4,663,032 $4,072,183 $1,953,809
Ratio of Gross Expenses to
Average Net Assets***(1) 0.90% 0.89% 0.86% 0.85% 0.87% 0.92%
Ratio of Net Expenses to
Average Net Assets***(1) 0.90% 0.88% 0.84% 0.83% 0.85% 0.91%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 1.83% 2.00% 2.44% 2.79% 2.92% 2.37%
Portfolio Turnover Rate*** 40% 73% 88% 117% 87% 64%
For a share outstanding during the
six month period ended April 30, 2004
(unaudited) and through each fiscal Janus Core Equity Fund
year ended October 31 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 17.04 $ 14.99 $ 16.78 $ 24.25 $ 22.57 $ 15.59
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .02 .07 .11 .17 .15 .14
Net gain/(loss) on securities
(both realized and unrealized) .98 2.09 (1.81) (4.98) 2.25 7.17
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.00 2.16 (1.70) (4.81) 2.40 7.31
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.06) (.11) (.09) (.13) (.14) (.15)
Distributions (from capital gains)* -- -- -- (2.53) (.58) (.18)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.06) (.11) (.09) (2.66) (.72) (.33)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 17.98 $ 17.04 $ 14.99 $ 16.78 $ 24.25 $ 22.57
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 5.89% 14.54% (10.26)% (21.70)% 10.65% 47.22%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 641,670 $ 707,852 $ 706,548 $ 732,949 $1,026,503 $ 781,319
Average Net Assets for the Period
(in thousands) $ 689,994 $ 708,023 $ 801,601 $ 875,515 $1,019,261 $ 571,009
Ratio of Gross Expenses to
Average Net Assets***(1) 1.00% 0.97% 0.92% 0.95% 0.95% 1.02%
Ratio of Net Expenses to
Average Net Assets***(1) 1.00% 0.96% 0.89% 0.93% 0.93% 1.01%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 0.20% 0.40% 0.66% 0.85% 0.65% 0.81%
Portfolio Turnover Rate*** 57% 77% 98% 115% 116% 81%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) See "Explanations of Charts, Tables and Financial Statements."
See Notes to Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 45
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (continued)
For a share outstanding during the
six month period ended April 30, 2004
(unaudited) and through each fiscal Janus Growth and Income Fund
year ended October 31 2004 2003 2002 2001 2000 1999
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 27.12 $ 23.70 $ 27.99 $ 40.88 $ 36.84 $ 26.45
- ---------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .05 .17 .20 .32 .18 .26
Net gain/(loss) on securities
(both realized and unrealized) 1.43 3.43 (4.28) (11.24) 5.84 12.27
- ---------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.48 3.60 (4.08) (10.92) 6.02 12.53
- ---------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.05) (.18) (.21) (.35) (.14) (.27)
Distributions (from capital gains)* -- -- -- (1.62) (1.84) (1.87)
- ---------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.05) (.18) (.21) (1.97) (1.98) (2.14)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 28.55 $ 27.12 $ 23.70 $ 27.99 $ 40.88 $ 36.84
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return** 5.47% 15.20% (14.62)% (27.66)% 16.44% 49.59%
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $5,475,811 $6,003,140 $5,327,674 $6,575,281 $9,305,835 $5,836,885
Average Net Assets for the Period
(in thousands) $5,874,681 $5,715,041 $6,479,535 $7,758,499 $8,594,302 $4,375,277
Ratio of Gross Expenses to
Average Net Assets***(1) 0.92% 0.91% 0.90% 0.87% 0.89% 0.92%
Ratio of Net Expenses to
Average Net Assets***(1) 0.92% 0.91% 0.88% 0.86% 0.88% 0.90%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 0.32% 0.67% 0.73% 0.96% 0.49% 0.37%
Portfolio Turnover Rate*** 36% 50% 49% 59% 41% 43%
For a share outstanding during the
six month period ended April 30, 2004
(unaudited) and through each fiscal Janus Special Equity Fund
year or period ended October 31 2004 2003 2002 2001 2000(2)
- ------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 9.97 $ 6.95 $ 8.42 $ 11.29 $ 10.00
- ------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) --(3) --(3) -- .03 .01
Net gain/(loss) on securities
(both realized and unrealized) 1.11 3.03 (1.45) (2.65) 1.28
- ------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 1.11 3.03 (1.45) (2.62) 1.29
- ------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* -- (.01)(4) (.02) (.02) --
Distributions (from capital gains)* -- -- -- (.23) --
- ------------------------------------------------------------------------------------------------------------------
Total Distributions -- (.01) (.02) (.25) --
- ------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.08 $ 9.97 $ 6.95 $ 8.42 $ 11.29
- ------------------------------------------------------------------------------------------------------------------
Total Return** 11.13% 43.57% (17.23)% (23.61)% 12.90%
- ------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $2,566,590 $2,498,836 $1,287,494 $1,954,667 $3,126,948
Average Net Assets for the Period
(in thousands) $2,620,637 $1,862,723 $1,808,435 $2,665,589 $2,840,620
Ratio of Gross Expenses to
Average Net Assets***(1) 0.98% 1.02% 1.01% 0.92% 1.02%
Ratio of Net Expenses to
Average Net Assets***(1) 0.98% 1.01% 0.98% 0.91% 0.99%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** (0.01)% (0.17)% 0.03% 0.29% 0.14%
Portfolio Turnover Rate*** 33% 44% 60% 77% 72%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) See "Explanations of Charts, Tables and Financial Statements."
(2) Fiscal period from February 29, 2000 (inception date) through October 31,
2000.
(3) Net investment income/(loss) aggregated less than $.01 on a per share basis
for the fiscal year or period ended.
(4) Dividends (from net investment income) includes tax return of capital, less
than $0.01 per share.
See Notes to Financial Statements.
46 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For a share outstanding during the
six month period ended April 30, 2004
(unaudited) and through the fiscal Janus Risk-Managed Stock Fund
period ended October 31, 2003 2004 2003(1)
- ----------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 12.44 $ 10.00
- ----------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .05 .01
Net gain/(loss) on securities
(both realized and unrealized) .99 2.43
- ----------------------------------------------------------------------
Total from Investment Operations 1.04 2.44
- ----------------------------------------------------------------------
Less Distributions and Other:
Dividends (from net investment income)* (.03) --
Distributions (from capital gains)* (.26) --
Redemption fees --(2) --(2)
- ----------------------------------------------------------------------
Total Distributions and Other (.29) --
- ----------------------------------------------------------------------
Net Asset Value, End of Period $ 13.19 $ 12.44
- ----------------------------------------------------------------------
Total Return** 8.56% 24.40%
- ----------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 132,003 $ 88,936
Average Net Assets for the Period
(in thousands) $ 110,351 $ 50,912
Ratio of Gross Expenses to
Average Net Assets***(3) 0.51%(4) 1.13%(4)
Ratio of Net Expenses to
Average Net Assets***(3) 0.51% 1.13%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 0.80% 0.24%
Portfolio Turnover Rate*** 56% 39%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Fiscal period February 28, 2003 (inception date) through October 31, 2003.
(2) Redemption fees aggregated less than $.01 on a per share basis for the
period ended.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 1.16% in 2004 and 1.78% in 2003 before waiver of certain fees
incurred by the Fund.
See Notes to Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 47
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - INVESTOR SHARES
For a share outstanding during the six month
period ended April 30, 2004 (unaudited),
for the six month fiscal period ended
October 31, 2003, the seven month fiscal
period ended April 30, 2003 and through Janus Mid Cap Value Fund(1)
each fiscal year ended September 30 2004 2003 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 18.94 $ 15.15 $ 13.71 $ 14.30 $ 14.43 $ 12.17 $ 9.33
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .08 .03 .03 .02 .06 .08 .07
Net gain/(loss) on securities
(both realized and unrealized) 2.09 3.76 1.44 (.23) 1.27 3.46 2.83
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.17 3.79 1.47 (.21) 1.33 3.54 2.90
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.10) -- (.03) (.03) (.10) (.04) (.06)
Distributions (from capital gains)* -- -- -- (.35) (1.36) (1.24) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.10) -- (.03) (.38) (1.46) (1.28) (.06)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.01 $ 18.94 $ 15.15 $ 13.71 $ 14.30 $ 14.43 $ 12.17
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 11.50% 25.02% 10.73% (1.96)% 9.70% 31.11% 31.12%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $2,241,935 $1,494,209 $1,033,772 $ 782,101 $ 148,505 $ 33,013 $ 22,918
Average Net Assets for the Period
(in thousands) $1,903,355 $1,262,496 $ 962,030 N/A N/A N/A N/A
Ratio of Gross Expenses to
Average Net Assets***(2)(3) 0.94% 1.08% 1.14%(4) 1.17% 1.22% 1.59% 1.62%
Ratio of Net Expenses to
Average Net Assets***(2)(3) 0.94% 1.08% 1.14% N/A N/A N/A N/A
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 0.71% 0.45% 0.44% 0.28% 0.78% 0.72% 0.54%
Portfolio Turnover Rate*** 64% 97% 94% 65% 116% 129% 154%
For a share outstanding during the six month
period ended April 30, 2004(unaudited),
for the six month fiscal period ended
October 31, 2003, the seven month fiscal
period ended April 30, 2003 and through Janus Small Cap Value Fund(5)
each fiscal year ended September 30 2004 2003 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 28.63 $ 23.07 $ 21.96 $ 24.49 $ 24.78 $ 20.94 $ 17.58
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .19 .09 .03 .06 .22 .30 (.02)
Net gain/(loss) on securities
(both realized and unrealized) 2.67 5.47 2.07 (.16) 1.41 3.97 4.26
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.86 5.56 2.10 (.10) 1.63 4.27 4.24
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.12) -- (.03) (.18) (.32) (.20) (.07)
Distributions (from capital gains)* -- -- (.96) (2.25) (1.60) (.23) (.81)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.12) -- (.99) (2.43) (1.92) (.43) (.88)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 31.37 $ 28.63 $ 23.07 $ 21.96 $ 24.49 $ 24.78 $ 20.94
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 10.01% 24.15% 9.56% (2.52)% 6.65% 20.77% 24.69%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $1,635,763 $1,658,312 $1,476,575 $1,461,278 $1,378,894 $ 859,030 $ 374,063
Average Net Assets for the Period
(in thousands) $1,718,572 $1,575,178 $1,457,263 N/A N/A N/A N/A
Ratio of Gross Expenses to
Average Net Assets***(2)(3) 1.03% 1.10% 1.14%(6) 1.17% 1.14% 1.23% 1.37%
Ratio of Net Expenses to
Average Net Assets***(2)(3) 1.03% 1.10% 1.13% N/A N/A N/A N/A
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 1.14% 0.63% 0.22% 0.20% 0.99% 1.69% 1.36%
Portfolio Turnover Rate*** 58% 60% 45% 39% 47% 72% 66%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Berger Mid Cap Value Fund prior to reorganization (Note 1).
(2) Certain prior year amounts have been reclassified to conform to current
year presentation.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 1.17% in 2003, before waiver of certain fees incurred by the
Fund.
(5) Berger Small Cap Value Fund prior to reorganization (Note 1).
(6) The ratio was 1.20% in 2003, before waiver of certain fees incurred by the
Fund.
See Notes to Financial Statements.
48 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS - INSTITUTIONAL SHARES
For a share outstanding during the six month
period ended April 30, 2004 (unaudited), the
six month fiscal period ended October 31, 2003,
the seven month fiscal period ended
April 30, 2003 and through the fiscal Janus Mid Cap Value Fund(1)
period ended September 30, 2002 2004 2003 2003 2002(2)
- ---------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 19.02 $ 15.19 $ 13.72 $ 17.88
- ---------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .10 .05 .06 .02
Net gain/(loss) on securities
(both realized and unrealized) 2.10 3.78 1.44 (4.18)
- ---------------------------------------------------------------------------------------------------
Total from Investment Operations 2.20 3.83 1.50 (4.16)
- ---------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.14) -- (.03) --
Distributions (from capital gains)* -- -- -- --
- ---------------------------------------------------------------------------------------------------
Total Distributions (.14) -- (.03) --
- ---------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 21.08 $ 19.02 $ 15.19 $ 13.72
- ---------------------------------------------------------------------------------------------------
Total Return** 11.63% 25.21% 10.96% (23.27)%
- ---------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $ 401,394 $ 292,445 $ 176,768 $ 111,101
Average Net Assets for the Period
(in thousands) $ 361,138 $ 233,830 $ 148,748 N/A
Ratio of Gross Expenses to
Average Net Assets*** (3)(4) 0.78%(5) 0.78%(5) 0.79% 0.78%
Ratio of Net Expenses to
Average Net Assets*** (3)(4) 0.78% 0.78% 0.79% 0.78%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 0.89% 0.75% 0.80% 0.83%
Portfolio Turnover Rate*** 64% 97% 94% 65%
For a share outstanding during the six month
period ended April 30, 2004 (unaudited), the
six month fiscal period ended October 31, 2003,
the seven month fiscal period ended
April 30, 2003 and through each fiscal Janus Small Cap Value Fund(6))
year ended September 30, 2002 2004 2003 2003 2002 2001 2000 1999
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 28.82 $ 23.18 $ 22.08 $ 24.58 $ 24.87 $ 21.00 $ 17.63
- ----------------------------------------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .23 .13 .07 .12 .28 .33 .04
Net gain/(loss) on securities
(both realized and unrealized) 2.69 5.51 2.06 (.13) 1.42 4.01 4.28
- ----------------------------------------------------------------------------------------------------------------------------------
Total from Investment Operations 2.92 5.64 2.13 (.01) 1.70 4.34 4.32
- ----------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.20) -- (.07) (.24) (.39) (.24) (.14)
Distributions (from capital gains)* -- -- (.96) (2.25) (1.60) (.23) (.81)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions (.20) -- (1.03) (2.49) (1.99) (.47) (.95)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 31.54 $ 28.82 $ 23.18 $ 22.08 $ 24.58 $ 24.87 $ 21.00
- ----------------------------------------------------------------------------------------------------------------------------------
Total Return** 10.15% 24.23% 9.74% (2.13)% 6.93% 21.09% 25.18%
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period (in thousands) $1,469,982 $1,497,333 $1,286,580 $1,223,227 $1,185,004 $ 862,318 $ 414,347
Average Net Assets for the Period
(in thousands) $1,546,443 $1,454,779 $1,245,661 N/A N/A N/A N/A
Ratio of Gross Expenses to
Average Net Assets***(3)(4) 0.82%(7) 0.82%(7) 0.87% 0.82% 0.84% 0.88% 1.01%
Ratio of Net Expenses to
Average Net Assets***(3)(4) 0.82% 0.82% 0.87% 0.82% 0.84% 0.88% 1.01%
Ratio of Net Investment Income/(Loss)
to Average Net Assets*** 1.35% 0.91% 0.48% 0.53% 1.26% 1.99% 1.69%
Portfolio Turnover Rate*** 58% 60% 45% 39% 47% 72% 66%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods of less than one full year.
