OMB APPROVAL
OMB Number: 3235-0570
Expires: January 31, 2017
Estimated average
burden
hours per response: 20.6
The sole purpose of this Form N-CSRS filing is to submit the Registrant's Form N-CSRS for the reporting period ended December 31, 2015. This filing was inadvertently submitted on March 4, 2016 (Accession No. 0000277751-16-000035) under the incorrect filing type of Form N-CSR instead of Form N-CSRS.
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)
Stephanie Grauerholz,
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: 6/30
Date of reporting period:
12/31/15
Item 1 - Reports to Shareholders
SEMIANNUAL REPORT December 31, 2015 | |||
INTECH Emerging Markets Managed Volatility Fund | |||
Janus Investment Fund | |||
| |||
HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics | |||
Table of Contents
INTECH Emerging Markets Managed Volatility Fund
INTECH Emerging Markets Managed Volatility Fund (unaudited)
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2015, INTECH Emerging Markets Managed Volatility Fund returned -13.42% for its Class I Shares. This compares to the -17.36% return posted by the MSCI Emerging Markets Index, the Funds benchmark.
INVESTMENT STRATEGY
INTECHs mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the MSCI Emerging Markets Index. INTECHs investment process aims to capture stocks natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to favor stocks with higher relative volatility and lower correlation as they offer more potential to capture volatility through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The INTECH Emerging Markets Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also reducing or managing the standard deviation of the portfolio depending on the market conditions, a strategy designed to manage the absolute risk of the portfolio.
PERFORMANCE REVIEW
The MSCI Emerging Markets Index posted a return of -17.36% for the six-month period ending December 31, 2015. INTECH Emerging Markets Managed Volatility Fund outperformed the MSCI Emerging Markets Index over the period and generated a return of -13.42%.
The Funds defensive positioning acted as tailwind to relative performance as volatility picked up in the emerging equity markets. On average, the Fund was overweight lower beta stocks or stocks with lower sensitivity to market movements which tend to be less volatile. During the period, lower beta stocks outperformed higher beta stocks and the overall market, on average. Consequently, the Funds overweight to lower beta stocks contributed to the Funds relative return for the period.
An overall decrease in market diversity over the period reflected a change in the distribution of capital, in which larger cap stocks outperformed smaller cap stocks on average within the MSCI Emerging Markets Index. INTECH Emerging Markets Managed Volatility Fund, which tends to overweight smaller cap stocks as they provide more relative volatility capture potential, was negatively impacted by the overall decrease in market diversity over the period.
The Funds active sector positioning tends to vary over time and is a function of the volatility and correlation characteristics of the underlying stocks. The Funds overall active sector positioning detracted from relative performance during the period. Specifically, an average underweight to the information technology sector, as well as an average overweight allocation to the telecommunication services sector, detracted from relative performance. However, an overall positive selection effect offset adverse sector positioning and contributed to the Funds relative performance during the period, especially within the financials and telecommunication services sectors.
OUTLOOK
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Janus Investment Fund | 1 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As INTECHs ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our Fund shareholders.
Thank you for your investment in INTECH Emerging Markets Managed Volatility Fund.
2 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2015
5 Largest Equity Holdings - (% of Net Assets) | |
iShares India 50 | |
Exchange-Traded Funds (ETFs) | 11.2% |
Chunghwa Telecom Co., Ltd. | |
Diversified Telecommunication Services | 5.1% |
Public Bank Bhd | |
Commercial Banks | 1.8% |
Komercni Banka A/S | |
Commercial Banks | 1.8% |
Far EasTone Telecommunications Co., Ltd. | |
Wireless Telecommunication Services | 1.7% |
21.6% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 86.5% | ||||
Investment Companies | 11.8% | ||||
Preferred Stocks | 1.8% | ||||
Other | (0.1)% | ||||
100.0% |
Emerging markets comprised 97.3% of total net assets.
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2015 | As of June 30, 2015 |
Janus Investment Fund | 3 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Performance
See important disclosures on the next page. |
Expense Ratios - per the October 28, 2015 | ||||||||
Average Annual Total Return - for the periods ended December 31, 2015 |
| prospectuses | ||||||
|
| Fiscal
| One | Since
|
| Total Annual Fund | Net
Annual Fund | |
Class A Shares at NAV | -13.47% | -10.16% | -8.24% |
| 36.32% | 1.36% | ||
Class A Shares at MOP |
| -18.41% | -15.32% | -13.33% |
|
|
| |
Class C Shares at NAV | -13.86% | -10.90% | -8.96% |
| 37.13% | 2.14% | ||
Class C Shares at CDSC |
| -14.71% | -11.78% | -8.96% |
|
|
| |
Class D Shares(1) |
| -13.40% | -10.08% | -8.16% |
| 27.21% | 1.28% | |
Class I Shares |
| -13.42% | -9.93% | -8.02% |
| 27.42% | 1.10% | |
Class S Shares |
| -13.47% | -10.32% | -8.40% |
| 36.59% | 1.63% | |
Class T Shares |
| -13.40% | -10.08% | -8.16% |
| 35.60% | 1.37% | |
MSCI Emerging Markets IndexSM |
| -17.36% | -14.92% | -10.83% |
|
|
| |
Morningstar Quartile - Class I Shares |
| - | 1st | 2nd |
|
|
| |
Morningstar Ranking - based on total returns for Diversified Emerging Markets Funds |
| - | 201/870 | 254/870 |
|
|
|
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
INTECH's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
A Funds performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market
4 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Performance
capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Standard deviation measures historical volatility. Higher standard deviation implies greater volatility. Beta is a measure of the volatility of a portfolio in comparison to a benchmark index.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2015 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
The weighting of securities within the Fund's portfolio may differ significantly from the weightings within the index. The index is unmanaged and not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.
See Useful Information About Your Fund Report.
* The Funds inception date December 17, 2014
(1) Closed to certain new investors.
Janus Investment Fund | 5 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading Actual provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading Hypothetical (5% return before expenses) provides information about hypothetical account values and hypothetical expenses based upon the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Funds prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | Net Annualized | |||
Class A Shares | $1,000.00 | $865.30 | $6.10 |
| $1,000.00 | $1,018.60 | $6.60 | 1.30% | ||
Class C Shares | $1,000.00 | $861.40 | $9.36 |
| $1,000.00 | $1,015.08 | $10.13 | 2.00% | ||
Class D Shares | $1,000.00 | $866.00 | $5.82 |
| $1,000.00 | $1,018.90 | $6.29 | 1.24% | ||
Class I Shares | $1,000.00 | $865.80 | $5.11 |
| $1,000.00 | $1,019.66 | $5.53 | 1.09% | ||
Class S Shares | $1,000.00 | $865.30 | $6.33 |
| $1,000.00 | $1,018.35 | $6.85 | 1.35% | ||
Class T Shares | $1,000.00 | $866.00 | $5.30 |
| $1,000.00 | $1,019.46 | $5.74 | 1.13% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
6 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks 86.5% | |||||||
Air Freight & Logistics 0.9% | |||||||
Hyundai Glovis Co., Ltd.* | 91 | $14,982 | |||||
Auto Components 0.7% | |||||||
Cheng Shin Rubber Industry Co., Ltd. | 2,000 | 3,246 | |||||
Hyundai Mobis Co., Ltd.* | 44 | 9,252 | |||||
12,498 | |||||||
Automobiles 1.5% | |||||||
Hyundai Motor Co. | 30 | 3,813 | |||||
Kia Motors Corp.* | 472 | 21,178 | |||||
24,991 | |||||||
Beverages 0.7% | |||||||
Cia Cervecerias Unidas SA | 179 | 1,983 | |||||
Coca-Cola Femsa SAB de CV | 200 | 1,438 | |||||
Tsingtao Brewery Co., Ltd. | 2,000 | 9,058 | |||||
12,479 | |||||||
Chemicals 0.1% | |||||||
Hyosung Corp.* | 16 | 1,604 | |||||
Commercial Banks 18.5% | |||||||
Agricultural Bank of China, Ltd. - Class H | 11,000 | 4,499 | |||||
Alior Bank SA* | 167 | 2,836 | |||||
Banco de Chile | 74,011 | 7,547 | |||||
Banco de Credito e Inversiones | 78 | 2,946 | |||||
Banco Santander Chile | 28,564 | 1,283 | |||||
Bangkok Bank PCL | 700 | 3,007 | |||||
Bank of Communications Co., Ltd - Class H | 9,000 | 6,341 | |||||
Bank of the Philippine Islands | 5,660 | 10,089 | |||||
Bank Pekao SA | 272 | 9,968 | |||||
BDO Unibank, Inc. | 4,140 | 9,241 | |||||
Chang Hwa Commercial Bank, Ltd. | 1,680 | 803 | |||||
China CITIC Bank Corp., Ltd. - Class H* | 2,000 | 1,296 | |||||
China Construction Bank Corp. - Class H | 9,000 | 6,167 | |||||
China Everbright Bank Co., Ltd. - Class H | 1,000 | 486 | |||||
Commercial Bank QSC | 550 | 6,932 | |||||
Commercial International Bank Egypt SAE | 4,786 | 23,282 | |||||
Doha Bank QSC | 825 | 10,081 | |||||
Dubai Islamic Bank PJSC | 834 | 1,403 | |||||
First Financial Holding Co., Ltd. | 18,105 | 8,435 | |||||
First Gulf Bank PJSC | 3,765 | 12,967 | |||||
Grupo Financiero Banorte SAB de CV | 300 | 1,654 | |||||
Hong Leong Bank Bhd | 3,100 | 9,712 | |||||
Industrial & Commercial Bank of China, Ltd. - Class H | 3,000 | 1,812 | |||||
Kasikornbank PCL | 500 | 2,078 | |||||
KB Financial Group, Inc.* | 49 | 1,386 | |||||
Komercni Banka A/S | 152 | 30,282 | |||||
Krung Thai Bank PCL | 10,000 | 4,643 | |||||
Masraf Al Rayan QSC | 148 | 1,528 | |||||
Mega Financial Holding Co., Ltd. | 7,000 | 4,529 | |||||
National Bank of Abu Dhabi PJSC | 6,026 | 13,060 | |||||
OTP Bank PLC | 722 | 14,969 | |||||
Powszechna Kasa Oszczednosci Bank Polski SA* | 516 | 3,602 | |||||
Public Bank Bhd | 7,100 | 30,651 | |||||
Qatar Islamic Bank SAQ | 495 | 14,503 | |||||
Qatar National Bank SAQ | 523 | 25,132 | |||||
Shinhan Financial Group Co., Ltd.* | 28 | 945 | |||||
Taiwan Cooperative Financial Holding Co., Ltd. | 50,521 | 21,152 | |||||
VTB Bank PJSC (GDR) | 2,983 | 6,291 | |||||
317,538 | |||||||
Commercial Services & Supplies 1.5% | |||||||
KEPCO Plant Service & Engineering Co., Ltd.* | 160 | 12,147 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 7 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Commercial Services & Supplies (continued) | |||||||
S-1 Corp.* | 161 | $13,692 | |||||
25,839 | |||||||
Construction Materials 0.3% | |||||||
Siam Cement PCL | 400 | 5,071 | |||||
Consumer Finance 0.1% | |||||||
Gentera SAB de CV | 500 | 968 | |||||
Containers & Packaging 0.3% | |||||||
Klabin SA | 900 | 5,336 | |||||
Diversified Consumer Services 0.4% | |||||||
New Oriental Education & Technology Group, Inc. (ADR) | 200 | 6,274 | |||||
Diversified Financial Services 0.6% | |||||||
Ayala Corp. | 670 | 10,768 | |||||
Diversified Telecommunication Services 7.1% | |||||||
China Telecom Corp., Ltd. - Class H | 18,000 | 8,454 | |||||
China Unicom Hong Kong, Ltd. | 4,000 | 4,878 | |||||
Chunghwa Telecom Co., Ltd. | 29,000 | 87,508 | |||||
Emirates Telecommunications Group Co. PJSC | 845 | 3,704 | |||||
Hellenic Telecommunications Organization SA | 73 | 733 | |||||
Telekom Malaysia Bhd | 2,000 | 3,161 | |||||
Telekomunikasi Indonesia Persero Tbk PT | 57,100 | 12,866 | |||||
121,304 | |||||||
Electric Utilities 1.6% | |||||||
CEZ A/S | 1,283 | 22,942 | |||||
Equatorial Energia SA | 500 | 4,329 | |||||
PGE Polska Grupa Energetyczna SA | 228 | 745 | |||||
28,016 | |||||||
Electronic Equipment, Instruments & Components 0.4% | |||||||
AAC Technologies Holdings, Inc. | 500 | 3,261 | |||||
Delta Electronics Thailand PCL | 1,700 | 3,615 | |||||
6,876 | |||||||
Food & Staples Retailing 4.3% | |||||||
China Resources Beer Holdings Co., Ltd. | 4,000 | 8,568 | |||||
Controladora Comercial Mexicana SAB de CV | 4,100 | 11,259 | |||||
CP ALL PCL | 10,200 | 11,130 | |||||
Pick n Pay Stores, Ltd. | 632 | 2,659 | |||||
President Chain Store Corp. | 1,000 | 6,257 | |||||
Spar Group, Ltd. | 139 | 1,656 | |||||
Sun Art Retail Group, Ltd. | 17,500 | 13,210 | |||||
Wal-Mart de Mexico SAB de CV | 7,800 | 19,690 | |||||
74,429 | |||||||
Food Products 3.7% | |||||||
BRF SA | 100 | 1,401 | |||||
China Huishan Dairy Holdings Co., Ltd. | 16,000 | 6,132 | |||||
China Mengniu Dairy Co., Ltd. | 2,000 | 3,262 | |||||
Gruma SAB de CV - Class B | 1,100 | 15,436 | |||||
Grupo Lala SAB de CV | 1,300 | 3,024 | |||||
JBS SA | 700 | 2,186 | |||||
Lotte Confectionery Co., Ltd.* | 2 | 3,888 | |||||
PPB Group Bhd | 200 | 741 | |||||
Uni-President Enterprises Corp. | 2,000 | 3,343 | |||||
Universal Robina Corp. | 3,030 | 11,981 | |||||
Want Want China Holdings, Ltd. | 15,000 | 11,168 | |||||
62,562 | |||||||
Gas Utilities 0.1% | |||||||
Petronas Gas Bhd | 200 | 1,058 | |||||
Health Care Providers & Services 2.4% | |||||||
Bangkok Dusit Medical Services PCL | 26,600 | 16,491 | |||||
Bumrungrad Hospital PCL | 3,200 | 18,771 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Health Care Providers & Services (continued) | ||||||||
IHH Healthcare Bhd | 4,300 | $6,595 | ||||||
41,857 | ||||||||
Hotels, Restaurants & Leisure 1.6% | ||||||||
Jollibee Foods Corp. | 2,010 | 9,358 | ||||||
Kangwon Land, Inc.* | 390 | 12,775 | ||||||
Minor International PCL | 4,180 | 4,213 | ||||||
OPAP SA | 183 | 1,611 | ||||||
27,957 | ||||||||
Household Durables 0.7% | ||||||||
Coway Co., Ltd.* | 9 | 646 | ||||||
Hanssem Co., Ltd.* | 61 | 12,046 | ||||||
12,692 | ||||||||
Household Products 1.1% | ||||||||
Kimberly-Clark de Mexico SAB de CV - Class A | 6,400 | 14,997 | ||||||
Unilever Indonesia Tbk PT | 1,300 | 3,491 | ||||||
18,488 | ||||||||
Independent Power and Renewable Electricity Producers 1.1% | ||||||||
Aboitiz Power Corp. | 14,100 | 12,499 | ||||||
AES Gener SA | 7,603 | 3,378 | ||||||
Colbun SA | 4,530 | 1,083 | ||||||
Glow Energy PCL | 900 | 1,852 | ||||||
18,812 | ||||||||
Industrial Conglomerates 3.1% | ||||||||
Aboitiz Equity Ventures, Inc. | 14,020 | 17,272 | ||||||
CITIC, Ltd. | 5,000 | 8,852 | ||||||
Industries Qatar QSC | 19 | 580 | ||||||
JG Summit Holdings, Inc. | 8,460 | 13,183 | ||||||
SM Investments Corp. | 710 | 13,041 | ||||||
52,928 | ||||||||
Insurance 2.4% | ||||||||
Hanwha Life Insurance Co., Ltd.* | 641 | 4,041 | ||||||
Hyundai Marine & Fire Insurance Co., Ltd.* | 366 | 11,255 | ||||||
Powszechny Zaklad Ubezpieczen SA | 950 | 8,254 | ||||||
Qatar Insurance Co. SAQ | 240 | 5,404 | ||||||
Samsung Fire & Marine Insurance Co., Ltd.* | 44 | 11,541 | ||||||
40,495 | ||||||||
Internet Software & Services 0.3% | ||||||||
Kakao Corp.* | 40 | 3,951 | ||||||
NAVER Corp.* | 3 | 1,684 | ||||||
5,635 | ||||||||
Machinery 0.1% | ||||||||
CRRC Corp., Ltd. - Class H | 2,000 | 2,472 | ||||||
Media 0.4% | ||||||||
Cyfrowy Polsat SA* | 1,194 | 6,367 | ||||||
Metals & Mining 1.5% | ||||||||
AngloGold Ashanti, Ltd.* | 610 | 4,195 | ||||||
China Steel Corp. | 6,000 | 3,279 | ||||||
Gold Fields, Ltd. | 3,123 | 8,530 | ||||||
Korea Zinc Co., Ltd.* | 5 | 2,000 | ||||||
Severstal PAO (GDR) | 856 | 7,160 | ||||||
25,164 | ||||||||
Multiline Retail 0.3% | ||||||||
El Puerto de Liverpool SAB de CV | 400 | 4,878 | ||||||
Multi-Utilities 0.7% | ||||||||
Qatar Electricity & Water Co QSC | 188 | 11,171 | ||||||
Oil, Gas & Consumable Fuels 3.9% | ||||||||
China Coal Energy Co., Ltd. - Class H | 4,000 | 1,533 | ||||||
MOL Hungarian Oil & Gas PLC | 329 | 16,205 | ||||||
Petronas Dagangan Bhd | 500 | 2,897 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Oil, Gas & Consumable Fuels (continued) | |||||||
Polski Koncern Naftowy Orlen SA | 1,155 | $20,014 | |||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 14,656 | 19,239 | |||||
Qatar Gas Transport Co., Ltd. | 944 | 6,053 | |||||
Surgutneftegas OAO (ADR) | 100 | 595 | |||||
66,536 | |||||||
Paper & Forest Products 0.6% | |||||||
Empresas CMPC SA | 173 | 374 | |||||
Fibria Celulose SA | 800 | 10,496 | |||||
10,870 | |||||||
Personal Products 0.3% | |||||||
Hengan International Group Co., Ltd. | 500 | 4,723 | |||||
Pharmaceuticals 2.4% | |||||||
CSPC Pharmaceutical Group, Ltd. | 2,000 | 2,044 | |||||
Hanmi Pharm Co., Ltd. | 22 | 13,662 | |||||
Hanmi Science Co., Ltd. | 36 | 3,961 | |||||
Richter Gedeon Nyrt | 417 | 7,922 | |||||
Sihuan Pharmaceutical Holdings Group, Ltd.ß | 24,000 | 13,555 | |||||
41,144 | |||||||
Real Estate Investment Trusts (REITs) 0.1% | |||||||
Resilient REIT, Ltd. | 168 | 1,256 | |||||
Real Estate Management & Development 1.5% | |||||||
Ayala Land, Inc. | 13,200 | 9,667 | |||||
Barwa Real Estate Co. | 464 | 5,096 | |||||
Central Pattana PCL | 800 | 1,045 | |||||
China Vanke Co., Ltd. - Class Hß | 2,300 | 6,796 | |||||
Longfor Properties Co., Ltd. | 500 | 746 | |||||
New Europe Property Investments PLC | 190 | 2,187 | |||||
25,537 | |||||||
Road & Rail 0.6% | |||||||
BTS Group Holdings PCL | 43,100 | 10,904 | |||||
Semiconductor & Semiconductor Equipment 0.2% | |||||||
Hanergy Thin Film Power Group, Ltd.*,ß | 52,000 | 1,441 | |||||
Powertech Technology, Inc. | 1,000 | 1,985 | |||||
3,426 | |||||||
Software 0% | |||||||
NCSoft Corp. | 2 | 363 | |||||
Textiles, Apparel & Luxury Goods 3.5% | |||||||
ANTA Sports Products, Ltd. | 5,000 | 13,742 | |||||
Belle International Holdings, Ltd. | 3,000 | 2,253 | |||||
Eclat Textile Co., Ltd. | 1,000 | 13,809 | |||||
Feng TAY Enterprise Co., Ltd. | 1,030 | 5,269 | |||||
LPP SA | 4 | 5,675 | |||||
Pou Chen Corp. | 2,000 | 2,625 | |||||
Shenzhou International Group Holdings, Ltd. | 3,000 | 17,246 | |||||
60,619 | |||||||
Tobacco 1.6% | |||||||
KT&G Corp.* | 302 | 26,921 | |||||
Transportation Infrastructure 3.6% | |||||||
Airports of Thailand PCL | 2,300 | 22,124 | |||||
Beijing Capital International Airport Co., Ltd. - Class H | 4,000 | 4,320 | |||||
COSCO Pacific, Ltd. | 14,000 | 15,427 | |||||
Grupo Aeroportuario del Pacifico SAB de CV - Class B | 700 | 6,178 | |||||
Grupo Aeroportuario del Sureste SAB de CV - Class B | 55 | 779 | |||||
Jiangsu Expressway Co., Ltd. - Class H | 10,000 | 13,497 | |||||
62,325 | |||||||
Water Utilities 0.9% | |||||||
Aguas Andinas SA - Class A | 7,286 | 3,743 | |||||
Guangdong Investment, Ltd. | 8,000 | 11,334 | |||||
15,077 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Wireless Telecommunication Services 8.8% | ||||||||
Advanced Info Service PCL | 6,000 | $25,354 | ||||||
Axiata Group Bhd | 7,300 | 10,907 | ||||||
China Mobile, Ltd. | 500 | 5,645 | ||||||
DiGi.Com Bhd | 18,600 | 23,413 | ||||||
Far EasTone Telecommunications Co., Ltd. | 14,000 | 28,818 | ||||||
Globe Telecom, Inc. | 120 | 4,724 | ||||||
Maxis Bhd | 10,200 | 16,168 | ||||||
Philippine Long Distance Telephone Co. | 195 | 8,540 | ||||||
Taiwan Mobile Co., Ltd. | 9,000 | 27,405 | ||||||
Vodacom Group, Ltd. | 62 | 612 | ||||||
151,586 | ||||||||
Total Common Stocks (cost $1,612,634) | 1,482,796 | |||||||
Preferred Stocks 1.8% | ||||||||
Automobiles 1.0% | ||||||||
Hyundai Motor Co. | 102 | 8,962 | ||||||
Hyundai Motor Co. - 2nd Preference | 87 | 7,792 | ||||||
16,754 | ||||||||
Paper & Forest Products 0.8% | ||||||||
Suzano Papel e Celulose SA | 3,100 | 14,650 | ||||||
Total Preferred Stocks (cost $33,388) | 31,404 | |||||||
Investment Companies 11.8% | ||||||||
Exchange-Traded Funds (ETFs) 11.2% | ||||||||
iShares India 50 | 7,100 | 193,049 | ||||||
Money Markets 0.6% | ||||||||
Janus Cash Liquidity Fund LLC, 0.3105%ºº,£ | 10,000 | 10,000 | ||||||
Total Investment Companies (cost $216,379) | 203,049 | |||||||
Total Investments (total cost $1,862,401) 100.1% | 1,717,249 | |||||||
Liabilities, net of Cash, Receivables and Other Assets (0.1)% | (2,150) | |||||||
Net Assets 100% | $1,715,099 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
INTECH Emerging Markets Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
Country | Value | % of Investment Securities | |||
China | $220,492 | 12.8 | % | ||
Taiwan | 218,464 | 12.7 | |||
South Korea | 204,487 | 11.9 | |||
India | 193,049 | 11.3 | |||
Philippines | 130,363 | 7.6 | |||
Thailand | 130,298 | 7.6 | |||
Malaysia | 105,303 | 6.1 | |||
Qatar | 86,480 | 5.0 | |||
Mexico | 80,301 | 4.7 | |||
Poland | 76,700 | 4.5 | |||
Czech Republic | 53,224 | 3.1 | |||
Hungary | 39,096 | 2.3 | |||
Brazil | 38,398 | 2.2 | |||
United Arab Emirates | 31,134 | 1.8 | |||
Egypt | 23,282 | 1.4 | |||
Chile | 22,337 | 1.3 | |||
South Africa | 21,095 | 1.2 | |||
Indonesia | 16,357 | 1.0 | |||
Russia | 14,046 | 0.8 | |||
United States | 10,000 | 0.6 | |||
Greece | 2,344 | 0.1 | |||
Total | $1,717,250 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Notes to Schedule of Investments and Other Information (unaudited)
MSCI Emerging Markets IndexSM | A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
LLC | Limited Liability Company |
PCL | Public Company Limited |
PJSC | Private Joint Stock Company |
PLC | Public Limited Company |
* | Non-income producing security. |
ß | Security is illiquid. |
ºº | Rate shown is the 7-day yield as of December 31, 2015. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. The following securities were considered affiliated companies for all or some portion of the period ended December 31, 2015. Unless otherwise indicated, all information in the table is for the period ended December 31, 2015. |
| Share | Purchases | Sales | Share | Dividend | Value |
Janus Cash Collateral Fund LLC | 3,025 | 180,350 | (183,375) | - | $ -(1) | $ - |
Janus Cash Liquidity Fund LLC | 35,000 | 459,010 | (484,010) | 10,000 | $ 18 | $ 10,000 |
Total | $ 18 | $ 10,000 |
(1)Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties.
The following is a summary of the inputs that were used to value the Fund's investments in securities and other financial instruments as of December 31, 2015. See Notes to Financial Statements for more information. | |||
Valuation Inputs Summary | |||
| Level 1 - | Level 2 - | Level 3 - |
Assets | |||
Investments in Securities: | |||
Common Stocks | |||
Pharmaceuticals | $ 27,589 | $ - | $ 13,555 |
Real Estate Management & Development | 18,741 | 6,796 | - |
Semiconductor & Semiconductor Equipment | 1,985 | - | 1,441 |
All Other | 1,412,689 | - | - |
Preferred Stocks | - | 31,404 | - |
Investment Companies | 193,049 | 10,000 | - |
Total Assets | $ 1,654,053 | $ 48,200 | $ 14,996 |
Janus Investment Fund | 13 |
INTECH Emerging Markets Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
Assets: |
|
|
|
| ||
Investments, at cost | $ | 1,862,401 | ||||
Unaffiliated investments, at value | $ | 1,707,249 | ||||
Affiliated investments, at value | 10,000 | |||||
Cash | 631 | |||||
Cash denominated in foreign currency(1) | 5 | |||||
Non-interested Trustees' deferred compensation | 35 | |||||
Receivables: | ||||||
Due from adviser | 28,874 | |||||
Dividends | 2,957 | |||||
Fund shares sold | 863 | |||||
Foreign tax reclaims | 188 | |||||
Dividends from affiliates | 3 | |||||
Other assets | 19 | |||||
Total Assets |
|
| 1,750,824 |
| ||
Liabilities: | ||||||
Payables: | | |||||
Professional fees | 23,658 | |||||
Custodian fees | 5,665 | |||||
Accounting systems fees | 1,551 | |||||
Advisory fees | 1,512 | |||||
Registration fees | 1,141 | |||||
Transfer agent fees and expenses | 373 | |||||
12b-1 Distribution and shareholder servicing fees | 86 | |||||
Non-interested Trustees' deferred compensation fees | 35 | |||||
Fund administration fees | 15 | |||||
Non-interested Trustees' fees and expenses | 12 | |||||
Accrued expenses and other payables | 1,677 | |||||
Total Liabilities |
|
| 35,725 |
| ||
Net Assets |
| $ | 1,715,099 |
|
See Notes to Financial Statements. | |
14 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
Net Assets Consist of: |
|
|
|
| ||
Capital (par value and paid-in surplus) | $ | 1,982,817 | ||||
Undistributed net investment income/(loss) | 15,760 | |||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions | (138,307) | |||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation | (145,171) | |||||
Total Net Assets |
| $ | 1,715,099 |
| ||
Net Assets - Class A Shares | $ | 137,195 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 15,260 | |||||
Net Asset Value Per Share(2) |
| $ | 8.99 |
| ||
Maximum Offering Price Per Share(3) |
| $ | 9.54 |
| ||
Net Assets - Class C Shares | $ | 45,377 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,045 | |||||
Net Asset Value Per Share(2) |
| $ | 8.99 |
| ||
Net Assets - Class D Shares | $ | 1,029,646 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 114,540 | |||||
Net Asset Value Per Share |
| $ | 8.99 |
| ||
Net Assets - Class I Shares | $ | 307,339 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 34,185 | |||||
Net Asset Value Per Share |
| $ | 8.99 |
| ||
Net Assets - Class S Shares | $ | 45,654 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,077 | |||||
Net Asset Value Per Share |
| $ | 8.99 |
| ||
Net Assets - Class T Shares | $ | 149,888 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 16,673 | |||||
Net Asset Value Per Share |
| $ | 8.99 |
|
(1) Includes cost of foreign cash of $4.56. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.26 of net asset value. |
See Notes to Financial Statements. | |
Janus Investment Fund | 15 |
INTECH Emerging Markets Managed Volatility Fund
Statement of Operations (unaudited)
For the period ended December 31, 2015
Investment Income: |
|
|
| ||
| Dividends | $ | 34,920 | ||
Affiliated securities lending income, net | 72 | ||||
Dividends from affiliates | 18 | ||||
Other income | 101 | ||||
Foreign tax withheld | (4,349) | ||||
Total Investment Income |
| 30,762 |
| ||
Expenses: | |||||
Advisory fees | 9,049 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 168 | ||||
Class C Shares | 223 | ||||
Class S Shares | 56 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 720 | ||||
Class S Shares | 61 | ||||
Class T Shares | 198 | ||||
Transfer agent networking and omnibus fees: | |||||
Class I Shares | 9 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 24 | ||||
Class C Shares | 9 | ||||
Class D Shares | 503 | ||||
Class I Shares | 74 | ||||
Class S Shares | 6 | ||||
Class T Shares | 19 | ||||
Registration fees | 57,429 | ||||
Professional fees | 21,908 | ||||
Custodian fees | 20,433 | ||||
Shareholder reports expense | 5,420 | ||||
Fund administration fees | 91 | ||||
Non-interested Trustees fees and expenses | 26 | ||||
Other expenses | 3,306 | ||||
Total Expenses |
| 119,732 |
| ||
Less: Excess Expense Reimbursement |
| (108,169) |
| ||
Net Expenses |
| 11,563 |
| ||
Net Investment Income/(Loss) |
| 19,199 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (137,695) | ||||
Total Net Realized Gain/(Loss) on Investments |
| (137,695) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees deferred compensation | (131,313) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (131,313) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (249,809) |
| ||
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Statements of Changes in Net Assets (unaudited)
|
|
| Period
ended |
| Period ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 19,199 | $ | 11,591 | ||||
Net realized gain/(loss) on investments | (137,695) | 14,600 | ||||||
Change in unrealized net appreciation/depreciation | (131,313) | (13,858) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (249,809) |
|
| 12,333 | |||
Dividends and Distributions to Shareholders: | ||||||||
Class A Shares | (1,178) | | ||||||
Class C Shares | (20) | | ||||||
Class D Shares | (9,709) | | ||||||
Class I Shares | (3,366) | | ||||||
Class S Shares | (309) | | ||||||
Class T Shares | (1,423) | | ||||||
| Total Dividends from Net Investment Income |
| (16,005) |
|
| | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | (1,145) | | ||||||
Class C Shares | (382) | | ||||||
Class D Shares | (8,596) | | ||||||
Class I Shares | (2,530) | | ||||||
Class S Shares | (382) | | ||||||
Class T Shares | (1,258) | | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | (14,293) |
|
| | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (30,298) |
|
| | |||
Capital Share Transactions: | ||||||||
Class A Shares | 2,323 | 150,000 | ||||||
Class C Shares | 402 | 50,000 | ||||||
Class D Shares | (132,762) | 1,339,896 | ||||||
Class I Shares | 48,307 | 306,508 | ||||||
Class S Shares | 690 | 50,000 | ||||||
Class T Shares | 4,876 | 162,633 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| (76,164) |
|
| 2,059,037 | |||
Net Increase/(Decrease) in Net Assets |
| (356,271) |
|
| 2,071,370 | |||
Net Assets: | ||||||||
Beginning of period | 2,071,370 | | ||||||
| End of period | $ | 1,715,099 |
| $ | 2,071,370 | ||
Undistributed Net Investment Income/(Loss) | $ | 15,760 |
| $ | 12,566 |
(1) Period from December 17, 2014 (inception date) through June 30, 2015. |
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Financial Highlights
Class A Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.49 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.10 | 0.06 | |||||||
Net realized and unrealized gain/(loss) | (1.44) | 0.43 | |||||||
Total from Investment Operations |
| (1.34) |
|
| 0.49 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.08) | | |||||||
Distributions (from capital gains) | (0.08) | | |||||||
Total Dividends and Distributions |
| (0.16) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $10.49 | |||||||
Total Return* |
| (13.47)% |
|
| 4.90% |
| |||
Net Assets, End of Period (in thousands) | $137 | $157 | |||||||
Average Net Assets for the Period (in thousands) | $144 | $159 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 12.81% | 36.27% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.30% | 1.31% | |||||||
Ratio of Net Investment Income/(Loss) | 1.97% | 1.05% | |||||||
Portfolio Turnover Rate | 52% | 43% | |||||||
Class C Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.44 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.06 | 0.02 | |||||||
Net realized and unrealized gain/(loss) | (1.43) | 0.42 | |||||||
Total from Investment Operations |
| (1.37) |
|
| 0.44 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (3) | | |||||||
Distributions (from capital gains) | (0.08) | | |||||||
Total Dividends and Distributions |
| (0.08) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $10.44 | |||||||
Total Return* |
| (13.86)% |
|
| 4.40% |
| |||
Net Assets, End of Period (in thousands) | $45 | $52 | |||||||
Average Net Assets for the Period (in thousands) | $48 | $53 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 13.50% | 37.08% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 2.00% | 2.09% | |||||||
Ratio of Net Investment Income/(Loss) | 1.27% | 0.27% | |||||||
Portfolio Turnover Rate | 52% | 43% | |||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from December 17, 2014 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. |
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Financial Highlights
Class D Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.49 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.10 | 0.08 | |||||||
Net realized and unrealized gain/(loss) | (1.43) | 0.41 | |||||||
Total from Investment Operations |
| (1.33) |
|
| 0.49 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.09) | | |||||||
Distributions (from capital gains) | (0.08) | | |||||||
Total Dividends and Distributions |
| (0.17) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $10.49 | |||||||
Total Return* |
| (13.40)% |
|
| 4.90% |
| |||
Net Assets, End of Period (in thousands) | $1,030 | $1,335 | |||||||
Average Net Assets for the Period (in thousands) | $1,176 | $1,037 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 12.71% | 27.16% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.24% | 1.23% | |||||||
Ratio of Net Investment Income/(Loss) | 2.06% | 1.38% | |||||||
Portfolio Turnover Rate | 52% | 43% | |||||||
Class I Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.50 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.10 | 0.10 | |||||||
Net realized and unrealized gain/(loss) | (1.43) | 0.40 | |||||||
Total from Investment Operations |
| (1.33) |
|
| 0.50 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.10) | | |||||||
Distributions (from capital gains) | (0.08) | | |||||||
Total Dividends and Distributions |
| (0.18) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $10.50 | |||||||
Total Return* |
| (13.42)% |
|
| 5.00% |
| |||
Net Assets, End of Period (in thousands) | $307 | $305 | |||||||
Average Net Assets for the Period (in thousands) | $296 | $181 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 12.71% | 27.37% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.09% | 1.05% | |||||||
Ratio of Net Investment Income/(Loss) | 2.14% | 1.79% | |||||||
Portfolio Turnover Rate | 52% | 43% | |||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from December 17, 2014 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Financial Highlights
Class S Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.47 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.09 | 0.04 | |||||||
Net realized and unrealized gain/(loss) | (1.43) | 0.43 | |||||||
Total from Investment Operations |
| (1.34) |
|
| 0.47 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.06) | | |||||||
Distributions (from capital gains) | (0.08) | | |||||||
Total Dividends and Distributions |
| (0.14) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $10.47 | |||||||
Total Return* |
| (13.47)% |
|
| 4.70% |
| |||
Net Assets, End of Period (in thousands) | $46 | $52 | |||||||
Average Net Assets for the Period (in thousands) | $48 | $53 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 13.05% | 36.54% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.35% | 1.58% | |||||||
Ratio of Net Investment Income/(Loss) | 1.92% | 0.78% | |||||||
Portfolio Turnover Rate | 52% | 43% | |||||||
Class T Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $10.00 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.10 | 0.06 | |||||||
Net realized and unrealized gain/(loss) | (0.94) | 0.43 | |||||||
Total from Investment Operations |
| (0.84) |
|
| 0.49 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.09) | | |||||||
Distributions (from capital gains) | (0.08) | | |||||||
Total Dividends and Distributions |
| (0.17) |
|
| |
| |||
Net Asset Value, End of Period | $8.99 | $10.49 | |||||||
Total Return* |
| (13.40)% |
|
| 4.90% |
| |||
Net Assets, End of Period (in thousands) | $150 | $169 | |||||||
Average Net Assets for the Period (in thousands) | $155 | $165 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 12.86% | 35.55% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.13% | 1.32% | |||||||
Ratio of Net Investment Income/(Loss) | 2.13% | 1.07% | |||||||
Portfolio Turnover Rate | 52% | 43% | |||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from December 17, 2014 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
1. Organization and Significant Accounting Policies
INTECH Emerging Markets Managed Volatility Fund (the Fund) is a series fund. The Fund is part of Janus Investment Fund (the Trust), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946. The Trust offers forty-five Funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in common stocks. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. Class D Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (Janus Capital) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the Valuation Procedures). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (OTC) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (NYSE). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined
Janus Investment Fund | 21 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to odd-lot fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Funds own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2015 to fair value the Funds investments in securities and other financial instruments is included in the Valuation Inputs Summary in the Notes to Schedule of Investments and Other Information.
