N-CSRS 1 jifform.txt JIF 4/30/04 OMB APPROVAL OMB Number: 3235-0570 Expires: October 31, 2006 Estimated average burden hours per response: 19.3 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 ------------------- ---------------------- 2004 SEMIANNUAL REPORT ---------------------- JANUS GROWTH FUNDS ----------------------------------------------------------------- Janus Fund Janus Enterprise Fund Janus Mercury Fund Janus Olympus Fund Janus Orion Fund Janus Twenty Fund Janus Venture Fund [LOGO] JANUS CAPITAL Group ------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- JANUS FUND (unaudited) Portfolio Manager Blaine Rollins PERFORMANCE ================================================================================ AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004 -------------------------------------------------------------------------------- Janus Fund S&P 500(R) Index [BAR GRAPH] Bar graph data shown in following table. -------------------------------------------------------------------------------- Fiscal One Five Ten Since Year-to-date Year Year Year Inception* --------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- [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% -------------------------------------------------------------------------------- For the latest information on your fund including portfolio manager commentary and updated performance, visit the Fund Updates section of janus.com. -------------------------------------------------------------------------------- 2 Janus Growth Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- (unaudited) TOP 10 EQUITY HOLDINGS - (% of Net Assets) -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- 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% -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- JANUS FUND Schedule of Investments (unaudited) Shares or Principal Amount Market Value ================================================================================ 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- Total Common Stock (cost $10,756,682,180) ................... 15,051,162,748 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- Total Corporate Bonds (cost $66,934,995) .................... 73,185,900 -------------------------------------------------------------------------------- See Notes to Schedules of Investments and Financial Statements. Janus Growth Funds April 30, 2004 5 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- Total Other Securities (cost $585,978,514) .................. 585,978,514 -------------------------------------------------------------------------------- Time Deposit - 0.1% SouthTrust Bank, ETD 24,800,000 1.04%, 5/3/04 (cost $24,800,000) .......... 24,800,000 -------------------------------------------------------------------------------- Total Investments (total cost $11,445,661,049) - 103.8% ..... 15,746,700,512 -------------------------------------------------------------------------------- Liabilities, net of Cash, Receivables and Other Assets - (3.8)% (573,407,131) -------------------------------------------------------------------------------- Net Assets - 100% ........................................... $15,173,293,381 -------------------------------------------------------------------------------- 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% -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- Total $ 250,700,015 $ 3,310,620 See Notes to Schedules of Investments and Financial Statements. 6 Janus Growth Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- JANUS ENTERPRISE FUND (unaudited) Portfolio Manager Jonathan Coleman PERFORMANCE ================================================================================ AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004 -------------------------------------------------------------------------------- Janus Enterprise Fund Russell Midcap Growth Index S&P MidCap 400 Index [BAR GRAPH] Bar graph data shown in following table. -------------------------------------------------------------------------------- Fiscal One Five Ten Since Year-to-Date Year Year Year Inception* -------------------------------------------------------------------------------- Janus Enterprise Fund 8.13% 33.03% (5.55)% 8.63% 10.59% -------------------------------------------------------------------------------- Russell MidCap Growth Index 5.74% 36.14% 0.80% 9.98% 10.41% -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- [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% -------------------------------------------------------------------------------- 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 7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- (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) -------------------------------------------------------------------------------- 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% -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- Total Common Stock (cost $1,309,752,673) .................... 1,777,135,149 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- Other Securities - 9.5% 530,132 Letter of Credit+ ........................... 530,132 State Street Navigator Securities 172,366,581 Lending Prime Portfolio+ .................. 172,366,581 -------------------------------------------------------------------------------- Total Other Securities (cost $172,896,713) .................. 172,896,713 -------------------------------------------------------------------------------- Time Deposit - 1.9% SouthTrust Bank, ETD 34,500,000 1.04%, 5/3/04 (cost $34,500,000) .......... 34,500,000 -------------------------------------------------------------------------------- Total Investments (total cost $1,519,694,547) - 109.7% ...... 1,987,369,362 -------------------------------------------------------------------------------- Liabilities, net of Cash, Receivables and Other Assets - (9.7)% (175,555,566) -------------------------------------------------------------------------------- Net Assets - 100% ........................................... $ 1,811,813,796 -------------------------------------------------------------------------------- See Notes to Schedules of Investments and Financial Statements. 10 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 $ 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% -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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% -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- (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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 48 Janus Growth Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -- ---------------------------------------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------------------------------------------------------
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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------------------------ Acquiring Fund Acquired Fund Shares Acquired Shares issued in Acquisition ------------------------------------------------------------------------------------------------------------------------------ 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 ------------------------------------------------------------------------------------------------------------------------------
50 Janus Growth Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -- -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total 23,925 85,698 3,694 21,055 11,371 84,810 -------------------------------------------------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- Shares Outstanding, End of Period 97,913 109,943 -------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------------------------------------------------