(1) Berger Mid Cap Value Fund prior to reorganization (Note 1).
(2) Fiscal period May 17, 2002 (inception date) through September 30, 2002.
(3) Certain prior year amounts have been reclassified to conform to current
year presentation.
(4) See "Explanations of Charts, Tables and Financial Statements."
(5) The ratio was 0.91% in 2004 and 1.08% in 2003, before waiver of certain
fees incurred by the Fund.
(6) Berger Small Cap Value Fund prior to reorganization (Note 1).
(7) The ratio was 1.00% in 2004 and 1.10% in 2003, before waiver of certain
fees incurred by the Fund.
See Notes to Financial Statements.
Janus Core, Risk-Managed and Value Funds April 30, 2004 49
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO SCHEDULES OF INVESTMENTS (unaudited)
Balanced Index The Balanced Index is a hypothetical
combination of unmanged indices. This index
combines the total returns from the S&P
500(R) Index (55%) and the Lehman Brothers
Government/Credit Index (45%).
Dow Jones Industrial Average A price-weighted average of 30 actively
traded Blue-Chip Stocks.
Lehman Brothers Is composed of all bonds that are
Government/Credit Index investment grade with at least one year
until maturity.
NASDAQ Composite The National Association of Securities
Stock Index Dealers Automated Quotation System is a
nation wide computerized quotation system
for over 5,500 over-the-counter stocks.
The index is compiled of more than 4,800
stocks that are traded via this system.
Russell 2000 Value Index Measures the performance of those Russell
2000 companies with lower price-to-book
ratios and lower forecasted growth values.
Russell Midcap Value Index Measures the performance of those Russell
MidCap companies with lower price-to-book
ratios and lower forecasted growth values.
The stocks are also members of the Russell
1000 Value Index.
S&P 500(R) Index The Standard & Poor's Composite Index of
500 stocks, a widely recognized, unmanaged
index of common stock prices.
144A Securities sold under Rule 144A of the
Securities Act of 1933 and are subject to
legal and/or contractual restrictions on
resale and may not be publicly sold without
registration under the 1933 Act.
ADR American Depositary Receipt
ETD Euro Time Deposit
GDR Global Depositary Receipt
New York Shares Securities of foreign companies trading on
the New York Stock Exchange
PLC Public Limited Company
* Non-income-producing security.
** A portion of this security has been segregated by the custodian to cover
margin or segregation requirements on open futures contracts and/or forward
currency contracts.
(omega) Rate is subject to change. Rate shown reflects current rate.
(beta) Security is illiquid.
# Loaned security, a portion or all of the security is on loan as of April
30, 2004.
+ The security is purchased with the cash collateral received from Securities
on Loan (Note 1).
(sigma) Fair valued security.
ss. SCHEDULE OF RESTRICTED AND ILLIQUID SECURITIES
Value as
Acquisition Acquisition % of
Date Cost Value Net Assets
- --------------------------------------------------------------------------------------------------------------------------
Janus Growth and Income Fund
Samsung Electronics Company, Ltd. (144A) (GDR) 7/8/03 - 1/20/04 $64,847,928 $89,189,156 1.6%
- --------------------------------------------------------------------------------------------------------------------------
Janus Special Equity Fund
Vector Group, Ltd., 6.25%
convertible subordinated notes,
due 7/15/08 (144A) 6/29/01 $10,000,000 $8,825,000 0.3%
- --------------------------------------------------------------------------------------------------------------------------
The funds have registration rights for certain restricted securities held as of
April 30, 2004. The issuer incurs all registration costs.
50 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(pound) The Investment Company Act of 1940 defines affiliates as those companies
in which a fund holds 5% or more of the outstanding voting securities at any
time during the six month period ended April 30, 2004.
Purchases Sales Realized Dividend Market Value
Shares Cost Shares Cost Gain/(Loss) Income at 4/30/04
- --------------------------------------------------------------------------------------------------------------------------------
Janus Special Equity Fund
Bally Total Fitness
Holding Corp. -- -- 2,011,850 $ 47,220,112 $(36,234,777) -- $ 2,361,440
Playboy Enterprises, Inc. 574,380 $ 7,288,882 -- -- -- -- 19,244,835
SBS Broadcasting S.A. -- -- 15,000 935,625 (513,594) -- 64,932,065
- --------------------------------------------------------------------------------------------------------------------------------
$ 7,288,882 $ 48,155,737 $(36,748,371) -- $ 86,538,340
- --------------------------------------------------------------------------------------------------------------------------------
Janus Small Cap Value Fund
A. Schulman, Inc. -- -- 1,120,000 $ 18,430,150 $ 2,778,260 -- $ 23,600,000
A.O. Smith Corp. 120,000 $ 3,834,859 245,000 4,061,206 4,122,225 $ 383,250 38,122,500
Cal Dive International, Inc. 370,000 7,801,500 685,000 14,709,497 3,340,615 -- 40,560,000
Covansys Corp. -- -- 1,046,186 15,829,219 (5,072,498) -- 12,582,000
EMCOR Group, Inc. 91,800 3,484,313 -- -- -- -- 46,384,690
Home Properties, Inc. -- -- -- -- -- 2,022,440 60,901,540
Horace Mann Educators Corp. -- -- 680,000 10,651,491 139,516 577,500 32,312,700
Joy Global, Inc. -- -- 1,653,600 30,160,947 10,138,387 268,780 47,250,000
Kaydon Corp. -- -- 283,900 6,511,626 321,500 381,600 43,524,117
La-Z-Boy, Inc. 250,000 4,875,000 -- -- -- 555,000 60,436,000
Pinnacle Systems, Inc. 300,000 2,578,992 200,000 1,887,788 7,928 -- 27,545,000
Seacoast Financial
Services Corp. -- -- 555,000 7,717,354 9,551,189 462,300 46,731,300
Spherion Corp. -- -- 1,090,900 20,163,498 (9,656,168) -- 32,102,135
Superior Industries
International, Inc. 535,000 21,813,695 -- -- -- 427,625 57,254,400
Susquehanna Bancshares, Inc. -- -- 260,000 6,031,784 305,242 946,000 44,226,000
Texas Industries, Inc. -- -- 1,125,000 26,377,824 13,723,615 124,200 --
Too, Inc. -- -- 985,000 16,823,266 2,602,778 -- 15,347,500
Wolverine World Wide, Inc. -- -- 758,100 9,251,751 7,526,682 322,641 56,448,000
- --------------------------------------------------------------------------------------------------------------------------------
$ 44,388,359 $188,607,401 $ 39,829,271 $ 6,471,336 $685,327,882
- --------------------------------------------------------------------------------------------------------------------------------
Repurchase Agreements held by a fund are fully collateralized, and such
collateral is in the possession of a fund's custodian or subcustodian. The
collateral is evaluated daily to ensure its market value exceeds the current
market value of the repurchase agreements, including accrued interest. In the
event of default on the obligation to repurchase, the fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
Janus Core, Risk-Managed and Value Funds April 30, 2004 51
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
The following section describes the organization and significant accounting
policies and provides more detailed information about the schedules and tables
that appear throughout this report. In addition, the Notes to Financial
Statements explain the methods used in preparing and presenting this report.
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Janus Balanced Fund, Janus Core Equity Fund, Janus Growth and Income Fund, Janus
Special Equity Fund, Janus Risk-Managed Stock Fund, Janus Mid Cap Value Fund and
Janus Small Cap Value Fund (collectively the "Funds" and individually a "Fund")
are series funds. The Funds are part of Janus Investment Fund (the "Trust"),
which was organized as a Massachusetts business trust and is registered under
the Investment Company Act of 1940 (the "1940 Act") as an open-end management
investment company. The Trust has nineteen funds which invest primarily in
equity securities. Each of the Funds in this report are classified as
diversified as defined in the 1940 Act, with the exception of Janus Special
Equity Fund, which is classified as nondiversified. The Funds are no-load
investments.
On April 21, 2003, Berger Small Cap Value Fund and Berger Mid Cap Value Fund
(collectively the "Reorganizing Funds") participated in a tax-free
reorganization with Janus Small Cap Value Fund and Janus Mid Cap Value Fund,
respectively (collectively the "Value Funds"). Both the Reorganizing Funds and
the Value Funds have Investor and Institutional Shares. The plan of
reorganization provided for the transfer for assets and liabilities of the
Reorganizing Funds to the Value Funds. The Value Funds were created to serve as
"shells" for the transfer of net assets of the Reorganizing Funds. For
accounting purposes, each Reorganizing Fund is considered the surviving entity,
and the financial highlights shown for periods prior to April 30, 2003 are the
financial highlights of the Reorganizing Funds. Subsequent to the
reorganization, the Value Funds changed their fiscal year end from September 30
to April 30 and then to October 31.
Prior to April 21, 2003 Berger Mid Cap Value Fund was a series established under
the Berger Investment Portfolio Trust, a Delaware business trust. Berger Small
Cap Value Fund was the only portfolio established under the Berger Omni
Investment Trust, a Massachusetts business trust. Berger Mid Cap Value Fund and
Berger Small Cap Value Fund offered two separate classes of shares; Investor
Shares and Institutional Shares. All classes of each fund had identical rights
to earnings, assets and voting privileges. Effective March 31, 2000, both
classes of Berger Small Cap Value Fund were closed to new investors. Berger Mid
Cap Value Fund - Institutional Shares is also closed to new investors.
The following accounting policies have been consistently followed by the Funds
and are in conformity with accounting principles generally accepted in the
United States of America in the investment company industry.
INVESTMENT VALUATION
Securities are valued at the closing price for securities traded on a principal
securities exchange (U.S. or foreign) and on the NASDAQ National Market.
Securities traded on over-the-counter markets and listed securities for which no
sales are reported are valued at the latest bid price (or yield equivalent
thereof) obtained from one or more dealers making a market for such securities
or by a pricing service approved by the Funds' Trustees. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. Currently, foreign securities and currencies are converted to U.S.
dollars using the applicable rate in effect as of 1:00 p.m. (New York time). It
is anticipated that sometime during the third calendar quarter, the conversion
to U.S. dollars will use the applicable rate in effect as of the close of the
New York Stock Exchange ("NYSE"). When market quotations are not readily
available or are deemed not to be reliable because of events or circumstances
that may affect the value of portfolio securities are identified between the
closing of their principal markets and the closing of the NYSE, then their fair
value is determined in good faith under procedures established by and under the
supervision of the Funds' Trustees. The Funds may use a systematic fair
valuation model provided by an independent third party to value international
equity securities in order to adjust for stale pricing, which may occur between
the close of the foreign exchanges and the close of the NYSE.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold
(trade date). Dividend income is recorded on the ex-dividend date. Certain
dividends from foreign securities will be recorded as soon as the Trust is
informed of the dividend if such information is obtained subsequent to the
ex-dividend date. Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. Gains and losses are determined on the
identified cost basis, which is the same basis used for federal income tax
purposes. For any Fund with multiple classes, income, as well as gains and
losses, both unrealized and realized, 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.
SECURITIES LENDING
Under procedures adopted by the Trustees, the Funds may lend securities to
qualified parties (typically brokers or other financial institutions) who need
to borrow securities in order to complete certain transactions such as covering
short sales, avoiding failures to deliver securities or completing arbitrage
activities. The Funds may seek to earn additional income through securities
lending. 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,
such loans will only be made if Janus Capital believes the benefit from granting
such loans justifies the risk. A Fund will not have the right to vote on
securities while they are being lent, however, the Fund will attempt to call
back the loan and
52 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
vote the proxy if time permits. All loans will be continuously secured by
collateral which consists of cash, U.S. Government securities, domestic and
foreign short-term debt instruments, letters of credit and such other collateral
permitted by the Securities Exchange Commission ("SEC"). The lending agent may
also invest the cash collateral in the State Street Navigator Securities Lending
Prime Portfolio or investments in unaffiliated money market funds or accounts
that comply with Rule 2a-7 of the 1940 Act relating to money market funds and
mutually agreed to by the Funds and the lending agent.
As of April 30, 2004, the following Funds had on loan securities as indicated:
Value at
Fund April 30, 2004
- --------------------------------------------------------------------------------
Janus Balanced Fund $490,729,012
Janus Core Equity Fund 31,211,288
Janus Growth and Income Fund 222,063,086
Janus Special Equity Fund 193,183,357
Janus Mid Cap Value Fund 123,667,669
Janus Small Cap Value Fund 321,906,699
- --------------------------------------------------------------------------------
As of April 30, 2004, the following Funds received cash collateral in accordance
with securities lending activity as indicated:
Cash Collateral at
Fund April 30, 2004
- --------------------------------------------------------------------------------
Janus Balanced Fund $502,398,529
Janus Core Equity Fund 32,424,633
Janus Growth and Income Fund 230,558,629
Janus Special Equity Fund 200,115,934
Janus Mid Cap Value Fund 127,061,337
Janus Small Cap Value Fund 330,352,246
- --------------------------------------------------------------------------------
All cash collateral received was invested into the State Street Navigator
Securities Lending Prime Portfolio. The borrower pays fees at the Funds'
direction to its lending agent. The lending agent may retain a portion of the
interest earned. The cash collateral invested by the lending agent is disclosed
in the Schedule of Investments. The lending fees and the Funds' portion of the
interest income earned on cash collateral is included on the Statement of
Operations.