The Fund did not hold a significant amount of Level 3 securities as of December 31, 2015.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may
22 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Funds maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as equalization, has no effect on the redeeming shareholder or a Funds total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Funds equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Funds tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds financial statements. The Fund is not aware of any tax
Janus Investment Fund | 23 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Funds ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. One or more countries may abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (counterparty risk). Counterparty risk may arise because of the counterpartys financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterpartys inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery
24 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
may be delayed. The extent of the Funds exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Funds cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capitals analysis of a counterpartys creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
To the extent that emerging markets may be included in its benchmark index, the Fund may invest in securities of issuers or companies from or with exposure to one or more developing countries or emerging market countries. To the extent that the Fund invests a significant amount of its assets in one or more of these countries, its returns and net asset value may be affected to a large degree by events and economic conditions in such countries. The risks of foreign investing are heightened when investing in emerging markets, which may result in the price of investments in emerging markets experiencing sudden and sharp price swings. In many developing markets, there is less government supervision and regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, sanctions or imposition of restrictions by various governmental entities on investment and trading, or creation of government monopolies, any of which may have a detrimental effect on the Funds investments. In addition, the Funds investments may be denominated in foreign currencies and therefore, changes in the value of a countrys currency compared to the U.S. dollar may affect the value of the Funds investments. To the extent that the Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Funds performance. Additionally, foreign and emerging market risks, including, but not limited to, price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent the Fund invests in Chinese local market securities.
Exchange-Traded Funds
The Fund may invest in exchange-traded funds (ETFs) to gain exposure to a particular portion of the market. ETFs are typically open-end investment companies, which may be actively managed or passively managed, that generally seek to track the performance of a specific index. ETFs are traded on a national securities exchange at market prices that may vary from the net asset value of their underlying investments. Accordingly, there may be times when an ETF trades at a premium or discount. When the Fund invests in an ETF, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the ETF's expenses. As a result, the cost of investing in a Fund may be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in stocks and bonds. ETFs also involve the risk that an active trading market for an ETFs shares may not develop or be maintained. Similarly, because the value of ETF shares depends on the demand in the market, the Fund may not be able to purchase or sell an ETF at the most optimal time, which could adversely affect the Funds performance. In addition, ETFs that track particular indices may be unable to match the performance of such underlying indices due to the temporary unavailability of certain index securities in the secondary market or other factors, such as discrepancies with respect to the weighting of securities. Because the Fund may invest in a broad range of ETFs, such risks may include, but are not limited to, leverage risk, foreign exposure risk, interest rate risk, and commodity-linked investments risk.
Real Estate Investing
To the extent that real estate-related securities may be included in the Funds named benchmark index, INTECHs mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-
Janus Investment Fund | 25 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. The Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Funds contractual investment advisory fee rate (expressed as an annual rate).
Average Daily Net Assets of the Fund | Contractual Investment Advisory Fee (%) |
First $2 Billion | 0.95 |
Next $1 Billion | 0.92 |
Next $3 Billion | 0.90 |
INTECH Investment Management LLC (INTECH) serves as subadviser to the Fund. As subadviser, INTECH provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of INTECH.
Janus Capital pays INTECH a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
26 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Funds normal operating expenses in any fiscal year, including the investment advisory fee, but excluding the 12b-1 distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 1.08%. Janus Capital has agreed to continue the waiver until at least November 1, 2016. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as Excess Expense Reimbursement on the Statement of Operations.
Janus Services LLC (Janus Services), a wholly-owned subsidiary of Janus Capital, is the Funds transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as Transfer agent networking and omnibus fees on the Statement of Operations.
The Funds Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Funds Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (NSCC) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to the Funds Class D Shares. In addition to the administrative fees discussed above, Janus Services receives reimbursement for out-of-pocket costs it incurs for serving as transfer agent and providing, or arranging for, servicing to shareholders. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Under a distribution and shareholder servicing plan (the Plan) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trusts distributor, Janus Distributors LLC (Janus Distributors), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets,
Janus Investment Fund | 27 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
and of up to 0.25% of the Class S Shares average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as 12b-1 Distribution and shareholder servicing fees on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Funds actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in 12b-1 Distribution fees and shareholder servicing fees in the Statement of Operations.
Janus Capital furnishes certain administration, compliance, and accounting services for the Fund and is reimbursed by the Fund for certain of its costs in providing those services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). The Fund also pays for salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to the Fund. These amounts are disclosed as Fund administration fees on the Statement of Operations. In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $296,867 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2015. The Fund's portion is reported as part of Other expenses on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the Deferred Plan) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2015 on the Statement of Assets and Liabilities in the asset, Non-interested Trustees deferred compensation, and liability, Non-interested Trustees deferred compensation fees. Additionally, the recorded unrealized appreciation/(depreciation) is included in Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2015 are included in Non-interested Trustees fees and expenses on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $151,400 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2015.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the Investing Funds). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered product compliant with Rule 2a-7 under the 1940 Act. There are no restrictions on the Fund's ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. The units of Janus Cash Liquidity Fund LLC are not charged any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2015 can be found in a table located in the Notes to Schedule of Investments and Other Information.
28 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. There were no upfront sales charges retained by Janus Distributors during the period ended December 31, 2015.
A contingent deferred sales charge (CDSC) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 2015.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended December 31, 2015.
As of December 31, 2015, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| |
Class A Shares | 100 | % | 8 | % | |
Class C Shares | 100 | 3 | |||
Class D Shares | 44 | 27 | |||
Class I Shares | 30 | 5 | |||
Class S Shares | 100 | 3 | |||
Class T Shares | 92 | 8 | |||
|
|
|
|
|
In addition, other shareholders, including other funds, individuals, accounts, as well as the Funds portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Funds Shares and can be considered to control the Fund when that ownership exceeds 25% of the Funds assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2015 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/depreciation on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
Federal Tax Cost | Unrealized
| Unrealized | Net Tax Appreciation/ |
$ 1,865,707 | $ 240,406 | $ (388,864) | $ (148,458) |
Janus Investment Fund | 29 |
INTECH Emerging Markets Managed Volatility Fund (unaudited)
Notes to Financial Statements
5. Capital Share Transactions
Period ended December 31, 2015 | Period ended June 30, 2015(1) | |||||
|
| Shares | Amount |
| Shares | Amount |
Class A Shares: | ||||||
Shares sold | - | $ - | 15,000 | $ 150,000 | ||
Reinvested dividends and distributions | 260 | 2,323 | - | - | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 260 | $ 2,323 |
| 15,000 | $ 150,000 | |
Class C Shares: | ||||||
Shares sold | - | $ - | 5,000 | $ 50,000 | ||
Reinvested dividends and distributions | 45 | 402 | - | - | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 45 | $ 402 |
| 5,000 | $ 50,000 | |
Class D Shares: | ||||||
Shares sold | 23,226 | $ 214,788 | 165,011 | $1,742,920 | ||
Reinvested dividends and distributions | 2,040 | 18,218 | - | - | ||
Shares repurchased | (37,980) | (365,768) | (37,757) | (403,024) | ||
Net Increase/(Decrease) | (12,714) | $(132,762) |
| 127,254 | $1,339,896 | |
Class I Shares: | ||||||
Shares sold | 5,932 | $ 56,289 | 29,081 | $ 307,051 | ||
Reinvested dividends and distributions | 660 | 5,896 | - | - | ||
Shares repurchased | (1,439) | (13,878) | (49) | (543) | ||
Net Increase/(Decrease) | 5,153 | $ 48,307 |
| 29,032 | $ 306,508 | |
Class S Shares: | ||||||
Shares sold | - | $ - | 5,000 | $ 50,000 | ||
Reinvested dividends and distributions | 77 | 690 | - | - | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 77 | $ 690 |
| 5,000 | $ 50,000 | |
Class T Shares: | ||||||
Shares sold | 869 | $ 8,208 | 16,514 | $ 166,569 | ||
Reinvested dividends and distributions | 300 | 2,681 | - | - | ||
Shares repurchased | (641) | (6,013) | (369) | (3,936) | ||
Net Increase/(Decrease) | 528 | $ 4,876 |
| 16,145 | $ 162,633 | |
(1) | Period from December 17, 2014 (inception date) through June 30, 2015. |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2015, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
Purchases of | Proceeds from Sales | Purchases of Long- | Proceeds from Sales |
$ 977,183 | $ 1,084,565 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2015 and through the date of issuance of the Funds financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds financial statements.
30 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds website at janus.com/proxyvoting; and (iii) on the SECs website at http://www.sec.gov. Additionally, information regarding the Funds proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/ proxyvoting and from the SECs website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds Form N-Q: (i) is available on the SECs website at http://www.sec.gov; (ii) may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund and Janus Aspen Series, each of whom serves as an independent Trustee (the Trustees), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a Fund and collectively, the Funds), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2015, based on the Trustees evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from either January 1 or February 1, 2016 through January 1 or February 1, 2017, respectively, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultants conclusions and opinions that arose during, and were included as part of, the Trustees consideration of the agreements. Management fees, as used herein, reflect actual annual advisory fees and any administration fees (excluding out of pocket costs), net of any waivers.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective, strategies and policies of each Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capitals role as administrator to the Funds, noting that Janus Capital does not receive a fee
Janus Investment Fund | 31 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds and Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Funds portfolio manager(s), and also reviewed information comparing each Funds performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (Broadridge), an independent data provider, and with the Funds benchmark index. In this regard, the independent fee consultant found that the overall Funds performance has been strong: for the 36 months ended September 30, 2015, approximately 70% of the Funds were in the top two Broadridge quartiles of performance, and for the 12 months ended September 30, 2015, approximately 61% of the Funds were in the top two Broadridge quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, the steps Janus Capital had taken or was taking to improve performance, and its limited performance history.
· For Janus High-Yield Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Multi-Sector Income Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Real Return Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
32 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Short-Term Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Government Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
· For Janus Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Allocation Fund Moderate, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
Value Funds
· For Perkins International Value Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Perkins Global Value Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Large Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Mid Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Select Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
Janus Investment Fund | 33 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
· For Perkins Value Plus Income Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH International Managed Volatility Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital and INTECH had taken or were taking to improve performance.
· For INTECH U.S. Core Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Contrarian Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Enterprise Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Forty Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Growth and Income Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and in the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Research Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
34 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Triton Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Twenty Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Venture Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Emerging Markets Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Real Estate Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Research Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Select Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Technology Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus International Equity Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Overseas Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Janus Investment Fund | 35 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Allocation Portfolio Moderate, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Funds performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Funds performance warranted continuation of the Funds investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration, but excluding out-of-pocket costs) fees for many of the Funds, after applicable waivers,
36 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
was below the mean management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 14% below the mean total expenses of their respective Broadridge Expense Group peers and 24% below the mean total expenses for their Broadridge Expense Universes; (3) management fees for the Funds, on average, were 15% below the mean management fees for their Expense Groups and 19% below the mean for their Expense Universes; and (4) Fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered the total expenses for each share class of each Fund compared to the mean total expenses for its Broadridge Expense Group peers and to mean total expenses for its Broadridge Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds, the independent fee consultant also performed a systematic focus list analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) the average spread between management fees charged to the Funds and those charged to Janus Capitals institutional accounts is reasonable relative to the average spreads seen in the industry; and (4) by one estimation methodology, the fee margins implied by Janus Capitals subadvised fees when compared to its mutual fund fees are reasonable relative to the estimated fee margins in the industry and relative to estimated fee margins of fund managers using Janus Capital as a subadviser.
The Trustees considered the fees for each Fund for its fiscal year ended in 2014, and noted the following with regard to each Funds total expenses, net of applicable fee waivers (the Funds total expenses):
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
Janus Investment Fund | 37 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Global Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus High-Yield Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Multi-Sector Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus has contractually agreed to limit the Funds expenses.
· For Janus Real Return Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Short-Term Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Government Money Market Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Funds management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Money Market Fund, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Value Funds
· For Perkins International Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Global Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable.
38 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Perkins Large Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Mid Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Perkins Select Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Perkins Value Plus Income Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For INTECH International Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Core Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for one share class. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Contrarian Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Enterprise Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Forty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
Janus Investment Fund | 39 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Growth and Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Triton Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Twenty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Venture Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Emerging Markets Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Real Estate Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Select Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Technology Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus International Equity Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Overseas Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
40 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Allocation Portfolio - Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for its sole share class.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized by Janus Capital when allocating various expenses of Janus Capital and its affiliates with respect to contractual relationships with the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capitals parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund managers capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees independent fee consultant, and based on the information available, the Trustees concluded that Janus Capitals profitability with respect to each Fund in relation to the services rendered was reasonable.
The independent fee consultant found that, while assessing the reasonableness of expenses in light of Janus Capitals profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Funds is reasonable.
The Trustees concluded that the management fees payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Funds. The Trustees also concluded that each Funds total expenses were reasonable, taking into account the size of the Fund, the quality of services
Janus Investment Fund | 41 |
INTECH Emerging Markets Managed Volatility Fund
Additional Information (unaudited)
provided by Janus Capital and any subadviser, the investment performance of the Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that their independent fee consultant provided an analysis of economies of scale, which included discussion of analysis from prior years. They also noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, their independent fee consultant concluded that 85% of these Funds have contractual management fees (gross of waivers) below their Broadridge expense group averages and, overall, 80% of the Funds are below their respective expense group averages for contractual management fees. They also noted that for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of some of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and a few Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of any economies of scale that may be present at the current asset level of the Fund.
The independent fee consultant concluded that, given the limitations of various analytical approaches to economies of scale considered in prior years, and their conflicting results, its analyses could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Fund investors are well-served by the fee levels and performance fee structures in place on the Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Funds from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capitals past and proposed use of commissions paid by the Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Fund. The Trustees concluded that Janus Capitals and the subadvisers use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and/or the subadvisers benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capitals and/or the subadvisers receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Fund could attract other business to Janus Capital, the subadvisers or other Janus funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capitals and the subadvisers ability to serve the Funds.
42 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Funds performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the companys principal office, the location of the principal trading market for the companys securities, or the country where a majority of the companys revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was December 31, 2015. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Funds unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Funds subsidized expense ratio. Ratios may be higher or lower than those shown in the Financial Highlights in this report.
Schedule of Investments
Following the performance overview section is the Funds Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Funds Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, and swaps follow the Funds Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the balance sheet. It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Investment Fund | 43 |
INTECH Emerging Markets Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
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 securities 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 entitled Net Assets Consist of breaks down the components of the Funds net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (NAV) per share on the last day of the reporting period. The NAV is calculated by dividing the Funds net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Funds income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled Investment Income, reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. Net Realized and Unrealized Gain/(Loss) on Investments is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Funds net assets during the reporting period. Changes in the Funds net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the 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 operations. The Funds net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Funds net assets will not be affected. If you compare the Funds Net Decrease from Dividends and Distributions to Reinvested Dividends and Distributions, you will notice that dividends and distributions have little effect on the Funds net assets. This is because the majority of the Funds investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under Capital Share Transactions. Capital Shares refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Funds net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Funds NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
44 | DECEMBER 31, 2015 |
INTECH Emerging Markets Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Funds expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Funds yield. The net investment income ratio is not a true measure of the Funds yield because it does not take into account the dividends distributed to the Funds investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Funds investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Investment Fund | 45 |
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus asset allocation funds aim to allocate risk more effectively.
Fixed Income
Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth & Core
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH® (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more efficient portfolio than the index.
Value
Our value funds, managed by Perkins® (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money. | ||||||||||||
Janus, INTECH and Perkins are registered trademarks of Janus International Holding LLC. © Janus International Holding LLC. Funds distributed by Janus Distributors LLC | ||||||||||||
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | |||||||||
C-0216-108352 | 125-24-93012 02-16 |
SEMIANNUAL REPORT December 31, 2015 | |||
INTECH Global Income Managed Volatility Fund | |||
Janus Investment Fund | |||
| |||
HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics | |||
Table of Contents
INTECH Global Income Managed Volatility Fund
INTECH Global Income Managed Volatility Fund (unaudited)
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2015, INTECH Global Income Managed Volatility Funds Class I Shares returned 6.02%. This compares to the -3.41% return posted by the MSCI World Index, the Funds primary benchmark, and a -2.59% return for its secondary benchmark, the MSCI World High Dividend Yield Index.
INVESTMENT STRATEGY
INTECHs mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the MSCI World High Dividend Yield Index. INTECHs investment process aims to capture stocks natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to favor stocks with higher relative volatility and lower correlation as they offer more potential to capture volatility through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The INTECH Global Income Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also reducing or managing the Funds standard deviation depending on the market conditions, a strategy designed to manage the absolute risk of the portfolio.
PERFORMANCE REVIEW
The global developed equity markets as measured by the MSCI World Index posted a return of -3.41% for the six-month period ended December 31, 2015. The MSCI World High Dividend Yield Index was down by 2.59% over the period. INTECH Global Income Managed Volatility Fund outperformed the MSCI World Index and the MSCI World High Dividend Yield Index over the period and generated a return of 6.02%.
The Funds defensive positioning acted as tailwind to relative performance as volatility picked up in the global equity markets. The Fund benefited from an average overweight allocation to the defensive utilities sector, as well as average underweight allocations to the energy and materials sectors, which were the two weakest performing sectors during the period. Favorable security selection, especially within the consumer staples and utilities sectors, also contributed to the Funds relative performance during the period.
An overall decrease in market diversity over the past six months reflected a change in the distribution of capital, in which larger cap stocks outperformed smaller cap stocks on average. While the INTECH Global Income Managed Volatility Fund, which tends to overweight smaller cap stocks as they provide more relative volatility capture potential, was negatively impacted by the overall decrease in market diversity, the Fund strongly outperformed during the period, benefiting from favorable active sector positioning and security selection.
OUTLOOK
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As
Janus Investment Fund | 1 |
INTECH Global Income Managed Volatility Fund (unaudited)
INTECHs ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our fund shareholders.
Thank you for your investment in INTECH Global Income Managed Volatility Fund.
2 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2015
5 Largest Equity Holdings - (% of Net Assets) | |
Kimberly-Clark Corp. | |
Household Products | 4.3% |
Southern Co. | |
Electric Utilities | 4.2% |
Reynolds American, Inc. | |
Tobacco | 4.2% |
PG&E Corp. | |
Multi-Utilities | 4.0% |
CLP Holdings, Ltd. | |
Electric Utilities | 4.0% |
20.7% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 91.1% | ||||
Investment Companies | 6.1% | ||||
Preferred Stocks | 0.1% | ||||
Other | 2.7% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2015 | As of June 30, 2015 |
Janus Investment Fund | 3 |
INTECH Global Income Managed Volatility Fund (unaudited)
Performance
See important disclosures on the next page. |
Expense Ratios - | ||||||||
Average Annual Total Return - for the periods ended December 31, 2015 |
| per the October 28, 2015 prospectuses | ||||||
|
| Fiscal
| One | Since
|
| Total Annual Fund | Net
Annual Fund | |
Class A Shares at NAV | 5.81% | 7.57% | 10.20% |
| 1.90% | 0.82% | ||
Class A Shares at MOP |
| -0.29% | 1.35% | 8.60% |
|
|
| |
Class C Shares at NAV | 5.39% | 6.75% | 9.37% |
| 2.72% | 1.60% | ||
Class C Shares at CDSC |
| 4.39% | 5.75% | 9.37% |
|
|
| |
Class D Shares(1) |
| 5.92% | 7.78% | 10.30% |
| 1.89% | 0.66% | |
Class I Shares |
| 6.02% | 7.94% | 10.52% |
| 1.65% | 0.53% | |
Class S Shares |
| 5.94% | 7.63% | 10.21% |
| 2.10% | 1.00% | |
Class T Shares |
| 5.80% | 7.60% | 10.27% |
| 1.87% | 0.76% | |
MSCI World IndexSM |
| -3.41% | -0.87% | 11.98% |
|
|
| |
MSCI World High Dividend Yield Index |
| -2.59% | -3.20% | 8.86% |
|
|
| |
Morningstar Quartile - Class I Shares |
| - | 1st | 3rd |
|
|
| |
Morningstar Ranking - based on total returns for World Stock Funds |
| - | 37/1,255 | 542/958 |
|
|
|
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
INTECH's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
4 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Performance
A Funds performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Tracking Error is a divergence between the price behavior of a position or portfolio and the price behavior of a benchmark. Standard deviation measures historical volatility. Higher standard deviation implies greater volatility.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2015 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
The weighting of securities within the Fund's portfolio may differ significantly from the weightings within the index. The index is unmanaged and not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.
See Useful Information About Your Fund Report.
* The Funds inception date December 15, 2011
(1) Closed to certain new investors.
Janus Investment Fund | 5 |
INTECH Global Income Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading Actual provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading Hypothetical (5% return before expenses) provides information about hypothetical account values and hypothetical expenses based upon the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Funds prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | Net Annualized | |||
Class A Shares | $1,000.00 | $1,058.10 | $4.35 |
| $1,000.00 | $1,020.91 | $4.27 | 0.84% | ||
Class C Shares | $1,000.00 | $1,053.90 | $8.42 |
| $1,000.00 | $1,016.94 | $8.26 | 1.63% | ||
Class D Shares | $1,000.00 | $1,059.20 | $3.47 |
| $1,000.00 | $1,021.77 | $3.41 | 0.67% | ||
Class I Shares | $1,000.00 | $1,060.20 | $3.11 |
| $1,000.00 | $1,022.12 | $3.05 | 0.60% | ||
Class S Shares | $1,000.00 | $1,059.40 | $3.31 |
| $1,000.00 | $1,021.92 | $3.25 | 0.64% | ||
Class T Shares | $1,000.00 | $1,058.00 | $3.83 |
| $1,000.00 | $1,021.42 | $3.76 | 0.74% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
6 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks 91.1% | |||||||
Aerospace & Defense 2.2% | |||||||
Cobham PLC | 759 | $3,168 | |||||
Lockheed Martin Corp. | 2,600 | 564,590 | |||||
Rolls-Royce Holdings PLC* | 374 | 3,170 | |||||
Singapore Technologies Engineering, Ltd. | 6,700 | 14,229 | |||||
585,157 | |||||||
Auto Components 0.1% | |||||||
Cie Generale des Etablissements Michelin | 181 | 17,288 | |||||
Nokian Renkaat Oyj | 383 | 13,775 | |||||
31,063 | |||||||
Automobiles 0.1% | |||||||
Daihatsu Motor Co., Ltd. | 2,700 | 36,867 | |||||
General Motors Co. | 100 | 3,401 | |||||
40,268 | |||||||
Biotechnology 0.2% | |||||||
AbbVie, Inc. | 700 | 41,468 | |||||
Capital Markets 0.1% | |||||||
CI Financial Corp. | 1,600 | 35,389 | |||||
ICAP PLC | 276 | 2,073 | |||||
IGM Financial, Inc. | 100 | 2,554 | |||||
40,016 | |||||||
Chemicals 0.5% | |||||||
Incitec Pivot, Ltd. | 237 | 684 | |||||
Koninklijke DSM NV | 581 | 29,217 | |||||
LyondellBasell Industries NV - Class A | 300 | 26,070 | |||||
Orica, Ltd. | 3,389 | 38,268 | |||||
Potash Corp. of Saskatchewan, Inc. | 300 | 5,139 | |||||
Syngenta AG | 42 | 16,455 | |||||
Yara International ASA | 436 | 18,867 | |||||
134,700 | |||||||
Commercial Banks 3.9% | |||||||
Bank of East Asia, Ltd. | 39,200 | 145,929 | |||||
Bank of Montreal | 900 | 50,793 | |||||
Bank of Nova Scotia | 200 | 8,091 | |||||
BOC Hong Kong Holdings, Ltd. | 33,500 | 102,448 | |||||
Canadian Imperial Bank of Commerce | 1,700 | 112,051 | |||||
DBS Group Holdings, Ltd. | 7,600 | 89,497 | |||||
Hang Seng Bank, Ltd. | 21,700 | 413,011 | |||||
Oversea-Chinese Banking Corp., Ltd. | 5,300 | 32,908 | |||||
Royal Bank of Canada | 700 | 37,517 | |||||
United Overseas Bank, Ltd. | 4,000 | 55,345 | |||||
1,047,590 | |||||||
Commercial Services & Supplies 0.2% | |||||||
Brambles, Ltd. | 3,257 | 27,453 | |||||
G4S PLC | 11,592 | 38,530 | |||||
65,983 | |||||||
Communications Equipment 0% | |||||||
Telefonaktiebolaget LM Ericsson - Class B | 709 | 6,917 | |||||
Construction & Engineering 0% | |||||||
Boskalis Westminster | 241 | 9,854 | |||||
Construction Materials 0% | |||||||
Fletcher Building, Ltd. | 1,158 | 5,819 | |||||
James Hardie Industries PLC (CDI) | 168 | 2,138 | |||||
7,957 | |||||||
Containers & Packaging 1.1% | |||||||
Amcor, Ltd. | 26,685 | 261,275 | |||||
Rexam PLC | 4,320 | 38,492 | |||||
299,767 | |||||||
Diversified Financial Services 0.3% | |||||||
Deutsche Boerse AG | 168 | 14,858 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 7 |
INTECH Global Income Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Diversified Financial Services (continued) | |||||||
Singapore Exchange, Ltd. | 10,700 | $58,132 | |||||
72,990 | |||||||
Diversified Telecommunication Services 3.9% | |||||||
AT&T, Inc. | 3,000 | 103,230 | |||||
BCE, Inc. | 3,977 | 153,676 | |||||
Elisa Oyj | 2,743 | 103,693 | |||||
HKT Trust & HKT, Ltd. | 55,000 | 70,260 | |||||
Inmarsat PLC | 4,199 | 70,372 | |||||
PCCW, Ltd. | 399,000 | 234,258 | |||||
Singapore Telecommunications, Ltd. | 18,900 | 48,940 | |||||
Swisscom AG | 295 | 148,192 | |||||
TDC A/S | 14,935 | 74,806 | |||||
Telstra Corp., Ltd. | 10,295 | 42,075 | |||||
1,049,502 | |||||||
Electric Utilities 19.0% | |||||||
Cheung Kong Infrastructure Holdings, Ltd. | 62,000 | 574,415 | |||||
CLP Holdings, Ltd. | 127,000 | 1,079,118 | |||||
Contact Energy, Ltd. | 28,184 | 91,337 | |||||
Duke Energy Corp. | 2,366 | 168,909 | |||||
Entergy Corp. | 2,000 | 136,720 | |||||
Eversource Energy | 962 | 49,129 | |||||
Fortum Oyj | 267 | 4,039 | |||||
NextEra Energy, Inc. | 800 | 83,112 | |||||
Pepco Holdings, Inc. | 2,200 | 57,222 | |||||
Power Assets Holdings, Ltd. | 117,000 | 1,076,428 | |||||
PPL Corp. | 10,400 | 354,952 | |||||
Red Electrica Corp. SA | 934 | 78,258 | |||||
Southern Co. | 24,500 | 1,146,355 | |||||
SSE PLC | 2,645 | 59,572 | |||||
Terna Rete Elettrica Nazionale SpA | 13,793 | 71,281 | |||||
Xcel Energy, Inc. | 2,500 | 89,775 | |||||
5,120,622 | |||||||
Energy Equipment & Services 0.3% | |||||||
Helmerich & Payne, Inc. | 100 | 5,355 | |||||
National Oilwell Varco, Inc. | 500 | 16,745 | |||||
Petrofac, Ltd. | 256 | 3,004 | |||||
Technip SA | 714 | 35,483 | |||||
Tenaris SA | 160 | 1,902 | |||||
Transocean, Ltd. | 945 | 11,797 | |||||
74,286 | |||||||
Food & Staples Retailing 2.5% | |||||||
ICA Gruppen AB | 1,020 | 37,170 | |||||
Lawson, Inc. | 6,000 | 491,762 | |||||
Sysco Corp. | 1,600 | 65,600 | |||||
Woolworths, Ltd. | 4,319 | 77,087 | |||||
671,619 | |||||||
Food Products 2.7% | |||||||
Campbell Soup Co. | 600 | 31,530 | |||||
General Mills, Inc. | 5,400 | 311,364 | |||||
Kellogg Co. | 5,000 | 361,350 | |||||
Tate & Lyle PLC | 1,860 | 16,422 | |||||
720,666 | |||||||
Gas Utilities 0.4% | |||||||
Snam SpA | 20,940 | 109,899 | |||||
Health Care Providers & Services 2.0% | |||||||
Sonic Healthcare, Ltd. | 41,849 | 544,804 | |||||
Hotels, Restaurants & Leisure 3.2% | |||||||
Darden Restaurants, Inc. | 100 | 6,364 | |||||
Flight Centre Travel Group, Ltd. | 160 | 4,650 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Hotels, Restaurants & Leisure (continued) | ||||||||
McDonald's Corp. | 6,900 | $815,166 | ||||||
Sands China, Ltd. | 1,200 | 4,111 | ||||||
William Hill PLC | 6,656 | 38,851 | ||||||
869,142 | ||||||||
Household Durables 1.0% | ||||||||
Electrolux AB - Series B | 97 | 2,360 | ||||||
Garmin, Ltd. | 3,300 | 122,661 | ||||||
Husqvarna AB - Class B | 206 | 1,368 | ||||||
Leggett & Platt, Inc. | 400 | 16,808 | ||||||
Persimmon PLC* | 1,816 | 54,258 | ||||||
Sekisui House, Ltd. | 3,800 | 64,709 | ||||||
262,164 | ||||||||
Household Products 6.7% | ||||||||
Clorox Co. | 4,900 | 621,467 | ||||||
Kimberly-Clark Corp. | 9,100 | 1,158,430 | ||||||
Procter & Gamble Co. | 300 | 23,823 | ||||||
1,803,720 | ||||||||
Industrial Conglomerates 1.7% | ||||||||
Keppel Corp., Ltd. | 22,900 | 105,185 | ||||||
NWS Holdings, Ltd. | 153,000 | 229,012 | ||||||
Sembcorp Industries, Ltd. | 56,900 | 122,448 | ||||||
456,645 | ||||||||
Information Technology Services 0.1% | ||||||||
Paychex, Inc. | 300 | 15,867 | ||||||
Insurance 2.1% | ||||||||
Admiral Group PLC | 5,026 | 122,903 | ||||||
Arthur J Gallagher & Co. | 600 | 24,564 | ||||||
Direct Line Insurance Group PLC | 43,207 | 259,524 | ||||||
Gjensidige Forsikring ASA | 122 | 1,959 | ||||||
Great-West Lifeco, Inc. | 2,300 | 57,404 | ||||||
SCOR SE | 1,149 | 43,086 | ||||||
Swiss Re AG | 258 | 25,290 | ||||||
Tryg A/S | 1,855 | 37,122 | ||||||
571,852 | ||||||||
Leisure Products 0.3% | ||||||||
Mattel, Inc. | 2,900 | 78,793 | ||||||
Machinery 0.6% | ||||||||
IMI PLC | 108 | 1,371 | ||||||
Sandvik AB | 421 | 3,696 | ||||||
Sembcorp Marine, Ltd.# | 47,500 | 58,650 | ||||||
SKF AB - Class B | 1,159 | 18,850 | ||||||
Sulzer AG | 76 | 7,161 | ||||||
Yangzijiang Shipbuilding Holdings, Ltd. | 107,100 | 83,123 | ||||||
172,851 | ||||||||
Marine 0.5% | ||||||||
Kuehne + Nagel International AG | 1,028 | 141,474 | ||||||
Media 5.3% | ||||||||
Axel Springer SE | 341 | 19,023 | ||||||
Eutelsat Communications SA | 4,646 | 139,335 | ||||||
ITV PLC | 8,245 | 33,615 | ||||||
SES SA (FDR) | 13,708 | 380,943 | ||||||
Shaw Communications, Inc. - Class B | 20,800 | 357,817 | ||||||
Singapore Press Holdings, Ltd. | 28,900 | 80,340 | ||||||
Sky PLC | 25,591 | 419,457 | ||||||
1,430,530 | ||||||||
Multiline Retail 0.1% | ||||||||
Kohl's Corp. | 200 | 9,526 | ||||||
Macy's, Inc. | 100 | 3,498 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
INTECH Global Income Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Multiline Retail (continued) | |||||||
Marks & Spencer Group PLC | 2,864 | $19,098 | |||||
32,122 | |||||||
Multi-Utilities 11.2% | |||||||
CMS Energy Corp. | 1,300 | 46,904 | |||||
Consolidated Edison, Inc. | 16,600 | 1,066,882 | |||||
DTE Energy Co. | 1,200 | 96,228 | |||||
National Grid PLC | 5,368 | 74,179 | |||||
PG&E Corp. | 20,500 | 1,090,395 | |||||
Public Service Enterprise Group, Inc. | 3,800 | 147,022 | |||||
SCANA Corp. | 900 | 54,441 | |||||
Sempra Energy | 2,900 | 272,629 | |||||
WEC Energy Group, Inc. | 3,551 | 182,202 | |||||
3,030,882 | |||||||
Oil, Gas & Consumable Fuels 0.2% | |||||||
ConocoPhillips | 200 | 9,338 | |||||
Murphy Oil Corp. | 100 | 2,245 | |||||
Peyto Exploration & Development Corp. | 500 | 8,988 | |||||
PrairieSky Royalty, Ltd. | 1,500 | 23,766 | |||||
Woodside Petroleum, Ltd. | 418 | 8,746 | |||||
53,083 | |||||||
Pharmaceuticals 2.0% | |||||||
Johnson & Johnson | 200 | 20,544 | |||||
Merck & Co., Inc. | 6,100 | 322,202 | |||||
Novartis AG | 911 | 78,972 | |||||
Orion Oyj - Class B | 465 | 16,153 | |||||
Pfizer, Inc. | 1,500 | 48,420 | |||||
Roche Holding AG | 157 | 43,338 | |||||
529,629 | |||||||
Real Estate Management & Development 4.5% | |||||||
Daito Trust Construction Co., Ltd. | 4,800 | 559,561 | |||||
Hang Lung Properties, Ltd. | 13,000 | 29,590 | |||||
Hysan Development Co., Ltd. | 10,000 | 40,969 | |||||
Sino Land Co., Ltd. | 14,000 | 20,522 | |||||
Sun Hung Kai Properties, Ltd. | 10,000 | 120,777 | |||||
Swire Pacific, Ltd. - Class A | 19,000 | 213,786 | |||||
Swiss Prime Site AG* | 2,719 | 213,164 | |||||
Wharf Holdings, Ltd. | 2,000 | 11,097 | |||||
1,209,466 | |||||||
Road & Rail 0.8% | |||||||
ComfortDelGro Corp., Ltd. | 101,300 | 217,996 | |||||
Semiconductor & Semiconductor Equipment 0.3% | |||||||
Maxim Integrated Products, Inc. | 2,200 | 83,600 | |||||
Specialty Retail 0.6% | |||||||
GameStop Corp. - Class A | 1,500 | 42,060 | |||||
Gap, Inc. | 300 | 7,410 | |||||
Kingfisher PLC | 1,981 | 9,621 | |||||
Staples, Inc. | 9,900 | 93,753 | |||||
152,844 | |||||||
Technology Hardware, Storage & Peripherals 0.4% | |||||||
Canon, Inc. | 2,300 | 70,332 | |||||
Seagate Technology PLC | 1,300 | 47,658 | |||||
117,990 | |||||||
Textiles, Apparel & Luxury Goods 1.3% | |||||||
Coach, Inc. | 3,600 | 117,828 | |||||
Hugo Boss AG | 699 | 58,180 | |||||
Yue Yuen Industrial Holdings, Ltd. | 51,000 | 173,404 | |||||
349,412 | |||||||
Tobacco 4.2% | |||||||
Reynolds American, Inc. | 24,662 | 1,138,151 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Trading Companies & Distributors 0.6% | |||||||
Finning International, Inc. | 200 | $2,700 | |||||
ITOCHU Corp. | 5,800 | 69,592 | |||||
Marubeni Corp. | 7,200 | 37,450 | |||||
Mitsui & Co., Ltd. | 3,000 | 36,083 | |||||
Rexel SA | 1,187 | 15,839 | |||||
161,664 | |||||||
Transportation Infrastructure 1.4% | |||||||
Auckland International Airport, Ltd. | 94,476 | 371,411 | |||||
Wireless Telecommunication Services 2.5% | |||||||
NTT DOCOMO, Inc. | 11,800 | 243,894 | |||||
Rogers Communications, Inc. - Class B | 8,000 | 275,938 | |||||
StarHub, Ltd. | 62,200 | 162,379 | |||||
682,211 | |||||||
Total Common Stocks (cost $24,052,187) | 24,608,627 | ||||||
Preferred Stocks 0.1% | |||||||
Media 0.1% | |||||||
ProSiebenSat.1 Media SE (cost $13,609) | 262 | 13,314 | |||||
Investment Companies 6.1% | |||||||
Investments Purchased with Cash Collateral from Securities Lending 0% | |||||||
Janus Cash Collateral Fund LLC, 0.3005%ºº,£ | 2,600 | 2,600 | |||||
Money Markets 6.1% | |||||||
Janus Cash Liquidity Fund LLC, 0.3105%ºº,£ | 1,652,000 | 1,652,000 | |||||
Total Investment Companies (cost $1,654,600) | 1,654,600 | ||||||
Total Investments (total cost $25,720,396) 97.3% | 26,276,541 | ||||||
Cash, Receivables and Other Assets, net of Liabilities 2.7% | 731,094 | ||||||
Net Assets 100% | $27,007,635 |
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $13,058,356 | 49.7 | % | ||
Hong Kong | 4,539,135 | 17.3 | |||
Japan | 1,610,250 | 6.1 | |||
United Kingdom | 1,267,680 | 4.8 | |||
Canada | 1,131,823 | 4.3 | |||
Singapore | 1,129,172 | 4.3 | |||
Australia | 1,007,180 | 3.8 | |||
Switzerland | 685,843 | 2.6 | |||
France | 631,974 | 2.4 | |||
New Zealand | 468,567 | 1.8 | |||
Italy | 183,082 | 0.7 | |||
Finland | 137,660 | 0.5 | |||
Denmark | 111,928 | 0.4 | |||
Germany | 105,375 | 0.4 | |||
Spain | 78,258 | 0.3 | |||
Sweden | 70,361 | 0.3 | |||
Netherlands | 39,071 | 0.2 | |||
Norway | 20,826 | 0.1 | |||
Total | $26,276,541 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
INTECH Global Income Managed Volatility Fund
Notes to Schedule of Investments and Other Information (unaudited)
MSCI World High Dividend Yield Index | An index designed to reflect the performance of the high dividend yield securities contained within the broader MSCI World IndexSM. The index includes large- and mid- capitalization stocks from developed markets across the Americas, Asia-Pacific and Europe. The index includes reinvestment of dividends, net of foreign withholding taxes. |
MSCI World IndexSM | A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. |
CDI | Clearing House Electronic Subregister System Depositary Interest |
FDR | Fixed Depositary Receipt |
LLC | Limited Liability Company |
PLC | Public Limited Company |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2015. |
# | Loaned security; a portion of the security is on loan at December 31, 2015. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Funds relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2015. Unless otherwise indicated, all information in the table is for the period ended December 31, 2015. |
| Share | Purchases | Sales | Share | Dividend | Value |
Janus Cash Collateral Fund LLC | 3,063 | 925,484 | (925,947) | 2,600 | $ 1,121(1) | $ 2,600 |
Janus Cash Liquidity Fund LLC | 235,033 | 10,049,255 | (8,632,288) | 1,652,000 | 557 | 1,652,000 |
Total | $ 1,678 | $ 1,654,600 |
(1) Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties.