*See Note 5 in Notes to Financial Statements. Janus Growth Funds April 30, 2004 51 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES 56 Janus Growth Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES Janus Growth Funds April 30, 2004 57 ------------------- 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 ------------------- ------------------- ---------------------- 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 ------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES 42 Janus International & Global Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES Janus International & Global Funds April 30, 2004 43 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES 44 Janus International & Global Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------- ---------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- JANUS FEDERAL TAX-EXEMPT FUND (unaudited) Portfolio Manager Sharon Pichler PERFORMANCE ================================================================================ AVERAGE ANNUAL TOTAL RETURN - for the periods ended April 30, 2004 -------------------------------------------------------------------------------- Janus Federal Tax-Exempt Fund Lehman Brothers Municipal Bond Index [BAR GRAPH] Bar graph data shown in following table. -------------------------------------------------------------------------------- Fiscal One Five Ten Since Year-to-Date Year Year Year Inception* -------------------------------------------------------------------------------- Janus Federal Tax-Exempt Fund 0.23% 0.08% 3.57% 5.10% 4.74% -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- For the latest information on your fund including portfolio manager commentary and updated performance, visit the Fund Updates section of janus.com. -------------------------------------------------------------------------------- 2 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 - 0.2% General Obligation Bonds - 47.0% Revenue Bonds - 52.8% TOP 10 STATES (% of Net Assets) -------------------------------------------------------------------------------- [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% -------------------------------------------------------------------------------- **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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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) ------------------------------------------------------------------------------------------------------------------------------ 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 -- -- -- ------------------------------------------------------------------------------------------------------------------------------
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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------ Total 1,904 19,755 14,018 75,026 ------------------------------------------------------------------------------------------ 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 ------------------------------------------------------------------------------------------ Shares Outstanding, End of Period 21,109 25,996 130,843 157,534 ------------------------------------------------------------------------------------------ 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 ------------------------------------------------------------------------------------------ Transactions in Fund Shares Shares sold 8,078 91,859 16,471 70,206 Reinvested distributions 2,060 5,575 2,749 3,954 ------------------------------------------------------------------------------------------ Total 10,138 97,434 19,220 74,160 ------------------------------------------------------------------------------------------ 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 ------------------------------------------------------------------------------------------ Shares Outstanding, End of Period 56,926 80,447 101,265 123,205 ------------------------------------------------------------------------------------------ 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 --------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------------------------------------------- Total 584,425 1,793,991 57,487 182,173 --------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------------------------------------------- Shares Outstanding, End of Period 1,715,219 2,197,167 241,474 313,691 --------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------------------------------------------- Total 39,445,705 158,469,139 3,459,452 14,571,560 --------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------------------------------------------- Shares Outstanding, End of Period 5,850,442 9,141,167 473,510 775,826 --------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------------------------------------------- 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 --------------------------------------------------------------------------------------------------------------------- Shares Outstanding, End of Period 15,310 60,326 204,624 190,913 --------------------------------------------------------------------------------------------------------------------- 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 ----------------------------------------------------------------------------------- Total 49,464 157,542 ----------------------------------------------------------------------------------- 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 ----------------------------------------------------------------------------------- Shares Outstanding, End of Period 117,311 140,087 ----------------------------------------------------------------------------------- Transactions in Fund Shares - Institutional Shares Shares sold 41,499 274,935 Reinvested dividends and distributions 276 1,065 ----------------------------------------------------------------------------------- Total 41,775 276,000 ----------------------------------------------------------------------------------- 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 ----------------------------------------------------------------------------------- Shares Outstanding, End of Period 56,260 73,039 ----------------------------------------------------------------------------------- Transactions in Fund Shares - Service Shares Shares sold -- -- Reinvested dividends and distributions -- 2 ----------------------------------------------------------------------------------- Total -- 2 ----------------------------------------------------------------------------------- Shares Repurchased -- (574) Net Increase/(Decrease) in Fund Shares -- (572) Shares Outstanding, Beginning of Period 91 663 ----------------------------------------------------------------------------------- Shares Outstanding, End of Period 91 91 -----------------------------------------------------------------------------------
Janus Income Funds April 30, 2004 57 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES Janus Income Funds April 30, 2004 63 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES 64 Janus Income Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES Janus Income Funds April 30, 2004 65 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES 66 Janus Income Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES Janus Income Funds April 30, 2004 67 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NOTES 68 Janus Income Funds April 30, 2004 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- 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