FORWARD CURRENCY TRANSACTIONS
The Funds may enter into forward currency contracts in order to reduce their
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings and to lock in the U.S. dollar cost of firm purchase and sale
commitments for securities denominated in or exposed to foreign currencies. A
forward currency exchange contract is a commitment to purchase or sell a foreign
currency at a future date at a negotiated rate. The gain or loss arising from
the difference between the U.S. dollar cost of the original contract and the
value of the foreign currency in U.S. dollars upon closing of such contract is
included in net realized gain or loss from foreign currency transactions on the
Statement of Operations.
Forward currency contracts held by the Funds are fully collateralized by other
securities, which are denoted (if applicable) in the accompanying Schedule of
Investments. Such collateral is in the possession of the Funds' custodian. The
collateral is evaluated daily to ensure its market value equals or exceeds the
current market value of the corresponding forward currency contracts.
FUTURES CONTRACTS
The Funds may enter into futures contracts. The Funds intend to use such
derivative instruments primarily to hedge or protect from adverse movements in
securities prices, currency rates or interest rates. In addition, Janus
Risk-Managed Stock Fund may use futures contracts to gain exposure to the stock
market pending investment of cash balances or to meet liquidity needs. The use
of futures contracts may involve risks such as the possibility of illiquid
markets or imperfect correlation between the value of the contracts and the
underlying securities, or that the counterparty will fail to perform its
obligations.
Futures contracts are marked to market daily, and the daily variation margin is
recorded as an unrealized gain or loss. When a contract is closed, a realized
gain or loss is recorded equal to the difference between the opening and closing
value of the contract. Generally, futures contracts are marked to market (i.e.,
treated as realized and subject to distribution) for federal income tax purposes
at fiscal year-end. Securities designated as collateral for market value on
futures contracts are noted in the Schedule of Investments.
FOREIGN CURRENCY TRANSLATIONS
The Funds do not isolate that portion of the results of operations resulting
from 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 on investments
and foreign currency translation 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 security transactions and income.
Foreign-denominated assets and forward currency contracts may involve more risks
than domestic transactions, including currency risk, political and economic
risk, regulatory risk and market risk. Risks may arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of foreign currencies relative to the U.S.
dollar.
Janus Core, Risk-Managed and Value Funds April 30, 2004 53
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
WHEN-ISSUED SECURITIES
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. The price of the underlying securities and date when the securities will
be delivered and paid for are fixed at the time the transaction is negotiated.
Losses may arise due to changes in the market value of the securities or from
the inability of counterparties to meet the terms of the contract. In connection
with such purchases, the Funds are required to hold liquid assets as collateral
with the Fund's custodian sufficient to cover the purchase price.
INITIAL PUBLIC OFFERINGS
The Funds may invest in initial public offerings ("IPOs"). A Fund's performance
may be significantly affected, positively or negatively, by investments in IPOs.
IPOs and other investment techniques may have a magnified performance impact on
a fund with a small asset base. The Funds may not experience similar performance
as their assets grow.
RESTRICTED SECURITY TRANSACTIONS
Restricted securities held by the Funds may not be sold except in exempt
transactions or in a public offering registered under the Securities Act of
1933. 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 a Fund to sell a security at a fair price and may substantially delay the
sale of the security which each fund seeks to sell. In addition, these
securities may exhibit greater price volatility than securities for which
secondary markets exist.
DIVIDEND DISTRIBUTIONS
Dividends for Janus Balanced Fund and Janus Growth and Income Fund are declared
and distributed quarterly, and capital gains (if any) are distributed annually.
The remaining Funds generally declare and distribute dividends and capital gains
(if any) annually. The majority of dividends and capital gains distributions
from a Fund will be automatically reinvested into additional shares of that
Fund.
ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
FEDERAL INCOME TAXES
No provision for income taxes is included in the accompanying financial
statements as the Funds intend to distribute to shareholders all taxable
investment income and realized gains and otherwise comply with Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
PROXY VOTING
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to their portfolio securities is available (i) without
charge, upon request, by calling 1-800-525-3713 (toll free); (ii) on the fund's
website at www.janus.com; and (iii) on the SEC's website at http://www.sec.gov.
Starting in August 2004, each Fund's proxy voting record for the one-year period
ending each June 30th will be available through www.janus.com and from the SEC
through the SEC's website at www.sec.gov.
2. AGREEMENTS
The advisory agreements with the Funds spell out the fees that the Funds must
pay for the period. Each of the Funds' management fee is equal to 0.65% of
average daily net assets, except for Janus Small Cap Value Fund. The management
fee for Janus Small Cap Value Fund is 0.75% of average daily net assets. The
advisory fee is calculated daily and paid monthly.
Enhanced Investment Technologies, LLC ("INTECH") serves as subadviser to Janus
Risk-Managed Stock Fund. Janus Capital indirectly owns approximately 77.5% of
the outstanding voting shares of INTECH. Janus Capital pays INTECH a subadvisory
fee at the annual rate of 0.26% of average daily net assets from its management
fee for managing the fund.
Janus Capital has voluntarily agreed to waive its management fees for Janus
Risk-Managed Stock Fund. This amount is reflected on the Statement of Operations
as Excess Expense Reimbursement.
Perkins, Wolf, McDonnell and Company, LLC ("Perkins") serves as subadviser to
Janus Mid Cap Value Fund and Janus Small Cap Value Fund. As compensation for its
services, Perkins receives directly from each Value Fund a fee equal to 50% of
Janus Capital's management fee (net of any reimbursement of expenses incurred or
fees waived by Janus Capital). Janus Capital has a 30% ownership stake in
Perkins' investment advisory business.
Prior to April 21, 2003, Berger Financial Group LLC ("Berger") served as
investment adviser to Berger Mid Cap Value Fund and Berger Small Cap Value Fund
pursuant to agreements that provided for an investment advisory fee to be paid
to Berger according to the following schedule:
Average Daily
Fund Net Assets Annual Rate
- --------------------------------------------------------------------------------
Berger Mid Cap Value Fund First $500 million .75%
Next $500 million .70%
Over $1 billion .65%
- --------------------------------------------------------------------------------
Berger Small Cap Value Fund First $500 million .85%
Next $500 million .80%
Over $1 billion .75%
- --------------------------------------------------------------------------------
Berger had agreed to reimburse Berger Mid Cap Value Institutional Shares to the
extent that the class specific transfer agency and registration fees, in
aggregate, exceeded .25% of the average daily net assets of the class in any
fiscal year.
54 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The Reorganizing Funds had entered into administrative services agreements with
Berger. Berger provided administrative services to the Reorganizing Funds at no
cost.
Berger Mid Cap Value Fund Investor Shares and Berger Small Cap Value Fund
Investor Shares had adopted plans pursuant to Rule 12b-1 under the 1940 Act (the
"Plans"). The Plans provided for the payment to Berger of a 12b-1 fee of 25% per
annum of Berger Mid Cap Value Fund's Investor Shares average daily net assets
and Berger Small Cap Value Fund's Investor Shares average daily net assets. The
Plans provided that such payments would be made to Berger as compensation rather
than as reimbursements for actual expenses incurred to promote the sale of
shares of the Funds. During the period in which Berger Small Cap Value Fund
Investor Shares was closed, Berger reduced the 12b-1 fee payable by Berger Small
Cap Value Fund Investor Shares by the amount of such fee that was not utilized
by Berger to provide, or to compensate third party administrators or other
companies for providing, shareholder services in connection with the
distribution of shares. Berger voluntarily waived fees associated with 12b-1 for
the period April 1, 2003 through April 17, 2003.
Janus Services LLC ("Janus Services"), a wholly-owned subsidiary of Janus
Capital, receives an administrative services fee at an annual rate of up to
0.05% of the average daily net assets of Janus Risk-Managed Stock Fund, Janus
Mid Cap Value Fund and Janus Small Cap Value Fund for providing or procuring
recordkeeping, subaccounting and other administrative services to the investors.
Each of the Funds pays Janus Services an asset-weighted average annual fee based
on the proportion of each of the Fund's total net assets sold directly and the
proportion of each Fund's net assets sold through financial intermediaries. The
applicable fee rates are 0.16% of net assets on the proportion of assets sold
directly and 0.21% on the proportion of assets sold through intermediaries. In
addition, Janus Services receives $4.00 per shareholder account (excluding Janus
Mid Cap Value Fund - Institutional Shares and Janus Small Cap Value Fund) for
transfer agent services plus reimbursement of certain out-of-pocket expenses
(primarily postage and telephone charges).
By written agreement, Janus Services has agreed until March 1, 2005 to waive the
transfer agency fee payable by the Institutional Shares of the Value Funds so
that the total expenses of the Institutional Shares do not exceed the total
expenses of the Institutional Shares of Berger Mid Cap Value Fund and Berger
Small Cap Value Fund, as of September 30, 2002, which were .82% and 78%,
respectively.
A 2.00% redemption fee may be imposed on shares of Janus Risk-Managed Stock Fund
held for three months or less. Effective March 1, 2004, the redemption fee for
the Fund increased from 1.00% to 2.00% on shares purchased on or after that
date. The redemption fee is designed to offset transaction costs and other
expenses associated with short-term redemptions. This fee is paid to the Fund
rather than Janus Capital, and is designed to deter excessive short-term trading
and to offset the brokerage commissions, market impact, and other costs
associated with changes in the Fund's asset level and cash flow due to
short-term money movements in and out of the Fund. The redemption fee is
accounted for as an addition to Paid-in-Capital. Total redemption fees received
by Janus Risk-Managed Stock Fund were $23,277 for the six month period ended
April 30, 2004.
During the six month period ended April 30, 2004, Janus Capital reimbursed Janus
Mid Cap Value Fund - Investor and Institutional Shares $110,642 and $25,205,
respectively, for certain trading and valuation errors, the amounts of which
were insignificant.
Certain officers and trustees of the Funds may also be officers and/or directors
of Janus Capital; however, such officers and trustees receive no compensation
from the Funds.
The Funds' expenses may be reduced by voluntary brokerage credits from
affiliated or unaffiliated brokers or expense offsets from an unaffiliated
custodian. Such credits or offsets are included in Expense and Fee Offsets on
the Statement of Operations. Brokerage commissions paid to the brokers reduce
transfer agent fees and expenses. Custody credits received reduce custodian
fees. The Funds could have employed the assets used by the custodian to produce
income if it had not entered into an expense offset arrangement.
DST Systems, Inc. ("DST"), an affiliate of Janus Capital Group Inc. ("JCGI"),
parent to the Funds' adviser, provides a shareholder accounting system to the
Funds for a fee. As of December 1, 2003, following a share exchange transaction
in which JCGI exchanged 32.3 million shares of its holdings of DST common stock
for all of the stock of a wholly-owned subsidiary of DST, JCGI owned
approximately 9% of the outstanding common shares of DST. DST fees are included
in Transfer Agent Fees and Expenses on the Statement of Operations. Brokerage
commissions paid to DST Securities, Inc. serve to reduce transfer agent fees and
expenses. Brokerage commissions paid, fees reduced and the net fees paid to DST
for the six month period ended April 30, 2004, are noted below.
DST Securities, Inc. Fund
Commissions Expense
Fund Paid Reduction DST Systems Cost
- --------------------------------------------------------------------------------
Janus Balanced Fund -- -- $207,015
Janus Core Equity Fund -- -- 131,113
Janus Growth and Income Fund -- -- 652,416
Janus Special Equity Fund $ 3,765 $ 2,824 585,819
Janus Risk-Managed Stock Fund -- -- 27,689
Janus Mid Cap Value Fund -- -- 90,153
Janus Small Cap Value Fund -- -- 89,663
- --------------------------------------------------------------------------------
Janus Core, Risk-Managed and Value Funds April 30, 2004 55
- --------------------------------------------------------------------------------
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
The Funds may invest in money market funds, including funds managed by Janus
Capital. During the six month period ended April 30, 2004, the following Funds
recorded distributions from affiliated investment companies as affiliated
dividend income, and had the following affiliated purchases and sales:
Purchases Sales Dividend Market Value
Shares/Cost Shares/Cost Income at 4/30/04
- ------------------------------------------------------------------------------------------------------
Janus Government Money Market Fund
Janus Mid Cap Value Fund $ 50,000,000 $ 50,000,000 $ 26,776 --
Janus Small Cap Value Fund 160,000,000 100,000,000 356,789 $ 60,000,000
- ------------------------------------------------------------------------------------------------------
$210,000,000 $150,000,000 $ 383,565 $ 60,000,000
- ------------------------------------------------------------------------------------------------------
Janus Institutional Cash Reserves Fund
Janus Mid Cap Value Fund $ 95,000,000 $ 95,000,000 $ 51,118 --
Janus Small Cap Value Fund 225,000,000 225,000,000 67,192 --
- ------------------------------------------------------------------------------------------------------
$320,000,000 $320,000,000 $ 118,310 --
- ------------------------------------------------------------------------------------------------------
56 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
accounting principles generally accepted in the United States of America. These
differences are due to differing treatments for items such as deferral of wash
sales, foreign currency transactions, net operating losses and capital loss
carryovers.
The Funds have elected to treat gains and losses on forward foreign currency
contracts as capital gains and losses. 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 October 31, 2003 that may be available to offset future realized capital
gains and thereby reduce future taxable gain distributions. These carryovers
expire between October 31, 2007 and October 31, 2011.
The aggregate cost of investments and the composition of unrealized appreciation
and depreciation of investments for federal income tax purposes as of April 30,
2004 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude
appreciation/(depreciation) on foreign currency translations. The primary
difference between book and tax appreciation or depreciation of investments is
wash sale loss deferrals.