The following is a summary of the inputs that were used to value the Fund's investments in securities and other financial instruments as of December 31, 2015. See Notes to Financial Statements for more information. | |||
Valuation Inputs Summary | |||
| Level
1 - | Level 2 - | Level 3 - |
Assets | |||
Investments in Securities: | |||
Common Stocks | $ 24,608,627 | $ - | $ - |
Preferred Stocks | - | 13,314 | - |
Investment Companies | - | 1,654,600 | - |
Total Assets | $ 24,608,627 | $ 1,667,914 | $ - |
12 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
See footnotes at the end of the Statement. |
Assets: |
|
|
|
| ||
Investments, at cost | $ | 25,720,396 | ||||
Unaffiliated investments, at value(1) | $ | 24,621,941 | ||||
Affiliated investments, at value | 1,654,600 | |||||
Cash | 30,395 | |||||
Cash denominated in foreign currency(2) | 381 | |||||
Non-interested Trustees' deferred compensation | 525 | |||||
Receivables: | ||||||
Fund shares sold | 1,157,255 | |||||
Dividends | 46,900 | |||||
Due from adviser | 29,364 | |||||
Investments sold | 15,500 | |||||
Foreign tax reclaims | 10,477 | |||||
Dividends from affiliates | 226 | |||||
Other assets | 947 | |||||
Total Assets |
|
| 27,568,511 |
| ||
Liabilities: | ||||||
Collateral for securities loaned (Note 2) | 2,600 | |||||
Payables: | | |||||
Investments purchased | 492,640 | |||||
Professional fees | 20,786 | |||||
Advisory fees | 12,237 | |||||
Transfer agent fees and expenses | 3,825 | |||||
12b-1 Distribution and shareholder servicing fees | 2,488 | |||||
Fund shares repurchased | 2,319 | |||||
Dividends | 1,008 | |||||
Non-interested Trustees' deferred compensation fees | 525 | |||||
Fund administration fees | 211 | |||||
Non-interested Trustees' fees and expenses | 102 | |||||
Custodian fees | 77 | |||||
Accrued expenses and other payables | 22,058 | |||||
Total Liabilities |
|
| 560,876 |
| ||
Net Assets |
| $ | 27,007,635 |
|
See Notes to Financial Statements. | |
Janus Investment Fund | 13 |
INTECH Global Income Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
Net Assets Consist of: |
|
|
|
| ||
Capital (par value and paid-in surplus) | $ | 26,589,380 | ||||
Undistributed net investment income/(loss) | 6,179 | |||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions | (141,868) | |||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation | 553,944 | |||||
Total Net Assets |
| $ | 27,007,635 |
| ||
Net Assets - Class A Shares | $ | 5,108,327 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 432,172 | |||||
Net Asset Value Per Share(3) |
| $ | 11.82 |
| ||
Maximum Offering Price Per Share(4) |
| $ | 12.54 |
| ||
Net Assets - Class C Shares | $ | 2,001,102 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 170,263 | |||||
Net Asset Value Per Share(3) |
| $ | 11.75 |
| ||
Net Assets - Class D Shares | $ | 11,339,607 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 961,686 | |||||
Net Asset Value Per Share |
| $ | 11.79 |
| ||
Net Assets - Class I Shares | $ | 3,578,380 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 302,085 | |||||
Net Asset Value Per Share |
| $ | 11.85 |
| ||
Net Assets - Class S Shares | $ | 172,881 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 14,655 | |||||
Net Asset Value Per Share |
| $ | 11.80 |
| ||
Net Assets - Class T Shares | $ | 4,807,338 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 407,301 | |||||
Net Asset Value Per Share |
| $ | 11.80 |
|
(1) Includes $2,475 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Includes cost of $381. (3) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (4) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements. | |
14 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Statement of Operations (unaudited)
For the period ended December 31, 2015
Investment Income: |
|
|
| ||
| Dividends | $ | 340,160 | ||
Affiliated securities lending income, net | 1,121 | ||||
Dividends from affiliates | 557 | ||||
Other income | 14 | ||||
Foreign tax withheld | (8,494) | ||||
Total Investment Income |
| 333,358 |
| ||
Expenses: | |||||
Advisory fees | 56,971 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 5,099 | ||||
Class C Shares | 7,119 | ||||
Class S Shares | 216 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 5,339 | ||||
Class S Shares | 216 | ||||
Class T Shares | 3,967 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 1,389 | ||||
Class C Shares | 542 | ||||
Class I Shares | 1,132 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 234 | ||||
Class C Shares | 115 | ||||
Class D Shares | 1,705 | ||||
Class I Shares | 93 | ||||
Class T Shares | 92 | ||||
Registration fees | 70,034 | ||||
Professional fees | 21,158 | ||||
Shareholder reports expense | 15,731 | ||||
Custodian fees | 9,826 | ||||
Fund administration fees | 985 | ||||
Non-interested Trustees fees and expenses | 189 | ||||
Other expenses | 4,713 | ||||
Total Expenses |
| 206,865 |
| ||
Less: Excess Expense Reimbursement |
| (128,551) |
| ||
Net Expenses |
| 78,314 |
| ||
Net Investment Income/(Loss) |
| 255,044 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (135,423) | ||||
Total Net Realized Gain/(Loss) on Investments |
| (135,423) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees deferred compensation | 735,274 | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| 735,274 |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 854,895 |
| ||
See Notes to Financial Statements. | |
Janus Investment Fund | 15 |
INTECH Global Income Managed Volatility Fund
Statements of Changes in Net Assets (unaudited)
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 255,044 | $ | 525,964 | ||||
Net realized gain/(loss) on investments | (135,423) | 379,893 | ||||||
Change in unrealized net appreciation/depreciation | 735,274 | (2,126,913) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| 854,895 |
|
| (1,221,056) | |||
Dividends and Distributions to Shareholders: | ||||||||
Class A Shares | (53,599) | (140,804) | ||||||
Class C Shares | (14,748) | (33,845) | ||||||
Class D Shares | (129,532) | (300,902) | ||||||
Class I Shares | (43,615) | (94,121) | ||||||
Class S Shares | (2,461) | (5,904) | ||||||
Class T Shares | (45,796) | (119,202) | ||||||
| Total Dividends from Net Investment Income |
| (289,751) |
|
| (694,778) | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | (35,986) | (87,688) | ||||||
Class C Shares | (20,542) | (30,899) | ||||||
Class D Shares | (121,140) | (198,183) | ||||||
Class I Shares | (38,577) | (59,895) | ||||||
Class S Shares | (1,913) | (4,215) | ||||||
Class T Shares | (47,481) | (79,471) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | (265,639) |
|
| (460,351) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (555,390) |
|
| (1,155,129) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 2,216,682 | (2,920,812) | ||||||
Class C Shares | 806,881 | 297,198 | ||||||
Class D Shares | 3,878,334 | (433,017) | ||||||
Class I Shares | 898,395 | 880,667 | ||||||
Class S Shares | 4,374 | 10,156 | ||||||
Class T Shares | 1,299,793 | 1,789,842 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 9,104,459 |
|
| (375,966) | |||
Net Increase/(Decrease) in Net Assets |
| 9,403,964 |
|
| (2,752,151) | |||
Net Assets: | ||||||||
Beginning of period | 17,603,671 | 20,355,822 | ||||||
| End of period | $ | 27,007,635 |
| $ | 17,603,671 | ||
Undistributed Net Investment Income/(Loss) | $ | 6,179 |
| $ | 40,886 |
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Financial Highlights
Class A Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year or period ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $11.45 |
|
| $12.95 |
|
| $11.60 |
|
| $10.40 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.16(2) | 0.33(2) | 0.57(2) | 0.35 | 0.22 | |||||||||||||
Net realized and unrealized gain/(loss) | 0.50 | (1.08) | 1.86 | 1.24 | 0.35 | |||||||||||||
Total from Investment Operations |
| 0.66 |
|
| (0.75) |
|
| 2.43 |
|
| 1.59 |
|
| 0.57 |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.16) | (0.44) | (0.43) | (0.39) | (0.17) | |||||||||||||
Distributions (from capital gains) | (0.13) | (0.31) | (0.65) | | | |||||||||||||
Total Dividends and Distributions |
| (0.29) |
|
| (0.75) |
|
| (1.08) |
|
| (0.39) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $11.82 | $11.45 | $12.95 | $11.60 | $10.40 | |||||||||||||
Total Return* |
| 5.81% |
|
| (5.79)% |
|
| 21.79% |
|
| 15.41% |
|
| 5.70% |
| |||
Net Assets, End of Period (in thousands) | $5,108 | $2,816 | $6,300 | $1,625 | $931 | |||||||||||||
Average Net Assets for the Period (in thousands) | $3,996 | $3,789 | $4,861 | $996 | $881 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.02% | 1.90% | 1.96% | 2.69% | 5.56% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.84% | 0.84% | 0.81% | 0.76% | 1.02% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.65% | 2.74% | 4.62% | 3.18% | 4.01% | |||||||||||||
Portfolio Turnover Rate | 27% | 125% | 51% | 116% | 24% | |||||||||||||
1 |
Class C Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year or period ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $11.39 |
|
| $12.89 |
|
| $11.56 |
|
| $10.37 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.10(2) | 0.24(2) | 0.45(2) | 0.27 | 0.19 | |||||||||||||
Net realized and unrealized gain/(loss) | 0.51 | (1.07) | 1.87 | 1.22 | 0.35 | |||||||||||||
Total from Investment Operations |
| 0.61 |
|
| (0.83) |
|
| 2.32 |
|
| 1.49 |
|
| 0.54 |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.12) | (0.36) | (0.34) | (0.30) | (0.17) | |||||||||||||
Distributions (from capital gains) | (0.13) | (0.31) | (0.65) | | | |||||||||||||
Total Dividends and Distributions |
| (0.25) |
|
| (0.67) |
|
| (0.99) |
|
| (0.30) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $11.75 | $11.39 | $12.89 | $11.56 | $10.37 | |||||||||||||
Total Return* |
| 5.39% |
|
| (6.51)% |
|
| 20.83% |
|
| 14.50% |
|
| 5.36% |
| |||
Net Assets, End of Period (in thousands) | $2,001 | $1,161 | $999 | $489 | $940 | |||||||||||||
Average Net Assets for the Period (in thousands) | $1,383 | $1,136 | $613 | $793 | $900 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.83% | 2.72% | 2.70% | 3.50% | 6.25% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.63% | 1.61% | 1.57% | 1.51% | 1.70% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 1.66% | 2.03% | 3.63% | 2.26% | 3.37% | |||||||||||||
Portfolio Turnover Rate | 27% | 125% | 51% | 116% | 24% | |||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from December 15, 2011 (inception date) through June 30, 2012. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
INTECH Global Income Managed Volatility Fund (unaudited)
Financial Highlights
Class D Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year or period ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $11.42 |
|
| $12.92 |
|
| $11.58 |
|
| $10.39 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.15(2) | 0.35(2) | 0.56(2) | 0.42 | 0.21 | |||||||||||||
Net realized and unrealized gain/(loss) | 0.52 | (1.07) | 1.88 | 1.17 | 0.35 | |||||||||||||
Total from Investment Operations |
| 0.67 |
|
| (0.72) |
|
| 2.44 |
|
| 1.59 |
|
| 0.56 |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.17) | (0.47) | (0.45) | (0.40) | (0.17) | |||||||||||||
Distributions (from capital gains) | (0.13) | (0.31) | (0.65) | | | |||||||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.78) |
|
| (1.10) |
|
| (0.40) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $11.79 | $11.42 | $12.92 | $11.58 | $10.39 | |||||||||||||
Total Return* |
| 5.92% |
|
| (5.62)% |
|
| 21.92% |
|
| 15.49% |
|
| 5.60% |
| |||
Net Assets, End of Period (in thousands) | $11,340 | $7,265 | $8,689 | $4,706 | $2,124 | |||||||||||||
Average Net Assets for the Period (in thousands) | $8,666 | $7,736 | $6,297 | $3,161 | $1,727 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.03% | 1.89% | 1.78% | 2.57% | 5.98% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.67% | 0.66% | 0.66% | 0.67% | 1.32% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.57% | 2.95% | 4.51% | 3.91% | 4.09% | |||||||||||||
Portfolio Turnover Rate | 27% | 125% | 51% | 116% | 24% | |||||||||||||
Class I Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year or period ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $11.47 |
|
| $12.97 |
|
| $11.62 |
|
| $10.42 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.16(2) | 0.37(2) | 0.56(2) | 0.46 | 0.23 | |||||||||||||
Net realized and unrealized gain/(loss) | 0.52 | (1.08) | 1.90 | 1.15 | 0.36 | |||||||||||||
Total from Investment Operations |
| 0.68 |
|
| (0.71) |
|
| 2.46 |
|
| 1.61 |
|
| 0.59 |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.17) | (0.48) | (0.46) | (0.41) | (0.17) | |||||||||||||
Distributions (from capital gains) | (0.13) | (0.31) | (0.65) | | | |||||||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.79) |
|
| (1.11) |
|
| (0.41) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $11.85 | $11.47 | $12.97 | $11.62 | $10.42 | |||||||||||||
Total Return* |
| 6.02% |
|
| (5.49)% |
|
| 22.09% |
|
| 15.66% |
|
| 5.90% |
| |||
Net Assets, End of Period (in thousands) | $3,578 | $2,596 | $1,995 | $1,571 | $1,897 | |||||||||||||
Average Net Assets for the Period (in thousands) | $2,894 | $2,369 | $1,855 | $1,927 | $1,542 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.79% | 1.65% | 1.67% | 2.45% | 5.07% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.60% | 0.54% | 0.52% | 0.51% | 0.75% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.64% | 3.12% | 4.54% | 3.63% | 4.64% | |||||||||||||
Portfolio Turnover Rate | 27% | 125% | 51% | 116% | 24% | |||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from December 15, 2011 (inception date) through June 30, 2012. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Financial Highlights
Class S Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year or period ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $11.43 |
|
| $12.93 |
|
| $11.58 |
|
| $10.39 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.16(2) | 0.31(2) | 0.46(2) | 0.43 | 0.21 | |||||||||||||
Net realized and unrealized gain/(loss) | 0.51 | (1.07) | 1.98 | 1.15 | 0.35 | |||||||||||||
Total from Investment Operations |
| 0.67 |
|
| (0.76) |
|
| 2.44 |
|
| 1.58 |
|
| 0.56 |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.17) | (0.43) | (0.44) | (0.39) | (0.17) | |||||||||||||
Distributions (from capital gains) | (0.13) | (0.31) | (0.65) | | | |||||||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.74) |
|
| (1.09) |
|
| (0.39) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $11.80 | $11.43 | $12.93 | $11.58 | $10.39 | |||||||||||||
Total Return* |
| 5.94% |
|
| (5.93)% |
|
| 21.99% |
|
| 15.40% |
|
| 5.60% |
| |||
Net Assets, End of Period (in thousands) | $173 | $163 | $174 | $286 | $880 | |||||||||||||
Average Net Assets for the Period (in thousands) | $169 | $166 | $199 | $726 | $872 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 2.20% | 2.10% | 2.13% | 2.96% | 5.82% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.64% | 1.00% | 0.77% | 0.86% | 1.26% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.63% | 2.62% | 3.72% | 2.86% | 3.77% | |||||||||||||
Portfolio Turnover Rate | 27% | 125% | 51% | 116% | 24% | |||||||||||||
Class T Shares | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year or period ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012(1) |
| ||||
Net Asset Value, Beginning of Period |
| $11.44 |
|
| $12.94 |
|
| $11.60 |
|
| $10.40 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.14(2) | 0.35(2) | 0.55(2) | 0.46 | 0.22 | |||||||||||||
Net realized and unrealized gain/(loss) | 0.52 | (1.08) | 1.88 | 1.14 | 0.35 | |||||||||||||
Total from Investment Operations |
| 0.66 |
|
| (0.73) |
|
| 2.43 |
|
| 1.60 |
|
| 0.57 |
| |||
Less Dividends and Distributions: | ||||||||||||||||||
Dividends (from net investment income) | (0.17) | (0.46) | (0.44) | (0.40) | (0.17) | |||||||||||||
Distributions (from capital gains) | (0.13) | (0.31) | (0.65) | | | |||||||||||||
Total Dividends and Distributions |
| (0.30) |
|
| (0.77) |
|
| (1.09) |
|
| (0.40) |
|
| (0.17) |
| |||
Net Asset Value, End of Period | $11.80 | $11.44 | $12.94 | $11.60 | $10.40 | |||||||||||||
Total Return* |
| 5.80% |
|
| (5.70)% |
|
| 21.84% |
|
| 15.55% |
|
| 5.70% |
| |||
Net Assets, End of Period (in thousands) | $4,807 | $3,603 | $2,200 | $615 | $1,233 | |||||||||||||
Average Net Assets for the Period (in thousands) | $3,078 | $3,147 | $855 | $1,249 | $1,093 | |||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.96% | 1.87% | 1.83% | 2.69% | 5.53% | |||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.74% | 0.76% | 0.71% | 0.69% | 1.03% | |||||||||||||
Ratio of Net Investment Income/(Loss) | 2.43% | 2.96% | 4.49% | 3.27% | 4.09% | |||||||||||||
Portfolio Turnover Rate | 27% | 125% | 51% | 116% | 24% | |||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from December 15, 2011 (inception date) through June 30, 2012. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
1. Organization and Significant Accounting Policies
INTECH Global Income Managed Volatility Fund (the Fund) is a series fund. The Fund is part of Janus Investment Fund (the Trust), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946. The Trust offers forty-five Funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in common stocks. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. Class D Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (Janus Capital) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the Valuation Procedures). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (OTC) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (NYSE). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined
20 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to odd-lot fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Funds own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2015 to fair value the Funds investments in securities and other financial instruments is included in the Valuation Inputs Summary in the Notes to Schedule of Investments and Other Information.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis,
Janus Investment Fund | 21 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Funds maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
Dividends of net investment income are generally declared and distributed monthly, and realized capital gains (if any) are distributed annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as equalization, has no effect on the redeeming shareholder or a Funds total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Funds equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Funds tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
22 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
2. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Funds ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. One or more countries may abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (counterparty risk). Counterparty risk may arise because of the counterpartys financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterpartys inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Funds exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
Janus Investment Fund | 23 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Funds cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capitals analysis of a counterpartys creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments payables and/or receivables with collateral held and/or posted and create one single net payment. For financial reporting purposes, the Fund does not offset certain derivative financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||
Counterparty | Gross
Amounts Assets | Offsetting
Asset | Collateral | Net Amount | |
Deutsche Bank AG | $ 2,475 | $ - | $ (2,475) | $ - | |
(a) Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | |||||
(b) Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
24 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
Real Estate Investing
To the extent that real estate-related securities may be included in the Funds named benchmark index, INTECHs mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. The Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments. Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2015, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $2,475 for equity securities. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2015 is $2,600, resulting in the net amount due to the counterparty of $125.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Funds contractual investment advisory fee rate (expressed as an annual rate) is 0.55%.
Janus Investment Fund | 25 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
INTECH Investment Management LLC (INTECH) serves as subadviser to the Fund. As subadviser, INTECH provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of INTECH.
Janus Capital pays INTECH a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Funds normal operating expenses in any fiscal year, including the investment advisory fee, but excluding the 12b-1 distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.50%. Janus Capital has agreed to continue the waiver until at least November 1, 2016. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as Excess Expense Reimbursement on the Statement of Operations.
Janus Services LLC (Janus Services), a wholly-owned subsidiary of Janus Capital, is the Funds transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as Transfer agent networking and omnibus fees on the Statement of Operations.
The Funds Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Funds Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (NSCC) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to the Funds Class D Shares. In addition to the administrative fees discussed above, Janus Services receives reimbursement for out-of-pocket costs it incurs for serving as transfer
26 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
agent and providing, or arranging for, servicing to shareholders. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Under a distribution and shareholder servicing plan (the Plan) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trusts distributor, Janus Distributors LLC (Janus Distributors), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as 12b-1 Distribution and shareholder servicing fees on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Funds actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in 12b-1 Distribution fees and shareholder servicing fees in the Statement of Operations.
Janus Capital furnishes certain administration, compliance, and accounting services for the Fund and is reimbursed by the Fund for certain of its costs in providing those services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). The Fund also pays for salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to the Fund. These amounts are disclosed as Fund administration fees on the Statement of Operations. In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $296,867 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2015. The Fund's portion is reported as part of Other expenses on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the Deferred Plan) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2015 on the Statement of Assets and Liabilities in the asset, Non-interested Trustees deferred compensation, and liability, Non-interested Trustees deferred compensation fees. Additionally, the recorded unrealized appreciation/(depreciation) is included in Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2015 are included in Non-interested Trustees fees and expenses on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $151,400 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2015.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the Investing Funds). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered product compliant with Rule 2a-7 under the 1940 Act. There are no restrictions on the
Janus Investment Fund | 27 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
Fund's ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. The units of Janus Cash Liquidity Fund LLC are not charged any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2015 can be found in a table located in the Notes to Schedule of Investments and Other Information.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2015, Janus Distributors retained upfront sales charges of $1,147.
A contingent deferred sales charge (CDSC) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 2015.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended December 31, 2015, redeeming shareholders of Class C Shares paid CDSCs of $429.
As of December 31, 2015, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| |
Class A Shares | - | % | - | % | |
Class C Shares | - | - | |||
Class D Shares | - | - | |||
Class I Shares | - | - | |||
Class S Shares | 85 | 1 | |||
Class T Shares | - | - | |||
|
|
|
|
|
In addition, other shareholders, including other funds, individuals, accounts, as well as the Funds portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Funds Shares and can be considered to control the Fund when that ownership exceeds 25% of the Funds assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, passive foreign investment companies, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2015 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/depreciation on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
28 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund (unaudited)
Notes to Financial Statements
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/
|
$ 25,888,894 | $ 1,347,884 | $ (960,237) | $ 387,647 |
5. Capital Share Transactions
Period ended December 31, 2015 | Year ended June 30, 2015 | |||||
|
| Shares | Amount |
| Shares | Amount |
Class A Shares: | ||||||
Shares sold | 362,835 | $4,323,537 | 83,406 | $ 999,502 | ||
Reinvested dividends and distributions | 7,641 | 89,585 | 18,749 | 222,211 | ||
Shares repurchased | (184,239) | (2,196,440) | (342,712) | (4,142,525) | ||
Net Increase/(Decrease) | 186,237 | $2,216,682 |
| (240,557) | $(2,920,812) | |
Class C Shares: | ||||||
Shares sold | 76,370 | $ 899,390 | 49,451 | $ 590,406 | ||
Reinvested dividends and distributions | 2,988 | 34,823 | 5,481 | 63,956 | ||
Shares repurchased | (10,992) | (127,332) | (30,496) | (357,164) | ||
Net Increase/(Decrease) | 68,366 | $ 806,881 |
| 24,436 | $ 297,198 | |
Class D Shares: | ||||||
Shares sold | 448,966 | $5,341,458 | 277,204 | $ 3,340,857 | ||
Reinvested dividends and distributions | 20,492 | 239,965 | 40,592 | 477,286 | ||
Shares repurchased | (143,810) | (1,703,089) | (354,189) | (4,251,160) | ||
Net Increase/(Decrease) | 325,648 | $3,878,334 |
| (36,393) | $ (433,017) | |
Class I Shares: | ||||||
Shares sold | 87,147 | $1,032,734 | 85,522 | $ 1,038,425 | ||
Reinvested dividends and distributions | 6,926 | 81,484 | 13,067 | 154,016 | ||
Shares repurchased | (18,232) | (215,823) | (26,142) | (311,774) | ||
Net Increase/(Decrease) | 75,841 | $ 898,395 |
| 72,447 | $ 880,667 | |
Class S Shares: | ||||||
Shares sold | - | $ - | - | $ 37 | ||
Reinvested dividends and distributions | 374 | 4,374 | 861 | 10,119 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 374 | $ 4,374 |
| 861 | $ 10,156 | |
Class T Shares: | ||||||
Shares sold | 343,637 | $4,106,608 | 210,567 | $ 2,573,000 | ||
Reinvested dividends and distributions | 7,968 | 93,255 | 16,892 | 198,465 | ||
Shares repurchased | (259,217) | (2,900,070) | (82,534) | (981,623) | ||
Net Increase/(Decrease) | 92,388 | $1,299,793 |
| 144,925 | $ 1,789,842 |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2015, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
Purchases of | Proceeds
from Sales | Purchases of Long- | Proceeds
from Sales |
$11,965,668 | $ 5,355,122 | - | - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2015 and through the date of issuance of the Funds financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds financial statements.
Janus Investment Fund | 29 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds website at janus.com/proxyvoting; and (iii) on the SECs website at http://www.sec.gov. Additionally, information regarding the Funds proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/ proxyvoting and from the SECs website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds Form N-Q: (i) is available on the SECs website at http://www.sec.gov; (ii) may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund and Janus Aspen Series, each of whom serves as an independent Trustee (the Trustees), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a Fund and collectively, the Funds), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2015, based on the Trustees evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from either January 1 or February 1, 2016 through January 1 or February 1, 2017, respectively, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultants conclusions and opinions that arose during, and were included as part of, the Trustees consideration of the agreements. Management fees, as used herein, reflect actual annual advisory fees and any administration fees (excluding out of pocket costs), net of any waivers.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective, strategies and policies of each Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capitals role as administrator to the Funds, noting that Janus Capital does not receive a fee
30 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds and Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Funds portfolio manager(s), and also reviewed information comparing each Funds performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (Broadridge), an independent data provider, and with the Funds benchmark index. In this regard, the independent fee consultant found that the overall Funds performance has been strong: for the 36 months ended September 30, 2015, approximately 70% of the Funds were in the top two Broadridge quartiles of performance, and for the 12 months ended September 30, 2015, approximately 61% of the Funds were in the top two Broadridge quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, the steps Janus Capital had taken or was taking to improve performance, and its limited performance history.
· For Janus High-Yield Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Multi-Sector Income Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Real Return Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Janus Investment Fund | 31 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Short-Term Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Government Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
· For Janus Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Allocation Fund Moderate, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
Value Funds
· For Perkins International Value Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Perkins Global Value Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Large Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Mid Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Select Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
32 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
· For Perkins Value Plus Income Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH International Managed Volatility Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital and INTECH had taken or were taking to improve performance.
· For INTECH U.S. Core Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Contrarian Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Enterprise Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Forty Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Growth and Income Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and in the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Research Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Janus Investment Fund | 33 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Triton Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Twenty Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Venture Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Emerging Markets Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Real Estate Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Research Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Select Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Technology Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus International Equity Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Overseas Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
34 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Allocation Portfolio Moderate, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Funds performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Funds performance warranted continuation of the Funds investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration, but excluding out-of-pocket costs) fees for many of the Funds, after applicable waivers,
Janus Investment Fund | 35 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
was below the mean management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 14% below the mean total expenses of their respective Broadridge Expense Group peers and 24% below the mean total expenses for their Broadridge Expense Universes; (3) management fees for the Funds, on average, were 15% below the mean management fees for their Expense Groups and 19% below the mean for their Expense Universes; and (4) Fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered the total expenses for each share class of each Fund compared to the mean total expenses for its Broadridge Expense Group peers and to mean total expenses for its Broadridge Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds, the independent fee consultant also performed a systematic focus list analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) the average spread between management fees charged to the Funds and those charged to Janus Capitals institutional accounts is reasonable relative to the average spreads seen in the industry; and (4) by one estimation methodology, the fee margins implied by Janus Capitals subadvised fees when compared to its mutual fund fees are reasonable relative to the estimated fee margins in the industry and relative to estimated fee margins of fund managers using Janus Capital as a subadviser.
The Trustees considered the fees for each Fund for its fiscal year ended in 2014, and noted the following with regard to each Funds total expenses, net of applicable fee waivers (the Funds total expenses):
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
36 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Global Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus High-Yield Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Multi-Sector Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus has contractually agreed to limit the Funds expenses.
· For Janus Real Return Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Short-Term Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Government Money Market Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Funds management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Money Market Fund, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Value Funds
· For Perkins International Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Global Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable.
Janus Investment Fund | 37 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Perkins Large Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Mid Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Perkins Select Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Perkins Value Plus Income Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For INTECH International Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Core Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for one share class. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Contrarian Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Enterprise Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Forty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
38 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Growth and Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Triton Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Twenty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Venture Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Emerging Markets Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Real Estate Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Select Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Technology Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus International Equity Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Overseas Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
Janus Investment Fund | 39 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Allocation Portfolio - Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for its sole share class.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized by Janus Capital when allocating various expenses of Janus Capital and its affiliates with respect to contractual relationships with the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capitals parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund managers capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees independent fee consultant, and based on the information available, the Trustees concluded that Janus Capitals profitability with respect to each Fund in relation to the services rendered was reasonable.
The independent fee consultant found that, while assessing the reasonableness of expenses in light of Janus Capitals profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Funds is reasonable.
The Trustees concluded that the management fees payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Funds. The Trustees also concluded that each Funds total expenses were reasonable, taking into account the size of the Fund, the quality of services
40 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Additional Information (unaudited)
provided by Janus Capital and any subadviser, the investment performance of the Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that their independent fee consultant provided an analysis of economies of scale, which included discussion of analysis from prior years. They also noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, their independent fee consultant concluded that 85% of these Funds have contractual management fees (gross of waivers) below their Broadridge expense group averages and, overall, 80% of the Funds are below their respective expense group averages for contractual management fees. They also noted that for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of some of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and a few Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of any economies of scale that may be present at the current asset level of the Fund.
The independent fee consultant concluded that, given the limitations of various analytical approaches to economies of scale considered in prior years, and their conflicting results, its analyses could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Fund investors are well-served by the fee levels and performance fee structures in place on the Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Funds from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capitals past and proposed use of commissions paid by the Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Fund. The Trustees concluded that Janus Capitals and the subadvisers use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and/or the subadvisers benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capitals and/or the subadvisers receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Fund could attract other business to Janus Capital, the subadvisers or other Janus funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capitals and the subadvisers ability to serve the Funds.
Janus Investment Fund | 41 |
INTECH Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Funds performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the companys principal office, the location of the principal trading market for the companys securities, or the country where a majority of the companys revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was December 31, 2015. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Funds unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Funds subsidized expense ratio. Ratios may be higher or lower than those shown in the Financial Highlights in this report.
Schedule of Investments
Following the performance overview section is the Funds Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Funds Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, and swaps follow the Funds Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the balance sheet. It lists the assets and liabilities of the Fund on the last day of the reporting period.
42 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
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 securities 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 entitled Net Assets Consist of breaks down the components of the Funds net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (NAV) per share on the last day of the reporting period. The NAV is calculated by dividing the Funds net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Funds income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled Investment Income, reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. Net Realized and Unrealized Gain/(Loss) on Investments is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Funds net assets during the reporting period. Changes in the Funds net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the 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 operations. The Funds net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Funds net assets will not be affected. If you compare the Funds Net Decrease from Dividends and Distributions to Reinvested Dividends and Distributions, you will notice that dividends and distributions have little effect on the Funds net assets. This is because the majority of the Funds investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under Capital Share Transactions. Capital Shares refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Funds net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Funds NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
Janus Investment Fund | 43 |
INTECH Global Income Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Funds expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Funds yield. The net investment income ratio is not a true measure of the Funds yield because it does not take into account the dividends distributed to the Funds investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Funds investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
44 | DECEMBER 31, 2015 |
INTECH Global Income Managed Volatility Fund
Notes
NotesPage1
Janus Investment Fund | 45 |
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus asset allocation funds aim to allocate risk more effectively.
Fixed Income
Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth & Core
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH® (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more efficient portfolio than the index.
Value
Our value funds, managed by Perkins® (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money. | ||||||||||||
Janus, INTECH and Perkins are registered trademarks of Janus International Holding LLC. © Janus International Holding LLC. Funds distributed by Janus Distributors LLC | ||||||||||||
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | |||||||||
C-0216-108437 | 125-24-93013 02-16 |
SEMIANNUAL REPORT December 31, 2015 | |||
INTECH International Managed Volatility Fund | |||
Janus Investment Fund | |||
| |||
HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics | |||
Table of Contents
INTECH International Managed Volatility Fund
INTECH International Managed Volatility Fund (unaudited)
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2015, INTECH International Managed Volatility Funds Class I Shares returned -1.64%. This compares to the -6.01% return posted by the MSCI EAFE Index, the Funds benchmark.
INVESTMENT STRATEGY
INTECHs mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the MSCI EAFE Index. INTECHs investment process aims to capture stocks natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to favor stocks with higher relative volatility and lower correlation as they offer more potential to capture volatility through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The INTECH International Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also reducing or managing the standard deviation of the portfolio depending on the market conditions, a strategy designed to manage the absolute risk of the portfolio.
PERFORMANCE REVIEW
The MSCI EAFE Index return declined by 6.01% for the six-month period ending December 31, 2015. INTECH International Managed Volatility Fund outperformed the MSCI EAFE Index over the period and generated a return of -1.64%.
The Funds active sector positioning tends to vary over time and is a function of the volatility and correlation characteristics of the underlying stocks. While an average underweight allocation to the consumer staples sector detracted, an underweight allocation to the energy sector, which was one of the weakest performing sectors during the period, contributed to the Funds relative performance. Stock selection, which is a residual of the investment process, also contributed to the Funds relative performance during the period, especially within the materials, industrials, and health care sectors.
An overall increase in market diversity over the past six months reflected a change in the distribution of capital, in which smaller cap stocks outperformed larger cap stocks on average within the MSCI EAFE Index. INTECH International Managed Volatility Fund, which tends to overweight smaller cap stocks as they provide more relative volatility capture potential, benefited from the overall increase in market diversity over the period.
OUTLOOK
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As INTECHs ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our fund shareholders.
Thank you for your investment in INTECH International Managed Volatility Fund.