Net
Accumulated Federal Unrealized Unrealized Appreciation/
Fund Capital Losses Tax Costs Appreciation (Depreciation) (Depreciation)
- ------------------------------------------------------------------------------------------------------------------------------
Janus Balanced Fund $ (631,092,022) $ 3,209,114,158 $ 295,379,324 $ (62,311,896) $ 233,067,428
Janus Core Equity Fund (228,581,826) 584,943,559 98,669,325 (12,929,870) 85,739,455
Janus Growth and Income Fund (1,277,234,731) 5,120,950,416 839,408,246 (256,220,420) 583,187,826
Janus Special Equity Fund (648,102,112) 2,164,865,427 688,652,845 (88,721,562) 599,931,283
Janus Risk-Managed Stock Fund -- 121,150,591 14,346,240 (2,822,363) 11,523,877
Janus Mid Cap Value Fund (8,977,673) 2,510,218,708 320,313,517 (49,923,997) 270,389,520
Janus Small Cap Value Fund (117,418,807) 2,886,480,241 639,319,568 (81,067,583) 558,251,985
- ------------------------------------------------------------------------------------------------------------------------------
Janus Core, Risk-Managed and Value Funds April 30, 2004 57
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. EXPENSES
Expenses 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.
Each Fund bears expenses incurred specifically on its behalf as well as a
portion of general expenses, which are allocated pro rata to each of the Funds.
5. FUND ACQUISITIONS AND FUND REORGANIZATIONS
On February 28, 2003, Janus Strategic Value Fund acquired all of the net assets
of Janus Special Situations Fund pursuant to a plan of reorganization approved
by the Trustees of Janus Investment Fund. The surviving fund was renamed Janus
Special Equity Fund. The reorganization was accomplished by a tax-free exchange
of shares of Janus Strategic Value Fund in the amount of 81,028,554 shares
(valued at $557,486,805) for the 54,590,330 shares of Janus Special Situations
Fund, including $140,074,941 of unrealized depreciation. The aggregate net
assets of Janus Strategic Value Fund and Janus Special Situations Fund
immediately before the reorganization were $1,193,280,706 and $557,486,805,
respectively. The aggregate net assets immediately after the reorganization were
$1,750,767,511.
Effective April 21, 2003, Berger Mid Cap Value Fund and Berger Small Cap Value
Fund participated in a tax-free reorganization with Janus Mid Cap Value Fund and
Janus Small Cap Value Fund, respectively. The plan of the reorganization
provided for the transfer of assets and liabilities of Berger Mid Cap Value Fund
- - Investor Shares and Institutional Shares and Berger Small Cap Value Fund -
Investor Shares and Institutional Shares to Janus Mid Cap Value Fund - Investor
Shares and Institutional Shares and Janus Small Cap Value Fund - Investor Shares
and Institutional Shares, respectively. Berger Mid Cap Value Fund transferred
net assets from Investor Shares and Institutional Shares of $999,637,409 and
$167,938,260, respectively, to Janus Mid Cap Value Fund - Investor Shares and
Institutional Shares. Berger Small Cap Value Fund transferred net assets from
Investor Shares and Institutional Shares of $1,450,910,876 and $1,254,131,731,
respectively, to Janus Small Cap Value Fund - Investor Shares and Institutional
Shares. Berger Mid Cap Value Fund transferred shares outstanding from Investor
Shares and Institutional Shares of 67,934,303 and 11,381,242, respectively, to
Janus Mid Cap Value Fund - Investor Shares and Institutional Shares. Berger
Small Cap Value Fund transferred shares outstanding from Investor Shares and
Institutional Shares of 64,628,505 and 55,566,402, respectively, to Janus Small
Cap Value Fund - Investor Shares and Institutional Shares. Janus Capital
incurred the costs associated with the reorganization.
On April 21, 2003, certain Funds, as listed below (each an "Acquiring Fund"),
acquired all of the assets and liabilities of other Funds, also listed below
(each an "Acquired Fund"), in a tax-free reorganization in exchange for shares
of the Acquiring Fund, pursuant to a plan of reorganization approved by the
Acquired Funds' shareholders. The number and value of shares issued by the
Acquiring Funds are presented on the Statement of Changes. Janus Capital
incurred the costs associated with the reorganizations. Net assets and
unrealized appreciation/ (depreciation) as of the reorganization date
immediately prior to and after the reorganization were as follows:
Acquired Net Assets
Acquiring Fund Acquired Fund Fund Unrealized After
Acquiring Fund Acquired Fund Net Assets Net Assets AP/DP Reorganization
- ----------------------------------------------------------------------------------------------------------------------------------
Janus Balanced Fund Berger Balanced Fund $3,961,835,730 $ 47,442,947 $ 494,302 $4,009,278,677
Janus Growth and Income Fund Berger Large Cap Growth Fund 5,465,100,099 181,668,590 3,394,147 5,646,768,689
- ----------------------------------------------------------------------------------------------------------------------------------
Acquiring Fund Acquired Fund Shares Acquired Shares issued in Acquisition
- ----------------------------------------------------------------------------------------------------------------------------------
Janus Balanced Fund Berger Balanced Fund 4,601,151 2,614,342
Janus Growth and Income Fund Berger Large Cap Growth Fund 24,222,155 7,558,594
- ----------------------------------------------------------------------------------------------------------------------------------
58 Janus Core, Risk-Managed and Value Funds April 30, 2004
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6. CAPITAL SHARE TRANSACTIONS
For the six month period ended
April 30, 2004 (unaudited) Janus Janus Janus
and the fiscal year ended October 31, 2003 Balanced Core Equity Growth and
(all numbers in thousands) Fund Fund Income Fund
2004 2003 2004 2003 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 12,595 47,490 2,395 10,465 13,629 47,618
Shares issued in connection with acquisition* N/A 2,614 N/A N/A N/A 7,559
Reinvested distributions 1,665 4,683 137 347 384 1,652
- ------------------------------------------------------------------------------------------------------------------------------
Total 14,260 54,787 2,532 10,812 14,013 56,829
- ------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (66,094) (69,386) (8,383) (16,404) (43,600) (60,238)
Net Increase/(Decrease) in Fund Shares (51,834) (14,599) (5,851) (5,592) (29,587) (3,409)
Shares Outstanding, Beginning of Period 203,138 217,737 41,534 47,126 221,394 224,803
- ------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 151,304 203,138 35,683 41,534 191,807 221,394
- ------------------------------------------------------------------------------------------------------------------------------
For the six month period ended
April 30, 2004 (unaudited)
and the fiscal year or period Janus Janus
ended October 31, 2003 Special Equity Risk-Managed Stock
(all numbers in thousands) Fund Fund
2004 2003 2004 2003(1)
- ---------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 17,022 43,627 4,016 9,181
Shares issued in connection with acquisition* N/A 81,029 N/A N/A
Reinvested distributions -- 143 176 --
- ---------------------------------------------------------------------------------------------------
Total 17,022 124,799 4,192 9,181
- ---------------------------------------------------------------------------------------------------
Shares Repurchased (36,192) (59,378) (1,333) (2,029)
Net Increase/(Decrease) in Fund Shares (19,170) 65,421 2,859 7,152
Shares Outstanding, Beginning of Period 250,735 185,314 7,152 --
- ---------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 231,565 250,735 10,011 7,152
- ---------------------------------------------------------------------------------------------------
For the six month period ended April 30, 2004
(unaudited), the six month fiscal period ended
October 31, 2003 and the seven month Janus Janus
fiscal period ended April 30, 2003 Mid Cap Value Small Cap Value
(all numbers in thousands) Fund(2) Fund(3)
2004 2003 2003 2004 2003 2003
- -------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares - Investor Shares
Shares sold 40,802 24,740 24,654 5,788 7,889 10,137
Reinvested distributions 386 -- 116 189 -- 2,391
- -------------------------------------------------------------------------------------------------------------------------------
Total 41,188 24,740 24,770 5,977 7,889 12,528
- -------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (13,387) (14,093) (13,569) (11,761) (13,970) (15,049)
Net Increase/(Decrease) in Fund Shares 27,801 10,647 11,201 (5,784) (6,081) (2,521)
Shares Outstanding, Beginning of Period 78,885 68,238 57,037 57,931 64,012 66,533
- -------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 106,686 78,885 68,238 52,147 57,931 64,012
- -------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares - Institutional Shares
Shares sold 4,939 4,935 4,958 4,487 6,704 7,165
Reinvested distributions 115 -- 23 288 -- 2,124
- -------------------------------------------------------------------------------------------------------------------------------
Total 5,054 4,935 4,981 4,775 6,704 9,289
- -------------------------------------------------------------------------------------------------------------------------------
Shares Repurchased (1,384) (1,198) (1,439) (10,120) (10,238) (9,201)
Net Increase/(Decrease) in Fund Shares 3,670 3,737 3,542 (5,345) (3,534) 88
Shares Outstanding, Beginning of Period 15,374 11,637 8,095 51,959 55,493 55,405
- -------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding, End of Period 19,044 15,374 11,637 46,614 51,959 55,493
- -------------------------------------------------------------------------------------------------------------------------------
* See Note 5 in Notes to Financial Statements.
(1) Fiscal period from February 28, 2003 (inception date) through October 31,
2003.
(2) Formerly named Berger Mid Cap Value Fund prior to reorganization (Note 1).
(3) Formerly named Berger Small Cap Value Fund prior to reorganization (Note
1).
Janus Core, Risk-Managed and Value Funds April 30, 2004 59
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NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
7. LEGAL MATTERS
In September 2003, the Securities and Exchange Commission ("SEC") and the Office
of the New York State Attorney General ("NYAG") publicly announced that they
were investigating trading practices in the mutual fund industry. The
investigations were prompted by the NYAG's settlement with a hedge fund, Canary
Capital, which allegedly engaged in irregular trading practices with certain
mutual fund companies. While Janus Capital was not named as a defendant in the
NYAG complaint against the hedge fund, Janus Capital was mentioned in the
complaint as having allowed Canary Capital to "market time" certain Janus funds.
Market timing is an investment technique involving frequent short-term trading
of mutual fund shares that is designed to exploit market movements or
inefficiencies in the way mutual fund companies price their shares. The NYAG
complaint alleged that this practice is in contradiction to policies stated in
the prospectuses for certain Janus funds.
The investigations by the NYAG, the SEC, and certain other agencies, including
the Colorado Division of Securities and the Colorado Attorney General ("COAG"),
also sought to determine whether late trading occurred in mutual funds managed
by Janus Capital. The term "late trading" generally refers to the practice of
permitting or processing a fund purchase or redemption in a manner that
improperly allows the current day's fund share price to be used for an order
that was placed or improperly processed at a time following the deadline for
obtaining that day's share price (normally, 4:00 p.m. (eastern time)). Because
many mutual fund transactions are cleared and settled through financial
intermediaries, Janus Capital cannot exclude the possibility that one or more
intermediaries may have submitted improper or unauthorized late trade
transactions to Janus Capital in violation of Janus Capital's agreements with
those intermediaries.
Other documentation and information sought by various regulatory agencies,
including the National Association of Securities Dealers, the West Virginia
Attorney General, the Florida Department of Financial Services, the NYAG, the
SEC, the COAG, the Colorado Division of Securities and one or more U.S. Attorney
offices, relate to a variety of matters, including but not limited to: improper
disclosure of portfolio holdings, trading by executives in Fund shares, certain
revenue sharing arrangements, information related to cash and non-cash
compensation paid to brokers, trading by Janus Capital investment personnel in
portfolio securities owned by certain Janus funds, information provided to the
Trustees in connection with the review and approval of management contracts
related to the Funds, information related to certain types of distribution and
sales arrangements with brokers and other distributors of mutual fund products,
and other topics related to the foregoing. The Janus funds, Janus Capital Group
Inc. and its subsidiaries have either complied with or intend to comply with
these subpoenas and other document and information requests.
On April 27, 2004, Janus Capital announced agreements in principle with the
NYAG, the COAG and the Colorado Division of Securities setting forth financial
agreements and certain corporate governance and compliance initiatives that will
be required by such regulators. Janus Capital also announced an agreement in
principle with respect to monetary terms with the SEC, subject to the approval
of the SEC Commissioners. Pursuant to such agreements, Janus Capital will
establish a pool of $100 million that will be available to compensate investors
for the adverse effects of frequent trading and other mutual fund practices. Of
this amount, $50 million will be in the form of a civil money penalty. Janus
Capital also agreed to reduce its management fees in the amount of $25 million
per annum, in the aggregate, for at least a five year period. Janus also agreed
to make $1.2 million in other settlement-related payments required by the State
of Colorado.
Subsequent to the initiation of the regulatory investigations, a number of civil
lawsuits were brought against Janus Capital and certain of its affiliates, the
Janus funds, and related entities and individuals on behalf of Fund shareholders
and shareholders of Janus Capital Group Inc. The factual allegations made in
these actions are generally based on the NYAG complaint against Canary Capital
and in general allege that Janus Capital allowed certain hedge funds and other
investors to engage in "market timing" trades in certain Janus funds. Such
lawsuits allege a variety of theories for recovery including, but not limited
to: (i) violation of various provisions of the federal securities laws; (ii)
breach of fiduciary duties, as established by state common law or federal law,
to the funds and/or individual investors; (iii) breach of contract; (iv) unjust
enrichment; and (v) violations of Section 1962 of the Racketeering Influenced
and Corrupt Organizations Act.
The "market timing" lawsuits include actions purportedly on behalf of a class of
Fund investors, cases allegedly brought on behalf of the Funds themselves, a
case asserting claims both on behalf of an investor class and derivatively on
behalf of the Funds, cases brought on behalf of shareholders of Janus Capital
Group Inc. on a derivative basis against the Board of Directors of Janus Capital
Group Inc., purported ERISA actions against the managers of the Janus 401(k)
plan, and a non-class "representative action" purportedly brought on behalf of
the general public. The complaints also name various defendants. One or more
Janus entities (Janus Capital Group Inc., Janus Capital Management LLC or Janus
Capital Corporation) are named in every action. In addition, actions have been
brought against Janus Investment Fund and/or one or more of the individual
Funds, the Janus fund Trustees,
60 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
officers of the Funds, officers of Janus Capital, officers of Janus Capital
Group Inc., and directors of Janus Capital Group Inc.
The "market timing" lawsuits were filed in a number of state and federal
jurisdictions. The Judicial Panel on Multidistrict Litigation has finally or
conditionally transferred all but one of these actions to the United States
District Court for the District of Maryland for coordinated proceedings. One
action (alleging failure to adequately implement fair value pricing) has been
remanded to state court in Madison County, Illinois and is not subject to the
federal transfer procedures.
In addition to the "market timing" actions described above, civil lawsuits have
been filed against Janus Capital challenging the investment advisory fees
charged by Janus Capital to certain Funds. Additional lawsuits may be filed
against certain of the Janus funds, Janus Capital and related parties in the
future.
Janus Capital does not currently believe that any of the pending actions will
materially affect its ability to continue to provide to the Funds the services
it has agreed to provide.
Janus Core, Risk-Managed and Value Funds April 30, 2004 61
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EXPLANATIONS OF CHARTS, TABLES AND
FINANCIAL STATEMENTS (unaudited)
1. PERFORMANCE OVERVIEWS
Average annual total returns are quoted for each Fund. Average annual total
return is calculated by taking the growth or decline in value of an investment
over a period of time, including reinvestment of dividends and distributions,
then calculating the annual compounded percentage rate that would have produced
the same result had the rate of growth been constant throughout the period.
Average annual total return does not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or redemption of Fund shares.
When comparing the performance of a Fund with an index, keep in mind that market
indices do not include brokerage commissions that would be incurred if you
purchased the individual securities in the index. They also do not include taxes
payable on dividends and interest or operating expenses incurred if you
maintained a portfolio invested in the index.
2. SCHEDULES OF INVESTMENTS
Following the performance overview section is each Fund's Schedule of
Investments. This schedule reports the industry concentrations and types of
securities held in each 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 market value of each security is quoted as of the last day of the reporting
period. The values of securities denominated in foreign currencies are converted
into U.S. dollars.
A summary of investments by country is provided if the Fund invested in foreign
securities in the period or year ended. This summary reports the Fund's exposure
to different countries by providing the percentage of securities invested in
each country. The country of each security represents the country in which the
company is incorporated.
2A. FORWARD CURRENCY CONTRACTS
A table listing forward currency contracts follows each Fund's Schedule of
Investments (if applicable). Forward currency contracts are agreements to
deliver or receive a preset amount of currency at a future date. Forward
currency contracts are used to hedge against foreign currency risk in the Fund's
long-term holdings. The table provides the name of the foreign currency, the
settlement date of the contract, the amount of the contract, the value of the
currency in U.S. dollars and the amount of unrealized gain or loss. The amount
of unrealized gain or loss reflects the change in currency exchange rates from
the time the contract was opened to the last day of the reporting period.
2B. FUTURES
A table listing future contracts follows each Fund's Schedule of Investments (if
applicable). Futures contracts are contracts that obligate the buyer to receive
and the seller to deliver an instrument or money at a specified price on a
specified date. Futures are used to hedge against adverse movements in
securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the
expiration date, the principal amount, value and the amount of unrealized gain
or loss. The amount of unrealized gain or loss reflects the marked to market
amount for the last day of the fiscal period.
3. STATEMENT OF ASSETS AND LIABILITIES
This statement is often referred to as the "balance sheet." It lists the assets
and liabilities of the Funds on the last day of the reporting period.
The Funds' 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 stocks owned and the receivable for
Fund shares sold to investors but not yet settled. The Funds' 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 titled "Net Assets Consist of" breaks down the components of the
Funds' net assets. Because Funds must distribute substantially all earnings,
you'll notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the Funds' net asset value ("NAV")
per share on the last day of the reporting period. The NAV is calculated by
dividing the Funds' net assets (assets minus liabilities) by the number of
shares outstanding.
4. STATEMENT OF OPERATIONS
This statement details the Funds' income, expenses, gains and losses on
securities and currency transactions, and appreciation or depreciation of
current Fund holdings.
The first section in this statement, titled "Investment Income," reports the
dividends earned from stocks and interest earned from interest-bearing
securities in the Funds.
62 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The next section reports the expenses and expense offsets incurred by the Funds,
including the advisory fee paid to the investment advisor, transfer agent fees,
shareholder servicing expenses, and printing and postage for mailing statements,
financial reports and prospectuses.
The last section lists the increase or decrease in the value of securities held
in the Funds. Funds realize a gain (or loss) when they sell their position in a
particular security. An unrealized gain (or loss) refers to the change in net
appreciation or depreciation of the Funds during the period. "Net Realized and
Unrealized Gain/(Loss) on Investments" is affected both by changes in the market
value of holdings and by gains (or losses) realized during the reporting period.
5. STATEMENT OF CHANGES IN NET ASSETS
This statement reports the increase or decrease in the Funds' net assets during
the reporting period. Changes in the Funds' net assets are attributable to
investment operations, dividends, distributions and capital share transactions.
This is important to investors because it shows exactly what caused the Funds'
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 Funds' investment performance. The
Funds' net assets may also change as a result of dividend and capital gains
distributions to investors. If investors receive their dividends in cash, money
is taken out of the Fund to pay the distribution. If investors reinvest their
dividends, the Funds' net assets will not be affected. If you compare each
Fund's "Net Decrease from Dividends and Distributions" to the "Reinvested
dividends and distributions," you'll notice that dividend distributions had
little effect on each Fund's net assets. This is because the majority of Janus
investors reinvest their distributions.
The reinvestment of dividends is included under "Capital Share Transactions."
"Capital Shares" refers to the money investors contribute to the Funds through
purchases or withdraw via redemptions. The Funds' net assets will increase and
decrease in value as investors purchase and redeem shares from the Funds.
6. FINANCIAL HIGHLIGHTS
This schedule provides a per-share breakdown of the components that affect the
Funds' NAV for current and past reporting periods. Not only does this table
provide you with total return, it also reports total distributions, asset size,
expense 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 per share,
which comprises dividends and interest income earned on securities held by the
Funds. Following is the total of gains, realized and unrealized. Dividends and
distributions are then subtracted to arrive at the NAV per share at the end of
the period. The next line reflects the average annual total return reported the
last day of the period.
Also included are the expense ratios, or the percentage of net assets that was
used to cover operating expenses during the period. Expense ratios vary across
the Funds for a number of reasons, including the differences in average
shareholder account size, the frequency of dividend payments and the extent of
foreign investments, which entail greater transaction costs.
The Funds' expenses may be reduced through expense-reduction arrangements. These
arrangements may include the use of brokerage commissions, uninvested cash
balances earning interest or balance credits. The Statement of Operations
reflects total expenses before any such offset, the amount of offset and the net
expenses. The expense ratios listed in the Financial Highlights reflect expenses
prior to any expense offset (gross expense ratio) and after expense offsets (net
expense ratio). Both expense ratios reflect expenses after waivers
(reimbursement).
The ratio of net investment income/(loss) summarizes the income earned less
expenses divided by the average net assets of a Fund during the reporting
period. Don't confuse this ratio with a Fund's yield. The net investment income
ratio is not a true measure of a Fund's yield because it doesn't take into
account the dividends distributed to the Fund's investors.
The next ratio is the portfolio turnover rate, which measures the buying and
selling activity in a Fund. Portfolio turnover is affected by market conditions,
changes in the size of a Fund, the nature of the Fund's investments and the
investment style of the portfolio manager. A 100% rate implies that an amount
equal to the value of the entire portfolio is turned over in a 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 portfolio
is sold every six months.
Janus Core, Risk-Managed and Value Funds April 30, 2004 63
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- --------------------------------------------------------------------------------
NOTES
64 Janus Core, Risk-Managed and Value Funds April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES
65 Janus Core, Risk-Managed and Value Funds April 30, 2004
- -------------------
JANUS PROVIDES ACCESS TO A WIDE RANGE OF INVESTMENT DISCIPLINES.
----------------------------------------------------------------
GROWTH
Janus growth funds focus on companies believed to be the leaders in their
respective industries, with solid management teams, expanding market share,
margins and efficiencies.
INTERNATIONAL & GLOBAL
Janus international and global funds seek to leverage Janus' research
capabilities by taking advantage of inefficiencies in foreign markets,
where accurate information and analytical insight are often at a premium.
CORE
Janus core funds seek investments in more stable and predictable companies.
These funds look for a strategic combination of steady growth and for
certain funds, some degree of income.
RISK-MANAGED
Janus risk-managed funds seek to outperform their respective indices while
maintaining a risk profile equal to or lower than the index itself. Managed
by INTECH, these funds use a mathematical process in an attempt to build a
more "efficient" portfolio than the index.
VALUE
Janus value funds invest in companies they believe are poised for a
turnaround or are trading at a significant discount to fair value. The goal
is to gain unique insight into a company's true value and identify and
evaluate potential catalysts that may unlock shareholder value.
INCOME
Janus income funds attempt to provide less risk relative to equities while
seeking to deliver a competitive total return through high current income
and appreciation.
FOR MORE INFORMATION ABOUT OUR FUNDS, GO TO www.janus.com.
[LOGO] JANUS CAPITAL 151 Detroit Street
Group Denver, CO 80206
1-800-525-3713
This material must be preceded or accompanied by a prospectus. (4/04) Funds
distributed by Janus Distributors LLC(4/04)
C-0504-159 111-24-104 06-04
- -------------------
- --------------
----------------------
2004 SEMIANNUAL REPORT
----------------------
Janus Institutional Cash Reserves Fund
-----------------------------------------------------------------
[LOGO] JANUS CAPITAL
Group
- --------------
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- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Schedule of Investments ........................................ 3
Statement of Assets and Liabilities ............................ 5
Statement of Operations ........................................ 6
Statement of Changes in Net Assets ............................. 7
Financial Highlights ........................................... 8
Notes to Schedule of Investments ............................... 9
Notes to Financial Statements .................................. 10
Explanations of Charts, Tables and Financial Statements ........ 15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Dear Shareholder,
Let me begin by telling you how excited I am to be associated with Janus. As a
shareholder of the funds, I'm sure you already know many of the things that make
Janus unique. To me, it is a research-driven firm with an impressive heritage of
delivering exceptional long-term performance to its shareholders. I am proud to
be a part of continuing that heritage into the future.
There are three main reasons why I decided to join Janus as Chief Investment
Officer. First, I believe the research at Janus is the best I've ever seen. In a
prior job as a sell-side analyst, I had the opportunity to get an inside look at
the passion, intensity and energy that characterized investment debates at
Janus. That positive impression has only been reinforced in the short time I
have been part of the team. Given my analyst background, I share the same zeal
for getting the story right behind every investment.
Second, the people at Janus are special. From the individuals at our call
center, to the sales and marketing staff, to the person who actually manages
your money, all of our employees are passionate about winning, and passionate
about setting the pace, not following it. The esprit de corps of the firm is
quite remarkable.
Third, Janus is an investment-centric firm. By that I mean we focus on our core
competency of managing our shareholders' money. Delivering performance remains
at the heart of what we do and we constantly reinvest in our core business
toward that end.
My role at Janus will be to oversee the investment team and drive investment
returns. In an attempt to safeguard the consistency and quality of the
investment process, I plan to play devil's advocate with the portfolio managers,
to poke and prod their investment decisions. I will take full responsibility for
the performance of the team, making sure that portfolio managers have the tools
and resources needed to make wise decisions.
Like any solid organization, there is always room to improve. I have
communicated to the investment team the following enhancements that I plan to
focus on during the next two quarters. For starters, I plan on expanding our
coverage of international stocks. In this era of increased globalization, I
believe sectors are more important than countries and our research needs to be
borderless. In addition, we need to make sure that our research edge provides a
solid foundation from which we can invest with conviction. Of course, the
flipside of this exercise is to have the proper risk controls in place to serve
as an early warning system when fundamentals begin to deteriorate and stocks
need to be trimmed or sold.
Furthermore, I want to improve communication so that analysts and portfolio
managers are sharing their best ideas and discussing how topical events may
impact portfolios. Collectively, I believe we can arrive at better investment
decisions through debate and idea sharing versus acting in isolation. These are
the initiatives I will be focusing on in the initial phase of my tenure at
Janus. I look forward to circling back with you in the fall and providing an
update on our progress.
Turning to the markets, after finishing last year on a strong note, stocks have
treaded water during the first few months of 2004, as concerns about rising
interest rates, war, and oil prices have offset good news on job growth and
corporate earnings. Consequently, the S&P 500 Index rose 6.3% during the
six-month time period ended 4/30/04, after rising 15.6% in the six months ended
10/31/03. The S&P outperformed both the Dow Jones Industrial Average and the
Nasdaq Composite, which posted returns of 5.4% and -0.6%, respectively.
Notwithstanding the moderate returns of the market, my message to you today is
that we like what we are hearing from our company contacts. Enterprise spending
is improving as corporate profits accelerate. After two years of balance sheet
repair, CEOs are again thinking strategically about how to grow their
businesses. This is a very encouraging development that we feel is being
underappreciated in the marketplace at the current time. Yes, interest rates are
likely to be higher 12 months from now, but we believe that the strength of the
economy and an improvement in corporate profits will overpower any dampening
effect caused by a rising interest rate environment.
While the market in 2003 could be characterized as broad-based as the economy
began its recovery, we believe that the market will be much more selective in
2004. I think the expected "stock-picker's" market will play to our strength of
identifying companies that are investing in their businesses, growing their
market share, and capitalizing on technological and infrastructural change
throughout the world. Indeed, I believe the recent improved performance of our
funds provides evidence that our research process remains strong and that our
portfolios are properly positioned to capitalize on continuing growth in the
global economy.
It is my belief that Janus' investment process works best during times of
"normal" economic activity (3%-4% GDP growth, 10%-12% corporate profit growth).
We are now moving into the middle innings of this economic recovery, which has
followed fairly normal patterns to date compared to historical recoveries.
Therefore, I am optimistic of continued strong performance by our funds in this
environment.
In closing, let me thank you again for your loyalty to Janus. As a shareholder
of our funds, you have our absolute faithfulness in return. I believe that we
face a very bright future together.
Sincerely,
/s/ Gary Black
Gary Black
President and Chief Investment Officer
Past performance is no guarantee of future results.