Janus Investment Fund | 1 |
INTECH International Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2015
5 Largest Equity Holdings - (% of Net Assets) | |
Power Assets Holdings, Ltd. | |
Electric Utilities | 1.9% |
Nestle SA | |
Food Products | 1.8% |
Hang Seng Bank, Ltd. | |
Commercial Banks | 1.8% |
Next PLC | |
Multiline Retail | 1.8% |
Oriental Land Co., Ltd. | |
Hotels, Restaurants & Leisure | 1.7% |
9.0% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 99.1% | ||||
Investment Companies | 0.9% | ||||
Preferred Stocks | 0.3% | ||||
Other | (0.3)% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2015 | As of June 30, 2015 |
2 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Performance
See important disclosures on the next page. |
Expense Ratios - | ||||||||
Average Annual Total Return - for the periods ended December 31, 2015 |
| per the October 28, 2015 prospectuses | ||||||
|
| Fiscal
| One | Five
| Since |
| Total Annual Fund
| |
Class A Shares at NAV | -1.85% | 4.25% | 4.51% | 0.48% |
| 1.35% | ||
Class A Shares at MOP |
| -7.50% | -1.73% | 3.28% | -0.21% |
|
| |
Class C Shares at NAV | -2.13% | 3.48% | 4.37% | 0.26% |
| 2.02% | ||
Class C Shares at CDSC |
| -3.10% | 2.48% | 4.37% | 0.26% |
|
| |
Class D Shares(1) |
| -1.77% | 4.62% | 4.69% | 0.49% |
| 1.26% | |
Class I Shares |
| -1.64% | 4.64% | 4.77% | 0.64% |
| 0.93% | |
Class S Shares |
| -1.68% | 4.39% | 4.59% | 0.47% |
| 1.43% | |
Class T Shares |
| -1.79% | 4.35% | 4.52% | -0.35% |
| 1.16% | |
MSCI EAFE® Index |
| -6.01% | -0.81% | 3.60% | -0.22% |
|
| |
Morningstar Quartile - Class I Shares |
| - | 1st | 1st | 2nd |
|
| |
Morningstar Ranking - based on total returns for Foreign Large Blend Funds |
| - | 39/820 | 65/698 | 146/566 |
|
|
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
The expense ratios for Class D Shares are estimated.
INTECH's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
Janus Investment Fund | 3 |
INTECH International Managed Volatility Fund (unaudited)
Performance
A Funds performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of the predecessor fund into corresponding shares of the Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the predecessor fund respectively, net of any applicable fee and expense limitations or waivers.
Class D Shares commenced operations on April 24, 2015. Performance shown for periods prior to April 24, 2015, reflects the historical performance of the Funds Class I Shares, calculated using the fees and expenses of Class D Shares, without the effect of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the historical performance of the predecessor funds Class I Shares, calculated using the fees and expenses of Class T Shares, without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Funds commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Funds prospectuses for further details concerning historical performance.
Tracking Error is a divergence between the price behavior of a position or portfolio and the price behavior of a benchmark. Standard deviation measures historical volatility. Higher standard deviation implies greater volatility.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2015 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
The weighting of securities within the Fund's portfolio may differ significantly from the weightings within the index. The index is unmanaged and not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.
See Useful Information About Your Fund Report.
* The predecessor Funds inception date May 2, 2007
(1) Closed to certain new investors.
4 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading Actual provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading Hypothetical (5% return before expenses) provides information about hypothetical account values and hypothetical expenses based upon the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Funds prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | Net Annualized | |||
Class A Shares | $1,000.00 | $981.50 | $6.18 |
| $1,000.00 | $1,018.90 | $6.29 | 1.24% | ||
Class C Shares | $1,000.00 | $978.70 | $9.40 |
| $1,000.00 | $1,015.64 | $9.58 | 1.89% | ||
Class D Shares | $1,000.00 | $982.30 | $5.03 |
| $1,000.00 | $1,020.06 | $5.13 | 1.01% | ||
Class I Shares | $1,000.00 | $983.60 | $4.09 |
| $1,000.00 | $1,021.01 | $4.17 | 0.82% | ||
Class S Shares | $1,000.00 | $983.20 | $4.54 |
| $1,000.00 | $1,020.56 | $4.62 | 0.91% | ||
Class T Shares | $1,000.00 | $982.10 | $5.28 |
| $1,000.00 | $1,019.81 | $5.38 | 1.06% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
Janus Investment Fund | 5 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks 99.1% | |||||||
Aerospace & Defense 0.9% | |||||||
Cobham PLC | 7,241 | $30,226 | |||||
Finmeccanica SpA* | 5,467 | 76,632 | |||||
Safran SA | 350 | 24,100 | |||||
Thales SA | 5,704 | 428,280 | |||||
Zodiac Aerospace | 1,129 | 26,958 | |||||
586,196 | |||||||
Air Freight & Logistics 0.4% | |||||||
Royal Mail PLC | 16,373 | 107,153 | |||||
TNT Express NV | 16,198 | 137,110 | |||||
244,263 | |||||||
Airlines 1.6% | |||||||
ANA Holdings, Inc. | 8,000 | 23,298 | |||||
Deutsche Lufthansa AG* | 2,948 | 46,656 | |||||
easyJet PLC | 5,651 | 144,934 | |||||
Japan Airlines Co., Ltd. | 12,400 | 449,446 | |||||
Singapore Airlines, Ltd. | 48,400 | 382,474 | |||||
1,046,808 | |||||||
Auto Components 0.1% | |||||||
Cie Generale des Etablissements Michelin | 243 | 23,209 | |||||
Sumitomo Electric Industries, Ltd. | 1,100 | 15,780 | |||||
Valeo SA | 75 | 11,617 | |||||
50,606 | |||||||
Automobiles 0.3% | |||||||
Nissan Motor Co., Ltd. | 5,200 | 55,362 | |||||
Peugeot SA* | 7,286 | 128,295 | |||||
Toyota Motor Corp. | 300 | 18,692 | |||||
202,349 | |||||||
Beverages 0.7% | |||||||
Heineken NV | 452 | 38,687 | |||||
Kirin Holdings Co., Ltd. | 10,000 | 137,086 | |||||
Suntory Beverage & Food, Ltd. | 6,400 | 283,308 | |||||
459,081 | |||||||
Biotechnology 1.4% | |||||||
Actelion, Ltd.* | 1,450 | 202,157 | |||||
CSL, Ltd. | 9,725 | 746,088 | |||||
948,245 | |||||||
Building Products 0.5% | |||||||
Asahi Glass Co., Ltd. | 6,000 | 34,748 | |||||
LIXIL Group Corp. | 2,100 | 47,179 | |||||
TOTO, Ltd. | 7,000 | 249,584 | |||||
331,511 | |||||||
Capital Markets 1.1% | |||||||
Credit Suisse Group AG* | 678 | 14,687 | |||||
ICAP PLC | 3,401 | 25,541 | |||||
Julius Baer Group, Ltd.* | 1,562 | 75,908 | |||||
Partners Group Holding AG | 1,376 | 496,435 | |||||
UBS Group AG | 6,194 | 120,750 | |||||
733,321 | |||||||
Chemicals 3.3% | |||||||
Chr Hansen Holding A/S | 2,203 | 138,514 | |||||
EMS-Chemie Holding AG | 98 | 43,162 | |||||
Evonik Industries AG | 4,115 | 136,891 | |||||
Givaudan SA* | 159 | 289,481 | |||||
Incitec Pivot, Ltd. | 6,378 | 18,400 | |||||
Israel Chemicals, Ltd. | 30,408 | 123,586 | |||||
Kaneka Corp. | 14,000 | 147,362 | |||||
Nitto Denko Corp. | 2,000 | 148,311 | |||||
Novozymes A/S - Class B | 568 | 27,349 | |||||
Sika AG | 30 | 108,459 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
6 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Chemicals (continued) | |||||||
Sumitomo Chemical Co., Ltd. | 63,000 | $367,474 | |||||
Symrise AG | 4,520 | 301,219 | |||||
Syngenta AG | 77 | 30,168 | |||||
Teijin, Ltd. | 57,000 | 196,830 | |||||
Toray Industries, Inc. | 10,000 | 94,026 | |||||
2,171,232 | |||||||
Commercial Banks 5.1% | |||||||
Bank Hapoalim BM | 130,190 | 672,704 | |||||
Bank Leumi Le-Israel BM* | 120,719 | 418,948 | |||||
Bank of Ireland* | 165,850 | 60,912 | |||||
BOC Hong Kong Holdings, Ltd. | 19,500 | 59,634 | |||||
CaixaBank SA | 2,513 | 8,776 | |||||
Danske Bank A/S | 4,376 | 118,036 | |||||
DBS Group Holdings, Ltd. | 32,000 | 376,829 | |||||
Hang Seng Bank, Ltd. | 62,700 | 1,193,353 | |||||
Kyushu Financial Group, Inc. | 3,600 | 25,372 | |||||
Mitsubishi UFJ Financial Group, Inc. | 8,400 | 52,918 | |||||
Mizuho Financial Group, Inc. | 51,300 | 103,940 | |||||
Oversea-Chinese Banking Corp., Ltd. | 22,000 | 136,598 | |||||
Swedbank AB - Class A | 1,073 | 23,799 | |||||
United Overseas Bank, Ltd. | 2,300 | 31,823 | |||||
Yamaguchi Financial Group, Inc. | 7,000 | 83,874 | |||||
3,367,516 | |||||||
Commercial Services & Supplies 1.2% | |||||||
ISS A/S | 5,316 | 192,556 | |||||
Park24 Co., Ltd. | 3,700 | 90,176 | |||||
Societe BIC SA | 521 | 85,852 | |||||
Sohgo Security Services Co., Ltd. | 1,100 | 52,172 | |||||
Toppan Printing Co., Ltd. | 37,000 | 344,508 | |||||
765,264 | |||||||
Construction & Engineering 2.4% | |||||||
CIMIC Group, Ltd. | 1,109 | 19,632 | |||||
Ferrovial SA | 5,311 | 120,353 | |||||
Kajima Corp. | 36,000 | 216,875 | |||||
Obayashi Corp. | 63,000 | 586,595 | |||||
Shimizu Corp. | 55,000 | 453,070 | |||||
Taisei Corp. | 23,000 | 153,104 | |||||
Vinci SA | 1,042 | 66,961 | |||||
1,616,590 | |||||||
Construction Materials 0.5% | |||||||
James Hardie Industries PLC (CDI) | 5,310 | 67,580 | |||||
Taiheiyo Cement Corp. | 95,000 | 279,830 | |||||
347,410 | |||||||
Consumer Finance 0.2% | |||||||
Credit Saison Co., Ltd. | 6,900 | 137,851 | |||||
Containers & Packaging 0.7% | |||||||
Amcor, Ltd. | 38,414 | 376,114 | |||||
Rexam PLC | 13,270 | 118,239 | |||||
494,353 | |||||||
Diversified Consumer Services 0.2% | |||||||
Benesse Holdings, Inc. | 3,500 | 101,639 | |||||
Diversified Financial Services 0.5% | |||||||
Challenger, Ltd. | 7,922 | 50,325 | |||||
Deutsche Boerse AG | 1,395 | 123,372 | |||||
Hong Kong Exchanges & Clearing, Ltd. | 1,300 | 33,298 | |||||
Singapore Exchange, Ltd. | 20,000 | 108,657 | |||||
315,652 | |||||||
Diversified Telecommunication Services 3.9% | |||||||
Bezeq Israeli Telecommunication Corp., Ltd. | 205,877 | 453,564 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 7 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Diversified Telecommunication Services (continued) | |||||||
Elisa Oyj | 5,559 | $210,146 | |||||
HKT Trust & HKT, Ltd. | 274,000 | 350,022 | |||||
Inmarsat PLC | 30,071 | 503,968 | |||||
Koninklijke KPN NV | 41,482 | 157,400 | |||||
Nippon Telegraph & Telephone Corp. | 5,500 | 221,318 | |||||
Singapore Telecommunications, Ltd. | 78,000 | 201,976 | |||||
Spark New Zealand, Ltd. | 190,830 | 430,552 | |||||
Telefonica Deutschland Holding AG | 2,701 | 14,355 | |||||
TPG Telecom, Ltd. | 2,788 | 20,087 | |||||
2,563,388 | |||||||
Electric Utilities 7.0% | |||||||
Cheung Kong Infrastructure Holdings, Ltd. | 61,000 | 565,150 | |||||
Chubu Electric Power Co., Inc. | 7,300 | 100,984 | |||||
Chugoku Electric Power Co., Inc. | 3,200 | 42,603 | |||||
CLP Holdings, Ltd. | 116,000 | 985,651 | |||||
Endesa SA | 6,612 | 133,095 | |||||
HK Electric Investments & HK Electric Investments, Ltd. | 131,000 | 109,874 | |||||
Hokuriku Electric Power Co. | 8,400 | 125,462 | |||||
Kansai Electric Power Co., Inc.* | 3,600 | 43,719 | |||||
Kyushu Electric Power Co., Inc.* | 31,100 | 343,399 | |||||
Power Assets Holdings, Ltd. | 133,500 | 1,228,232 | |||||
Red Electrica Corp. SA | 474 | 39,715 | |||||
Shikoku Electric Power Co., Inc. | 5,800 | 91,696 | |||||
SSE PLC | 17,030 | 383,560 | |||||
Terna Rete Elettrica Nazionale SpA | 28,900 | 149,352 | |||||
Tohoku Electric Power Co., Inc. | 4,000 | 50,591 | |||||
Tokyo Electric Power Co., Inc.* | 32,800 | 190,774 | |||||
4,583,857 | |||||||
Electrical Equipment 0.6% | |||||||
Alstom SA* | 7,137 | 218,422 | |||||
Nidec Corp. | 800 | 58,825 | |||||
Vestas Wind Systems A/S | 1,788 | 125,988 | |||||
403,235 | |||||||
Electronic Equipment, Instruments & Components 0.7% | |||||||
Citizen Holdings Co., Ltd. | 16,300 | 118,541 | |||||
Murata Manufacturing Co., Ltd. | 600 | 87,718 | |||||
Shimadzu Corp. | 13,000 | 221,210 | |||||
Yokogawa Electric Corp. | 700 | 8,533 | |||||
436,002 | |||||||
Food & Staples Retailing 2.3% | |||||||
Aeon Co., Ltd. | 31,900 | 495,833 | |||||
Colruyt SA | 3,693 | 190,388 | |||||
FamilyMart Co., Ltd. | 1,300 | 61,008 | |||||
ICA Gruppen AB | 7,520 | 274,035 | |||||
Lawson, Inc. | 4,600 | 377,018 | |||||
Seven & I Holdings Co., Ltd. | 2,200 | 101,598 | |||||
Wesfarmers, Ltd. | 490 | 14,853 | |||||
1,514,733 | |||||||
Food Products 7.5% | |||||||
Ajinomoto Co., Inc. | 11,000 | 263,559 | |||||
Associated British Foods PLC | 1,358 | 66,896 | |||||
Barry Callebaut AG* | 45 | 49,301 | |||||
Chocoladefabriken Lindt & Spruengli AG (PC) | 96 | 599,700 | |||||
Chocoladefabriken Lindt & Spruengli AG (REG) | 10 | 745,231 | |||||
Kerry Group PLC - Class A | 893 | 74,046 | |||||
Kikkoman Corp. | 1,000 | 35,156 | |||||
MEIJI Holdings Co., Ltd. | 12,800 | 1,070,394 | |||||
Nestle SA | 16,142 | 1,201,824 | |||||
NH Foods, Ltd. | 18,000 | 356,166 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Food Products (continued) | ||||||||
Nisshin Seifun Group, Inc. | 5,300 | $87,628 | ||||||
Nissin Foods Holdings Co., Ltd. | 3,200 | 171,210 | ||||||
Tate & Lyle PLC | 3,153 | 27,838 | ||||||
Toyo Suisan Kaisha, Ltd. | 1,100 | 38,717 | ||||||
Wilmar International, Ltd. | 85,800 | 177,981 | ||||||
4,965,647 | ||||||||
Gas Utilities 1.3% | ||||||||
Hong Kong & China Gas Co., Ltd. | 409,200 | 802,581 | ||||||
Osaka Gas Co., Ltd. | 3,000 | 10,944 | ||||||
Toho Gas Co., Ltd. | 12,000 | 78,382 | ||||||
891,907 | ||||||||
Health Care Equipment & Supplies 1.0% | ||||||||
Cochlear, Ltd. | 1,150 | 80,075 | ||||||
Smith & Nephew PLC | 1,143 | 20,352 | ||||||
Sonova Holding AG | 1,282 | 162,987 | ||||||
Sysmex Corp. | 1,500 | 97,728 | ||||||
Terumo Corp. | 5,300 | 166,700 | ||||||
William Demant Holding A/S* | 1,082 | 103,535 | ||||||
631,377 | ||||||||
Health Care Providers & Services 2.9% | ||||||||
Alfresa Holdings Corp. | 7,600 | 152,089 | ||||||
Fresenius Medical Care AG & Co. KGaA | 4,158 | 351,191 | ||||||
Fresenius SE & Co. KGaA | 3,997 | 286,518 | ||||||
Medipal Holdings Corp. | 17,300 | 298,554 | ||||||
Ryman Healthcare, Ltd. | 15,324 | 89,055 | ||||||
Sonic Healthcare, Ltd. | 34,279 | 446,255 | ||||||
Suzuken Co., Ltd. | 7,300 | 280,933 | ||||||
1,904,595 | ||||||||
Hotels, Restaurants & Leisure 2.4% | ||||||||
Carnival PLC | 6,519 | 371,482 | ||||||
Compass Group PLC | 916 | 15,865 | ||||||
Oriental Land Co., Ltd. | 18,100 | 1,105,007 | ||||||
TUI AG | 2,507 | 44,750 | ||||||
William Hill PLC | 6,594 | 38,489 | ||||||
1,575,593 | ||||||||
Household Durables 2.6% | ||||||||
Barratt Developments PLC | 6,581 | 60,724 | ||||||
Casio Computer Co., Ltd. | 6,400 | 151,613 | ||||||
Electrolux AB - Series B | 3,797 | 92,364 | ||||||
Nikon Corp. | 2,300 | 31,099 | ||||||
Persimmon PLC* | 4,600 | 137,438 | ||||||
Rinnai Corp. | 400 | 35,879 | ||||||
Sekisui House, Ltd. | 10,100 | 171,989 | ||||||
Taylor Wimpey PLC | 140,332 | 420,109 | ||||||
Techtronic Industries Co., Ltd. | 152,000 | 619,784 | ||||||
1,720,999 | ||||||||
Household Products 0.4% | ||||||||
Henkel AG & Co. KGaA | 115 | 11,074 | ||||||
Reckitt Benckiser Group PLC | 833 | 77,120 | ||||||
Svenska Cellulosa AB SCA - Class B | 6,248 | 182,575 | ||||||
270,769 | ||||||||
Independent Power and Renewable Electricity Producers 0.2% | ||||||||
Meridian Energy, Ltd. | 76,158 | 124,445 | ||||||
Industrial Conglomerates 0.6% | ||||||||
Keihan Electric Railway Co., Ltd. | 60,000 | 405,891 | ||||||
Information Technology Services 1.6% | ||||||||
Atos SE | 2,326 | 195,750 | ||||||
Cap Gemini SA | 370 | 34,415 | ||||||
Fujitsu, Ltd. | 8,000 | 40,399 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Information Technology Services (continued) | |||||||
Nomura Research Institute, Ltd. | 6,300 | $244,808 | |||||
NTT Data Corp. | 6,700 | 327,808 | |||||
Otsuka Corp. | 4,400 | 218,206 | |||||
1,061,386 | |||||||
Insurance 3.5% | |||||||
Admiral Group PLC | 5,179 | 126,645 | |||||
Ageas | 3,770 | 175,330 | |||||
Baloise Holding AG | 263 | 33,515 | |||||
Direct Line Insurance Group PLC | 27,757 | 166,723 | |||||
Hannover Rueck SE | 2,038 | 233,961 | |||||
Muenchener Rueckversicherungs AG | 696 | 139,571 | |||||
NN Group NV | 12,161 | 430,121 | |||||
Sampo Oyj - Class A | 499 | 25,484 | |||||
SCOR SE | 12,026 | 450,959 | |||||
Sony Financial Holdings, Inc. | 13,000 | 235,705 | |||||
Swiss Life Holding AG* | 382 | 103,502 | |||||
Swiss Re AG | 1,454 | 142,525 | |||||
T&D Holdings, Inc. | 2,100 | 28,115 | |||||
Tryg A/S | 842 | 16,850 | |||||
2,309,006 | |||||||
Internet & Catalog Retail 0.1% | |||||||
Zalando SE (144A)* | 1,135 | 44,892 | |||||
Internet Software & Services 0.1% | |||||||
United Internet AG | 900 | 49,787 | |||||
Leisure Products 0.8% | |||||||
Bandai Namco Holdings, Inc. | 9,400 | 200,546 | |||||
Sankyo Co., Ltd. | 5,800 | 218,381 | |||||
Shimano, Inc. | 500 | 77,634 | |||||
Yamaha Corp. | 600 | 14,723 | |||||
511,284 | |||||||
Life Sciences Tools & Services 0.8% | |||||||
Lonza Group AG* | 2,691 | 438,332 | |||||
QIAGEN NV* | 2,457 | 67,052 | |||||
505,384 | |||||||
Machinery 1.2% | |||||||
Hoshizaki Electric Co., Ltd. | 1,200 | 75,487 | |||||
Makita Corp. | 1,600 | 93,593 | |||||
MAN SE | 3,172 | 319,509 | |||||
Schindler Holding AG (PC) | 949 | 159,225 | |||||
Schindler Holding AG (REG) | 795 | 134,181 | |||||
781,995 | |||||||
Marine 0.3% | |||||||
Kuehne + Nagel International AG | 1,237 | 170,237 | |||||
Media 3.5% | |||||||
Axel Springer SE | 1,921 | 107,165 | |||||
Eutelsat Communications SA | 14,870 | 445,955 | |||||
ITV PLC | 14,568 | 59,395 | |||||
JCDecaux SA | 4,178 | 160,256 | |||||
Kabel Deutschland Holding AG | 1,688 | 209,372 | |||||
RELX NV | 846 | 14,285 | |||||
RELX PLC | 1,680 | 29,641 | |||||
RTL Group SA | 1,260 | 105,491 | |||||
SES SA (FDR) | 22,406 | 622,659 | |||||
Singapore Press Holdings, Ltd.# | 146,000 | 405,870 | |||||
Telenet Group Holding NV* | 308 | 16,657 | |||||
Vivendi SA | 3,621 | 78,141 | |||||
Wolters Kluwer NV | 1,520 | 51,143 | |||||
2,306,030 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Metals & Mining 0.1% | ||||||||
Mitsubishi Materials Corp. | 16,000 | $51,123 | ||||||
Multiline Retail 2.6% | ||||||||
Don Quijote Holdings Co., Ltd. | 10,400 | 369,945 | ||||||
Isetan Mitsukoshi Holdings, Ltd. | 2,400 | 31,672 | ||||||
J Front Retailing Co., Ltd. | 4,800 | 70,534 | ||||||
Next PLC | 10,800 | 1,160,503 | ||||||
Ryohin Keikaku Co., Ltd. | 500 | 102,513 | ||||||
1,735,167 | ||||||||
Multi-Utilities 0.6% | ||||||||
AGL Energy, Ltd. | 2,549 | 33,574 | ||||||
National Grid PLC | 26,929 | 372,123 | ||||||
405,697 | ||||||||
Oil, Gas & Consumable Fuels 0.4% | ||||||||
JX Holdings, Inc. | 37,400 | 158,214 | ||||||
Neste Oyj | 719 | 21,586 | ||||||
TonenGeneral Sekiyu KK | 13,000 | 110,551 | ||||||
290,351 | ||||||||
Paper & Forest Products 0.1% | ||||||||
Oji Holdings Corp. | 13,000 | 52,896 | ||||||
Personal Products 0.8% | ||||||||
Beiersdorf AG | 328 | 29,995 | ||||||
Kao Corp. | 4,100 | 213,392 | ||||||
Kose Corp. | 1,000 | 93,776 | ||||||
L'Oreal SA | 511 | 86,231 | ||||||
Shiseido Co., Ltd. | 6,600 | 138,887 | ||||||
562,281 | ||||||||
Pharmaceuticals 8.9% | ||||||||
Astellas Pharma, Inc. | 13,400 | 193,061 | ||||||
Chugai Pharmaceutical Co., Ltd. | 2,900 | 102,313 | ||||||
Daiichi Sankyo Co., Ltd. | 13,600 | 284,097 | ||||||
Eisai Co., Ltd. | 7,000 | 469,637 | ||||||
Galenica AG | 114 | 179,203 | ||||||
Kyowa Hakko Kirin Co., Ltd. | 2,000 | 31,869 | ||||||
Mitsubishi Tanabe Pharma Corp. | 12,600 | 219,750 | ||||||
Novartis AG | 4,727 | 409,771 | ||||||
Novo Nordisk A/S - Class B | 16,192 | 943,079 | ||||||
Ono Pharmaceutical Co., Ltd. | 500 | 90,240 | ||||||
Orion Oyj - Class B | 3,712 | 128,950 | ||||||
Otsuka Holdings Co., Ltd. | 5,100 | 183,198 | ||||||
Roche Holding AG | 468 | 129,187 | ||||||
Shionogi & Co., Ltd. | 19,800 | 906,635 | ||||||
Shire PLC | 3,996 | 276,715 | ||||||
Takeda Pharmaceutical Co., Ltd. | 5,000 | 252,330 | ||||||
Teva Pharmaceutical Industries, Ltd. | 15,421 | 1,008,906 | ||||||
UCB SA | 554 | 50,103 | ||||||
5,859,044 | ||||||||
Professional Services 0.2% | ||||||||
Bureau Veritas SA | 1,626 | 32,492 | ||||||
Capita PLC | 3,208 | 57,121 | ||||||
Recruit Holdings Co., Ltd. | 900 | 26,660 | ||||||
116,273 | ||||||||
Real Estate Investment Trusts (REITs) 2.8% | ||||||||
CapitaLand Commercial Trust, Ltd. | 14,000 | 13,335 | ||||||
Gecina SA | 169 | 20,586 | ||||||
Japan Prime Realty Investment Corp. | 62 | 213,064 | ||||||
Japan Real Estate Investment Corp. | 24 | 117,224 | ||||||
Japan Retail Fund Investment Corp. | 144 | 278,223 | ||||||
Link REIT | 92,500 | 553,821 | ||||||
Nippon Building Fund, Inc. | 20 | 96,023 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Real Estate Investment Trusts (REITs) (continued) | |||||||
Nippon Prologis REIT, Inc. | 17 | $30,908 | |||||
Nomura Real Estate Master Fund, Inc. | 141 | 175,282 | |||||
United Urban Investment Corp. | 242 | 330,238 | |||||
1,828,704 | |||||||
Real Estate Management & Development 4.0% | |||||||
Daito Trust Construction Co., Ltd. | 200 | 23,315 | |||||
Daiwa House Industry Co., Ltd. | 9,500 | 276,905 | |||||
Henderson Land Development Co., Ltd. | 51,700 | 316,879 | |||||
Hongkong Land Holdings, Ltd. | 4,900 | 34,300 | |||||
Hysan Development Co., Ltd. | 36,000 | 147,488 | |||||
Kerry Properties, Ltd. | 24,000 | 65,498 | |||||
New World Development Co., Ltd. | 25,000 | 24,710 | |||||
Nomura Real Estate Holdings, Inc. | 700 | 13,134 | |||||
Sun Hung Kai Properties, Ltd. | 35,000 | 422,721 | |||||
Swire Pacific, Ltd. - Class A | 38,000 | 427,572 | |||||
Swire Properties, Ltd. | 102,200 | 295,399 | |||||
Swiss Prime Site AG* | 5,320 | 417,078 | |||||
UOL Group, Ltd. | 7,500 | 33,021 | |||||
Vonovia SE | 1,154 | 35,800 | |||||
Wheelock & Co., Ltd. | 26,000 | 109,538 | |||||
2,643,358 | |||||||
Road & Rail 3.5% | |||||||
Asciano, Ltd. | 7,367 | 46,906 | |||||
ComfortDelGro Corp., Ltd. | 258,000 | 555,211 | |||||
DSV A/S | 6,445 | 255,040 | |||||
East Japan Railway Co. | 500 | 47,637 | |||||
Keikyu Corp. | 9,000 | 75,112 | |||||
Kintetsu Group Holdings Co., Ltd. | 12,000 | 49,226 | |||||
MTR Corp., Ltd. | 134,500 | 666,443 | |||||
Nagoya Railroad Co., Ltd. | 19,000 | 79,839 | |||||
Tokyu Corp. | 2,000 | 15,976 | |||||
West Japan Railway Co. | 7,100 | 495,901 | |||||
2,287,291 | |||||||
Semiconductor & Semiconductor Equipment 0.1% | |||||||
ARM Holdings PLC | 1,602 | 24,534 | |||||
Tokyo Electron, Ltd. | 1,200 | 73,110 | |||||
97,644 | |||||||
Software 1.4% | |||||||
Check Point Software Technologies, Ltd.* | 700 | 56,966 | |||||
Dassault Systemes | 4,130 | 331,055 | |||||
Konami Holdings Corp. | 7,100 | 170,617 | |||||
NICE Systems, Ltd. | 3,233 | 186,583 | |||||
Nintendo Co., Ltd. | 200 | 27,883 | |||||
Oracle Corp. Japan | 500 | 23,506 | |||||
Sage Group PLC | 11,689 | 103,980 | |||||
Trend Micro, Inc. | 700 | 28,715 | |||||
929,305 | |||||||
Specialty Retail 2.7% | |||||||
Dixons Carphone PLC | 4,750 | 35,007 | |||||
Fast Retailing Co., Ltd. | 1,700 | 603,162 | |||||
Nitori Holdings Co., Ltd. | 6,300 | 536,271 | |||||
Shimamura Co., Ltd. | 1,100 | 130,521 | |||||
Sports Direct International PLC* | 11,977 | 101,864 | |||||
Yamada Denki Co., Ltd. | 84,600 | 368,163 | |||||
1,774,988 | |||||||
Technology Hardware, Storage & Peripherals 0.4% | |||||||
FUJIFILM Holdings Corp. | 1,400 | 59,178 | |||||
Ricoh Co., Ltd. | 20,900 | 217,556 | |||||
276,734 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Textiles, Apparel & Luxury Goods 1.0% | ||||||||
adidas AG | 793 | $77,473 | ||||||
Christian Dior SE | 186 | 31,680 | ||||||
Hermes International | 278 | 94,172 | ||||||
Luxottica Group SpA | 2,625 | 172,281 | ||||||
Pandora A/S | 1,133 | 143,894 | ||||||
Yue Yuen Industrial Holdings, Ltd. | 49,000 | 166,604 | ||||||
686,104 | ||||||||
Tobacco 0.8% | ||||||||
Imperial Tobacco Group PLC | 5,122 | 270,773 | ||||||
Japan Tobacco, Inc. | 800 | 29,762 | ||||||
Swedish Match AB | 6,289 | 223,808 | ||||||
524,343 | ||||||||
Trading Companies & Distributors 0.9% | ||||||||
Bunzl PLC | 5,603 | 155,678 | ||||||
ITOCHU Corp. | 15,200 | 182,380 | ||||||
Marubeni Corp. | 3,800 | 19,765 | ||||||
Mitsui & Co., Ltd. | 2,000 | 24,056 | ||||||
Travis Perkins PLC | 2,489 | 72,385 | ||||||
Wolseley PLC | 2,517 | 136,937 | ||||||
591,201 | ||||||||
Transportation Infrastructure 1.0% | ||||||||
Aeroports de Paris | 248 | 28,888 | ||||||
Atlantia SpA | 2,428 | 64,638 | ||||||
Fraport AG Frankfurt Airport Services Worldwide | 647 | 41,437 | ||||||
Groupe Eurotunnel SE | 19,834 | 246,982 | ||||||
Transurban Group | 35,619 | 271,681 | ||||||
653,626 | ||||||||
Water Utilities 0% | ||||||||
Severn Trent PLC | 686 | 22,013 | ||||||
Wireless Telecommunication Services 0.4% | ||||||||
KDDI Corp. | 1,200 | 31,493 | ||||||
NTT DOCOMO, Inc. | 11,100 | 229,426 | ||||||
Tele2 AB - Class B | 2,984 | 29,979 | ||||||
290,898 | ||||||||
Total Common Stocks (cost $61,699,961) | 65,331,367 | |||||||
Preferred Stocks 0.3% | ||||||||
Chemicals 0% | ||||||||
Fuchs Petrolub SE | 307 | 14,511 | ||||||
Media 0.3% | ||||||||
ProSiebenSat.1 Media SE | 3,839 | 195,079 | ||||||
Total Preferred Stocks (cost $210,974) | 209,590 | |||||||
Investment Companies 0.9% | ||||||||
Investments Purchased with Cash Collateral from Securities Lending 0.5% | ||||||||
Janus Cash Collateral Fund LLC, 0.3005%ºº,£ | 295,000 | 295,000 | ||||||
Money Markets 0.4% | ||||||||
Janus Cash Liquidity Fund LLC, 0.3105%ºº,£ | 265,038 | 265,038 | ||||||
Total Investment Companies (cost $560,038) | 560,038 | |||||||
Total Investments (total cost $62,470,973) 100.3% | 66,100,995 | |||||||
Liabilities, net of Cash, Receivables and Other Assets (0.3)% | (204,865) | |||||||
Net Assets 100% | $65,896,130 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 13 |
INTECH International Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
Japan | $23,703,147 | 35.9 | % | ||
Hong Kong | 9,178,552 | 13.9 | |||
Switzerland | 6,457,006 | 9.8 | |||
United Kingdom | 5,766,721 | 8.7 | |||
France | 3,873,915 | 5.9 | |||
Germany | 2,942,371 | 4.4 | |||
Israel | 2,921,257 | 4.4 | |||
Singapore | 2,423,775 | 3.7 | |||
Australia | 2,191,570 | 3.3 | |||
Denmark | 2,064,841 | 3.1 | |||
Netherlands | 828,746 | 1.2 | |||
Sweden | 826,560 | 1.2 | |||
New Zealand | 644,052 | 1.0 | |||
United States | 560,038 | 0.8 | |||
Italy | 462,903 | 0.7 | |||
Belgium | 432,478 | 0.7 | |||
Finland | 386,166 | 0.6 | |||
Spain | 301,939 | 0.5 | |||
Ireland | 134,958 | 0.2 | |||
Total | $66,100,995 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
14 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Notes to Schedule of Investments and Other Information (unaudited)
MSCI EAFE® Index | A free float-adjusted market capitalization weighted index designed to measure developed market equity performance. The MSCI EAFE® Index is composed of companies representative of the market structure of developed market countries. The index includes reinvestment of dividends, net of foreign withholding taxes. |
CDI | Clearing House Electronic Subregister System Depositary Interest |
FDR | Fixed Depositary Receipt |
LLC | Limited Liability Company |
PC | Participation Certificate |
PLC | Public Limited Company |
REG | Registered |
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended December 31, 2015 is $44,892, which represents 0.1% of net assets. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2015. |
# | Loaned security; a portion of the security is on loan at December 31, 2015. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Funds relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2015. Unless otherwise indicated, all information in the table is for the period ended December 31, 2015. |
| Share | Purchases | Sales | Share | Dividend | Value |
Janus Cash Collateral Fund LLC | 355,505 | 1,569,071 | (1,629,576) | 295,000 | $ 2,431(1) | $ 295,000 |
Janus Cash Liquidity Fund LLC | 946,213 | 6,230,298 | (6,911,473) | 265,038 | 424 | 265,038 |
Total | $ 2,855 | $ 560,038 |
(1) Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties.