Janus Institutional Cash Reserves Fund April 30, 2004 1
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JANUS INSTITUTIONAL CASH RESERVES Portfolio Managers
FUND (unaudited) Sharon Pichler
Eric Thorderson
Janus Institutional Cash Reserves Fund
For the Periods Ended April 30, 2004
- ----------------------------------------------------------
Fiscal Year-to-Date 0.52%
1 Year 1.09%
Since Inception (May 15, 2002) 1.36%
- ----------------------------------------------------------
Seven-Day Current Yield
With Reimbursement 1.03%
Without Reimbursement 0.86%
- ----------------------------------------------------------
Data presented represents past performance, which is no guarantee of future
results. Investment results and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. Due to market
volatility, current performance may be higher or lower than the performance
shown. Call 1-800-525-1068 or visit janus.com for current month end performance
An investment in a money market fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although the
Fund(s) seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund(s).
Total return includes reinvestment of dividends and distributions.
See "Explanations of Charts, Tables and Financial Statements."
The yield more closely reflects the current earnings of Janus Institutional Cash
Reserves Fund than the total return.
Janus Capital Management LLC has contractually agreed to waive the Fund's total
operating expenses to levels indicated in the prospectus until at least March 1,
2005. Without such waivers, yields and total returns would have been lower.
Effective February 27, 2004, Eric Thorderson joined Sharon Pichler as a
co-portfolio manager of Janus Institutional Cash Reserves Fund.
2 Janus Institutional Cash Reserves Fund April 30, 2004
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- --------------------------------------------------------------------------------
Schedule of Investments (unaudited)
Principal Amount Market Value
================================================================================
Certificates of Deposit - 17.3%
$ 25,000,000 ABN AMRO Bank N.V., New York
1.33%, 2/28/05 ............................ $ 25,000,000
10,000,000 BNP Paribas, New York
1.28%, 1/25/05 ............................ 9,996,772
Canadian Imperial Bank of
Commerce, New York:
25,000,000 1.19%, 7/30/04 ............................ 24,999,383
15,000,000 1.235%, 3/24/05 ........................... 14,972,987
25,000,000 Credit Agricole, New York
1.30%, 8/4/04 ............................. 25,000,000
HSH Nordbank A.G., New York:
20,000,000 1.38%, 8/26/04 ............................ 19,999,359
25,000,000 1.40%, 2/2/05 ............................. 25,009,757
Natexis Banques Populaires, New York:
25,000,000 1.09%, 8/20/04 ............................ 25,000,000
25,000,000 1.35%, 1/24/05 ............................ 25,000,000
20,000,000 1.36%, 3/31/05 ............................ 20,000,000
20,000,000 Norddeutsche Landesbank Girozentrale
New York, 1.38%, 8/26/04 .................. 19,999,359
25,000,000 Royal Bank of Scotland, New York
1.33%, 2/23/05 ............................ 24,973,897
Societe Generale, New York:
25,000,000 1.45%, 2/2/05 ............................. 25,000,000
25,000,000 1.35%, 2/28/05 ............................ 25,000,000
20,000,000 1.48%, 4/6/05 ............................. 20,000,000
20,000,000 Svenska Handelsbanken, New York
1.215%, 3/15/05 ........................... 19,951,818
Swedbank, New York:
25,000,000 1.32%, 8/4/04 ............................. 25,000,000
25,000,000 1.455%, 11/10/04 .......................... 24,999,340
25,000,000 Westdeutsche Landesbank Girozentrale
New York, 1.41%, 2/2/05 ................... 25,000,000
- --------------------------------------------------------------------------------
Total Certificates of Deposit (cost $424,902,672) ........... 424,902,672
- --------------------------------------------------------------------------------
Commercial Paper - 17.0%
BCP Finance Bank, Ltd.:
25,000,000 1.11%, 6/22/04 ............................ 24,959,917
20,000,000 1.10%, 7/9/04 ............................. 19,957,833
BTM Capital Corp.:
20,000,000 1.08%, 5/24/04 (Section 4(2)) ............. 19,986,200
30,000,000 1.09%, 6/2/04 (Section 4(2)) .............. 29,970,933
Check Point Charlie, Inc.:
25,000,000 1.10%, 5/10/04 (Section 4(2)) ............. 24,993,125
34,600,000 1.09%, 5/24/04 (Section 4(2)) ............. 34,575,905
25,100,000 1.08%, 6/15/04 (Section 4(2)) ............. 25,066,115
18,000,000 1.10%, 7/16/04 (Section 4(2)) ............. 17,958,200
23,940,000 1.14%, 8/16/04 (Section 4(2)) ............. 23,858,883
Gotham Funding Corp.:
18,565,000 1.08%, 5/3/04 (Section 4(2)) .............. 18,563,886
34,301,000 1.08%, 5/27/04 (Section 4(2)) ............. 34,274,245
25,000,000 National Bank of New Zealand
International, Ltd.
1.14%, 7/13/04 (Section 4(2)) ............. 24,942,208
Rhineland Funding Capital Corp.:
15,144,000 1.11%, 5/12/04 (Section 4(2)) ............. 15,138,864
16,000,000 1.11%, 5/18/04 (Section 4(2)) ............. 15,991,613
15,844,000 1.11%, 5/20/04 (Section 4(2)) ............. 15,834,718
22,698,000 1.10%, 6/8/04 (Section 4(2)) .............. 22,671,645
35,035,000 1.10%, 6/24/04 (Section 4(2)) ............. 34,977,193
14,700,000 1.10%, 7/7/04 (Section 4(2)) .............. 14,669,906
- --------------------------------------------------------------------------------
Total Commercial Paper (cost $418,391,389) .................. 418,391,389
- --------------------------------------------------------------------------------
Principal Amount Market Value
================================================================================
Floating Rate Notes - 46.8%
$ 3,385,000 Alexander City, Alabama Special Care
Facilities Financing Authority Revenue
(Russell Hospital), Series B
1.21%, 10/1/23 ............................ $ 3,385,000
9,000,000 American Health Center, Series 2001
1.20%, 3/1/19 ............................. 9,000,000
25,000,000 Ares VII CLO Ltd., Class A-1A
1.18%, 5/8/15 (144A)ss. ................... 25,000,000
20,000,000 Associated Bank N.A., Green Bay
1.11%, 3/11/05 ............................ 19,998,263
100,000,000 Bank of America Securities LLC (same day put)
1.16%, 5/3/04 ............................. 100,000,000
25,000,000 Blue Heron Funding II, Ltd., Class A
1.13%, 3/18/05 (144A)ss. .................. 25,000,000
50,000,000 Blue Heron Funding VI, Ltd., Class A-1
1.13%, 5/19/04 (144A)ss. .................. 50,000,000
25,000,000 Blue Heron Funding VII, Ltd., Series 7A
Class A-1, 1.13%, 5/28/04 (144A)ss. ....... 25,000,000
17,000,000 Brooklyn Tabernacle
1.20%, 4/1/24 ............................. 17,000,000
3,000,000 Campus Research Corp.
1.30%, 6/1/13 ............................. 3,000,000
3,400,000 Capel, Inc.
1.15%, 9/1/09 ............................. 3,400,000
20,000,000 CIT Group, Inc.
1.7625%, 5/3/04 ........................... 20,000,666
5,010,000 Colonial Acquisitions, Inc.
1.20%, 2/1/23 ............................. 5,010,000
6,000,000 Colorado Natural Gas, Inc., Series 2004
1.20%, 7/1/32 ............................. 6,000,000
7,000,000 Cornerstone Bank
1.38%, 1/1/29 ............................. 7,000,000
6,185,000 Courtesy Realty LLC, Series 2002
1.20%, 12/1/17 ............................ 6,185,000
8,220,000 Crozer-Keystone Health Systems
1.18%, 12/15/21 ........................... 8,220,000
Eagle County, Colorado Housing Facility
Revenue, (BC Housing LLC Project):
9,100,000 Series A, 1.10%, 6/1/27 ................... 9,100,000
8,000,000 Series A, 1.15%, 5/1/39 ................... 8,000,000
12,100,000 Edison Chouet Offshore LLC
1.20%, 2/1/14 ............................. 12,100,000
90,000,000 EMC Mortgage Corp.(same day put)
1.2225%, 5/7/04 ........................... 90,000,000
130,000,000 GMAC Mortgage Corp. of Pennsylvania
1.5481%, 5/26/04 .......................... 129,860,274
5,000,000 H.C. Equities L.P.
1.10%, 12/1/23 ............................ 5,000,000
3,000,000 Illinois Health Facilities Authority Revenue
(Villa St. Benedict), Series C
1.18%, 11/15/10 ........................... 3,000,000
4,350,000 J.D. Parks and Lissa Parks, Series 2002
1.20%, 6/1/22 ............................. 4,350,000
100,000,000 J.P. Morgan Securities, Inc. (seven day put)
1.1425%, 7/28/04 .......................... 100,000,000
8,100,000 Jasper, Morgan, Newton and Walton Counties
Georgia Joint Development Authority
Revenue, (Industrial Park Project)
1.17%, 12/1/20 ............................ 8,100,000
Lehman Brothers, Inc.:
55,000,000 (90 day put), 1.2425%, 1/3/05(beta) ....... 55,000,000
60,000,000 (same day put), 1.2125%, 3/17/05 .......... 60,000,000
See Notes to Schedule of Investments and Financial Statements.
Janus Institutional Cash Reserves Fund April 30, 2004 3
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JANUS INSTITUTIONAL CASH RESERVES FUND
Schedule of Investments (unaudited)
Principal Amount Market Value
================================================================================
Floating Rate Notes (continued)
$ 7,890,000 Lock-N-Store, Inc., Series 2002
1.27%, 9/1/22 ............................. $ 7,890,000
9,305,000 Luxor Management Company
1.20%, 4/1/18 ............................. 9,305,000
8,640,000 McElroy Metal Mill, Inc., Series 2003
1.20%, 7/1/18 ............................. 8,640,000
Merrill Lynch & Company, Inc.:
45,000,000 (same day put), 1.2125%, 5/3/04 ........... 45,000,000
75,000,000 (seven day put), 1.2125%, 3/28/05 ......... 75,000,000
10,750,000 Mississippi Business Finance Corp.
1.20%, 12/1/22 ............................ 10,750,000
5,770,000 Montgomery, Alabama Downtown
Redevelopment Authority Capital
Improvement Revenue
1.21%, 11/1/18 ............................ 5,770,000
4,900,000 Montgomery, Alabama Industrial
Development Board of Revenue
(Jenkins Brick Co.), Series A
1.26%, 9/1/14 ............................. 4,900,000
6,990,000 Octel Starreon LLC, Series 2002-A
1.25%, 7/1/17 ............................. 6,990,000
5,270,000 Ohio Health Care Facility Revenue Bonds
(United Church Homes, Inc. Project)
Series 2002, 1.18%, 9/1/27 ................ 5,270,000
30,000,000 Putnam Structured Product Funding LLC
2003-1, Class A-15
1.12%, 10/15/38 (144A) .................... 30,000,000
13,300,000 Russell Lands, Inc., Series 2002
1.20%, 8/1/12 ............................. 13,300,000
11,900,000 Safe Mini Storage Development LLC
Series 2002, 1.25%, 10/1/17 ............... 11,900,000
31,295,000 Southeast Alabama Gas District, Series 2003A
1.17%, 6/1/23 ............................. 31,295,000
6,200,000 Stone-Lee Partners LLC
1.15%, 3/1/21 ............................. 6,200,000
9,000,000 Village Green Finance Co.
1.10%, 11/1/22 ............................ 9,000,000
6,000,000 Virginia Health Services
1.10%, 1/1/18 ............................. 6,000,000
4,000,000 Watertown Crossing LLC
1.25%, 5/1/27 ............................. 4,000,000
9,790,000 West Park Apartments and Cedar Pines
Apartments, Series 2002
1.15%, 9/1/22 ............................. 9,790,000
32,000,000 Westchester County, New York Industrial
Development Agency, (Fortwest II Facility)
Series 2002, 1.35%, 5/1/32 ................ 32,000,000
- --------------------------------------------------------------------------------
Total Floating Rate Notes (cost $1,150,709,203) ............. 1,150,709,203
- --------------------------------------------------------------------------------
Principal Amount Market Value
================================================================================
Repurchase Agreements - 18.0%
$ 50,000,000 Bear Stearns & Company, Inc., 1.1325%
dated 4/30/04, maturing 5/3/04
to be repurchased at $50,004,719
collateralized by $64,690,000
in Collateralized Mortgage Obligations
1.50% - 3.15842%, 5/25/33 - 4/25/34
AAA; with a value of $51,001,950 .......... $ 50,000,000
366,200,000 Citigroup Global Markets, Inc., 1.1125%
dated 4/30/04, maturing 5/3/04
to be repurchased at $366,233,950
collateralized by $1,057,407,992
in U.S. Government Agencies
0% - 7.00%, 9/1/10 - 7/1/34
with a value of $373,524,000 .............. 366,200,000
25,000,000 Credit Suisse First Boston, Inc., 1.1125%
dated 4/30/04, maturing 5/3/04
to be repurchased at $25,002,318
collateralized by $158,503,782
in U.S. Government Agencies
5.00% - 6.00%, 2/15/19 - 3/15/34
with a value of $25,500,487 ............... 25,000,000
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Total Repurchase Agreements (cost $441,200,000) ............. 441,200,000
- --------------------------------------------------------------------------------
Short-Term Corporate Note - 0.8%
19,000,000 CC USA, Inc.
1.475%, 4/18/05 (144A) (cost $19,000,000) . 19,000,000
- --------------------------------------------------------------------------------
Total Investments (total cost $2,454,203,264) - 99.9% ....... 2,454,203,264
- --------------------------------------------------------------------------------
Cash, Receivables and Other Assets, net of Liabilities - 0.1% 1,620,591
- --------------------------------------------------------------------------------
Net Assets - 100% ........................................... $ 2,455,823,855
- --------------------------------------------------------------------------------
See Notes to Schedule of Investments and Financial Statements.