The following is a summary of the inputs that were used to value the Fund's investments in securities and other financial instruments as of December 31, 2015. See Notes to Financial Statements for more information. | |||
Valuation Inputs Summary | |||
| Level
1 - | Level 2 - | Level 3 - |
Assets | |||
Investments in Securities: | |||
Common Stocks | $ 65,331,367 | $ - | $ - |
Preferred Stocks | - | 209,590 | - |
Investment Companies | - | 560,038 | - |
Total Assets | $ 65,331,367 | $ 769,628 | $ - |
Janus Investment Fund | 15 |
INTECH International Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
See footnotes at the end of the Statement. |
Assets: |
|
|
|
| ||
Investments, at cost | $ | 62,470,973 | ||||
Unaffiliated investments, at value(1) | $ | 65,540,957 | ||||
Affiliated investments, at value | 560,038 | |||||
Cash | 60,839 | |||||
Cash denominated in foreign currency(2) | 3,707 | |||||
Non-interested Trustees' deferred compensation | 1,333 | |||||
Receivables: | ||||||
Foreign tax reclaims | 57,581 | |||||
Dividends | 55,199 | |||||
Fund shares sold | 37,032 | |||||
Dividends from affiliates | 131 | |||||
Other assets | 714 | |||||
Total Assets |
|
| 66,317,531 |
| ||
Liabilities: | ||||||
Collateral for securities loaned (Note 2) | 295,000 | |||||
Payables: | | |||||
Fund shares repurchased | 37,082 | |||||
Advisory fees | 33,540 | |||||
Professional fees | 27,938 | |||||
Transfer agent fees and expenses | 2,153 | |||||
Custodian fees | 1,762 | |||||
12b-1 Distribution and shareholder servicing fees | 1,365 | |||||
Non-interested Trustees' deferred compensation fees | 1,333 | |||||
Fund administration fees | 579 | |||||
Non-interested Trustees' fees and expenses | 394 | |||||
Accrued expenses and other payables | 20,255 | |||||
Total Liabilities |
|
| 421,401 |
| ||
Net Assets |
| $ | 65,896,130 |
|
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
Net Assets Consist of: |
|
|
|
| ||
Capital (par value and paid-in surplus) | $ | 66,551,553 | ||||
Undistributed net investment income/(loss) | (546,993) | |||||
Undistributed net realized gain/(loss) from investments and foreign currency transactions | (3,733,585) | |||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation | 3,625,155 | |||||
Total Net Assets |
| $ | 65,896,130 |
| ||
Net Assets - Class A Shares | $ | 2,587,928 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 330,436 | |||||
Net Asset Value Per Share(3) |
| $ | 7.83 |
| ||
Maximum Offering Price Per Share(4) |
| $ | 8.31 |
| ||
Net Assets - Class C Shares | $ | 830,560 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 107,690 | |||||
Net Asset Value Per Share(3) |
| $ | 7.71 |
| ||
Net Assets - Class D Shares | $ | 1,048,594 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 135,449 | |||||
Net Asset Value Per Share |
| $ | 7.74 |
| ||
Net Assets - Class I Shares | $ | 59,870,019 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,721,622 | |||||
Net Asset Value Per Share |
| $ | 7.75 |
| ||
Net Assets - Class S Shares | $ | 63,023 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 8,019 | |||||
Net Asset Value Per Share |
| $ | 7.86 |
| ||
Net Assets - Class T Shares | $ | 1,496,006 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 193,177 | |||||
Net Asset Value Per Share |
| $ | 7.74 |
|
(1) Includes $278,597 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Includes cost of $3,726. (3) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (4) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
INTECH International Managed Volatility Fund
Statement of Operations (unaudited)
For the period ended December 31, 2015
Investment Income: |
|
|
| ||
| Dividends | $ | 645,109 | ||
Affiliated securities lending income, net | 2,431 | ||||
Dividends from affiliates | 424 | ||||
Other income | 19 | ||||
Foreign tax withheld | (37,031) | ||||
Total Investment Income |
| 610,952 |
| ||
Expenses: | |||||
Advisory fees | 191,857 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 4,426 | ||||
Class C Shares | 3,893 | ||||
Class S Shares | 83 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 608 | ||||
Class S Shares | 83 | ||||
Class T Shares | 1,580 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 2,868 | ||||
Class C Shares | 179 | ||||
Class I Shares | 1,682 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 218 | ||||
Class C Shares | 49 | ||||
Class D Shares | 98 | ||||
Class I Shares | 1,145 | ||||
Class T Shares | 25 | ||||
Registration fees | 37,681 | ||||
Professional fees | 16,874 | ||||
Custodian fees | 12,456 | ||||
Shareholder reports expense | 8,336 | ||||
Fund administration fees | 3,313 | ||||
Non-interested Trustees fees and expenses | 754 | ||||
Other expenses | 7,859 | ||||
Total Expenses |
| 296,067 |
| ||
Less: Excess Expense Reimbursement |
| (161) |
| ||
Net Expenses |
| 295,906 |
| ||
Net Investment Income/(Loss) |
| 315,046 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments and foreign currency transactions | (1,640,379) | ||||
Total Net Realized Gain/(Loss) on Investments |
| (1,640,379) |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments, foreign currency translations and non-interested Trustees deferred compensation | 104,400 | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| 104,400 |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (1,220,933) |
| ||
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Statements of Changes in Net Assets (unaudited)
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 315,046 | $ | 1,034,385 | ||||
Net realized gain/(loss) on investments | (1,640,379) | 257,720 | ||||||
Change in unrealized net appreciation/depreciation | 104,400 | (4,405,575) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| (1,220,933) |
|
| (3,113,470) | |||
Dividends and Distributions to Shareholders: | ||||||||
Class A Shares | (16,604) | (89,175) | ||||||
Class C Shares | (6,407) | (5,137) | ||||||
Class D Shares | (15,202) | | ||||||
Class I Shares | (894,967) | (1,265,058) | ||||||
Class S Shares | (736) | (1,098) | ||||||
Class T Shares | (19,966) | (24,096) | ||||||
| Total Dividends from Net Investment Income |
| (953,882) |
|
| (1,384,564) | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | | (588,211) | ||||||
Class C Shares | | (51,586) | ||||||
Class I Shares | | (7,132,161) | ||||||
Class S Shares | | (6,924) | ||||||
Class T Shares | | (167,847) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | |
|
| (7,946,729) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (953,882) |
|
| (9,331,293) | |||
Capital Share Transactions: | ||||||||
Class A Shares | (3,141,344) | 1,403,075 | ||||||
Class C Shares | 351,545 | 73,596 | ||||||
Class D Shares | 595,338 | 517,457 | ||||||
Class I Shares | (3,382,467) | 7,297,995 | ||||||
Class S Shares | (2,161) | 11,022 | ||||||
Class T Shares | 626,007 | (1,334,859) | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| (4,953,082) |
|
| 7,968,286 | |||
Net Increase/(Decrease) in Net Assets |
| (7,127,897) |
|
| (4,476,477) | |||
Net Assets: | ||||||||
Beginning of period | 73,024,027 | 77,500,504 | ||||||
| End of period | $ | 65,896,130 |
| $ | 73,024,027 | ||
Undistributed Net Investment Income/(Loss) | $ | (546,993) |
| $ | 91,843 |
(1) Period from April 24, 2015 (inception date) through June 30, 2015 for Class D Shares. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH International Managed Volatility Fund (unaudited)
Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 | |||||
Net Asset Value, Beginning of Period |
| $8.03 |
|
| $9.66 |
|
| $8.07 |
|
| $6.79 |
|
| $8.10 |
|
| $6.16 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.02(1) | 0.09(1) | 0.25(1) | 0.22 | 0.12 | 0.66 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.17) | (0.56) | 1.57 | 1.21 | (1.36) | 1.39 | |||||||||||||||
Total from Investment Operations |
| (0.15) |
|
| (0.47) |
|
| 1.82 |
|
| 1.43 |
|
| (1.24) |
|
| 2.05 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.05) | (0.15) | (0.23) | (0.15) | (0.07) | (0.11) | |||||||||||||||
Distributions (from capital gains) | | (1.01) | (2) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.05) |
|
| (1.16) |
|
| (0.23) |
|
| (0.15) |
|
| (0.07) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $7.83 | $8.03 | $9.66 | $8.07 | $6.79 | $8.10 | |||||||||||||||
Total Return* |
| (1.85)% |
|
| (4.19)% |
|
| 22.74% |
|
| 21.27% |
|
| (15.33)% |
|
| 33.42% |
| |||
Net Assets, End of Period (in thousands) | $2,588 | $5,829 | $5,342 | $473 | $445 | $526 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $3,479 | $5,392 | $2,240 | $317 | $452 | $1,910 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.24% | 1.35% | 1.21% | 1.22% | 1.42% | 3.22% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.24% | 1.34% | 1.20% | 1.22% | 1.26% | 1.07%(3) | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.49% | 1.09% | 2.69% | 1.26% | 1.72% | 2.05% | |||||||||||||||
Portfolio Turnover Rate | 40% | 191% | 160% | 143% | 140% | 179% | |||||||||||||||
1 |
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $7.94 |
|
| $9.58 |
|
| $8.14 |
|
| $6.78 |
|
| $8.11 |
|
| $6.17 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | (1)(2) | 0.03(1) | 0.19(1) | 2.46 | 0.17 | 0.58 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.17) | (0.56) | 1.57 | (0.93) | (1.43) | 1.47 | |||||||||||||||
Total from Investment Operations |
| (0.17) |
|
| (0.53) |
|
| 1.76 |
|
| 1.53 |
|
| (1.26) |
|
| 2.05 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.06) | (0.10) | (0.32) | (0.17) | (0.07) | (0.11) | |||||||||||||||
Distributions (from capital gains) | | (1.01) | (2) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.06) |
|
| (1.11) |
|
| (0.32) |
|
| (0.17) |
|
| (0.07) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $7.71 | $7.94 | $9.58 | $8.14 | $6.78 | $8.11 | |||||||||||||||
Total Return* |
| (2.13)% |
|
| (4.95)% |
|
| 21.91% |
|
| 22.79% |
|
| (15.55)% |
|
| 33.37% |
| |||
Net Assets, End of Period (in thousands) | $831 | $510 | $526 | $113 | $433 | $563 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $761 | $480 | $179 | $251 | $574 | $1,877 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.89% | 2.02% | 1.93% | 1.32% | 1.71% | 3.96% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.89% | 2.01% | 1.93% | 1.18% | 1.47% | 1.21%(4) | |||||||||||||||
Ratio of Net Investment Income/(Loss) | (0.08)% | 0.40% | 2.13% | 1.20% | 1.33% | 1.92% | |||||||||||||||
Portfolio Turnover Rate | 40% | 191% | 160% | 143% | 140% | 179% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 1.25% without the waiver of these fees and expenses. (4) Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 2.00% without the waiver of these fees and expenses. |
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Financial Highlights
Class D Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $8.00 |
|
| $10.00 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.03 | 0.03 | |||||||
Net realized and unrealized gain/(loss) | (0.17) | (2.03) | |||||||
Total from Investment Operations |
| (0.14) |
|
| (2.00) |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.12) | | |||||||
Distributions (from capital gains) | | | |||||||
Total Dividends and Distributions |
| (0.12) |
|
| |
| |||
Net Asset Value, End of Period | $7.74 | $8.00 | |||||||
Total Return* |
| (1.77)% |
|
| (20.00)% |
| |||
Net Assets, End of Period (in thousands) | $1,049 | $504 | |||||||
Average Net Assets for the Period (in thousands) | $992 | $315 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.01% | 2.26% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.01% | 1.26% | |||||||
Ratio of Net Investment Income/(Loss) | 0.87% | 1.80% | |||||||
Portfolio Turnover Rate | 40% | 191% | |||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $8.00 |
|
| $9.63 |
|
| $8.03 |
|
| $6.77 |
|
| $8.06 |
|
| $6.14 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.04(2) | 0.13(2) | 0.21(2) | 0.18 | 0.12 | 0.03 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.17) | (0.57) | 1.63 | 1.28 | (1.35) | 2.00 | |||||||||||||||
Total from Investment Operations |
| (0.13) |
|
| (0.44) |
|
| 1.84 |
|
| 1.46 |
|
| (1.23) |
|
| 2.03 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.12) | (0.18) | (0.24) | (0.20) | (0.06) | (0.11) | |||||||||||||||
Distributions (from capital gains) | | (1.01) | (3) | | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | (4) | | |||||||||||||||
Total Dividends and Distributions |
| (0.12) |
|
| (1.19) |
|
| (0.24) |
|
| (0.20) |
|
| (0.06) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $7.75 | $8.00 | $9.63 | $8.03 | $6.77 | $8.06 | |||||||||||||||
Total Return* |
| (1.64)% |
|
| (3.90)% |
|
| 23.21% |
|
| 21.78% |
|
| (15.18)% |
|
| 33.20% |
| |||
Net Assets, End of Period (in thousands) | $59,870 | $65,227 | $69,062 | $59,981 | $35,608 | $20,713 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $61,779 | $64,504 | $66,596 | $42,583 | $29,910 | $1,393 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.82% | 0.93% | 0.81% | 0.92% | 1.13% | 3.08% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.82% | 0.93% | 0.81% | 0.92% | 1.00% | 0.86% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.96% | 1.48% | 2.27% | 1.86% | 2.05% | 2.28% | |||||||||||||||
Portfolio Turnover Rate | 40% | 191% | 160% | 143% | 140% | 179% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from April 24, 2015 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Less than $0.005 on a per share basis. (4) Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements. | |
Janus Investment Fund | 21 |
INTECH International Managed Volatility Fund (unaudited)
Financial Highlights
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 | |||||
Net Asset Value, Beginning of Period |
| $8.09 |
|
| $9.74 |
|
| $8.09 |
|
| $6.79 |
|
| $8.12 |
|
| $6.16 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.03(1) | 0.09(1) | 0.15(1) | 2.47 | 0.10 | 0.70 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.17) | (0.57) | 1.69 | (1.02) | (1.36) | 1.37 | |||||||||||||||
Total from Investment Operations |
| (0.14) |
|
| (0.48) |
|
| 1.84 |
|
| 1.45 |
|
| (1.26) |
|
| 2.07 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.09) | (0.16) | (0.19) | (0.15) | (0.07) | (0.11) | |||||||||||||||
Distributions (from capital gains) | | (1.01) | (2) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.09) |
|
| (1.17) |
|
| (0.19) |
|
| (0.15) |
|
| (0.07) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $7.86 | $8.09 | $9.74 | $8.09 | $6.79 | $8.12 | |||||||||||||||
Total Return* |
| (1.68)% |
|
| (4.29)% |
|
| 22.92% |
|
| 21.48% |
|
| (15.54)% |
|
| 33.75% |
| |||
Net Assets, End of Period (in thousands) | $63 | $67 | $67 | $118 | $421 | $498 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $65 | $64 | $86 | $254 | $432 | $1,870 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.32% | 1.43% | 1.33% | 1.48% | 1.66% | 3.46% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.91% | 1.43% | 1.13% | 1.29% | 1.44% | 1.07%(3) | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.86% | 1.01% | 1.69% | 1.09% | 1.52% | 2.05% | |||||||||||||||
Portfolio Turnover Rate | 40% | 191% | 160% | 143% | 140% | 179% | |||||||||||||||
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $7.99 |
|
| $9.60 |
|
| $8.01 |
|
| $6.77 |
|
| $8.09 |
|
| $6.16 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.03(1) | 0.09(1) | 0.32(1) | 0.08 | 0.06 | 0.17 | |||||||||||||||
Net realized and unrealized gain/(loss) | (0.17) | (0.55) | 1.49 | 1.35 | (1.31) | 1.87 | |||||||||||||||
Total from Investment Operations |
| (0.14) |
|
| (0.46) |
|
| 1.81 |
|
| 1.43 |
|
| (1.25) |
|
| 2.04 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.11) | (0.14) | (0.22) | (0.19) | (0.07) | (0.11) | |||||||||||||||
Distributions (from capital gains) | | (1.01) | (2) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.11) |
|
| (1.15) |
|
| (0.22) |
|
| (0.19) |
|
| (0.07) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $7.74 | $7.99 | $9.60 | $8.01 | $6.77 | $8.09 | |||||||||||||||
Total Return* |
| (1.79)% |
|
| (4.08)% |
|
| 22.78% |
|
| 21.30% |
|
| (15.47)% |
|
| 33.26% |
| |||
Net Assets, End of Period (in thousands) | $1,496 | $887 | $2,504 | $202 | $59 | $45 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $1,233 | $1,474 | $1,121 | $70 | $40 | $29 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.07% | 1.16% | 1.12% | 1.27% | 1.41% | 2.41% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.06% | 1.16% | 1.12% | 1.26% | 1.25% | 0.54%(4) | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.72% | 1.10% | 3.44% | 1.24% | 1.80% | 3.12% | |||||||||||||||
Portfolio Turnover Rate | 40% | 191% | 160% | 143% | 140% | 179% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. (3) Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 1.50% without the waiver of these fees and expenses. (4) Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) would have been 1.25% without the waiver of these fees and expenses. |
See Notes to Financial Statements. | |
22 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
1. Organization and Significant Accounting Policies
INTECH International Managed Volatility Fund (the Fund) is a series fund. The Fund is part of Janus Investment Fund (the Trust), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946. The Trust offers forty-five Funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in common stocks. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. Class D Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (Janus Capital) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the Valuation Procedures). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (OTC) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (NYSE). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined
Janus Investment Fund | 23 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to odd-lot fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Funds own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2015 to fair value the Funds investments in securities and other financial instruments is included in the Valuation Inputs Summary in the Notes to Schedule of Investments and Other Information.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis,
24 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Funds maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, counterparty risk, political and economic risk, regulatory risk and equity risk. Risks may arise from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as equalization, has no effect on the redeeming shareholder or a Funds total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Funds equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Funds tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Janus Investment Fund | 25 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
2. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Funds ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. One or more countries may abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (counterparty risk). Counterparty risk may arise because of the counterpartys financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterpartys inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Funds exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
26 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Funds cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capitals analysis of a counterpartys creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments payables and/or receivables with collateral held and/or posted and create one single net payment. For financial reporting purposes, the Fund does not offset certain derivative financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||
Counterparty | Gross
Amounts Assets | Offsetting
Asset | Collateral | Net Amount | |
Deutsche Bank AG | $ 278,597 | $ - | $ (278,597) | $ - | |
(a) Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | |||||
(b) Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
Janus Investment Fund | 27 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
Real Estate Investing
To the extent that real estate-related securities may be included in the Funds named benchmark index, INTECHs mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. The Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments. Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2015, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $278,597 for equity securities. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2015 is $295,000, resulting in the net amount due to the counterparty of $16,403.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Funds contractual investment advisory fee rate (expressed as an annual rate) is 0.55%.
28 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
INTECH Investment Management LLC (INTECH) serves as subadviser to the Fund. As subadviser, INTECH provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of INTECH.
Janus Capital pays INTECH a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Funds normal operating expenses in any fiscal year, including the investment advisory fee, but excluding the 12b-1 distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.95%. Janus Capital has agreed to continue the waiver until at least November 1, 2016. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as Excess Expense Reimbursement on the Statement of Operations.
Janus Services LLC (Janus Services), a wholly-owned subsidiary of Janus Capital, is the Funds transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as Transfer agent networking and omnibus fees on the Statement of Operations.
The Funds Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Funds Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (NSCC) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to the Funds Class D Shares. In addition to the administrative fees discussed above, Janus Services receives reimbursement for out-of-pocket costs it incurs for serving as transfer
Janus Investment Fund | 29 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
agent and providing, or arranging for, servicing to shareholders. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Under a distribution and shareholder servicing plan (the Plan) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trusts distributor, Janus Distributors LLC (Janus Distributors), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as 12b-1 Distribution and shareholder servicing fees on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Funds actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in 12b-1 Distribution fees and shareholder servicing fees in the Statement of Operations.
Janus Capital furnishes certain administration, compliance, and accounting services for the Fund and is reimbursed by the Fund for certain of its costs in providing those services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). The Fund also pays for salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to the Fund. These amounts are disclosed as Fund administration fees on the Statement of Operations. In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $296,867 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2015. The Fund's portion is reported as part of Other expenses on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the Deferred Plan) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2015 on the Statement of Assets and Liabilities in the asset, Non-interested Trustees deferred compensation, and liability, Non-interested Trustees deferred compensation fees. Additionally, the recorded unrealized appreciation/(depreciation) is included in Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2015 are included in Non-interested Trustees fees and expenses on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $151,400 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2015.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the Investing Funds). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered product compliant with Rule 2a-7 under the 1940 Act. There are no restrictions on the
30 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
Fund's ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. The units of Janus Cash Liquidity Fund LLC are not charged any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2015 can be found in a table located in the Notes to Schedule of Investments and Other Information.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2015, Janus Distributors retained upfront sales charges of $825.
A contingent deferred sales charge (CDSC) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 2015.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class C Shares during the period ended December 31, 2015.
As of December 31, 2015, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| |
Class A Shares | - | % | - | % | |
Class C Shares | 6 | -* | |||
Class D Shares | 5 | -* | |||
Class I Shares | 96 | 87 | |||
Class S Shares | 100 | -* | |||
Class T Shares | - | - | |||
* Less than 0.50%. |
|
|
|
|
In addition, other shareholders, including other funds, individuals, accounts, as well as the Funds portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Funds Shares and can be considered to control the Fund when that ownership exceeds 25% of the Funds assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, passive foreign investment companies, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2015 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/depreciation on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, investments in partnerships, and investments in passive foreign investment companies.
Janus Investment Fund | 31 |
INTECH International Managed Volatility Fund (unaudited)
Notes to Financial Statements
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/
|
$ 62,499,667 | $ 5,706,435 | $ (2,105,107) | $ 3,601,328 |
5. Capital Share Transactions
Period ended December 31, 2015 | Year ended June 30, 2015(1) | |||||
|
| Shares | Amount |
| Shares | Amount |
Class A Shares: | ||||||
Shares sold | 73,040 | $ 566,098 | 214,874 | $ 1,798,281 | ||
Reinvested dividends and distributions | 2,134 | 16,432 | 89,130 | 677,386 | ||
Shares repurchased | (470,688) | (3,723,874) | (130,866) | (1,072,592) | ||
Net Increase/(Decrease) | (395,514) | $(3,141,344) |
| 173,138 | $ 1,403,075 | |
Class C Shares: | ||||||
Shares sold | 44,347 | $ 358,212 | 15,663 | $ 130,226 | ||
Reinvested dividends and distributions | 523 | 3,966 | 7,315 | 55,155 | ||
Shares repurchased | (1,384) | (10,633) | (13,684) | (111,785) | ||
Net Increase/(Decrease) | 43,486 | $ 351,545 |
| 9,294 | $ 73,596 | |
Class D Shares: | ||||||
Shares sold | 120,234 | $ 957,828 | 65,610 | $ 537,916 | ||
Reinvested dividends and distributions | 1,990 | 15,144 | - | - | ||
Shares repurchased | (49,847) | (377,634) | (2,538) | (20,459) | ||
Net Increase/(Decrease) | 72,377 | $ 595,338 |
| 63,072 | $ 517,457 | |
Class I Shares: | ||||||
Shares sold | 146,592 | $ 1,138,436 | 642,434 | $ 5,335,127 | ||
Reinvested dividends and distributions | 116,406 | 887,017 | 1,106,762 | 8,367,123 | ||
Shares repurchased | (692,781) | (5,407,920) | (772,450) | (6,404,255) | ||
Net Increase/(Decrease) | (429,783) | $(3,382,467) |
| 976,746 | $ 7,297,995 | |
Class S Shares: | ||||||
Shares sold | - | $ - | 370 | $ 3,000 | ||
Reinvested dividends and distributions | 95 | 736 | 1,047 | 8,022 | ||
Shares repurchased | (370) | (2,897) | - | - | ||
Net Increase/(Decrease) | (275) | $ (2,161) |
| 1,417 | $ 11,022 | |
Class T Shares: | ||||||
Shares sold | 130,779 | $ 1,001,339 | 86,353 | $ 747,118 | ||
Reinvested dividends and distributions | 2,609 | 19,854 | 25,268 | 190,773 | ||
Shares repurchased | (51,212) | (395,186) | (261,461) | (2,272,750) | ||
Net Increase/(Decrease) | 82,176 | $ 626,007 |
| (149,840) | $(1,334,859) | |
(1) | Period from April 24, 2015 (inception date) through June 30, 2015 for Class D Shares. |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2015, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
Purchases of | Proceeds
from Sales | Purchases of Long- | Proceeds
from Sales |
$27,083,203 | $ 32,085,912 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2015 and through the date of issuance of the Funds financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds financial statements.
32 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds website at janus.com/proxyvoting; and (iii) on the SECs website at http://www.sec.gov. Additionally, information regarding the Funds proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/ proxyvoting and from the SECs website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds Form N-Q: (i) is available on the SECs website at http://www.sec.gov; (ii) may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund and Janus Aspen Series, each of whom serves as an independent Trustee (the Trustees), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a Fund and collectively, the Funds), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2015, based on the Trustees evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from either January 1 or February 1, 2016 through January 1 or February 1, 2017, respectively, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultants conclusions and opinions that arose during, and were included as part of, the Trustees consideration of the agreements. Management fees, as used herein, reflect actual annual advisory fees and any administration fees (excluding out of pocket costs), net of any waivers.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective, strategies and policies of each Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capitals role as administrator to the Funds, noting that Janus Capital does not receive a fee
Janus Investment Fund | 33 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds and Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Funds portfolio manager(s), and also reviewed information comparing each Funds performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (Broadridge), an independent data provider, and with the Funds benchmark index. In this regard, the independent fee consultant found that the overall Funds performance has been strong: for the 36 months ended September 30, 2015, approximately 70% of the Funds were in the top two Broadridge quartiles of performance, and for the 12 months ended September 30, 2015, approximately 61% of the Funds were in the top two Broadridge quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, the steps Janus Capital had taken or was taking to improve performance, and its limited performance history.
· For Janus High-Yield Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Multi-Sector Income Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Real Return Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
34 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Short-Term Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Government Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
· For Janus Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Allocation Fund Moderate, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
Value Funds
· For Perkins International Value Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Perkins Global Value Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Large Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Mid Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Select Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
Janus Investment Fund | 35 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
· For Perkins Value Plus Income Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH International Managed Volatility Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital and INTECH had taken or were taking to improve performance.
· For INTECH U.S. Core Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Contrarian Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Enterprise Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Forty Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Growth and Income Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and in the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Research Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
36 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Triton Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Twenty Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Venture Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Emerging Markets Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Real Estate Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Research Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Select Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Technology Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus International Equity Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Overseas Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Janus Investment Fund | 37 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Allocation Portfolio Moderate, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Funds performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Funds performance warranted continuation of the Funds investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration, but excluding out-of-pocket costs) fees for many of the Funds, after applicable waivers,
38 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
was below the mean management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 14% below the mean total expenses of their respective Broadridge Expense Group peers and 24% below the mean total expenses for their Broadridge Expense Universes; (3) management fees for the Funds, on average, were 15% below the mean management fees for their Expense Groups and 19% below the mean for their Expense Universes; and (4) Fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered the total expenses for each share class of each Fund compared to the mean total expenses for its Broadridge Expense Group peers and to mean total expenses for its Broadridge Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds, the independent fee consultant also performed a systematic focus list analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) the average spread between management fees charged to the Funds and those charged to Janus Capitals institutional accounts is reasonable relative to the average spreads seen in the industry; and (4) by one estimation methodology, the fee margins implied by Janus Capitals subadvised fees when compared to its mutual fund fees are reasonable relative to the estimated fee margins in the industry and relative to estimated fee margins of fund managers using Janus Capital as a subadviser.
The Trustees considered the fees for each Fund for its fiscal year ended in 2014, and noted the following with regard to each Funds total expenses, net of applicable fee waivers (the Funds total expenses):
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
Janus Investment Fund | 39 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Global Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus High-Yield Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Multi-Sector Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus has contractually agreed to limit the Funds expenses.
· For Janus Real Return Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Short-Term Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Government Money Market Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Funds management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Money Market Fund, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Value Funds
· For Perkins International Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Global Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable.
40 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
· For Perkins Large Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Mid Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Perkins Select Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Perkins Value Plus Income Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For INTECH International Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Core Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for one share class. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Contrarian Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Enterprise Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Forty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
Janus Investment Fund | 41 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Growth and Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Triton Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Twenty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Venture Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Emerging Markets Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Real Estate Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Select Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Technology Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus International Equity Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Overseas Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
42 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Allocation Portfolio - Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for its sole share class.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized by Janus Capital when allocating various expenses of Janus Capital and its affiliates with respect to contractual relationships with the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capitals parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund managers capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees independent fee consultant, and based on the information available, the Trustees concluded that Janus Capitals profitability with respect to each Fund in relation to the services rendered was reasonable.
The independent fee consultant found that, while assessing the reasonableness of expenses in light of Janus Capitals profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Funds is reasonable.
The Trustees concluded that the management fees payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Funds. The Trustees also concluded that each Funds total expenses were reasonable, taking into account the size of the Fund, the quality of services
Janus Investment Fund | 43 |
INTECH International Managed Volatility Fund
Additional Information (unaudited)
provided by Janus Capital and any subadviser, the investment performance of the Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that their independent fee consultant provided an analysis of economies of scale, which included discussion of analysis from prior years. They also noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, their independent fee consultant concluded that 85% of these Funds have contractual management fees (gross of waivers) below their Broadridge expense group averages and, overall, 80% of the Funds are below their respective expense group averages for contractual management fees. They also noted that for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of some of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and a few Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of any economies of scale that may be present at the current asset level of the Fund.
The independent fee consultant concluded that, given the limitations of various analytical approaches to economies of scale considered in prior years, and their conflicting results, its analyses could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Fund investors are well-served by the fee levels and performance fee structures in place on the Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Funds from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capitals past and proposed use of commissions paid by the Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Fund. The Trustees concluded that Janus Capitals and the subadvisers use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and/or the subadvisers benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capitals and/or the subadvisers receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Fund could attract other business to Janus Capital, the subadvisers or other Janus funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capitals and the subadvisers ability to serve the Funds.
44 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Funds performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the companys principal office, the location of the principal trading market for the companys securities, or the country where a majority of the companys revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was December 31, 2015. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Funds unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Funds subsidized expense ratio. Ratios may be higher or lower than those shown in the Financial Highlights in this report.
Schedule of Investments
Following the performance overview section is the Funds Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Funds Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, and swaps follow the Funds Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the balance sheet. It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Investment Fund | 45 |
INTECH International Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
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 securities 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 entitled Net Assets Consist of breaks down the components of the Funds net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (NAV) per share on the last day of the reporting period. The NAV is calculated by dividing the Funds net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Funds income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled Investment Income, reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. Net Realized and Unrealized Gain/(Loss) on Investments is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Funds net assets during the reporting period. Changes in the Funds net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the 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 operations. The Funds net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Funds net assets will not be affected. If you compare the Funds Net Decrease from Dividends and Distributions to Reinvested Dividends and Distributions, you will notice that dividends and distributions have little effect on the Funds net assets. This is because the majority of the Funds investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under Capital Share Transactions. Capital Shares refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Funds net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Funds NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
46 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Funds expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Funds yield. The net investment income ratio is not a true measure of the Funds yield because it does not take into account the dividends distributed to the Funds investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Funds investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Investment Fund | 47 |
INTECH International Managed Volatility Fund
Notes
NotesPage1
48 | DECEMBER 31, 2015 |
INTECH International Managed Volatility Fund
Notes
NotesPage2
Janus Investment Fund | 49 |
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus asset allocation funds aim to allocate risk more effectively.
Fixed Income
Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth & Core
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH® (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more efficient portfolio than the index.
Value
Our value funds, managed by Perkins® (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money. | ||||||||||||
Janus, INTECH and Perkins are registered trademarks of Janus International Holding LLC. © Janus International Holding LLC. Funds distributed by Janus Distributors LLC | ||||||||||||
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | |||||||||
C-0216-108436 | 125-24-93014 02-16 |
SEMIANNUAL REPORT December 31, 2015 | |||
INTECH U.S. Core Fund | |||
Janus Investment Fund | |||
| |||
HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics | |||
Table of Contents
INTECH U.S. Core Fund
INTECH U.S. Core Fund (unaudited)(closed to certain new investors)
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2015, INTECH U.S. Core Funds Class T Shares returned 0.67%. This compares to the 0.15% return posted by the S&P 500 Index, the Funds benchmark.
INVESTMENT STRATEGY
INTECHs mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks natural volatility.
Within specific risk controls, INTECHs disciplined mathematical process establishes target proportional weightings for stocks in the Fund as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECHs process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk, will allow us to meet our shareholders objectives while minimizing the risk of significant underperformance relative to the benchmark.
PERFORMANCE REVIEW
The U.S. equity market as measured by the S&P 500 Index posted a positive return of 0.15% for the six month period ended December 31, 2015. INTECH U.S. Core Fund outperformed the S&P 500 Index over the period and generated a return of 0.67%.
The strategys active sector positioning tends to vary over time and is a function of the volatility and correlation characteristics of the underlying stocks. The Fund benefited from favorable sector positioning and stock selection during the period. Specifically, the Fund was positively impacted by an average underweight allocation to the energy sector, which was the weakest performing sector during the period, as well as favorable security selection in the industrials sector.
An overall decrease in market diversity over the period reflected a change in the distribution of capital, in which larger cap stocks outperformed smaller cap stocks on average within the S&P 500 Index. While the INTECH U.S. Core Fund, which tends to overweight smaller cap stocks as they provide more relative volatility capture potential, was negatively impacted by the overall decrease in market diversity, the Fund outperformed during the period, benefiting from favorable sector positioning and security selection.
OUTLOOK
INTECH attempts to generate a targeted excess return at the least amount of tracking error through all market cycles regardless of the direction the market moves or the magnitude of the move. While we may experience short periods of underperformance, we expect to exceed the benchmark over a three- to five-year time horizon.
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, INTECH will continue to implement its mathematical investment process in a disciplined and deliberate manner, with risk management remaining the hallmark of the investment process. At the same time, INTECH continues to make marginal improvements to the process, seeking an efficient portfolio that offers better long-term results than its benchmark regardless of the markets direction.
Thank you for your investment in INTECH U.S. Core Fund.
Janus Investment Fund | 1 |
INTECH U.S. Core Fund (unaudited)(closed to certain new investors)
Fund At A Glance
December 31, 2015
5 Largest Equity Holdings - (% of Net Assets) | |
Anthem, Inc. | |
Health Care Providers & Services | 2.9% |
Home Depot, Inc. | |
Specialty Retail | 2.1% |
CVS Health Corp. | |
Food & Staples Retailing | 1.9% |
Lockheed Martin Corp. | |
Aerospace & Defense | 1.8% |
AmerisourceBergen Corp. | |
Health Care Providers & Services | 1.7% |
10.4% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 99.8% | ||||
Investment Companies | 2.6% | ||||
Other | (2.4)% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2015 | As of June 30, 2015 |
2 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)(closed to certain new investors)
Performance
See important disclosures on the next page. |
Expense Ratios - | |||||||||
Average Annual Total Return - for the periods ended December 31, 2015 |
| per the October 28, 2015 prospectuses | |||||||
|
| Fiscal
| One | Five
| Ten | Since
|
| Total Annual Fund | |
Class A Shares at NAV(1) | 0.68% | 1.43% | 13.23% | 7.03% | 9.91% |
| 0.89% | ||
Class A Shares at MOP(1) |
| -5.11% | -4.41% | 11.90% | 6.40% | 9.41% |
|
| |
Class C Shares at NAV(1) | 0.28% | 0.62% | 12.34% | 6.22% | 9.08% |
| 1.66% | ||
Class C Shares at CDSC(1) |
| -0.57% | -0.23% | 12.34% | 6.22% | 9.08% |
|
| |
Class D Shares(1) |
| 0.70% | 1.49% | 13.40% | 7.26% | 10.18% |
| 0.74% | |
Class I Shares(1) |
| 0.74% | 1.63% | 13.53% | 7.22% | 10.14% |
| 0.61% | |
Class N Shares(1) |
| 0.84% | 1.73% | 13.32% | 7.22% | 10.14% |
| 0.59% | |
Class S Shares(1) |
| 0.53% | 1.17% | 13.03% | 6.85% | 9.72% |
| 1.07% | |
Class T Shares(1) |
| 0.67% | 1.46% | 13.32% | 7.22% | 10.14% |
| 0.82% | |
S&P 500® Index |
| 0.15% | 1.38% | 12.57% | 7.31% | 9.37% |
|
| |
Morningstar Quartile - Class T Shares |
| - | 3rd | 1st | 3rd | 2nd |
|
| |
Morningstar Ranking - based on total returns for Large Growth Funds |
| - | 1,224/1,745 | 311/1,548 | 724/1,331 | 363/1,182 |
|
|
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
This Fund has a performance-based management fee that may adjust up or down based on the Funds performance.
The proprietary mathematical process used by INTECH may not achieve the desired results. Since the Funds portfolio is periodically re-balanced, this may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a buy and hold or index fund strategy.
A Funds performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest.
Janus Investment Fund | 3 |
INTECH U.S. Core Fund (unaudited)(closed to certain new investors)
Performance
Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public
4 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)(closed to certain new investors)
Performance
offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Funds Class J Shares, the initial share class (renamed Class T Shares effective February 16, 2010), calculated using the fees and expenses of each respective share class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Funds former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Funds former Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on October 28, 2014. Performance shown for periods prior to October 28, 2014, reflects the performance of the Funds Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Funds commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Funds prospectuses for further details concerning historical performance.
Tracking Error is a divergence between the price behavior of a position or portfolio and the price behavior of a benchmark.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2015 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
The weighting of securities within the Fund's portfolio may differ significantly from the weightings within the index. The index is unmanaged and not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.
See Useful Information About Your Fund Report.
* The Funds inception date February 28, 2003
(1) Closed to certain new investors.