4 Janus Institutional Cash Reserves Fund April 30, 2004
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- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2004 (unaudited)
(all numbers in thousands except net asset value per share)
- --------------------------------------------------------------------------------
Assets:
Investments at amortized cost $ 2,454,203
Cash 88
Receivables:
Interest 2,750
- --------------------------------------------------------------------------------
Total Assets 2,457,041
- --------------------------------------------------------------------------------
Liabilities:
Payables:
Dividends and distributions 876
Advisory fees 188
Administrative services fees 151
Accrued expenses 2
- --------------------------------------------------------------------------------
Total Liabilities 1,217
- --------------------------------------------------------------------------------
Net Assets $ 2,455,824
- --------------------------------------------------------------------------------
Net Assets Consist of:
Capital (par value and paid-in-surplus)* $ 2,455,760
Undistributed net realized gain/(loss) from investments* 64
- --------------------------------------------------------------------------------
Total Net Assets $ 2,455,824
- --------------------------------------------------------------------------------
Shares Outstanding, $0.01 Par Value
(unlimited shares authorized) 2,455,760
- --------------------------------------------------------------------------------
Net Asset Value Per Share $ 1.00
- --------------------------------------------------------------------------------
*See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
Janus Institutional Cash Reserves Fund April 30, 2004 5
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the six month period ended April 30, 2004 (unaudited)
(all numbers in thousands)
- --------------------------------------------------------------------------------
Investment Income:
Interest $ 14,767
- --------------------------------------------------------------------------------
Total Investment Income 14,767
- --------------------------------------------------------------------------------
Expenses:
Advisory fees 2,398
Administrative services fees 1,799
Audit fees 6
Trustees' fees and expenses 19
- --------------------------------------------------------------------------------
Total Expenses 4,222
- --------------------------------------------------------------------------------
Less: Excess Expense Reimbursement (2,038)
- --------------------------------------------------------------------------------
Net Expenses after Expense Reimbursement 2,184
- --------------------------------------------------------------------------------
Net Investment Income/(Loss) 12,583
- --------------------------------------------------------------------------------
Net Realized Gain/(Loss) on Investments:
Net realized gain/(loss) from investment transactions 64
- --------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations $ 12,647
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
6 Janus Institutional Cash Reserves Fund April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
For the six month period ended April 30, 2004 (unaudited)
and for the fiscal year ended October 31, 2003
(all numbers in thousands) 2004 2003
- ------------------------------------------------------------------------------------------------
Operations:
Net investment income/(loss) $ 12,583 $ 30,857
Net realized gain/(loss) from investment transactions 64 44
- ------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting from Operations 12,647 30,901
- ------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders:
Net investment income* (12,583) (30,857)
Net realized gain from investment transactions* -- (44)
- ------------------------------------------------------------------------------------------------
Net Decrease from Dividends and Distributions (12,583) (30,901)
- ------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares sold 8,264,789 17,891,680
Reinvested dividends and distributions: 5,565 14,551
Shares repurchased (8,610,458) (16,902,525)
- ------------------------------------------------------------------------------------------------
Net Increase/(Decrease) from Capital Share Transactions (340,104) 1,003,706
- ------------------------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets (340,040) 1,003,706
Net Assets:
Beginning of Period 2,795,864 1,792,158
- ------------------------------------------------------------------------------------------------
End of Period $ 2,455,824 $ 2,795,864
- ------------------------------------------------------------------------------------------------
*See Note 3 in Notes to Financial Statements.
See Notes to Financial Statements.
Janus Institutional Cash Reserves Fund April 30, 2004 7
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For a share outstanding during the
six month period ended April 30, 2004 (unaudited)
and through each fiscal year ended October 31 2004 2003 2002(1)
- ----------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------
Income from Investment Operations:
Net investment income/(loss) .01 .01 .01
Net gain/(loss) on securities
(both realized and unrealized) -- --(2) --
- ----------------------------------------------------------------------------------------------------
Total from Investment Operations .01 .01 .01
- ----------------------------------------------------------------------------------------------------
Less Distributions:
Dividends (from net investment income)* (.01) (.01) (.01)
Distributions (from capital gains)* -- --(2) --
- ----------------------------------------------------------------------------------------------------
Total Distributions (.01) (.01) (.01)
- ----------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------
Total Return** 0.52% 1.27% 0.87%
- ----------------------------------------------------------------------------------------------------
Net Assets at End of Period (in thousands) $2,455,824 $2,795,864 $1,792,158
Average Net Assets for the Period (in thousands) $2,411,285 $2,495,376 $1,262,186
Ratio of Expenses to Average Net Assets***(3) 0.18%(4) 0.18%(4) 0.18%(4)
Ratio of Net Investment Income/(Loss)
to Average Net Assets***(3) 1.05% 1.24% 1.86%
* See Note 3 in Notes to Financial Statements.
** Total return not annualized for periods of less than one full year.
*** Annualized for periods less than one full year.
(1) Period May 15, 2002 (inception date) through October 31, 2002.
(2) Net gain/(loss) on securities (both unrealized and realized) and
distributions (from capital gains) aggregated less than a $.01 on a per
share basis for the fiscal year ended October 31, 2003.
(3) See "Explanations of Charts, Tables and Financial Statements."
(4) The ratio was 0.35% in 2004, 0.35% in 2003 and 0.35% in 2002 before waiver
of certain fees incurred by the Fund.
See Notes to Financial Statements.
8 Janus Institutional Cash Reserves Fund April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTES TO SCHEDULE OF INVESTMENTS (unaudited)
Dow Jones A price-weighted average of 30 actively traded Blue-Chip
Industrial Average Stocks.
NASDAQ Composite The National Association of Securities Dealers Automated
Stock Index Quotation System is a nationwide computerized quotation
system for over 5,500 over-the-counter stocks. The index is
compiled of more than 4,800 stocks that are traded via this
system.
S&P 500(R)Index The S&P 500(R)Index is the Standard & Poor's composite index
of 500 Index stocks, a widely recognized, unmanaged index of
common stock prices.
Section 4(2) Securities subject to legal and/or contractual restrictions
on resale and may not be publicly sold without registration
under the Securities Act of 1933.
144A Securities sold under Rule 144A of the Securities Act of
1933 and are subject to legal and/or contractual
restrictions on resale and may not be publicly sold without
registration under the 1933 Act.
(beta) Security is illiquid
The indices are not available for direct investment; therefore their performance
does not reflect the expenses associated with the active management of an actual
portfolio.
ss. SCHEDULE OF RESTRICTED AND ILLIQUID SECURITIES
Value as
Acquisition Acquisition % of
Date Cost Value Net Assets
- ----------------------------------------------------------------------------------------------------------
Janus Institutional Cash Reserves Fund
Ares VII CLO Ltd., Class A-1A,
1.18%, 5/8/15 (144A) 5/7/03 $ 25,000,000 $ 25,000,000 1.0%
Blue Heron Funding II, Ltd., Class A
1.13%, 3/18/05 (144A) 3/19/04 25,000,000 25,000,000 1.0%
Blue Heron Funding VI, Ltd., Class A-1
1.13%, 5/19/04 (144A) 5/21/03 50,000,000 50,000,000 2.0%
Blue Heron Funding VII, Ltd., Series 7A, Class A-1
1.13%, 5/28/04 (144A) 7/29/03 25,000,000 25,000,000 1.0%
- ----------------------------------------------------------------------------------------------------------
$125,000,000 $125,000,000 5.0%
- ----------------------------------------------------------------------------------------------------------
The fund has registration rights for certain restricted securities held as of
April 30, 2004. The issuer incurs all registration costs.
Variable rate notes are notes which the interest rate is based on an index or
market interest rates and is subject to change. Rates in the security
description are as of April 30, 2004.
Money market funds may hold securities with stated maturities of greater than
397 days when those securities have features that allow a fund to "put" back the
security to the issuer or to a third party within 397 days of acquisition. The
maturity dates shown in the security descriptions are the stated maturity dates.
Repurchase Agreements held by a fund are fully collateralized, and such
collateral is in the possession of the fund's custodian or subcustodian. The
collateral is evaluated daily to ensure its market value equals or exceeds the
current market value of the repurchase agreements, including accrued interest.
In the event of default on the obligation to repurchase, the fund has the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
Janus Institutional Cash Reserves Fund April 30, 2004 9
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- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
The following section describes the organization and significant accounting
policies of Janus Institutional Cash Reserves Fund (the "Fund") and provides
more detailed information about the schedules and tables that appear throughout
this report. In addition, the Notes to Financial Statements explain how the Fund
operates and the methods used in preparing and presenting this report.
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Fund is part of Janus Investment Fund (the "Trust") which was organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940 (the "1940 Act") as an open-end management investment company. The Fund
invests exclusively in high-quality money market instruments. The Fund is a
no-load investment.
The following accounting policies have been consistently followed by the Fund
and are in conformity with accounting principles generally accepted in the
United States of America in the investment company industry.
INVESTMENT VALUATION
Securities held by the Fund are valued at their market value determined by the
amortized cost method of valuation. If management believes that such valuation
does not reflect the securities' fair value, these securities are valued at fair
value as determined in good faith under procedures established by the Fund's
trustees. Restricted and illiquid securities are valued in accordance with
procedures established by the Fund's trustees.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for as of the date purchased or sold
(trade date). Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. Gains and losses are determined on the
identified cost basis, which is the same basis used for federal income tax
purposes.
WHEN-ISSUED SECURITIES
The Fund may purchase or sell securities on a when-issued or forward commitment
basis. The price of the underlying securities and date when the securities will
be delivered and paid for are fixed at the time the transaction is negotiated.
Losses may arise due to changes in the market value of the securities or from
the inability of counterparties to meet the terms of the contract. In connection
with such purchases, the Fund is required to hold liquid assets as collateral
with the Fund's custodian sufficient to cover the purchase price.
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. 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 which the Fund seeks to sell. In addition, these securities
may exhibit greater price volatility than securities for which secondary markets
exist.
DIVIDEND DISTRIBUTIONS
Dividends representing substantially all of the Fund's net investment income and
any net realized capital gains on sales of securities are declared daily and
distributed monthly. The majority of dividends and capital gains distributions
from the Fund will be automatically reinvested into additional shares of the
Fund.
ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
FEDERAL INCOME TAXES
No provision for income taxes is included in the accompanying financial
statements as the Fund intends to distribute to shareholders all taxable
investment income and realized gains and otherwise comply with Subchapter M of
the Internal Revenue Code applicable to regulated investment companies.
PROXY VOTING
A description of the policies and procedures that the Fund
uses to determine how to vote proxies relating to its portfolio securities is
available (i) without charge, upon request, by calling 1-800-525-3713 (toll
free); (ii) on the Fund's website at www.janus.com; and (iii) on the SEC's
website at http://www.sec.gov.
Starting in August 2004, the Fund's proxy voting record for the one-year period
ending each June 30th will be available through www.janus.com and from the SEC
through the SEC's website at www.sec.gov.
10 Janus Institutional Cash Reserves Fund April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2. AGREEMENTS
The Fund pays Janus Capital Management LLC ("Janus Capital") .20% of average
daily net assets as an investment advisory fee. Janus Capital has agreed to
reduce its advisory fee for the Fund to .10% until at least March 1, 2005. In
addition, the Fund pays Janus Capital an administrative services fee of .15%,
which Janus Capital agreed to reduce to .08% until at least the next annual
renewal of the advisory agreement. All other expenses of the Fund except
interest and taxes, fees and expenses of Trustees who are not interested persons
of Janus Capital, audit fees and extraordinary costs are paid by Janus Capital.
Certain officers and trustees of the Fund may also be officers and/or directors
of Janus Capital; however, such officers and trustees receive no compensation
from the Fund.
Other funds managed by Janus Capital may invest in the Fund. During the six
month period ended April 30, 2004, the Fund had the following affiliated
activity:
Dividends Market Value
Subscriptions Redemptions Paid at 4/30/04
- -------------------------------------------------------------------------------------------------------
Janus Institutional Cash Reserves Fund
Janus Mid Cap Value Fund $ 95,000,000 $ 95,000,000 $ 51,118 --
Janus Small Cap Value Fund 225,000,000 225,000,000 67,192 --
Janus Twenty Fund 595,000,000 695,000,000 94,508 --
Janus Worldwide Fund 55,000,000 70,000,000 6,596 --
- -------------------------------------------------------------------------------------------------------
$ 970,000,000 $1,085,000,000 $ 219,414 --
- -------------------------------------------------------------------------------------------------------
3. FEDERAL INCOME TAX
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
accounting principles generally accepted in the United States of America. These
differences are due to differing treatments for items such as net short-term
gains.
Net
Accumulated Federal Unrealized Unrealized Appreciation/
Fund Capital Losses Tax Costs Appreciation (Depreciation) (Depreciation)
- -------------------------------------------------------------------------------------------------------------------------------
Janus Institutional Cash Reserves Fund -- $2,454,203,264 -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Janus Institutional Cash Reserves Fund April 30, 2004 11
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- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
4. EXPENSES
The Fund bears expenses incurred specifically on its behalf as well as a portion
of general expenses, which are allocated pro rata to each of the Funds in the
Trust.
5. CAPITAL SHARE TRANSACTIONS
For the six month period ended April 30, 2004 (unaudited)
and for the fiscal year ended October 31, 2003
(all numbers in thousands) 2004 2003
- --------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 8,264,789 17,891,680
Reinvested dividends and distributions 5,565 14,551
- --------------------------------------------------------------------------------
Total 8,270,354 17,906,231
- --------------------------------------------------------------------------------
Shares repurchased (8,610,458) (16,902,525)
Net Increase/(Decrease) in Fund Shares (340,104) 1,003,706
Shares Outstanding, Beginning of Period 2,795,864 1,792,158
- --------------------------------------------------------------------------------
Shares Outstanding, End of Period 2,455,760 2,795,864
- --------------------------------------------------------------------------------
12 Janus Institutional Cash Reserves Fund April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. LEGAL MATTERS
In September 2003, the Securities and Exchange Commission ("SEC") and the
Office of the New York State Attorney General ("NYAG") publicly announced that
they were investigating trading practices in the mutual fund industry. The
investigations were prompted by the NYAG's settlement with a hedge fund, Canary
Capital, which allegedly engaged in irregular trading practices with certain
mutual fund companies. While Janus Capital was not named as a defendant in the
NYAG complaint against the hedge fund, Janus Capital was mentioned in the
complaint as having allowed Canary Capital to "market time" certain Janus
funds. Market timing is an investment technique involving frequent short-term
trading of mutual fund shares that is designed to exploit market movements or
inefficiencies in the way mutual fund companies price their shares. The NYAG
complaint alleged that this practice is in contradiction to policies stated in
the prospectuses for certain Janus funds.
The investigations by the NYAG, the SEC, and certain other agencies, including
the Colorado Division of Securities and the Colorado Attorney General ("COAG"),
also sought to determine whether late trading occurred in mutual funds managed
by Janus Capital. The term "late trading" generally refers to the practice of
permitting or processing a fund purchase or redemption in a manner that
improperly allows the current day's fund share price to be used for an order
that was placed or improperly processed at a time following the deadline for
obtaining that day's share price (normally, 4:00 p.m. (eastern time)). Because
many mutual fund transactions are cleared and settled through financial
intermediaries, Janus Capital cannot exclude the possibility that one or more
intermediaries may have submitted improper or unauthorized late trade
transactions to Janus Capital in violation of Janus Capital's agreements with
those intermediaries.
Other documentation and information sought by various regulatory agencies,
including the National Association of Securities Dealers, the West Virginia
Attorney General, the Florida Department of Financial Services, the NYAG, the
SEC, the COAG, the Colorado Division of Securities and one or more U.S. Attorney
offices, relate to a variety of matters, including but not limited to: improper
disclosure of portfolio holdings, trading by executives in Fund shares, certain
revenue sharing arrangements, information related to cash and non-cash
compensation paid to brokers, trading by Janus Capital investment personnel in
portfolio securities owned by certain Janus funds, information provided to the
Trustees in connection with the review and approval of management contracts
related to the Funds, information related to certain types of distribution and
sales arrangements with brokers and other distributors of mutual fund products,
and other topics related to the foregoing. The Janus funds, Janus Capital Group
Inc. and its subsidiaries have either complied with or intend to comply with
these subpoenas and other document and information requests.
On April 27, 2004, Janus Capital announced agreements in principle with the
NYAG, the COAG and the Colorado Division of Securities setting forth financial
agreements and certain corporate governance and compliance initiatives that will
be required by such regulators. Janus Capital also announced an agreement in
principle with respect to monetary terms with the SEC, subject to the approval
of the SEC Commissioners. Pursuant to such agreements, Janus Capital will
establish a pool of $100 million that will be available to compensate investors
for the adverse effects of frequent trading and other mutual fund practices. Of
this amount, $50 million will be in the form of a civil money penalty. Janus
Capital also agreed to reduce its management fees in the amount of $25 million
per annum, in the aggregate, for at least a five year period. Janus also agreed
to make $1.2 million in other settlement-related payments required by the State
of Colorado.
Subsequent to the initiation of the regulatory investigations, a number of civil
lawsuits were brought against Janus Capital and certain of its affiliates, the
Janus funds, and related entities and individuals on behalf of Fund shareholders
and shareholders of Janus Capital Group Inc. The factual allegations made in
these actions are generally based on the NYAG complaint against Canary Capital
and in general allege that Janus Capital allowed certain hedge funds and other
investors to engage in "market timing" trades in certain Janus funds. Such
lawsuits allege a variety of theories for recovery including, but not limited
to: (i) violation of various provisions of the federal securities laws; (ii)
breach of fiduciary duties, as established by state common law or federal law,
to the funds and/or individual investors; (iii) breach of contract; (iv) unjust
enrichment; and (v) violations of Section 1962 of the Racketeering Influenced
and Corrupt Organizations Act.
The "market timing" lawsuits include actions purportedly on behalf of a class of
Fund investors, cases allegedly brought on behalf of the Funds themselves, a
case asserting claims both on behalf of an investor class and derivatively on
behalf of the Funds, cases brought on behalf of shareholders of Janus Capital
Group Inc. on a derivative basis against the Board of Directors of Janus Capital
Group Inc., purported ERISA actions against the managers of the Janus 401(k)
plan, and a non-class "representative action" purportedly brought on behalf of
the general public. The complaints also name various defendants. One or more
Janus entities (Janus Capital Group Inc., Janus Capital Management LLC or Janus
Capital Corporation) are named in every action. In addition, actions have been
brought against Janus Investment Fund and/or
Janus Institutional Cash Reserves Fund April 30, 2004 13
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- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited) (continued)
one or more of the individual Funds, the Janus fund Trustees, officers of the
Funds, officers of Janus Capital, officers of Janus Capital Group Inc., and
directors of Janus Capital Group Inc.
The "market timing" lawsuits were filed in a number of state and federal
jurisdictions. The Judicial Panel on Multidistrict Litigation has finally or
conditionally transferred all but one of these actions to the United States
District Court for the District of Maryland for coordinated proceedings. One
action (alleging failure to adequately implement fair value pricing) has been
remanded to state court in Madison County, Illinois and is not subject to the
federal transfer procedures.
In addition to the "market timing" actions described above, civil lawsuits have
been filed against Janus Capital challenging the investment advisory fees
charged by Janus Capital to certain Funds. Additional lawsuits may be filed
against certain of the Janus funds, Janus Capital and related parties in the
future.
Janus Capital does not currently believe that any of the pending actions will
materially affect its ability to continue to provide to the Funds the services
it has agreed to provide.
14 Janus Institutional Cash Reserves Fund April 30, 2004
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
EXPLANATIONS OF CHARTS, TABLES AND FINANCIAL
STATEMENTS (unaudited)
1. PERFORMANCE OVERVIEWS
Average annual total returns are quoted for the Fund. Average annual total
return is calculated by taking the growth or decline in value of an investment
over a period of time, including reinvestment of dividends and distributions,
then calculating the annual compounded percentage rate that would have produced
the same result had the rate of growth been constant throughout the period.
Average annual total return does not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or redemption of Fund shares.
2. SCHEDULE OF INVESTMENTS
Following the performance overview section is the Fund Schedule of Investments.
This schedule reports the industry concentrations and 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 market 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. Short-term investments maturing within 60 days are valued at
amortized cost, which approximates market value.
3. 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 stocks 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.
The section titled "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 Fund's 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 (assets minus liabilities) by the number of
shares outstanding.
4. STATEMENT OF OPERATIONS
This statement details the Fund's income, expenses, gains and losses on
securities and currency transactions, and appreciation or depreciation of
current Fund holdings.
The first section in this statement, titled "Investment Income," reports the
interest earned from interest-bearing securities in the Fund.
The next section reports the expenses and expense offsets incurred by the Fund,
including the advisory fee paid to the investment advisor, transfer agent fees,
shareholder servicing expenses, and printing and postage for mailing statements,
financial reports and prospectuses.
The last section lists the increase or decrease in the value of securities held
in the Fund. The Fund realizes a gain (or loss) when it sells its position in a
particular security. An unrealized gain (or loss) refers to the change in net
appreciation or depreciation of the Fund during the 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.
5. STATEMENTS OF CHANGES IN NET ASSETS
This statement reports 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, distributions 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 performance. The
Fund's net assets may also change as a result of dividend and capital gains
distributions to investors. If investors receive their dividends in cash, money
is taken out of the Fund to pay the distribution. If investors reinvest their
dividends, the Fund's net assets will not be affected. If you compare the Fund's
"Net Decrease from Dividends and Distributions" to the "Reinvested dividends and
distributions," you'll notice that dividend distributions had little effect on
the Fund's net assets. This is because the majority of Janus investors reinvest
their distributions.
The reinvestment of dividends 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.
Janus Institutional Cash Reserves Fund April 30, 2004 15
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6. FINANCIAL HIGHLIGHTS
This schedule provides a per-share breakdown of the components that affect the
NAV for current and past reporting periods. Not only does this table provide you
with total return, it also reports total distributions, asset size and expense
ratios.
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 per share,
which comprises dividends and interest income earned on securities held by the
Fund. Following is the total of gains, realized and unrealized. Dividends and
distributions are then subtracted to arrive at the NAV per share at the end of
the period. The next line reflects the average annual total return reported the
last day of the period.
Also included are the expense ratios, or the percentage of net assets that was
used to cover operating expenses during the period.
The ratio of net investment income summarizes the income earned divided by the
average net assets of the Fund during the reporting period. Don't confuse this
ratio with a Fund's yield. The net investment income ratio is not a true measure
of a Fund's yield because it doesn't take into account the dividends distributed
to the Fund's investors.
16 Janus Institutional Cash Reserves Fund April 30, 2004
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- --------------------------------------------------------------------------------
NOTES
Janus Institutional Cash Reserves Fund April 30, 2004 17
- -------------------
JANUS PROVIDES ACCESS TO A WIDE RANGE OF INVESTMENT DISCIPLINES.
----------------------------------------------------------------
GROWTH
Janus growth funds focus on companies believed to be the leaders in their
respective industries, with solid management teams, expanding market share,
margins and efficiencies.
INTERNATIONAL & GLOBAL
Janus international and global funds seek to leverage Janus' research
capabilities by taking advantage of inefficiencies in foreign markets,
where accurate information and analytical insight are often at a premium.
CORE
Janus core funds seek investments in more stable and predictable companies.
These funds look for a strategic combination of steady growth and for
certain funds, some degree of income.
RISK-MANAGED
Janus risk-managed funds seek to outperform their respective indices while
maintaining a risk profile equal to or lower than the index itself. Managed
by INTECH, these funds use a mathematical process in an attempt to build a
more "efficient" portfolio than the index.
VALUE
Janus value funds invest in companies they believe are poised for a
turnaround or are trading at a significant discount to fair value. The goal
is to gain unique insight into a company's true value and identify and
evaluate potential catalysts that may unlock shareholder value.
INCOME
Janus income funds attempt to provide less risk relative to equities while
seeking to deliver a competitive total return through high current income
and appreciation.
FOR MORE INFORMATION ABOUT OUR FUNDS, GO TO www.janus.com.
[LOGO] JANUS CAPITAL 151 Detroit Street
Group Denver, CO 80206
1-800-525-3713
This material must be preceded or accompanied by a prospectus.
Funds distributed by Janus Distributors LLC (4/04)
C-0504-160 103-24-100 06-04
- -------------------
Item 2 - Code of Ethics
Not applicable to semi-annual reports.
Item 3 - Audit Committee Financial Expert
Not applicable to semi-annual reports.
Item 4 - Principal Accountant Fees and Services
Not applicable to semi-annual reports.
Item 5 - Audit Committee of Listed Registrants
Not applicable.
Item 6 - Schedule of Investments
Not applicable for periods ending before July 9, 2004.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable.
Item 9 - Submission of Matters to Vote of Security Holders
The Fund's Nominating and Governance Committee ("Committee") is
responsible for identifying and nominating candidates for appointment
as Trustees of the Trust. Shareholders of a Fund may submit names of
potential candidates for nomination as Trustee of the Trust in
accordance with procedures adopted by the Committee. Shareholders of a
Fund who wish to nominate a candidate to the Trust's Board of Trustees
("Nominating Shareholder") must submit any such recommendation in
writing via regular mail to the attention of the Secretary of the
Trust, at the address of the principal executive office of the Trust
("Shareholder Recommendation"). The Shareholder Recommendation must
include: (i) the class or series and number of all shares of the Fund
owned beneficially or of record by the Nominating Shareholder at the
time the recommendation is submitted and the dates on which such
shares were acquired, specifying the number of shares owned
beneficially; (ii) a full listing of the proposed candidate's
education, experience (including knowledge of the investment company
industry, experience as a director or senior officer of public or
private companies, and directorships on other boards of other
registered investment companies), current employment, date of birth,
business and residence address, and the names and addresses of at
least three professional references; (iii) information as to whether
the candidate is or may be an "interested person" (as such term is
defined in the Investment Company Act of 1940, as amended) of the
Fund, Janus Capital Management LLC, or any sub-adviser to a Fund, and,
if believed not to be an "interested person," information regarding
the candidate that will be sufficient for the Fund to make such
determination; (iv) the written and signed consent of the candidate to
be named as a nominee and to serve as a Trustee of the Trust, if
elected; (v) a description of all arrangements or understandings
between the Nominating Shareholder, the candidate and/or any other
person or persons (including their names) pursuant to which the
Shareholder Recommendation is being made, and if none, so specify;
(vi) the class or series and number of all shares of the Fund owned of
record or beneficially by the candidate, as reported by the candidate;
and (vii) such other information that would be helpful to the
Committee in evaluating the candidate. The Committee may require the
Nominating Shareholder to furnish such other information as it may
reasonably require. When the Committee is not actively recruiting new
Trustees, Shareholder Recommendations will be kept on file until
active recruitment is under way.
Item 10 - 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) 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 was no change in the Registrant's internal control over
financial reporting during Registrant's last fiscal half-year
that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over
financial reporting.
Item 11 - Exhibits
(a)(1) Not applicable to semi-annual reports.
(a)(2) Separate certifications for the Registrant's Principal
Executive Officer and Principal Financial Officer, as required by
Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a)
under the Investment Company Act of 1940, are attached as
Ex99.CERT.
(a)(3) Not applicable.
(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, is attached as
Ex99.906CERT. The certification furnished pursuant to this
paragraph is not deemed to be "filed" for purposes of Section 18
of the Securities Exchange Act of 1934, or otherwise subject to
the liability of that section. Such certification is not deemed
to be incorporated by reference into any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934,
except to the extent that the Registrant specifically
incorporates it by reference.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Janus Investment Fund
By: _/s/ Girard C. Miller_______
Girard C. Miller,
President, Chief Executive Officer (Principal Executive Officer)
Date: June 29, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, 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/ Girard C. Miller________
Girard C. Miller,
President, Chief Executive Officer (Principal Executive Officer)
Date: June 29, 2004
By: _/s/ Loren M. Starr________
Loren M. Starr,
Vice President and Chief Financial Officer (Principal Financial Officer)
Date: June 29, 2004