Janus Investment Fund | 5 |
INTECH U.S. Core Fund (unaudited)(closed to certain new investors)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading Actual provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading Hypothetical (5% return before expenses) provides information about hypothetical account values and hypothetical expenses based upon the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Funds prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | Net Annualized | |||
Class A Shares | $1,000.00 | $1,006.80 | $4.84 |
| $1,000.00 | $1,020.31 | $4.88 | 0.96% | ||
Class C Shares | $1,000.00 | $1,002.80 | $8.06 |
| $1,000.00 | $1,017.09 | $8.11 | 1.60% | ||
Class D Shares | $1,000.00 | $1,007.00 | $4.09 |
| $1,000.00 | $1,021.06 | $4.12 | 0.81% | ||
Class I Shares | $1,000.00 | $1,007.40 | $3.53 |
| $1,000.00 | $1,021.62 | $3.56 | 0.70% | ||
Class N Shares | $1,000.00 | $1,008.40 | $3.23 |
| $1,000.00 | $1,021.92 | $3.25 | 0.64% | ||
Class S Shares | $1,000.00 | $1,005.30 | $5.75 |
| $1,000.00 | $1,019.41 | $5.79 | 1.14% | ||
Class T Shares | $1,000.00 | $1,006.70 | $4.44 |
| $1,000.00 | $1,020.71 | $4.47 | 0.88% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
6 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks 99.8% | |||||||
Aerospace & Defense 3.4% | |||||||
General Dynamics Corp. | 28,800 | $3,955,968 | |||||
Lockheed Martin Corp. | 50,300 | 10,922,645 | |||||
Northrop Grumman Corp. | 19,800 | 3,738,438 | |||||
Raytheon Co. | 13,900 | 1,730,967 | |||||
Rockwell Collins, Inc. | 5,400 | 498,420 | |||||
20,846,438 | |||||||
Air Freight & Logistics 0.2% | |||||||
CH Robinson Worldwide, Inc. | 12,700 | 787,654 | |||||
Expeditors International of Washington, Inc. | 14,300 | 644,930 | |||||
1,432,584 | |||||||
Auto Components 1.7% | |||||||
Delphi Automotive PLC | 82,700 | 7,089,871 | |||||
Goodyear Tire & Rubber Co. | 114,000 | 3,724,380 | |||||
10,814,251 | |||||||
Beverages 2.6% | |||||||
Brown-Forman Corp. - Class B | 13,600 | 1,350,208 | |||||
Coca-Cola Enterprises, Inc. | 8,200 | 403,768 | |||||
Constellation Brands, Inc. - Class A | 48,300 | 6,879,852 | |||||
Dr Pepper Snapple Group, Inc. | 49,700 | 4,632,040 | |||||
Monster Beverage Corp.* | 19,800 | 2,949,408 | |||||
16,215,276 | |||||||
Biotechnology 1.8% | |||||||
Gilead Sciences, Inc. | 33,900 | 3,430,341 | |||||
Regeneron Pharmaceuticals, Inc.* | 14,200 | 7,708,754 | |||||
11,139,095 | |||||||
Building Products 0.6% | |||||||
Allegion PLC | 25,300 | 1,667,776 | |||||
Masco Corp. | 72,700 | 2,057,410 | |||||
3,725,186 | |||||||
Capital Markets 2.8% | |||||||
Bank of New York Mellon Corp. | 5,700 | 234,954 | |||||
Goldman Sachs Group, Inc. | 30,300 | 5,460,969 | |||||
Morgan Stanley | 209,500 | 6,664,195 | |||||
Northern Trust Corp. | 60,400 | 4,354,236 | |||||
State Street Corp. | 13,800 | 915,768 | |||||
17,630,122 | |||||||
Chemicals 2.3% | |||||||
Eastman Chemical Co. | 44,100 | 2,977,191 | |||||
Ecolab, Inc. | 26,100 | 2,985,318 | |||||
LyondellBasell Industries NV - Class A | 97,200 | 8,446,680 | |||||
14,409,189 | |||||||
Commercial Banks 2.9% | |||||||
BB&T Corp. | 21,300 | 805,353 | |||||
Comerica, Inc. | 72,700 | 3,041,041 | |||||
Fifth Third Bancorp | 56,700 | 1,139,670 | |||||
Huntington Bancshares, Inc. | 144,100 | 1,593,746 | |||||
KeyCorp | 128,000 | 1,688,320 | |||||
M&T Bank Corp. | 6,300 | 763,434 | |||||
People's United Financial, Inc.# | 126,700 | 2,046,205 | |||||
Regions Financial Corp. | 116,100 | 1,114,560 | |||||
Wells Fargo & Co. | 59,080 | 3,211,589 | |||||
Zions Bancorporation | 85,500 | 2,334,150 | |||||
17,738,068 | |||||||
Commercial Services & Supplies 1.5% | |||||||
Cintas Corp.# | 48,900 | 4,452,345 | |||||
Republic Services, Inc. | 43,800 | 1,926,762 | |||||
Stericycle, Inc.* | 26,000 | 3,135,600 | |||||
9,514,707 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 7 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Communications Equipment 0.8% | ||||||||
F5 Networks, Inc.* | 18,200 | $1,764,672 | ||||||
Juniper Networks, Inc. | 43,500 | 1,200,600 | ||||||
Motorola Solutions, Inc. | 28,700 | 1,964,515 | ||||||
4,929,787 | ||||||||
Construction & Engineering 0.1% | ||||||||
Quanta Services, Inc.* | 45,700 | 925,425 | ||||||
Construction Materials 1.2% | ||||||||
Martin Marietta Materials, Inc. | 22,500 | 3,073,050 | ||||||
Vulcan Materials Co. | 45,500 | 4,321,135 | ||||||
7,394,185 | ||||||||
Consumer Finance 1.1% | ||||||||
Capital One Financial Corp. | 34,700 | 2,504,646 | ||||||
Discover Financial Services | 82,200 | 4,407,564 | ||||||
6,912,210 | ||||||||
Containers & Packaging 1.0% | ||||||||
Avery Dennison Corp. | 38,600 | 2,418,676 | ||||||
Sealed Air Corp. | 79,600 | 3,550,160 | ||||||
5,968,836 | ||||||||
Diversified Consumer Services 0.2% | ||||||||
H&R Block, Inc. | 38,500 | 1,282,435 | ||||||
Diversified Financial Services 3.1% | ||||||||
CME Group, Inc. | 109,000 | 9,875,400 | ||||||
Leucadia National Corp. | 99,500 | 1,730,305 | ||||||
McGraw Hill Financial, Inc. | 14,300 | 1,409,694 | ||||||
Moody's Corp. | 30,000 | 3,010,200 | ||||||
Nasdaq, Inc. | 56,700 | 3,298,239 | ||||||
19,323,838 | ||||||||
Electric Utilities 1.3% | ||||||||
American Electric Power Co., Inc. | 15,400 | 897,358 | ||||||
Edison International | 11,700 | 692,757 | ||||||
Eversource Energy | 23,000 | 1,174,610 | ||||||
Pepco Holdings, Inc. | 10,200 | 265,302 | ||||||
Pinnacle West Capital Corp. | 17,300 | 1,115,504 | ||||||
PPL Corp. | 40,100 | 1,368,613 | ||||||
Southern Co. | 15,600 | 729,924 | ||||||
Xcel Energy, Inc. | 43,700 | 1,569,267 | ||||||
7,813,335 | ||||||||
Electrical Equipment 0.2% | ||||||||
AMETEK, Inc. | 19,400 | 1,039,646 | ||||||
Energy Equipment & Services 0.5% | ||||||||
Cameron International Corp.* | 39,600 | 2,502,720 | ||||||
Transocean, Ltd. (U.S. Shares)# | 23,600 | 292,168 | ||||||
2,794,888 | ||||||||
Food & Staples Retailing 3.1% | ||||||||
CVS Health Corp. | 119,600 | 11,693,292 | ||||||
Kroger Co. | 147,900 | 6,186,657 | ||||||
Sysco Corp. | 12,600 | 516,600 | ||||||
Walgreens Boots Alliance, Inc. | 10,400 | 885,612 | ||||||
19,282,161 | ||||||||
Food Products 3.7% | ||||||||
Campbell Soup Co. | 64,000 | 3,363,200 | ||||||
ConAgra Foods, Inc. | 166,800 | 7,032,288 | ||||||
General Mills, Inc. | 28,000 | 1,614,480 | ||||||
Hershey Co. | 9,200 | 821,284 | ||||||
Hormel Foods Corp. | 16,800 | 1,328,544 | ||||||
JM Smucker Co. | 1,300 | 160,342 | ||||||
Kellogg Co. | 24,800 | 1,792,296 | ||||||
McCormick & Co., Inc. | 33,400 | 2,857,704 | ||||||
Mondelez International, Inc. - Class A | 15,600 | 699,504 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Food Products (continued) | |||||||
Tyson Foods, Inc. - Class A | 65,500 | $3,493,115 | |||||
23,162,757 | |||||||
Health Care Equipment & Supplies 1.9% | |||||||
Boston Scientific Corp.* | 335,000 | 6,177,400 | |||||
CR Bard, Inc. | 14,500 | 2,746,880 | |||||
DENTSPLY International, Inc. | 7,400 | 450,290 | |||||
Edwards Lifesciences Corp.* | 15,800 | 1,247,884 | |||||
Stryker Corp. | 13,800 | 1,282,572 | |||||
11,905,026 | |||||||
Health Care Providers & Services 10.1% | |||||||
Aetna, Inc. | 89,263 | 9,651,116 | |||||
AmerisourceBergen Corp. | 104,100 | 10,796,211 | |||||
Anthem, Inc. | 130,400 | 18,182,976 | |||||
Cardinal Health, Inc. | 89,700 | 8,007,519 | |||||
Cigna Corp. | 41,000 | 5,999,530 | |||||
HCA Holdings, Inc.* | 33,800 | 2,285,894 | |||||
McKesson Corp. | 3,400 | 670,582 | |||||
UnitedHealth Group, Inc. | 33,300 | 3,917,412 | |||||
Universal Health Services, Inc. - Class B | 24,300 | 2,903,607 | |||||
62,414,847 | |||||||
Health Care Technology 0.4% | |||||||
Cerner Corp.* | 40,500 | 2,436,885 | |||||
Hotels, Restaurants & Leisure 2.6% | |||||||
Carnival Corp. (U.S. Shares) | 35,300 | 1,923,144 | |||||
Chipotle Mexican Grill, Inc.* | 1,600 | 767,760 | |||||
Darden Restaurants, Inc. | 50,800 | 3,232,912 | |||||
Marriott International, Inc. - Class A# | 44,100 | 2,956,464 | |||||
Royal Caribbean Cruises, Ltd. (U.S. Shares) | 18,200 | 1,842,022 | |||||
Starbucks Corp. | 93,300 | 5,600,799 | |||||
16,323,101 | |||||||
Household Durables 2.4% | |||||||
DR Horton, Inc. | 78,500 | 2,514,355 | |||||
Leggett & Platt, Inc. | 62,100 | 2,609,442 | |||||
Lennar Corp. - Class A | 9,400 | 459,754 | |||||
Mohawk Industries, Inc.* | 25,300 | 4,791,567 | |||||
Newell Rubbermaid, Inc. | 108,300 | 4,773,864 | |||||
15,148,982 | |||||||
Household Products 0.2% | |||||||
Clorox Co. | 8,100 | 1,027,323 | |||||
Industrial Conglomerates 0% | |||||||
Roper Industries, Inc. | 300 | 56,937 | |||||
Information Technology Services 1.6% | |||||||
Accenture PLC - Class A (U.S. Shares) | 8,700 | 909,150 | |||||
Automatic Data Processing, Inc. | 8,600 | 728,592 | |||||
Fidelity National Information Services, Inc. | 19,800 | 1,199,880 | |||||
Fiserv, Inc.* | 47,300 | 4,326,058 | |||||
MasterCard, Inc. - Class A | 9,300 | 905,448 | |||||
Total System Services, Inc. | 40,400 | 2,011,920 | |||||
10,081,048 | |||||||
Insurance 3.8% | |||||||
Allstate Corp. | 16,600 | 1,030,694 | |||||
American International Group, Inc. | 19,300 | 1,196,021 | |||||
Aon PLC | 14,100 | 1,300,161 | |||||
Assurant, Inc. | 30,700 | 2,472,578 | |||||
Cincinnati Financial Corp. | 13,200 | 781,044 | |||||
Hartford Financial Services Group, Inc. | 96,400 | 4,189,544 | |||||
Marsh & McLennan Cos., Inc. | 41,000 | 2,273,450 | |||||
MetLife, Inc. | 20,900 | 1,007,589 | |||||
Progressive Corp. | 99,800 | 3,173,640 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Insurance (continued) | |||||||
Prudential Financial, Inc. | 1,700 | $138,397 | |||||
Torchmark Corp. | 43,900 | 2,509,324 | |||||
Unum Group | 35,700 | 1,188,453 | |||||
XL Group PLC | 61,400 | 2,405,652 | |||||
23,666,547 | |||||||
Internet & Catalog Retail 1.2% | |||||||
Expedia, Inc. | 8,300 | 1,031,690 | |||||
Netflix, Inc.* | 55,500 | 6,348,090 | |||||
7,379,780 | |||||||
Internet Software & Services 2.2% | |||||||
Akamai Technologies, Inc.* | 14,600 | 768,398 | |||||
eBay, Inc.* | 50,800 | 1,395,984 | |||||
Facebook, Inc. - Class A* | 84,900 | 8,885,634 | |||||
VeriSign, Inc.*,# | 29,900 | 2,612,064 | |||||
13,662,080 | |||||||
Leisure Products 0.6% | |||||||
Hasbro, Inc. | 57,400 | 3,866,464 | |||||
Machinery 0.9% | |||||||
Snap-on, Inc. | 17,700 | 3,034,311 | |||||
Stanley Black & Decker, Inc. | 22,300 | 2,380,079 | |||||
5,414,390 | |||||||
Media 1.9% | |||||||
Cablevision Systems Corp. - Class A | 83,400 | 2,660,460 | |||||
Comcast Corp. - Class A | 30,600 | 1,726,758 | |||||
Time Warner Cable, Inc. | 12,500 | 2,319,875 | |||||
Walt Disney Co. | 45,800 | 4,812,664 | |||||
11,519,757 | |||||||
Multiline Retail 2.2% | |||||||
Dollar General Corp. | 39,500 | 2,838,865 | |||||
Dollar Tree, Inc.* | 31,200 | 2,409,264 | |||||
Target Corp. | 119,100 | 8,647,851 | |||||
13,895,980 | |||||||
Multi-Utilities 2.3% | |||||||
Ameren Corp. | 18,000 | 778,140 | |||||
CMS Energy Corp. | 31,700 | 1,143,736 | |||||
Consolidated Edison, Inc. | 43,600 | 2,802,172 | |||||
DTE Energy Co. | 10,400 | 833,976 | |||||
NiSource, Inc. | 104,700 | 2,042,697 | |||||
PG&E Corp. | 17,000 | 904,230 | |||||
Public Service Enterprise Group, Inc. | 25,200 | 974,988 | |||||
SCANA Corp. | 17,100 | 1,034,379 | |||||
TECO Energy, Inc. | 59,900 | 1,596,335 | |||||
WEC Energy Group, Inc. | 37,700 | 1,934,387 | |||||
14,045,040 | |||||||
Oil, Gas & Consumable Fuels 2.3% | |||||||
Cimarex Energy Co. | 16,900 | 1,510,522 | |||||
Marathon Petroleum Corp. | 4,500 | 233,280 | |||||
Newfield Exploration Co.* | 34,000 | 1,107,040 | |||||
Phillips 66 | 26,200 | 2,143,160 | |||||
Tesoro Corp. | 27,800 | 2,929,286 | |||||
Valero Energy Corp. | 87,200 | 6,165,912 | |||||
14,089,200 | |||||||
Personal Products 0.2% | |||||||
Estee Lauder Cos., Inc. - Class A | 12,800 | 1,127,168 | |||||
Pharmaceuticals 3.6% | |||||||
Allergan PLC* | 29,874 | 9,335,625 | |||||
Eli Lilly & Co. | 40,100 | 3,378,826 | |||||
Zoetis, Inc. | 206,400 | 9,890,688 | |||||
22,605,139 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Professional Services 0.9% | |||||||
Equifax, Inc. | 31,700 | $3,530,429 | |||||
Nielsen Holdings PLC | 13,500 | 629,100 | |||||
Verisk Analytics, Inc. - Class A* | 19,400 | 1,491,472 | |||||
5,651,001 | |||||||
Real Estate Investment Trusts (REITs) 1.3% | |||||||
Apartment Investment & Management Co. - Class A | 12,200 | 488,366 | |||||
AvalonBay Communities, Inc. | 7,900 | 1,454,627 | |||||
Equinix, Inc. | 3,903 | 1,180,267 | |||||
Equity Residential | 9,800 | 799,582 | |||||
Essex Property Trust, Inc. | 10,200 | 2,441,982 | |||||
Kimco Realty Corp. | 20,000 | 529,200 | |||||
Public Storage | 4,300 | 1,065,110 | |||||
7,959,134 | |||||||
Semiconductor & Semiconductor Equipment 3.5% | |||||||
Avago Technologies, Ltd. | 57,900 | 8,404,185 | |||||
Broadcom Corp. - Class A | 97,000 | 5,608,540 | |||||
NVIDIA Corp. | 25,600 | 843,776 | |||||
Skyworks Solutions, Inc. | 89,600 | 6,883,968 | |||||
Xilinx, Inc. | 4,600 | 216,062 | |||||
21,956,531 | |||||||
Software 3.3% | |||||||
Activision Blizzard, Inc. | 97,000 | 3,754,870 | |||||
Adobe Systems, Inc.* | 20,800 | 1,953,952 | |||||
CA, Inc. | 52,500 | 1,499,400 | |||||
Citrix Systems, Inc.* | 3,000 | 226,950 | |||||
Electronic Arts, Inc.* | 117,700 | 8,088,344 | |||||
Intuit, Inc. | 24,800 | 2,393,200 | |||||
Red Hat, Inc.* | 33,000 | 2,732,730 | |||||
20,649,446 | |||||||
Specialty Retail 9.1% | |||||||
Advance Auto Parts, Inc. | 13,700 | 2,061,987 | |||||
AutoZone, Inc.* | 3,800 | 2,819,258 | |||||
CarMax, Inc.* | 8,800 | 474,936 | |||||
GameStop Corp. - Class A# | 42,400 | 1,188,896 | |||||
Home Depot, Inc. | 99,700 | 13,185,325 | |||||
L Brands, Inc. | 95,700 | 9,169,974 | |||||
Lowe's Cos., Inc. | 123,700 | 9,406,148 | |||||
O'Reilly Automotive, Inc.* | 33,700 | 8,540,254 | |||||
Ross Stores, Inc. | 118,000 | 6,349,580 | |||||
Tractor Supply Co. | 36,900 | 3,154,950 | |||||
56,351,308 | |||||||
Technology Hardware, Storage & Peripherals 0.1% | |||||||
Apple, Inc. | 3,200 | 336,832 | |||||
Textiles, Apparel & Luxury Goods 3.0% | |||||||
Hanesbrands, Inc. | 184,200 | 5,421,006 | |||||
NIKE, Inc. - Class B | 54,600 | 3,412,500 | |||||
PVH Corp. | 1,700 | 125,205 | |||||
Under Armour, Inc. - Class A# | 77,000 | 6,206,970 | |||||
VF Corp. | 52,900 | 3,293,025 | |||||
18,458,706 | |||||||
Tobacco 2.0% | |||||||
Altria Group, Inc. | 85,600 | 4,982,776 | |||||
Reynolds American, Inc. | 157,756 | 7,280,439 | |||||
12,263,215 | |||||||
Trading Companies & Distributors 0.1% | |||||||
WW Grainger, Inc.# | 2,500 | 506,475 | |||||
Total Common Stocks (cost $563,253,949) | 619,092,761 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Investment Companies 2.6% | ||||||||
Investments Purchased with Cash Collateral from Securities Lending 2.4% | ||||||||
Janus Cash Collateral Fund LLC, 0.3005%ºº,£ | 14,891,855 | $14,891,855 | ||||||
Money Markets 0.2% | ||||||||
Janus Cash Liquidity Fund LLC, 0.3105%ºº,£ | 1,062,000 | 1,062,000 | ||||||
Total Investment Companies (cost $15,953,855) | 15,953,855 | |||||||
Total Investments (total cost $579,207,804) 102.4% | 635,046,616 | |||||||
Liabilities, net of Cash, Receivables and Other Assets (2.4)% | (14,731,403) | |||||||
Net Assets 100% | $620,315,213 |
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $634,754,448 | 100.0 | % | ||
Switzerland | 292,168 | 0.0 | |||
Total | $635,046,616 | 100.0 | % |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Notes to Schedule of Investments and Other Information (unaudited)
S&P 500® Index | Measures broad U.S. equity performance. |
LLC | Limited Liability Company |
PLC | Public Limited Company |
U.S. Shares | Securities of foreign companies trading on an American stock exchange. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2015. |
# | Loaned security; a portion of the security is on loan at December 31, 2015. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Funds relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2015. Unless otherwise indicated, all information in the table is for the period ended December 31, 2015. |
| Share | Purchases | Sales | Share | Dividend | Value |
Janus Cash Collateral Fund LLC | 606,750 | 44,068,775 | (29,783,670) | 14,891,855 | $ 15,949(1) | $ 14,891,855 |
Janus Cash Liquidity Fund LLC | 1,953,000 | 48,856,963 | (49,747,963) | 1,062,000 | 1,486 | 1,062,000 |
Total | $ 17,435 | $ 15,953,855 |
(1)Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties.
The following is a summary of the inputs that were used to value the Fund's investments in securities and other financial instruments as of December 31, 2015. See Notes to Financial Statements for more information. | |||
Valuation Inputs Summary | |||
| Level
1 - | Level 2 - | Level 3 - |
Assets | |||
Investments in Securities: | |||
Common Stocks | $ 619,092,761 | $ - | $ - |
Investment Companies | - | 15,953,855 | - |
Total Assets | $ 619,092,761 | $ 15,953,855 | $ - |
Janus Investment Fund | 13 |
INTECH U.S. Core Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
Assets: |
|
|
|
| ||
Investments, at cost | $ | 579,207,804 | ||||
Unaffiliated investments, at value(1) | $ | 619,092,761 | ||||
Affiliated investments, at value | 15,953,855 | |||||
Cash | 29,246 | |||||
Non-interested Trustees' deferred compensation | 12,566 | |||||
Receivables: | ||||||
Dividends | 854,741 | |||||
Investments sold | 754,611 | |||||
Fund shares sold | 475,329 | |||||
Dividends from affiliates | 95 | |||||
Other assets | 7,062 | |||||
Total Assets |
|
| 637,180,266 |
| ||
Liabilities: | ||||||
Collateral for securities loaned (Note 2) | 14,891,855 | |||||
Payables: | | |||||
Fund shares repurchased | 1,446,365 | |||||
Advisory fees | 292,787 | |||||
Transfer agent fees and expenses | 103,316 | |||||
12b-1 Distribution and shareholder servicing fees | 31,681 | |||||
Professional fees | 18,673 | |||||
Non-interested Trustees' deferred compensation fees | 12,566 | |||||
Fund administration fees | 5,563 | |||||
Non-interested Trustees' fees and expenses | 3,742 | |||||
Custodian fees | 893 | |||||
Accrued expenses and other payables | 57,612 | |||||
Total Liabilities |
|
| 16,865,053 |
| ||
Net Assets |
| $ | 620,315,213 |
|
See Notes to Financial Statements. | |
14 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
Net Assets Consist of: |
|
|
|
| ||
Capital (par value and paid-in surplus) | $ | 567,428,150 | ||||
Undistributed net investment income/(loss) | 1,865,263 | |||||
Undistributed net realized gain/(loss) from investments | (4,819,566) | |||||
Unrealized net appreciation/(depreciation) of investments and non-interested Trustees deferred compensation | 55,841,366 | |||||
Total Net Assets |
| $ | 620,315,213 |
| ||
Net Assets - Class A Shares | $ | 23,682,324 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,356,758 | |||||
Net Asset Value Per Share(2) |
| $ | 17.46 |
| ||
Maximum Offering Price Per Share(3) |
| $ | 18.53 |
| ||
Net Assets - Class C Shares | $ | 17,984,902 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,045,467 | |||||
Net Asset Value Per Share(2) |
| $ | 17.20 |
| ||
Net Assets - Class D Shares | $ | 288,572,144 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 16,514,416 | |||||
Net Asset Value Per Share |
| $ | 17.47 |
| ||
Net Assets - Class I Shares | $ | 121,289,750 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,936,954 | |||||
Net Asset Value Per Share |
| $ | 17.48 |
| ||
Net Assets - Class N Shares | $ | 53,705 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,075 | |||||
Net Asset Value Per Share |
| $ | 17.47 |
| ||
Net Assets - Class S Shares | $ | 35,801,851 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,060,540 | |||||
Net Asset Value Per Share |
| $ | 17.37 |
| ||
Net Assets - Class T Shares | $ | 132,930,537 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,608,104 | |||||
Net Asset Value Per Share |
| $ | 17.47 |
|
(1) Includes $14,563,865 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.22 of net asset value. |
See Notes to Financial Statements. | |
Janus Investment Fund | 15 |
INTECH U.S. Core Fund
Statement of Operations (unaudited)
For the period ended December 31, 2015
Investment Income: |
|
|
| ||
| Dividends | $ | 4,935,035 | ||
Affiliated securities lending income, net | 15,949 | ||||
Dividends from affiliates | 1,486 | ||||
Other income | 70 | ||||
Total Investment Income |
| 4,952,540 |
| ||
Expenses: | |||||
Advisory fees | 1,906,478 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 33,072 | ||||
Class C Shares | 83,022 | ||||
Class S Shares | 48,974 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 180,135 | ||||
Class S Shares | 48,974 | ||||
Class T Shares | 181,922 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 8,158 | ||||
Class C Shares | 8,065 | ||||
Class I Shares | 37,727 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 997 | ||||
Class C Shares | 979 | ||||
Class D Shares | 38,532 | ||||
Class I Shares | 2,242 | ||||
Class S Shares | 226 | ||||
Class T Shares | 994 | ||||
Registration fees | 70,977 | ||||
Shareholder reports expense | 52,855 | ||||
Fund administration fees | 31,617 | ||||
Professional fees | 25,535 | ||||
Non-interested Trustees fees and expenses | 6,625 | ||||
Custodian fees | 3,942 | ||||
Other expenses | 21,767 | ||||
Total Expenses |
| 2,793,815 |
| ||
Less: Excess Expense Reimbursement |
| (13,256) |
| ||
Net Expenses |
| 2,780,559 |
| ||
Net Investment Income/(Loss) |
| 2,171,981 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments | 6,137,893 | ||||
Total Net Realized Gain/(Loss) on Investments |
| 6,137,893 |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments and non-interested Trustees deferred compensation | (3,183,583) | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| (3,183,583) |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 5,126,291 |
| ||
See Notes to Financial Statements. | |
16 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Statements of Changes in Net Assets (unaudited)
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 2,171,981 | $ | 7,961,273 | ||||
Net realized gain/(loss) on investments | 6,137,893 | 127,721,620 | ||||||
Change in unrealized net appreciation/depreciation | (3,183,583) | (85,507,353) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| 5,126,291 |
|
| 50,175,540 | |||
Dividends and Distributions to Shareholders: | ||||||||
Class A Shares | (474) | (268,894) | ||||||
Class C Shares | | (113,169) | ||||||
Class D Shares | (365,646) | (4,032,376) | ||||||
Class I Shares | (256,581) | (2,552,408) | ||||||
Class N Shares | (134) | (790) | ||||||
Class S Shares | | (447,314) | ||||||
Class T Shares | (65,149) | (1,959,455) | ||||||
| Total Dividends from Net Investment Income |
| (687,984) |
|
| (9,374,406) | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | (3,775,981) | (2,063,321) | ||||||
Class C Shares | (2,898,284) | (1,613,253) | ||||||
Class D Shares | (43,914,844) | (27,476,602) | ||||||
Class I Shares | (18,496,171) | (16,084,717) | ||||||
Class N Shares | (8,118) | (4,713) | ||||||
Class S Shares | (5,457,787) | (3,650,313) | ||||||
Class T Shares | (20,516,757) | (14,157,903) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | (95,067,942) |
|
| (65,050,822) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (95,755,926) |
|
| (74,425,228) | |||
Capital Share Transactions: | ||||||||
Class A Shares | (608,565) | 6,117,104 | ||||||
Class C Shares | 1,436,365 | 6,118,510 | ||||||
Class D Shares | 28,718,475 | 26,603,764 | ||||||
Class I Shares | (15,417,937) | (15,686,801) | ||||||
Class N Shares | 8,252 | 55,503 | ||||||
Class S Shares | (4,903,861) | 16,994,144 | ||||||
Class T Shares | (3,097,049) | 13,832,869 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| 6,135,680 |
|
| 54,035,093 | |||
Net Increase/(Decrease) in Net Assets |
| (84,493,955) |
|
| 29,785,405 | |||
Net Assets: | ||||||||
Beginning of period | 704,809,168 | 675,023,763 | ||||||
| End of period | $ | 620,315,213 |
| $ | 704,809,168 | ||
Undistributed Net Investment Income/(Loss) | $ | 1,865,263 |
| $ | 381,266 |
(1) Period from October 28, 2014 (inception date) through June 30, 2015 for Class N Shares. |
See Notes to Financial Statements. | |
Janus Investment Fund | 17 |
INTECH U.S. Core Fund (unaudited)
Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 | |||||
Net Asset Value, Beginning of Period |
| $20.47 |
|
| $21.27 |
|
| $17.66 |
|
| $14.72 |
|
| $14.31 |
|
| $10.72 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.06(1) | 0.21(1) | 0.14(1) | 0.18 | 0.15 | 0.10 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.05 | 1.27 | 4.34 | 2.96 | 0.39 | 3.58 | |||||||||||||||
Total from Investment Operations |
| 0.11 |
|
| 1.48 |
|
| 4.48 |
|
| 3.14 |
|
| 0.54 |
|
| 3.68 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (2) | (0.26) | (0.11) | (0.20) | (0.13) | (0.09) | |||||||||||||||
Distributions (from capital gains) | (3.12) | (2.02) | (0.76) | | | | |||||||||||||||
Total Dividends and Distributions |
| (3.12) |
|
| (2.28) |
|
| (0.87) |
|
| (0.20) |
|
| (0.13) |
|
| (0.09) |
| |||
Net Asset Value, End of Period | $17.46 | $20.47 | $21.27 | $17.66 | $14.72 | $14.31 | |||||||||||||||
Total Return* |
| 0.68% |
|
| 7.03% |
|
| 25.84% |
|
| 21.48% |
|
| 3.83% |
|
| 34.44% |
| |||
Net Assets, End of Period (in thousands) | $23,682 | $27,845 | $22,550 | $16,242 | $13,486 | $14,544 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $25,920 | $24,335 | $18,644 | $13,430 | $13,834 | $13,331 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.96% | 0.89% | 0.97% | 0.98% | 0.99% | 0.98% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.96% | 0.89% | 0.97% | 0.98% | 0.99% | 0.98% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.55% | 0.97% | 0.70% | 1.05% | 1.03% | 0.82% | |||||||||||||||
Portfolio Turnover Rate | 53% | 130% | 59% | 67% | 73% | 93% | |||||||||||||||
1 |
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $20.29 |
|
| $21.14 |
|
| $17.59 |
|
| $14.68 |
|
| $14.26 |
|
| $10.71 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | (0.01)(1) | 0.05(1) | (0.01)(1) | 0.04 | 0.03 | (2) | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.04 | 1.26 | 4.32 | 2.96 | 0.39 | 3.56 | |||||||||||||||
Total from Investment Operations |
| 0.03 |
|
| 1.31 |
|
| 4.31 |
|
| 3.00 |
|
| 0.42 |
|
| 3.56 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | | (0.14) | | (0.09) | | (0.01) | |||||||||||||||
Distributions (from capital gains) | (3.12) | (2.02) | (0.76) | | | | |||||||||||||||
Total Dividends and Distributions |
| (3.12) |
|
| (2.16) |
|
| (0.76) |
|
| (0.09) |
|
| |
|
| (0.01) |
| |||
Net Asset Value, End of Period | $17.20 | $20.29 | $21.14 | $17.59 | $14.68 | $14.26 | |||||||||||||||
Total Return* |
| 0.28% |
|
| 6.21% |
|
| 24.87% |
|
| 20.51% |
|
| 2.95% |
|
| 33.26% |
| |||
Net Assets, End of Period (in thousands) | $17,985 | $19,376 | $14,013 | $9,154 | $6,450 | $6,755 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $19,085 | $17,511 | $11,106 | $7,536 | $6,402 | $6,690 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.60% | 1.66% | 1.75% | 1.77% | 1.83% | 1.80% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.60% | 1.66% | 1.75% | 1.77% | 1.83% | 1.80% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | (0.07)% | 0.22% | (0.07)% | 0.25% | 0.20% | (0.01)% | |||||||||||||||
Portfolio Turnover Rate | 53% | 130% | 59% | 67% | 73% | 93% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Less than $0.005 on a per share basis. |
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)
Financial Highlights
Class D Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 | |||||
Net Asset Value, Beginning of Period |
| $20.50 |
|
| $21.29 |
|
| $17.67 |
|
| $14.74 |
|
| $14.32 |
|
| $10.74 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.07(1) | 0.24(1) | 0.17(1) | 0.19 | 0.17 | 0.13 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.05 | 1.29 | 4.35 | 2.97 | 0.39 | 3.59 | |||||||||||||||
Total from Investment Operations |
| 0.12 |
|
| 1.53 |
|
| 4.52 |
|
| 3.16 |
|
| 0.56 |
|
| 3.72 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.03) | (0.30) | (0.14) | (0.23) | (0.14) | (0.14) | |||||||||||||||
Distributions (from capital gains) | (3.12) | (2.02) | (0.76) | | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | (2) | (2) | |||||||||||||||
Total Dividends and Distributions |
| (3.15) |
|
| (2.32) |
|
| (0.90) |
|
| (0.23) |
|
| (0.14) |
|
| (0.14) |
| |||
Net Asset Value, End of Period | $17.47 | $20.50 | $21.29 | $17.67 | $14.74 | $14.32 | |||||||||||||||
Total Return* |
| 0.70% |
|
| 7.23% |
|
| 26.02% |
|
| 21.62% |
|
| 3.96% |
|
| 34.74% |
| |||
Net Assets, End of Period (in thousands) | $288,572 | $302,054 | $286,019 | $220,548 | $174,853 | $173,097 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $293,833 | $303,548 | $255,973 | $192,611 | $168,338 | $156,479 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.81% | 0.74% | 0.80% | 0.85% | 0.84% | 0.82% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.81% | 0.74% | 0.80% | 0.85% | 0.84% | 0.82% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.72% | 1.14% | 0.87% | 1.17% | 1.20% | 0.96% | |||||||||||||||
Portfolio Turnover Rate | 53% | 130% | 59% | 67% | 73% | 93% | |||||||||||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $20.52 |
|
| $21.31 |
|
| $17.68 |
|
| $14.75 |
|
| $14.33 |
|
| $10.75 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.08(1) | 0.27(1) | 0.20(1) | 0.19 | 0.20 | 0.16 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.04 | 1.28 | 4.35 | 2.99 | 0.37 | 3.57 | |||||||||||||||
Total from Investment Operations |
| 0.12 |
|
| 1.55 |
|
| 4.55 |
|
| 3.18 |
|
| 0.57 |
|
| 3.73 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.04) | (0.32) | (0.16) | (0.25) | (0.15) | (0.15) | |||||||||||||||
Distributions (from capital gains) | (3.12) | (2.02) | (0.76) | | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | (2) | (2) | |||||||||||||||
Total Dividends and Distributions |
| (3.16) |
|
| (2.34) |
|
| (0.92) |
|
| (0.25) |
|
| (0.15) |
|
| (0.15) |
| |||
Net Asset Value, End of Period | $17.48 | $20.52 | $21.31 | $17.68 | $14.75 | $14.33 | |||||||||||||||
Total Return* |
| 0.74% |
|
| 7.35% |
|
| 26.22% |
|
| 21.75% |
|
| 4.06% |
|
| 34.84% |
| |||
Net Assets, End of Period (in thousands) | $121,290 | $153,922 | $174,615 | $71,592 | $50,196 | $55,567 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $131,971 | $178,491 | $147,897 | $56,472 | $52,297 | $53,512 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.70% | 0.61% | 0.68% | 0.75% | 0.72% | 0.72% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.70% | 0.61% | 0.68% | 0.75% | 0.72% | 0.72% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.79% | 1.26% | 1.00% | 1.27% | 1.31% | 1.07% | |||||||||||||||
Portfolio Turnover Rate | 53% | 130% | 59% | 67% | 73% | 93% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH U.S. Core Fund (unaudited)
Financial Highlights
Class N Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $20.50 |
|
| $21.73 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.09 | 0.20 | |||||||
Net realized and unrealized gain/(loss) | 0.05 | 0.93 | |||||||
Total from Investment Operations |
| 0.14 |
|
| 1.13 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.05) | (0.34) | |||||||
Distributions (from capital gains) | (3.12) | (2.02) | |||||||
Total Dividends and Distributions |
| (3.17) |
|
| (2.36) |
| |||
Net Asset Value, End of Period | $17.47 | $20.50 | |||||||
Total Return* |
| 0.84% |
|
| 5.26% |
| |||
Net Assets, End of Period (in thousands) | $54 | $53 | |||||||
Average Net Assets for the Period (in thousands) | $53 | $53 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.64% | 0.59% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.64% | 0.59% | |||||||
Ratio of Net Investment Income/(Loss) | 0.90% | 1.45% | |||||||
Portfolio Turnover Rate | 53% | 130% | |||||||
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $20.41 |
|
| $21.23 |
|
| $17.66 |
|
| $14.73 |
|
| $14.29 |
|
| $10.73 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.03(2) | 0.17(2) | 0.11(2) | 0.16 | 0.12 | 0.08 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.05 | 1.28 | 4.34 | 2.94 | 0.40 | 3.57 | |||||||||||||||
Total from Investment Operations |
| 0.08 |
|
| 1.45 |
|
| 4.45 |
|
| 3.10 |
|
| 0.52 |
|
| 3.65 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | | (0.25) | (0.12) | (0.17) | (0.09) | (0.09) | |||||||||||||||
Distributions (from capital gains) | (3.12) | (2.02) | (0.76) | | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | 0.01 | (3) | |||||||||||||||
Total Dividends and Distributions |
| (3.12) |
|
| (2.27) |
|
| (0.88) |
|
| (0.17) |
|
| (0.08) |
|
| (0.09) |
| |||
Net Asset Value, End of Period | $17.37 | $20.41 | $21.23 | $17.66 | $14.73 | $14.29 | |||||||||||||||
Total Return* |
| 0.53% |
|
| 6.86% |
|
| 25.61% |
|
| 21.20% |
|
| 3.75% |
|
| 34.11% |
| |||
Net Assets, End of Period (in thousands) | $35,802 | $45,678 | $30,533 | $5,996 | $4,645 | $4,836 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $38,374 | $38,156 | $24,601 | $4,857 | $4,525 | $4,423 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.14% | 1.07% | 1.14% | 1.17% | 1.16% | 1.18% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.14% | 1.07% | 1.14% | 1.17% | 1.16% | 1.18% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.34% | 0.81% | 0.54% | 0.86% | 0.88% | 0.61% | |||||||||||||||
Portfolio Turnover Rate | 53% | 130% | 59% | 67% | 73% | 93% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from October 28, 2014 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)
Financial Highlights
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 | |||||
Net Asset Value, Beginning of Period |
| $20.49 |
|
| $21.29 |
|
| $17.67 |
|
| $14.74 |
|
| $14.31 |
|
| $10.74 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.06(1) | 0.22(1) | 0.16(1) | 0.18 | 0.15 | 0.12 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.05 | 1.28 | 4.34 | 2.97 | 0.40 | 3.58 | |||||||||||||||
Total from Investment Operations |
| 0.11 |
|
| 1.50 |
|
| 4.50 |
|
| 3.15 |
|
| 0.55 |
|
| 3.70 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.01) | (0.28) | (0.12) | (0.22) | (0.12) | (0.13) | |||||||||||||||
Distributions (from capital gains) | (3.12) | (2.02) | (0.76) | | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | (2) | (2) | |||||||||||||||
Total Dividends and Distributions |
| (3.13) |
|
| (2.30) |
|
| (0.88) |
|
| (0.22) |
|
| (0.12) |
|
| (0.13) |
| |||
Net Asset Value, End of Period | $17.47 | $20.49 | $21.29 | $17.67 | $14.74 | $14.31 | |||||||||||||||
Total Return* |
| 0.67% |
|
| 7.10% |
|
| 25.94% |
|
| 21.58% |
|
| 3.93% |
|
| 34.53% |
| |||
Net Assets, End of Period (in thousands) | $132,931 | $155,881 | $147,294 | $109,408 | $83,640 | $74,483 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $142,551 | $157,958 | $129,992 | $92,764 | $75,220 | $66,619 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.89% | 0.82% | 0.89% | 0.92% | 0.91% | 0.92% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.88% | 0.82% | 0.89% | 0.92% | 0.91% | 0.92% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.64% | 1.05% | 0.79% | 1.11% | 1.14% | 0.87% | |||||||||||||||
Portfolio Turnover Rate | 53% | 130% | 59% | 67% | 73% | 93% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. (2) Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements. | |
Janus Investment Fund | 21 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
1. Organization and Significant Accounting Policies
INTECH U.S. Core Fund (the Fund) is a series fund. The Fund is part of Janus Investment Fund (the Trust), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946. The Trust offers forty-five Funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in common stocks. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. Class D Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and nonqualified deferred compensation plans. Class N Shares are also available to Janus proprietary products.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (Janus Capital) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the Valuation Procedures). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (OTC) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (NYSE). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is
22 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to odd-lot fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Funds own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2015 to fair value the Funds investments in securities and other financial instruments is included in the Valuation Inputs Summary in the Notes to Schedule of Investments and Other Information.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of
Janus Investment Fund | 23 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Funds maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as equalization, has no effect on the redeeming shareholder or a Funds total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Funds equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Funds tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of
24 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Funds ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. One or more countries may abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (counterparty risk). Counterparty risk may arise because of the counterpartys financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterpartys inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Funds exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Funds cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capitals analysis of a counterpartys creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Janus Investment Fund | 25 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments payables and/or receivables with collateral held and/or posted and create one single net payment. For financial reporting purposes, the Fund does not offset certain derivative financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||
Counterparty | Gross
Amounts Assets | Offsetting
Asset | Collateral | Net Amount | |
Deutsche Bank AG | $ 14,563,865 | $ - | $ (14,563,865) | $ - | |
(a) Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | |||||
(b) Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
Real Estate Investing
To the extent that real estate-related securities may be included in the Funds named benchmark index, INTECHs mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
26 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. The Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments. Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2015, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $14,563,865. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2015 is $14,891,855, resulting in the net amount due to the counterparty of $327,990.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Funds "base" fee rate prior to any performance adjustment (expressed as an annual rate) is 0.50%.
The investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate. The performance adjustment either increases or decreases the base fee depending on how well the Fund has performed relative to its benchmark index. The Fund's benchmark index used in the calculation is the S&P 500® Index.
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by the Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Funds average daily net assets during the previous month (Base Fee Rate), plus or minus (2) a performance-fee adjustment (Performance Adjustment)
Janus Investment Fund | 27 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
calculated by applying a variable rate of up to 0.15% (positive or negative) to the Funds average daily net assets during the applicable performance measurement period, which is generally the previous 36 months.
The Funds prospectuses and statement(s) of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment. For the period ended December 31, 2015, the performance adjusted investment advisory fee rate before any waivers and/or reimbursements of expenses is 0.57%.
INTECH Investment Management LLC (INTECH) serves as subadviser to the Fund. As subadviser, INTECH provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of INTECH.
Janus Capital pays INTECH a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (calculated after any applicable performance fee adjustment net of any fee waivers and expense reimbursements). The subadvisory fee paid by Janus Capital to INTECH adjusts up or down based on the Fund's performance relative to its benchmark index over the performance measurement period.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Funds normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, the 12b-1 distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.89%. Janus Capital has agreed to continue the waiver until at least November 1, 2016. The previous expense limit until November 1, 2015 was 0.80%. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as Excess Expense Reimbursement on the Statement of Operations.
Janus Services LLC (Janus Services), a wholly-owned subsidiary of Janus Capital, is the Funds transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as Transfer agent networking and omnibus fees on the Statement of Operations.
The Funds Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Funds Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement
28 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (NSCC) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to the Funds Class D Shares. In addition to the administrative fees discussed above, Janus Services receives reimbursement for out-of-pocket costs it incurs for serving as transfer agent and providing, or arranging for, servicing to shareholders. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Under a distribution and shareholder servicing plan (the Plan) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trusts distributor, Janus Distributors LLC (Janus Distributors), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as 12b-1 Distribution and shareholder servicing fees on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Funds actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in 12b-1 Distribution fees and shareholder servicing fees in the Statement of Operations.
Janus Capital furnishes certain administration, compliance, and accounting services for the Fund and is reimbursed by the Fund for certain of its costs in providing those services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). The Fund also pays for salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to the Fund. These amounts are disclosed as Fund administration fees on the Statement of Operations. In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $296,867 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2015. The Fund's portion is reported as part of Other expenses on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the Deferred Plan) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2015 on the Statement of Assets and Liabilities in the asset, Non-interested Trustees deferred compensation, and liability, Non-interested Trustees deferred compensation fees. Additionally, the recorded unrealized appreciation/(depreciation) is included in Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2015 are included in Non-interested Trustees fees and expenses on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $151,400 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2015.
Janus Investment Fund | 29 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the Investing Funds). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered product compliant with Rule 2a-7 under the 1940 Act. There are no restrictions on the Fund's ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. The units of Janus Cash Liquidity Fund LLC are not charged any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2015 can be found in a table located in the Notes to Schedule of Investments and Other Information.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2015, Janus Distributors retained upfront sales charges of $1,059.
A contingent deferred sales charge (CDSC) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 2015.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended December 31, 2015, redeeming shareholders of Class C Shares paid CDSCs of $146.
As of December 31, 2015, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| |
Class A Shares | - | % | - | % | |
Class C Shares | - | - | |||
Class D Shares | - | - | |||
Class I Shares | - | - | |||
Class N Shares | 100 | -* | |||
Class S Shares | - | - | |||
Class T Shares | - | - | |||
*Less than 0.50% |
In addition, other shareholders, including other funds, individuals, accounts, as well as the Funds portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Funds Shares and can be considered to control the Fund when that ownership exceeds 25% of the Funds assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
30 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2015 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/depreciation on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/
|
$ 579,284,950 | $71,322,079 | $(15,560,413) | $ 55,761,666 |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2015, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during those years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The following table shows these capital loss carryovers.
Capital Loss Carryover Schedule | |||
For the year ended June 30, 2015 | |||
June 30,2016 | Accumulated Capital Losses | ||
| $ (3,397,272) | $ (3,397,272) |
Janus Investment Fund | 31 |
INTECH U.S. Core Fund (unaudited)
Notes to Financial Statements
5. Capital Share Transactions
Period ended December 31, 2015 | Year ended June 30, 2015(1) | |||||
|
| Shares | Amount |
| Shares | Amount |
Class A Shares: | ||||||
Shares sold | 88,183 | $ 1,801,060 | 580,534 | $ 12,215,194 | ||
Reinvested dividends and distributions | 214,272 | 3,711,183 | 111,734 | 2,280,488 | ||
Shares repurchased | (305,877) | (6,120,808) | (392,337) | (8,378,578) | ||
Net Increase/(Decrease) | (3,422) | $ (608,565) |
| 299,931 | $ 6,117,104 | |
Class C Shares: | ||||||
Shares sold | 67,313 | $ 1,200,727 | 323,442 | $ 6,808,087 | ||
Reinvested dividends and distributions | 115,828 | 1,978,350 | 57,232 | 1,162,392 | ||
Shares repurchased | (92,668) | (1,742,712) | (88,552) | (1,851,969) | ||
Net Increase/(Decrease) | 90,473 | $ 1,436,365 |
| 292,122 | $ 6,118,510 | |
Class D Shares: | ||||||
Shares sold | 298,752 | $ 5,994,011 | 1,630,988 | $ 34,579,972 | ||
Reinvested dividends and distributions | 2,521,722 | 43,726,659 | 1,525,162 | 31,143,810 | ||
Shares repurchased | (1,040,920) | (21,002,195) | (1,853,204) | (39,120,018) | ||
Net Increase/(Decrease) | 1,779,554 | $ 28,718,475 |
| 1,302,946 | $ 26,603,764 | |
Class I Shares: | ||||||
Shares sold | 298,475 | $ 6,002,774 | 1,830,094 | $ 38,630,534 | ||
Reinvested dividends and distributions | 1,059,725 | 18,386,233 | 899,849 | 18,374,908 | ||
Shares repurchased | (1,923,905) | (39,806,944) | (3,422,580) | (72,692,243) | ||
Net Increase/(Decrease) | (565,705) | $(15,417,937) |
| (692,637) | $(15,686,801) | |
Class N Shares: | ||||||
Shares sold | - | $ - | 2,328 | $ 50,000 | ||
Reinvested dividends and distributions | 477 | 8,252 | 270 | 5,503 | ||
Shares repurchased | - | - | - | - | ||
Net Increase/(Decrease) | 477 | $ 8,252 |
| 2,598 | $ 55,503 | |
Class S Shares: | ||||||
Shares sold | 188,462 | $ 3,815,497 | 1,225,346 | $ 26,010,871 | ||
Reinvested dividends and distributions | 316,231 | 5,451,819 | 201,131 | 4,097,031 | ||
Shares repurchased | (682,176) | (14,171,177) | (626,473) | (13,113,758) | ||
Net Increase/(Decrease) | (177,483) | $ (4,903,861) |
| 800,004 | $ 16,994,144 | |
Class T Shares: | ||||||
Shares sold | 333,504 | $ 6,744,483 | 2,012,807 | $ 42,244,897 | ||
Reinvested dividends and distributions | 1,146,171 | 19,874,602 | 762,245 | 15,565,048 | ||
Shares repurchased | (1,479,680) | (29,716,134) | (2,086,554) | (43,977,076) | ||
Net Increase/(Decrease) | (5) | $ (3,097,049) |
| 688,498 | $ 13,832,869 | |
(1) | Period from October 28, 2014 (inception date) through June 30, 2015 for Class N Shares. |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2015, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
Purchases of | Proceeds from Sales | Purchases of Long- | Proceeds from Sales |
$342,545,854 | $ 427,885,499 | $ - | $ - |
7. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2015 and through the date of issuance of the Funds financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds financial statements.
32 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds website at janus.com/proxyvoting; and (iii) on the SECs website at http://www.sec.gov. Additionally, information regarding the Funds proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/ proxyvoting and from the SECs website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds Form N-Q: (i) is available on the SECs website at http://www.sec.gov; (ii) may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund and Janus Aspen Series, each of whom serves as an independent Trustee (the Trustees), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a Fund and collectively, the Funds), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2015, based on the Trustees evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from either January 1 or February 1, 2016 through January 1 or February 1, 2017, respectively, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultants conclusions and opinions that arose during, and were included as part of, the Trustees consideration of the agreements. Management fees, as used herein, reflect actual annual advisory fees and any administration fees (excluding out of pocket costs), net of any waivers.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective, strategies and policies of each Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capitals role as administrator to the Funds, noting that Janus Capital does not receive a fee
Janus Investment Fund | 33 |
INTECH U.S. Core Fund
Additional Information (unaudited)
for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds and Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Funds portfolio manager(s), and also reviewed information comparing each Funds performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (Broadridge), an independent data provider, and with the Funds benchmark index. In this regard, the independent fee consultant found that the overall Funds performance has been strong: for the 36 months ended September 30, 2015, approximately 70% of the Funds were in the top two Broadridge quartiles of performance, and for the 12 months ended September 30, 2015, approximately 61% of the Funds were in the top two Broadridge quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, the steps Janus Capital had taken or was taking to improve performance, and its limited performance history.
· For Janus High-Yield Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Multi-Sector Income Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Real Return Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
34 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Additional Information (unaudited)
· For Janus Short-Term Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Government Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
· For Janus Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Allocation Fund Moderate, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
Value Funds
· For Perkins International Value Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Perkins Global Value Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Large Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Mid Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Select Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
Janus Investment Fund | 35 |
INTECH U.S. Core Fund
Additional Information (unaudited)
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
· For Perkins Value Plus Income Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH International Managed Volatility Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital and INTECH had taken or were taking to improve performance.
· For INTECH U.S. Core Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Contrarian Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Enterprise Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Forty Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Growth and Income Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and in the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Research Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
36 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Additional Information (unaudited)
· For Janus Triton Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Twenty Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Venture Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Emerging Markets Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Real Estate Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Research Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Select Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Technology Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus International Equity Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Overseas Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
Janus Investment Fund | 37 |
INTECH U.S. Core Fund
Additional Information (unaudited)
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Allocation Portfolio Moderate, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Funds performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Funds performance warranted continuation of the Funds investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration, but excluding out-of-pocket costs) fees for many of the Funds, after applicable waivers,
38 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Additional Information (unaudited)
was below the mean management fee rate of the respective peer group of funds selected by an independent data provider. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
The independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found: (1) the total expenses and management fees of the Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 14% below the mean total expenses of their respective Broadridge Expense Group peers and 24% below the mean total expenses for their Broadridge Expense Universes; (3) management fees for the Funds, on average, were 15% below the mean management fees for their Expense Groups and 19% below the mean for their Expense Universes; and (4) Fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered the total expenses for each share class of each Fund compared to the mean total expenses for its Broadridge Expense Group peers and to mean total expenses for its Broadridge Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds, the independent fee consultant also performed a systematic focus list analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories, and existence of performance fees, breakpoints, and expense waivers on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent, and the competitive market for mutual funds in different distribution channels.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only or primarily portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees considered that Janus Capital noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks and other costs that it does not assume in servicing its other clients. Moreover, they noted that the independent fee consultant found that: (1) the management fees Janus Capital charges to the Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; (3) the average spread between management fees charged to the Funds and those charged to Janus Capitals institutional accounts is reasonable relative to the average spreads seen in the industry; and (4) by one estimation methodology, the fee margins implied by Janus Capitals subadvised fees when compared to its mutual fund fees are reasonable relative to the estimated fee margins in the industry and relative to estimated fee margins of fund managers using Janus Capital as a subadviser.
The Trustees considered the fees for each Fund for its fiscal year ended in 2014, and noted the following with regard to each Funds total expenses, net of applicable fee waivers (the Funds total expenses):
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
Janus Investment Fund | 39 |
INTECH U.S. Core Fund
Additional Information (unaudited)
· For Janus Global Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus High-Yield Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Multi-Sector Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus has contractually agreed to limit the Funds expenses.
· For Janus Real Return Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Short-Term Bond Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for all share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Government Money Market Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Funds management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
· For Janus Money Market Fund, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee and other expenses in order to maintain a positive yield.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Allocation Fund Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
Value Funds
· For Perkins International Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Global Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable.
40 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Additional Information (unaudited)
· For Perkins Large Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Mid Cap Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Perkins Select Value Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Perkins Value Plus Income Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For INTECH International Managed Volatility Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Core Fund, the Trustees noted that although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds total expenses exceeded the peer group mean for one share class. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Contrarian Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Enterprise Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Forty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
Janus Investment Fund | 41 |
INTECH U.S. Core Fund
Additional Information (unaudited)
· For Janus Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Growth and Income Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Triton Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Twenty Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Venture Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Emerging Markets Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for certain share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Real Estate Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Global Research Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Select Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus Global Technology Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
· For Janus International Equity Fund, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses, although this limit did not apply because the Funds total expenses were already below the applicable fee limit.
· For Janus Overseas Fund, the Trustees noted that the Funds total expenses were below the peer group mean for all share classes.
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
42 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Additional Information (unaudited)
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for one share class, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Allocation Portfolio - Moderate, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Funds expenses.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, although the Funds total expenses exceeded the peer group mean for both share classes, overall the Funds total expenses were reasonable. The Trustees also noted that Janus Capital had contractually agreed to limit the Funds expenses.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for its sole share class.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds total expenses were below the peer group mean for both share classes.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized by Janus Capital when allocating various expenses of Janus Capital and its affiliates with respect to contractual relationships with the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capitals parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives and resources to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available, and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses, and the fund managers capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees independent fee consultant, and based on the information available, the Trustees concluded that Janus Capitals profitability with respect to each Fund in relation to the services rendered was reasonable.
The independent fee consultant found that, while assessing the reasonableness of expenses in light of Janus Capitals profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Funds is reasonable.
The Trustees concluded that the management fees payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of subadvised Funds, were reasonable in relation to the nature, extent, and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on management fees payable by the Funds. The Trustees also concluded that each Funds total expenses were reasonable, taking into account the size of the Fund, the quality of services
Janus Investment Fund | 43 |
INTECH U.S. Core Fund
Additional Information (unaudited)
provided by Janus Capital and any subadviser, the investment performance of the Fund, and any expense limitations agreed to or provided by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that their independent fee consultant provided an analysis of economies of scale, which included discussion of analysis from prior years. They also noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, their independent fee consultant concluded that 85% of these Funds have contractual management fees (gross of waivers) below their Broadridge expense group averages and, overall, 80% of the Funds are below their respective expense group averages for contractual management fees. They also noted that for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of some of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and a few Funds have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of any economies of scale that may be present at the current asset level of the Fund.
The independent fee consultant concluded that, given the limitations of various analytical approaches to economies of scale considered in prior years, and their conflicting results, its analyses could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Fund investors are well-served by the fee levels and performance fee structures in place on the Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates and subadvisers to the Funds from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capitals past and proposed use of commissions paid by the Funds on portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital and/or Janus Capital, and/or a subadviser to a Fund. The Trustees concluded that Janus Capitals and the subadvisers use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates and subadvisers pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital and the subadvisers may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and/or the subadvisers benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capitals and/or the subadvisers receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital and/or other clients of the subadvisers. They further concluded that the success of any Fund could attract other business to Janus Capital, the subadvisers or other Janus funds, and that the success of Janus Capital and the subadvisers could enhance Janus Capitals and the subadvisers ability to serve the Funds.
44 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Useful Information About Your Fund Report (unaudited)
The Management Commentary in this report includes valuable insight as well as statistical information to help you understand how your Funds performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. A company may be allocated to a country based on other factors such as location of the companys principal office, the location of the principal trading market for the companys securities, or the country where a majority of the companys revenues are derived.
Please keep in mind that the opinions expressed in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was December 31, 2015. As the investing environment changes, so could opinions. These views are unique and are not necessarily shared by fellow employees or by Janus in general.
Performance Overviews
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund with one or more widely used market indices. When comparing the performance of the Fund with an index, keep in mind that market indices are not available for investment and do not reflect deduction of expenses.
Average annual total returns are quoted for a Fund with more than one year of performance history. Average annual total return is calculated by taking the growth or decline in value of an investment over a period of time, including reinvestment of dividends and distributions, then calculating the annual compounded percentage rate that would have produced the same result had the rate of growth been constant throughout the period. Average annual total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Cumulative total returns are quoted for a Fund with less than one year of performance history. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Funds unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Funds subsidized expense ratio. Ratios may be higher or lower than those shown in the Financial Highlights in this report.
Schedule of Investments
Following the performance overview section is the Funds Schedule of Investments. This schedule reports the types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country of risk. The Funds Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options, and swaps follow the Funds Schedule of Investments (if applicable).
Statement of Assets and Liabilities
This statement is often referred to as the balance sheet. It lists the assets and liabilities of the Fund on the last day of the reporting period.
Janus Investment Fund | 45 |
INTECH U.S. Core Fund
Useful Information About Your Fund Report (unaudited)
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 securities 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 entitled Net Assets Consist of breaks down the components of the Funds net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (NAV) per share on the last day of the reporting period. The NAV is calculated by dividing the Funds net assets for each share class (assets minus liabilities) by the number of shares outstanding.
Statement of Operations
This statement details the Funds income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled Investment Income, reports the dividends earned from securities and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. Net Realized and Unrealized Gain/(Loss) on Investments is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
Statements of Changes in Net Assets
These statements report the increase or decrease in the Funds net assets during the reporting period. Changes in the Funds net assets are attributable to investment operations, dividends and distributions to investors, and capital share transactions. This is important to investors because it shows exactly what caused the 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 operations. The Funds net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Funds net assets will not be affected. If you compare the Funds Net Decrease from Dividends and Distributions to Reinvested Dividends and Distributions, you will notice that dividends and distributions have little effect on the Funds net assets. This is because the majority of the Funds investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions is included under Capital Share Transactions. Capital Shares refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Funds net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
Financial Highlights
This schedule provides a per-share breakdown of the components that affect the Funds NAV for current and past reporting periods as well as total return, asset size, ratios, and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the
46 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Useful Information About Your Fund Report (unaudited)
total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Funds expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
The ratio of net investment income/(loss) summarizes the income earned less expenses, divided by the average net assets of the Fund during the reporting period. Do not confuse this ratio with the Funds yield. The net investment income ratio is not a true measure of the Funds yield because it does not take into account the dividends distributed to the Funds investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Funds investments, and the investment style and/or outlook of the portfolio manager(s) and/or investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
Janus Investment Fund | 47 |
INTECH U.S. Core Fund
Notes
NotesPage1
48 | DECEMBER 31, 2015 |
INTECH U.S. Core Fund
Notes
NotesPage2
Janus Investment Fund | 49 |
INTECH U.S. Core Fund
Notes
NotesPage3
50 | DECEMBER 31, 2015 |
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus asset allocation funds aim to allocate risk more effectively.
Fixed Income
Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth & Core
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH® (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more efficient portfolio than the index.
Value
Our value funds, managed by Perkins® (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money. | ||||||||||||
Janus, INTECH and Perkins are registered trademarks of Janus International Holding LLC. © Janus International Holding LLC. Funds distributed by Janus Distributors LLC | ||||||||||||
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | |||||||||
C-0216-108441 | 125-24-93015 02-16 |
SEMIANNUAL REPORT December 31, 2015 | |||
INTECH U.S. Managed Volatility Fund | |||
Janus Investment Fund | |||
| |||
HIGHLIGHTS · Portfolio management perspective · Investment strategy behind your fund · Fund performance, characteristics | |||
Table of Contents
INTECH U.S. Managed Volatility Fund
INTECH U.S. Managed Volatility Fund (unaudited)
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2015, INTECH U.S. Managed Volatility Fund returned 0.98% for its Class I Shares. This compares to the -0.78% return posted by the Russell 1000 Index, the Funds benchmark.
INVESTMENT STRATEGY
INTECHs mathematical investment process is designed to determine potentially more efficient equity weightings of the securities in the benchmark index, utilizing a specific mathematical optimization and disciplined rebalancing routine. Rather than trying to predict the future direction of stock prices, the process seeks to use the volatility and correlation characteristics of stocks to construct portfolios.
The investment process begins with the stocks in the Russell 1000 Index. INTECHs investment process aims to capture stocks natural volatility through a rebalancing mechanism based on estimates of relative volatility and correlation in order to outperform the benchmark index over the long term. Within specific risk constraints, the investment process will tend to favor stocks with higher relative volatility and lower correlation as they offer more potential to capture volatility through periodic rebalancing. Once the target proportions are determined and the portfolio is constructed, it is then rebalanced to those target proportions and re-optimized on a periodic basis. The INTECH U.S. Managed Volatility Fund focuses on seeking an excess return above the benchmark, while also reducing or managing the Funds standard deviation depending on the market conditions, a strategy designed to manage the absolute risk of the portfolio.
PERFORMANCE REVIEW
The U.S. equity market as measured by the Russell 1000 Index posted a return of -0.78% for the six-month period ending December 31, 2015. INTECH U.S. Managed Volatility Fund outperformed the Russell 1000 Index over the period and generated a return of 0.98%.
An overall decrease in market diversity over the period reflected a change in the distribution of capital, in which larger cap stocks outperformed smaller cap stocks on average within the Russell 1000 Index. While the INTECH U.S. Managed Volatility Fund, which tends to overweight smaller cap stocks as they provide more relative volatility capture potential, was negatively impacted by the overall decrease in market diversity, the Fund outperformed during the period, benefiting from defensive positioning and security selection.
The Funds defensive positioning acted as tailwind to relative performance as volatility picked up in the U.S. equity markets. On average, the Fund was overweight lower beta stocks, or stocks with lower sensitivity to market movements, which tend to be less volatile. During the period, lower beta stocks strongly outperformed higher beta stocks and the overall market, on average. Consequently, the Funds overweight to lower beta stocks and underweight to higher beta stocks contributed to the Funds relative return for the period.
The Funds overall active sector positioning contributed to relative performance during the period. Effectively, an average underweight allocation to the energy sector, which was the weakest performing sector during the period, as well as an average overweight to the consumer staples sector, contributed to the Funds relative performance during the period. Favorable security selection, especially within the financials and consumer staples sectors, also contributed during the period.
OUTLOOK
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. As INTECHs ongoing research efforts yield modest
Janus Investment Fund | 1 |
INTECH U.S. Managed Volatility Fund (unaudited)
improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our fund shareholders.
Thank you for your investment in INTECH U.S. Managed Volatility Fund.
2 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Fund At A Glance
December 31, 2015
5 Largest Equity Holdings - (% of Net Assets) | |
General Mills, Inc. | |
Food Products | 3.0% |
Reynolds American, Inc. | |
Tobacco | 2.6% |
Altria Group, Inc. | |
Tobacco | 2.5% |
Facebook, Inc. - Class A | |
Internet Software & Services | 1.5% |
Anthem, Inc. | |
Health Care Providers & Services | 1.4% |
11.0% |
Asset Allocation - (% of Net Assets) | |||||
Common Stocks | 98.0% | ||||
Investment Companies | 3.3% | ||||
Other | (1.3)% | ||||
100.0% |
Top Country Allocations - Long Positions - (% of Investment Securities) | |
As of December 31, 2015 * Less than 0.05% | As of June 30, 2015 |
Janus Investment Fund | 3 |
INTECH U.S. Managed Volatility Fund (unaudited)
Performance
See important disclosures on the next page. |
Expense Ratios - | |||||||||
Average Annual Total Return - for the periods ended December 31, 2015 |
| per the October 28, 2015 prospectuses | |||||||
|
| Fiscal
| One | Five
| Ten | Since
|
| Total Annual Fund | |
Class A Shares at NAV | 0.77% | 2.98% | 12.34% | 6.50% | 6.49% |
| 1.03% | ||
Class A Shares at MOP |
| -5.01% | -2.96% | 11.03% | 5.87% | 5.87% |
|
| |
Class C Shares at NAV | 0.61% | 2.54% | 11.57% | 5.74% | 5.74% |
| 1.73% | ||
Class C Shares at CDSC |
| -0.39% | 1.65% | 11.57% | 5.74% | 5.74% |
|
| |
Class D Shares(1) |
| 0.90% | 3.24% | 12.50% | 6.59% | 6.59% |
| 1.21% | |
Class I Shares |
| 0.98% | 3.42% | 12.68% | 6.78% | 6.78% |
| 0.71% | |
Class N Shares |
| 1.02% | 3.46% | 12.68% | 6.78% | 6.78% |
| 0.72% | |
Class S Shares |
| 0.71% | 2.94% | 12.29% | 6.34% | 6.34% |
| 1.20% | |
Class T Shares |
| 0.79% | 3.13% | 12.42% | 6.43% | 6.42% |
| 0.95% | |
Russell 1000® Index |
| -0.78% | 0.92% | 12.44% | 7.40% | 7.40% |
|
| |
Russell 1000® Value Index |
| -3.23% | -3.83% | 11.27% | 6.16% | 6.15% |
|
| |
Morningstar Quartile - Class I Shares |
| - | 1st | 1st | 2nd | 2nd |
|
| |
Morningstar Ranking - based on total returns for Large Blend Funds |
| - | 98/1,652 | 149/1,422 | 473/1,230 | 475/1,234 |
|
|
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
CDSC returns include a 1% contingent deferred sales charge (CDSC) on Shares redeemed within 12 months of purchase. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
INTECH's focus on managed volatility may keep the Fund from achieving excess returns over its index. The strategy may underperform during certain periods of up markets, and may not achieve the desired level of protection in down markets.
4 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Performance
A Funds performance may be affected by risks that include those associated with non-diversification, non-investment grade debt securities, high-
Janus Investment Fund | 5 |
INTECH U.S. Managed Volatility Fund (unaudited)
Performance
yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of the predecessor fund into corresponding shares of the Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the predecessor fund respectively, net of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the historical performance of the predecessor funds Class I Shares, calculated using the fees and expenses of Class T Shares, without the effect of any fee and expense limitations or waivers.
Class N Shares commenced operations on October 28, 2014. Performance shown for periods prior to October 28, 2014, reflects the historical performance of the Funds Class I Shares, calculated using the fees and expenses of Class I Shares, net of any applicable fee and expense limitations or waivers.
Class D Shares commenced operations on December 22, 2014. Performance shown for periods prior to December 22, 2014, reflects the historical performance of the Funds Class I Shares, calculated using the fees and expenses of Class D Shares, without the effect of any applicable fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Funds commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Funds prospectuses for further details concerning historical performance.
Tracking Error is a divergence between the price behavior of a position or portfolio and the price behavior of a benchmark. Standard deviation measures historical volatility. Higher standard deviation implies greater volatility.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2015 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
The weighting of securities within the Fund's portfolio may differ significantly from the weightings within the index. The index is unmanaged and not available for direct investment; therefore its performance does not reflect the expenses associated with the active management of an actual portfolio.
See Useful Information About Your Fund Report.
Effective December 17, 2014, the Fund changed its benchmark from the Russell 1000® Value Index to the Russell 1000® Index. The transition to the Russell 1000® Index is intended to reflect broader exposure to large cap U.S. equities than the value-focused index.
* The predecessor Funds inception date December 30, 2005
(1) Closed to certain new investors.
6 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; 12b-1 distribution and shareholder servicing fees; transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading Actual provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading Hypothetical (5% return before expenses) provides information about hypothetical account values and hypothetical expenses based upon the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Funds prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
Actual | Hypothetical | |||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | Net Annualized | |||
Class A Shares | $1,000.00 | $1,007.70 | $5.10 |
| $1,000.00 | $1,020.06 | $5.13 | 1.01% | ||
Class C Shares | $1,000.00 | $1,006.10 | $7.66 |
| $1,000.00 | $1,017.50 | $7.71 | 1.52% | ||
Class D Shares | $1,000.00 | $1,009.00 | $4.65 |
| $1,000.00 | $1,020.51 | $4.67 | 0.92% | ||
Class I Shares | $1,000.00 | $1,009.80 | $3.59 |
| $1,000.00 | $1,021.57 | $3.61 | 0.71% | ||
Class N Shares | $1,000.00 | $1,010.20 | $3.44 |
| $1,000.00 | $1,021.72 | $3.46 | 0.68% | ||
Class S Shares | $1,000.00 | $1,007.10 | $5.55 |
| $1,000.00 | $1,019.61 | $5.58 | 1.10% | ||
Class T Shares | $1,000.00 | $1,007.90 | $4.64 |
| $1,000.00 | $1,020.51 | $4.67 | 0.92% | ||
| Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Funds prospectuses for more information regarding waivers and/or reimbursements. |
Janus Investment Fund | 7 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks 98.0% | |||||||
Aerospace & Defense 2.0% | |||||||
BWX Technologies, Inc. | 15,600 | $495,612 | |||||
Lockheed Martin Corp. | 10,200 | 2,214,930 | |||||
Northrop Grumman Corp. | 200 | 37,762 | |||||
Orbital ATK, Inc. | 12,000 | 1,072,080 | |||||
Raytheon Co. | 900 | 112,077 | |||||
TransDigm Group, Inc.* | 8,700 | 1,987,515 | |||||
5,919,976 | |||||||
Air Freight & Logistics 0.1% | |||||||
CH Robinson Worldwide, Inc. | 1,100 | 68,222 | |||||
Expeditors International of Washington, Inc. | 4,800 | 216,480 | |||||
United Parcel Service, Inc. - Class B | 700 | 67,361 | |||||
352,063 | |||||||
Airlines 1.6% | |||||||
Alaska Air Group, Inc. | 4,500 | 362,295 | |||||
Delta Air Lines, Inc. | 4,900 | 248,381 | |||||
JetBlue Airways Corp.* | 9,500 | 215,175 | |||||
Southwest Airlines Co. | 87,200 | 3,754,832 | |||||
4,580,683 | |||||||
Auto Components 0.1% | |||||||
Lear Corp. | 1,000 | 122,830 | |||||
Visteon Corp. | 1,000 | 114,500 | |||||
237,330 | |||||||
Automobiles 0.1% | |||||||
Tesla Motors, Inc.*,# | 700 | 168,007 | |||||
Beverages 2.2% | |||||||
Brown-Forman Corp. - Class A# | 6,900 | 759,759 | |||||
Brown-Forman Corp. - Class B | 2,400 | 238,272 | |||||
Coca-Cola Co. | 1,500 | 64,440 | |||||
Coca-Cola Enterprises, Inc. | 1,200 | 59,088 | |||||
Constellation Brands, Inc. - Class A | 11,600 | 1,652,304 | |||||
Dr Pepper Snapple Group, Inc. | 23,400 | 2,180,880 | |||||
Monster Beverage Corp.* | 4,700 | 700,112 | |||||
PepsiCo, Inc. | 7,400 | 739,408 | |||||
6,394,263 | |||||||
Biotechnology 1.4% | |||||||
BioMarin Pharmaceutical, Inc.* | 1,400 | 146,664 | |||||
Bluebird Bio, Inc.* | 9,400 | 603,668 | |||||
Gilead Sciences, Inc. | 4,200 | 424,998 | |||||
Incyte Corp.* | 3,600 | 390,420 | |||||
OPKO Health, Inc.*,# | 35,100 | 352,755 | |||||
Regeneron Pharmaceuticals, Inc.* | 3,700 | 2,008,619 | |||||
3,927,124 | |||||||
Building Products 0.4% | |||||||
Allegion PLC | 1,500 | 98,880 | |||||
AO Smith Corp. | 400 | 30,644 | |||||
Fortune Brands Home & Security, Inc. | 1,700 | 94,350 | |||||
Lennox International, Inc. | 5,600 | 699,440 | |||||
Owens Corning | 2,100 | 98,763 | |||||
USG Corp.* | 5,400 | 131,166 | |||||
1,153,243 | |||||||
Capital Markets 0.4% | |||||||
Interactive Brokers Group, Inc. | 17,600 | 767,360 | |||||
SEI Investments Co. | 7,800 | 408,720 | |||||
1,176,080 | |||||||
Chemicals 0% | |||||||
Sherwin-Williams Co. | 300 | 77,880 | |||||
Commercial Banks 2.2% | |||||||
Associated Banc-Corp | 19,000 | 356,250 | |||||
Bank of Hawaii Corp. | 10,400 | 654,160 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
8 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Commercial Banks (continued) | |||||||
BankUnited, Inc. | 27,600 | $995,256 | |||||
Commerce Bancshares, Inc. | 10,920 | 464,537 | |||||
First Horizon National Corp. | 11,300 | 164,076 | |||||
First Niagara Financial Group, Inc. | 97,100 | 1,053,535 | |||||
First Republic Bank | 16,700 | 1,103,202 | |||||
JPMorgan Chase & Co. | 2,100 | 138,663 | |||||
People's United Financial, Inc. | 37,100 | 599,165 | |||||
Signature Bank* | 1,900 | 291,403 | |||||
Synovus Financial Corp. | 10,000 | 323,800 | |||||
Zions Bancorporation | 12,900 | 352,170 | |||||
6,496,217 | |||||||
Commercial Services & Supplies 1.0% | |||||||
Cintas Corp. | 1,800 | 163,890 | |||||
KAR Auction Services, Inc. | 1,500 | 55,545 | |||||
Republic Services, Inc. | 33,900 | 1,491,261 | |||||
Rollins, Inc. | 11,700 | 303,030 | |||||
Stericycle, Inc.* | 2,800 | 337,680 | |||||
Waste Connections, Inc. | 7,000 | 394,240 | |||||
Waste Management, Inc. | 4,700 | 250,839 | |||||
2,996,485 | |||||||
Communications Equipment 1.3% | |||||||
Arista Networks, Inc.*,# | 8,800 | 684,992 | |||||
Juniper Networks, Inc. | 3,300 | 91,080 | |||||
Motorola Solutions, Inc. | 4,400 | 301,180 | |||||
Palo Alto Networks, Inc.* | 15,900 | 2,800,626 | |||||
3,877,878 | |||||||
Construction Materials 0.3% | |||||||
Vulcan Materials Co. | 9,300 | 883,221 | |||||
Consumer Finance 0.2% | |||||||
Capital One Financial Corp. | 2,400 | 173,232 | |||||
SLM Corp.* | 16,400 | 106,928 | |||||
Synchrony Financial* | 7,100 | 215,911 | |||||
496,071 | |||||||
Containers & Packaging 0.2% | |||||||
AptarGroup, Inc. | 1,200 | 87,180 | |||||
Avery Dennison Corp. | 3,500 | 219,310 | |||||
Bemis Co., Inc. | 1,900 | 84,911 | |||||
Sealed Air Corp. | 5,300 | 236,380 | |||||
Silgan Holdings, Inc. | 1,000 | 53,720 | |||||
681,501 | |||||||
Distributors 0.1% | |||||||
LKQ Corp.* | 8,400 | 248,892 | |||||
Diversified Consumer Services 0.5% | |||||||
H&R Block, Inc. | 2,000 | 66,620 | |||||
Service Corp. International | 36,100 | 939,322 | |||||
ServiceMaster Global Holdings, Inc.* | 9,500 | 372,780 | |||||
1,378,722 | |||||||
Diversified Financial Services 2.0% | |||||||
Berkshire Hathaway, Inc. - Class B* | 1,300 | 171,652 | |||||
CBOE Holdings, Inc. | 23,600 | 1,531,640 | |||||
CME Group, Inc. | 16,800 | 1,522,080 | |||||
FactSet Research Systems, Inc. | 8,100 | 1,316,817 | |||||
Intercontinental Exchange, Inc. | 1,700 | 435,642 | |||||
MSCI, Inc. | 3,500 | 252,455 | |||||
Nasdaq, Inc. | 7,700 | 447,909 | |||||
5,678,195 | |||||||
Diversified Telecommunication Services 0.3% | |||||||
AT&T, Inc. | 22,376 | 769,958 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 9 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Electric Utilities 3.4% | ||||||||
American Electric Power Co., Inc. | 4,800 | $279,696 | ||||||
Duke Energy Corp. | 9,100 | 649,649 | ||||||
Edison International | 12,000 | 710,520 | ||||||
Entergy Corp. | 26,000 | 1,777,360 | ||||||
Eversource Energy | 11,000 | 561,770 | ||||||
Exelon Corp. | 34,000 | 944,180 | ||||||
Great Plains Energy, Inc. | 8,000 | 218,480 | ||||||
Hawaiian Electric Industries, Inc. | 23,100 | 668,745 | ||||||
Pepco Holdings, Inc. | 58,300 | 1,516,383 | ||||||
Pinnacle West Capital Corp. | 3,100 | 199,888 | ||||||
PPL Corp. | 7,400 | 252,562 | ||||||
Southern Co. | 31,300 | 1,464,527 | ||||||
Westar Energy, Inc. | 7,100 | 301,111 | ||||||
Xcel Energy, Inc. | 11,100 | 398,601 | ||||||
9,943,472 | ||||||||
Electrical Equipment 0.1% | ||||||||
Acuity Brands, Inc. | 1,600 | 374,080 | ||||||
Electronic Equipment, Instruments & Components 0.2% | ||||||||
CDW Corp. | 11,900 | 500,276 | ||||||
Ingram Micro, Inc. - Class A | 5,300 | 161,014 | ||||||
661,290 | ||||||||
Energy Equipment & Services 0% | ||||||||
Rowan Cos. PLC - Class A | 3,500 | 59,325 | ||||||
Food & Staples Retailing 2.3% | ||||||||
Costco Wholesale Corp. | 8,500 | 1,372,750 | ||||||
CVS Health Corp. | 19,100 | 1,867,407 | ||||||
Kroger Co. | 65,000 | 2,718,950 | ||||||
Sysco Corp. | 9,900 | 405,900 | ||||||
Walgreens Boots Alliance, Inc. | 2,700 | 229,919 | ||||||
6,594,926 | ||||||||
Food Products 5.2% | ||||||||
Campbell Soup Co. | 10,900 | 572,795 | ||||||
ConAgra Foods, Inc. | 64,000 | 2,698,240 | ||||||
Flowers Foods, Inc. | 10,100 | 217,049 | ||||||
General Mills, Inc. | 151,800 | 8,752,138 | ||||||
Hershey Co. | 1,900 | 169,613 | ||||||
Hormel Foods Corp. | 3,300 | 260,964 | ||||||
JM Smucker Co. | 800 | 98,672 | ||||||
Kellogg Co. | 6,100 | 440,847 | ||||||
McCormick & Co., Inc. | 4,900 | 419,244 | ||||||
Mondelez International, Inc. - Class A | 11,200 | 502,208 | ||||||
Pinnacle Foods, Inc. | 13,400 | 568,964 | ||||||
Tyson Foods, Inc. - Class A | 7,600 | 405,308 | ||||||
WhiteWave Foods Co.* | 1,100 | 42,801 | ||||||
15,148,843 | ||||||||
Gas Utilities 0.3% | ||||||||
AGL Resources, Inc. | 1,100 | 70,191 | ||||||
Atmos Energy Corp. | 5,400 | 340,416 | ||||||
UGI Corp. | 10,350 | 349,416 | ||||||
760,023 | ||||||||
Health Care Equipment & Supplies 2.6% | ||||||||
Alere, Inc.* | 23,900 | 934,251 | ||||||
Becton Dickinson and Co. | 600 | 92,454 | ||||||
CR Bard, Inc. | 800 | 151,552 | ||||||
DENTSPLY International, Inc. | 1,100 | 66,935 | ||||||
DexCom, Inc.* | 9,500 | 778,050 | ||||||
Edwards Lifesciences Corp.* | 28,200 | 2,227,236 | ||||||
Hill-Rom Holdings, Inc. | 7,000 | 336,420 | ||||||
Hologic, Inc.* | 19,300 | 746,717 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
10 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Health Care Equipment & Supplies (continued) | ||||||||
ResMed, Inc. | 1,400 | $75,166 | ||||||
Sirona Dental Systems, Inc.* | 10,900 | 1,194,313 | ||||||
Teleflex, Inc. | 6,400 | 841,280 | ||||||
7,444,374 | ||||||||
Health Care Providers & Services 7.2% | ||||||||
Aetna, Inc. | 10,890 | 1,177,427 | ||||||
AmerisourceBergen Corp. | 37,400 | 3,878,754 | ||||||
Anthem, Inc. | 29,200 | 4,071,648 | ||||||
Cardinal Health, Inc. | 6,100 | 544,547 | ||||||
Centene Corp.* | 9,100 | 598,871 | ||||||
Cigna Corp. | 15,200 | 2,224,216 | ||||||
DaVita HealthCare Partners, Inc.* | 1,600 | 111,536 | ||||||
HCA Holdings, Inc.* | 34,000 | 2,299,420 | ||||||
Health Net, Inc.* | 13,700 | 937,902 | ||||||
Henry Schein, Inc.* | 400 | 63,276 | ||||||
Humana, Inc. | 11,900 | 2,124,269 | ||||||
MEDNAX, Inc.* | 9,500 | 680,770 | ||||||
Patterson Cos., Inc. | 4,500 | 203,445 | ||||||
UnitedHealth Group, Inc. | 11,700 | 1,376,388 | ||||||
Universal Health Services, Inc. - Class B | 4,400 | 525,756 | ||||||
20,818,225 | ||||||||
Health Care Technology 0.2% | ||||||||
IMS Health Holdings, Inc.* | 19,800 | 504,306 | ||||||
Hotels, Restaurants & Leisure 2.8% | ||||||||
Brinker International, Inc. | 2,700 | 129,465 | ||||||
Chipotle Mexican Grill, Inc.* | 1,100 | 527,835 | ||||||
Darden Restaurants, Inc. | 21,900 | 1,393,716 | ||||||
Domino's Pizza, Inc. | 2,600 | 289,250 | ||||||
Dunkin' Brands Group, Inc. | 38,200 | 1,626,938 | ||||||
Marriott International, Inc. - Class A | 400 | 26,816 | ||||||
McDonald's Corp. | 3,800 | 448,932 | ||||||
Panera Bread Co. - Class A* | 8,400 | 1,636,152 | ||||||
Royal Caribbean Cruises, Ltd. (U.S. Shares) | 5,100 | 516,171 | ||||||
Six Flags Entertainment Corp. | 9,100 | 499,954 | ||||||
Starbucks Corp. | 14,800 | 888,444 | ||||||
7,983,673 | ||||||||
Household Durables 1.4% | ||||||||
DR Horton, Inc. | 16,600 | 531,698 | ||||||
Leggett & Platt, Inc. | 24,900 | 1,046,298 | ||||||
Mohawk Industries, Inc.* | 500 | 94,695 | ||||||
Newell Rubbermaid, Inc. | 14,900 | 656,792 | ||||||
NVR, Inc.* | 800 | 1,314,400 | ||||||
Tempur Sealy International, Inc.* | 4,900 | 345,254 | ||||||
3,989,137 | ||||||||
Household Products 1.8% | ||||||||
Church & Dwight Co., Inc. | 11,300 | 959,144 | ||||||
Clorox Co. | 10,100 | 1,280,983 | ||||||
Kimberly-Clark Corp. | 22,200 | 2,826,060 | ||||||
Procter & Gamble Co. | 1,400 | 111,174 | ||||||
Spectrum Brands Holdings, Inc. | 1,300 | 132,340 | ||||||
5,309,701 | ||||||||
Industrial Conglomerates 0.1% | ||||||||
Carlisle Cos., Inc. | 2,100 | 186,249 | ||||||
General Electric Co. | 4,300 | 133,945 | ||||||
320,194 | ||||||||
Information Technology Services 2.2% | ||||||||
Amdocs, Ltd. (U.S. Shares) | 15,400 | 840,378 | ||||||
Broadridge Financial Solutions, Inc. | 2,400 | 128,952 | ||||||
DST Systems, Inc. | 11,200 | 1,277,472 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 11 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Information Technology Services (continued) | |||||||
Fiserv, Inc.* | 5,100 | $466,446 | |||||
Genpact, Ltd.* | 6,900 | 172,362 | |||||
Global Payments, Inc. | 4,400 | 283,844 | |||||
International Business Machines Corp. | 3,100 | 426,622 | |||||
Jack Henry & Associates, Inc. | 4,300 | 335,658 | |||||
Leidos Holdings, Inc. | 1,800 | 101,268 | |||||
Paychex, Inc. | 3,700 | 195,693 | |||||
Sabre Corp. | 31,700 | 886,649 | |||||
Total System Services, Inc. | 6,600 | 328,680 | |||||
Vantiv, Inc. - Class A* | 17,300 | 820,366 | |||||
Visa, Inc. - Class A | 800 | 62,040 | |||||
6,326,430 | |||||||
Insurance 8.1% | |||||||
Allied World Assurance Co. Holdings AG | 37,300 | 1,387,187 | |||||
Allstate Corp. | 3,100 | 192,479 | |||||
American Financial Group, Inc. | 5,400 | 389,232 | |||||
American International Group, Inc. | 4,400 | 272,668 | |||||
AmTrust Financial Services, Inc. | 13,200 | 812,856 | |||||
Arch Capital Group, Ltd.* | 24,800 | 1,729,800 | |||||
Aspen Insurance Holdings, Ltd. | 7,300 | 352,590 | |||||
Assurant, Inc. | 13,600 | 1,095,344 | |||||
Axis Capital Holdings, Ltd. | 9,500 | 534,090 | |||||
Brown & Brown, Inc. | 10,500 | 337,050 | |||||
Chubb Corp. | 1,500 | 198,960 | |||||
Cincinnati Financial Corp. | 4,400 | 260,348 | |||||
Endurance Specialty Holdings, Ltd. | 17,000 | 1,087,830 | |||||
Everest Re Group, Ltd. | 12,400 | 2,270,316 | |||||
FNF Group | 26,600 | 922,222 | |||||
Hanover Insurance Group, Inc. | 3,800 | 309,092 | |||||
Hartford Financial Services Group, Inc. | 5,300 | 230,338 | |||||
Markel Corp.* | 2,000 | 1,766,700 | |||||
Old Republic International Corp. | 19,400 | 361,422 | |||||
PartnerRe, Ltd. | 12,900 | 1,802,646 | |||||
ProAssurance Corp. | 26,100 | 1,266,633 | |||||
Progressive Corp. | 18,000 | 572,400 | |||||
Reinsurance Group of America, Inc. | 700 | 59,885 | |||||
RenaissanceRe Holdings, Ltd. | 9,800 | 1,109,262 | |||||
StanCorp Financial Group, Inc. | 3,900 | 444,132 | |||||
Torchmark Corp. | 7,500 | 428,700 | |||||
Travelers Cos., Inc. | 1,300 | 146,718 | |||||
Validus Holdings, Ltd. | 25,900 | 1,198,911 | |||||
White Mountains Insurance Group, Ltd. | 1,000 | 726,810 | |||||
WR Berkley Corp. | 17,000 | 930,750 | |||||
XL Group PLC | 7,700 | 301,686 | |||||
23,499,057 | |||||||
Internet & Catalog Retail 0.4% | |||||||
Amazon.com, Inc.* | 1,200 | 811,068 | |||||
Netflix, Inc.* | 1,900 | 217,322 | |||||
1,028,390 | |||||||
Internet Software & Services 1.9% | |||||||
eBay, Inc.* | 4,300 | 118,164 | |||||
Facebook, Inc. - Class A* | 40,400 | 4,228,264 | |||||
IAC/InterActiveCorp | 3,000 | 180,150 | |||||
LinkedIn Corp. - Class A* | 700 | 157,556 | |||||
Pandora Media, Inc.* | 20,700 | 277,587 | |||||
VeriSign, Inc.*,# | 7,700 | 672,672 | |||||
5,634,393 | |||||||
Leisure Products 0.8% | |||||||
Hasbro, Inc. | 17,100 | 1,151,856 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
12 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | |||||||
Common Stocks (continued) | ||||||||
Leisure Products (continued) | ||||||||
Vista Outdoor, Inc.* | 23,500 | $1,045,985 | ||||||
2,197,841 | ||||||||
Life Sciences Tools & Services 0.6% | ||||||||
Bio-Rad Laboratories, Inc. - Class A* | 6,300 | 873,558 | ||||||
Quintiles Transnational Holdings, Inc.* | 12,300 | 844,518 | ||||||
Waters Corp.* | 700 | 94,206 | ||||||
1,812,282 | ||||||||
Machinery 0.5% | ||||||||
AGCO Corp. | 3,900 | 177,021 | ||||||
Deere & Co. | 1,700 | 129,659 | ||||||
Snap-on, Inc. | 2,300 | 394,289 | ||||||
Stanley Black & Decker, Inc. | 2,500 | 266,825 | ||||||
Toro Co. | 6,000 | 438,420 | ||||||
1,406,214 | ||||||||
Media 1.1% | ||||||||
Cablevision Systems Corp. - Class A | 3,200 | 102,080 | ||||||
Comcast Corp. - Class A | 1,100 | 62,073 | ||||||
Liberty Media Corp. - Class A* | 2,500 | 98,125 | ||||||
Lions Gate Entertainment Corp. (U.S. Shares)# | 16,000 | 518,240 | ||||||
Madison Square Garden Co.* | 366 | 59,219 | ||||||
Sirius XM Holdings, Inc.* | 22,600 | 91,982 | ||||||
Starz - Class A* | 42,800 | 1,433,800 | ||||||
Thomson Reuters Corp. | 1,300 | 49,205 | ||||||
Time Warner Cable, Inc. | 2,300 | 426,857 | ||||||
Walt Disney Co. | 3,200 | 336,256 | ||||||
3,177,837 | ||||||||
Metals & Mining 0.1% | ||||||||
Newmont Mining Corp. | 11,700 | 210,483 | ||||||
Multiline Retail 1.4% | ||||||||
Dollar General Corp. | 11,600 | 833,692 | ||||||
Dollar Tree, Inc.* | 17,420 | 1,345,172 | ||||||
JC Penney Co., Inc.*,# | 16,400 | 109,224 | ||||||
Nordstrom, Inc. | 4,000 | 199,240 | ||||||
Target Corp. | 20,000 | 1,452,200 | ||||||
3,939,528 | ||||||||
Multi-Utilities 2.0% | ||||||||
Ameren Corp. | 5,900 | 255,057 | ||||||
CMS Energy Corp. | 8,800 | 317,504 | ||||||
Consolidated Edison, Inc. | 26,300 | 1,690,301 | ||||||
Dominion Resources, Inc. | 3,800 | 257,032 | ||||||
DTE Energy Co. | 3,400 | 272,646 | ||||||
NiSource, Inc. | 11,800 | 230,218 | ||||||
PG&E Corp. | 19,400 | 1,031,886 | ||||||
Public Service Enterprise Group, Inc. | 2,600 | 100,594 | ||||||
SCANA Corp. | 2,700 | 163,323 | ||||||
Sempra Energy | 4,900 | 460,649 | ||||||
TECO Energy, Inc. | 10,700 | 285,155 | ||||||
Vectren Corp. | 2,600 | 110,292 | ||||||
WEC Energy Group, Inc. | 12,676 | 650,406 | ||||||
5,825,063 | ||||||||
Oil, Gas & Consumable Fuels 0.6% | ||||||||
HollyFrontier Corp. | 14,000 | 558,460 | ||||||
Phillips 66 | 700 | 57,260 | ||||||
Tesoro Corp. | 11,900 | 1,253,903 | ||||||
1,869,623 | ||||||||
Personal Products 0.3% | ||||||||
Coty, Inc. - Class A# | 25,600 | 656,128 | ||||||
Estee Lauder Cos., Inc. - Class A | 3,000 | 264,180 | ||||||
920,308 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 13 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Pharmaceuticals 1.5% | |||||||
Allergan PLC* | 5,722 | $1,788,125 | |||||
Eli Lilly & Co. | 12,900 | 1,086,954 | |||||
Mallinckrodt PLC* | 9,243 | 689,805 | |||||
Pfizer, Inc. | 6,800 | 219,504 | |||||
Zoetis, Inc. | 14,000 | 670,880 | |||||
4,455,268 | |||||||
Professional Services 0.2% | |||||||
Equifax, Inc. | 2,300 | 256,151 | |||||
Towers Watson & Co. - Class A | 2,200 | 282,612 | |||||
Verisk Analytics, Inc. - Class A* | 1,000 | 76,880 | |||||
615,643 | |||||||
Real Estate Investment Trusts (REITs) 12.4% | |||||||
Alexandria Real Estate Equities, Inc. | 14,700 | 1,328,292 | |||||
American Capital Agency Corp. | 15,900 | 275,706 | |||||
American Homes 4 Rent - Class A | 4,700 | 78,302 | |||||
Annaly Capital Management, Inc. | 182,000 | 1,707,160 | |||||
Apartment Investment & Management Co. - Class A | 52,000 | 2,081,560 | |||||
AvalonBay Communities, Inc. | 14,300 | 2,633,059 | |||||
Brixmor Property Group, Inc. | 3,500 | 90,370 | |||||
Camden Property Trust | 8,500 | 652,460 | |||||
Care Capital Properties, Inc. | 1,425 | 43,562 | |||||
Chimera Investment Corp. | 7,300 | 99,572 | |||||
Crown Castle International Corp. | 400 | 34,580 | |||||
Digital Realty Trust, Inc. | 48,300 | 3,652,446 | |||||
Equinix, Inc. | 1,413 | 427,291 | |||||
Equity Commonwealth* | 11,200 | 310,576 | |||||
Equity Lifestyle Properties, Inc. | 31,500 | 2,100,105 | |||||
Equity Residential | 32,500 | 2,651,675 | |||||
Essex Property Trust, Inc. | 8,200 | 1,963,162 | |||||
Extra Space Storage, Inc. | 23,900 | 2,108,219 | |||||
Federal Realty Investment Trust | 4,800 | 701,280 | |||||
Four Corners Property Trust, Inc. | 7,300 | 176,368 | |||||
Gaming and Leisure Properties, Inc. | 9,200 | 255,760 | |||||
HCP, Inc. | 2,500 | 95,600 | |||||
Healthcare Trust of America, Inc. - Class A | 3,800 | 102,486 | |||||
Kimco Realty Corp. | 4,000 | 105,840 | |||||
Lamar Advertising Co. - Class A | 2,300 | 137,954 | |||||
Macerich Co. | 10,600 | 855,314 | |||||
MFA Financial, Inc. | 59,800 | 394,680 | |||||
Mid-America Apartment Communities, Inc. | 4,600 | 417,726 | |||||
Omega Healthcare Investors, Inc. | 9,800 | 342,804 | |||||
Piedmont Office Realty Trust, Inc. - Class A | 21,000 | 396,480 | |||||
Post Properties, Inc. | 21,700 | 1,283,772 | |||||
Public Storage | 5,300 | 1,312,810 | |||||
Realty Income Corp. | 9,700 | 500,811 | |||||
Regency Centers Corp. | 1,300 | 88,556 | |||||
Retail Properties of America, Inc. - Class A | 37,500 | 553,875 | |||||
Simon Property Group, Inc. | 900 | 174,996 | |||||
Starwood Property Trust, Inc. | 3,100 | 63,736 | |||||
Tanger Factory Outlet Centers, Inc. | 5,300 | 173,310 | |||||
Taubman Centers, Inc. | 2,800 | 214,816 | |||||
Two Harbors Investment Corp. | 144,800 | 1,172,880 | |||||
UDR, Inc. | 32,700 | 1,228,539 | |||||
Ventas, Inc. | 5,700 | 321,651 | |||||
Welltower, Inc. | 36,900 | 2,510,307 | |||||
35,820,448 | |||||||
Road & Rail 0.4% | |||||||
AMERCO | 2,800 | 1,090,600 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
14 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Road & Rail (continued) | |||||||
Landstar System, Inc. | 2,300 | $134,895 | |||||
1,225,495 | |||||||
Semiconductor & Semiconductor Equipment 0.4% | |||||||
Intel Corp. | 2,500 | 86,125 | |||||
NVIDIA Corp. | 10,500 | 346,080 | |||||
Skyworks Solutions, Inc. | 7,900 | 606,957 | |||||
1,039,162 | |||||||
Software 1.0% | |||||||
Activision Blizzard, Inc. | 23,000 | 890,330 | |||||
Adobe Systems, Inc.* | 2,300 | 216,062 | |||||
Electronic Arts, Inc.* | 14,900 | 1,023,928 | |||||
Nuance Communications, Inc.* | 10,100 | 200,889 | |||||
SolarWinds, Inc.* | 3,300 | 194,370 | |||||
SS&C Technologies Holdings, Inc. | 1,600 | 109,232 | |||||
Synopsys, Inc.* | 500 | 22,805 | |||||
Ultimate Software Group, Inc.* | 900 | 175,959 | |||||
VMware, Inc. - Class A* | 700 | 39,599 | |||||
2,873,174 | |||||||
Specialty Retail 7.8% | |||||||
Aaron's, Inc. | 4,100 | 91,799 | |||||
Advance Auto Parts, Inc. | 5,100 | 767,601 | |||||
AutoZone, Inc.* | 3,300 | 2,448,303 | |||||
Cabela's, Inc.* | 1,400 | 65,422 | |||||
Foot Locker, Inc. | 42,100 | 2,740,289 | |||||
GameStop Corp. - Class A# | 20,100 | 563,604 | |||||
Home Depot, Inc. | 10,700 | 1,415,075 | |||||
L Brands, Inc. | 36,600 | 3,507,012 | |||||
Lowe's Cos., Inc. | 22,000 | 1,672,880 | |||||
O'Reilly Automotive, Inc.* | 10,600 | 2,686,252 | |||||
Ross Stores, Inc. | 31,000 | 1,668,110 | |||||
Sally Beauty Holdings, Inc.* | 3,500 | 97,615 | |||||
Signet Jewelers, Ltd. | 1,400 | 173,166 | |||||
Staples, Inc. | 97,900 | 927,113 | |||||
TJX Cos., Inc. | 2,600 | 184,366 | |||||
Ulta Salon Cosmetics & Fragrance, Inc.* | 17,400 | 3,219,000 | |||||
Williams-Sonoma, Inc. | 3,900 | 227,799 | |||||
22,455,406 | |||||||
Technology Hardware, Storage & Peripherals 1.1% | |||||||
Apple, Inc. | 29,000 | 3,052,540 | |||||
Textiles, Apparel & Luxury Goods 2.3% | |||||||
Carter's, Inc. | 15,700 | 1,397,771 | |||||
Hanesbrands, Inc. | 76,300 | 2,245,509 | |||||
NIKE, Inc. - Class B | 12,000 | 750,000 | |||||
PVH Corp. | 1,600 | 117,840 | |||||
Skechers U.S.A., Inc. - Class A* | 53,400 | 1,613,214 | |||||
Under Armour, Inc. - Class A | 5,700 | 459,477 | |||||
VF Corp. | 2,800 | 174,300 | |||||
6,758,111 | |||||||
Thrifts & Mortgage Finance 0.3% | |||||||
New York Community Bancorp, Inc.# | 52,100 | 850,272 | |||||
Tobacco 5.1% | |||||||
Altria Group, Inc. | 123,700 | 7,200,577 | |||||
Philip Morris International, Inc. | 1,300 | 114,283 | |||||
Reynolds American, Inc. | 160,612 | 7,412,244 | |||||
14,727,104 | |||||||
Trading Companies & Distributors 0.1% | |||||||
Watsco, Inc. | 900 | 105,417 | |||||
WW Grainger, Inc. | 300 | 60,777 | |||||
166,194 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
Janus Investment Fund | 15 |
INTECH U.S. Managed Volatility Fund
Schedule of Investments (unaudited)
December 31, 2015
| Value | ||||||
Common Stocks (continued) | |||||||
Transportation Infrastructure 0.1% | |||||||
Macquarie Infrastructure Corp. | 2,000 | $145,200 | |||||
Water Utilities 0.7% | |||||||
American Water Works Co., Inc. | 31,400 | 1,876,150 | |||||
Aqua America, Inc. | 5,900 | 175,820 | |||||
2,051,970 | |||||||
Wireless Telecommunication Services 0.6% | |||||||
SBA Communications Corp. - Class A* | 13,300 | 1,397,431 | |||||
T-Mobile US, Inc.* | 10,500 | 410,760 | |||||
1,808,191 | |||||||
Total Common Stocks (cost $258,729,395) | 283,296,985 | ||||||
Investment Companies 3.3% | |||||||
Investments Purchased with Cash Collateral from Securities Lending 1.4% | |||||||
Janus Cash Collateral Fund LLC, 0.3005%ºº,£ | 4,085,295 | 4,085,295 | |||||
Money Markets 1.9% | |||||||
Janus Cash Liquidity Fund LLC, 0.3105%ºº,£ | 5,507,000 | 5,507,000 | |||||
Total Investment Companies (cost $9,592,295) | 9,592,295 | ||||||
Total Investments (total cost $268,321,690) 101.3% | 292,889,280 | ||||||
Liabilities, net of Cash, Receivables and Other Assets (1.3)% | (3,630,473) | ||||||
Net Assets 100% | $289,258,807 |
Summary of Investments by Country - (Long Positions) (unaudited) | |||||
% of | |||||
Investment | |||||
Country | Value | Securities | |||
United States | $292,667,713 | 99.9 | % | ||
India | 172,362 | 0.1 | |||
Canada* | 49,205 | 0.0 | |||
Total | $292,889,280 | 100.0 | % |
*Less than 0.05%
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements. | |
16 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Notes to Schedule of Investments and Other Information (unaudited)
Russell 1000® Index | Measures the performance of the large-cap segment of the U.S. equity universe. |
Russell 1000® Value Index | Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. |
LLC | Limited Liability Company |
PLC | Public Limited Company |
U.S. Shares | Securities of foreign companies trading on an American stock exchange. |
* | Non-income producing security. |
ºº | Rate shown is the 7-day yield as of December 31, 2015. |
# | Loaned security; a portion of the security is on loan at December 31, 2015. |
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Funds relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2015. Unless otherwise indicated, all information in the table is for the period ended December 31, 2015. |
| Share | Purchases | Sales | Share | Dividend | Value |
Janus Cash Collateral Fund LLC | 830,812 | 31,445,755 | (28,191,272) | 4,085,295 | $ 12,096(1) | $ 4,085,295 |
Janus Cash Liquidity Fund LLC | 1,683,797 | 63,306,409 | (59,483,206) | 5,507,000 | 3,259 | 5,507,000 |
Total | $ 15,355 | $ 9,592,295 |
(1) Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties.
The following is a summary of the inputs that were used to value the Fund's investments in securities and other financial instruments as of December 31, 2015. See Notes to Financial Statements for more information. | |||
Valuation Inputs Summary | |||
| Level 1 - | Level 2 - | Level 3 - |
Assets | |||
Investments in Securities: | |||
Common Stocks | $ 283,296,985 | $ - | $ - |
Investment Companies | - | 9,592,295 | - |
Total Assets | $ 283,296,985 | $ 9,592,295 | $ - |
Janus Investment Fund | 17 |
INTECH U.S. Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
See footnotes at the end of the Statement. |
Assets: |
|
|
|
| ||
Investments, at cost | $ | 268,321,690 | ||||
Unaffiliated investments, at value(1) | $ | 283,296,985 | ||||
Affiliated investments, at value | 9,592,295 | |||||
Non-interested Trustees' deferred compensation | 5,850 | |||||
Receivables: | ||||||
Dividends | 648,993 | |||||
Fund shares sold | 447,748 | |||||
Dividends from affiliates | 308 | |||||
Other assets | 2,901 | |||||
Total Assets |
|
| 293,995,080 |
| ||
Liabilities: | ||||||
Due to custodian | 86,264 | |||||
Collateral for securities loaned (Note 2) | 4,085,295 | |||||
Payables: | | |||||
Fund shares repurchased | 234,467 | |||||
Advisory fees | 134,810 | |||||
Transfer agent fees and expenses | 38,430 | |||||
Professional fees | 19,162 | |||||
12b-1 Distribution and shareholder servicing fees | 13,602 | |||||
Non-interested Trustees' deferred compensation fees | 5,850 | |||||
Fund administration fees | 2,561 | |||||
Non-interested Trustees' fees and expenses | 1,584 | |||||
Custodian fees | 966 | |||||
Accrued expenses and other payables | 113,282 | |||||
Total Liabilities |
|
| 4,736,273 |
| ||
Net Assets |
| $ | 289,258,807 |
|
See Notes to Financial Statements. | |
18 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Statement of Assets and Liabilities (unaudited)
December 31, 2015
Net Assets Consist of: |
|
|
|
| ||
Capital (par value and paid-in surplus) | $ | 329,253,931 | ||||
Undistributed net investment income/(loss) | 1,566,648 | |||||
Undistributed net realized gain/(loss) from investments | (66,129,854) | |||||
Unrealized net appreciation/(depreciation) of investments and non-interested Trustees deferred compensation | 24,568,082 | |||||
Total Net Assets |
| $ | 289,258,807 |
| ||
Net Assets - Class A Shares | $ | 15,135,569 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,666,037 | |||||
Net Asset Value Per Share(2) |
| $ | 9.08 |
| ||
Maximum Offering Price Per Share(3) |
| $ | 9.63 |
| ||
Net Assets - Class C Shares | $ | 11,080,807 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,246,761 | |||||
Net Asset Value Per Share(2) |
| $ | 8.89 |
| ||
Net Assets - Class D Shares | $ | 5,906,424 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 657,995 | |||||
Net Asset Value Per Share |
| $ | 8.98 |
| ||
Net Assets - Class I Shares | $ | 75,214,316 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 8,291,947 | |||||
Net Asset Value Per Share |
| $ | 9.07 |
| ||
Net Assets - Class N Shares | $ | 71,607,207 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,923,320 | |||||
Net Asset Value Per Share |
| $ | 9.04 |
| ||
Net Assets - Class S Shares | $ | 6,039,433 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 666,539 | |||||
Net Asset Value Per Share |
| $ | 9.06 |
| ||
Net Assets - Class T Shares | $ | 104,275,051 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 11,622,450 | |||||
Net Asset Value Per Share |
| $ | 8.97 |
|
(1) Includes $3,984,463 of securities on loan. See Note 2 in Notes to Financial Statements. (2) Redemption price per share may be reduced for any applicable contingent deferred sales charge. (3) Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements. | |
Janus Investment Fund | 19 |
INTECH U.S. Managed Volatility Fund
Statement of Operations (unaudited)
For the period ended December 31, 2015
Investment Income: |
|
|
| ||
| Dividends | $ | 2,841,835 | ||
Affiliated securities lending income, net | 12,096 | ||||
Dividends from affiliates | 3,259 | ||||
Other income | 345 | ||||
Foreign tax withheld | (546) | ||||
Total Investment Income |
| 2,856,989 |
| ||
Expenses: | |||||
Advisory fees | 726,306 | ||||
12b-1Distribution and shareholder servicing fees: | |||||
Class A Shares | 14,831 | ||||
Class C Shares | 22,165 | ||||
Class S Shares | 14,404 | ||||
Transfer agent administrative fees and expenses: | |||||
Class D Shares | 2,777 | ||||
Class S Shares | 15,722 | ||||
Class T Shares | 119,479 | ||||
Transfer agent networking and omnibus fees: | |||||
Class A Shares | 4,135 | ||||
Class I Shares | 16,354 | ||||
Other transfer agent fees and expenses: | |||||
Class A Shares | 435 | ||||
Class C Shares | 272 | ||||
Class D Shares | 1,335 | ||||
Class I Shares | 1,497 | ||||
Class N Shares | 364 | ||||
Class S Shares | 317 | ||||
Class T Shares | 408 | ||||
Registration fees | 145,756 | ||||
Shareholder reports expense | 40,012 | ||||
Professional fees | 19,400 | ||||
Fund administration fees | 13,800 | ||||
Custodian fees | 3,512 | ||||
Non-interested Trustees fees and expenses | 2,518 | ||||
Other expenses | 15,547 | ||||
Total Expenses |
| 1,181,346 |
| ||
Less: Excess Expense Reimbursement |
| (9,390) |
| ||
Net Expenses |
| 1,171,956 |
| ||
Net Investment Income/(Loss) |
| 1,685,033 |
| ||
Net Realized Gain/(Loss) on Investments: | |||||
Investments | 907,290 | ||||
Total Net Realized Gain/(Loss) on Investments |
| 907,290 |
| ||
Change in Unrealized Net Appreciation/Depreciation: | |||||
Investments and non-interested Trustees deferred compensation | 820,463 | ||||
Total Change in Unrealized Net Appreciation/Depreciation |
| 820,463 |
| ||
Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 3,412,786 |
| ||
See Notes to Financial Statements. | |
20 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Statements of Changes in Net Assets (unaudited)
|
|
| Period
ended |
| Year ended | |||
Operations: | ||||||||
Net investment income/(loss) | $ | 1,685,033 | $ | 1,881,993 | ||||
Net realized gain/(loss) on investments | 907,290 | 14,665,364 | ||||||
Change in unrealized net appreciation/depreciation | 820,463 | (19,098,471) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations |
| 3,412,786 |
|
| (2,551,114) | |||
Dividends and Distributions to Shareholders: | ||||||||
Class A Shares | (47,145) | (17,377) | ||||||
Class C Shares | (13,428) | (8,693) | ||||||
Class D Shares | (19,297) | | ||||||
Class I Shares | (312,277) | (556,163) | ||||||
Class N Shares | (327,842) | (861,822) | ||||||
Class S Shares | (19,003) | (1,341) | ||||||
Class T Shares | (345,943) | (465,851) | ||||||
| Total Dividends from Net Investment Income |
| (1,084,935) |
|
| (1,911,247) | ||
Distributions from Net Realized Gain from Investment Transactions | ||||||||
Class A Shares | | (696,427) | ||||||
Class C Shares | | (326,843) | ||||||
Class D Shares | | (356,500) | ||||||
Class I Shares | | (6,745,178) | ||||||
Class N Shares | | (13,263,446) | ||||||
Class S Shares | | (275,041) | ||||||
Class T Shares | | (7,568,371) | ||||||
| Total Distributions from Net Realized Gain from Investment Transactions | |
|
| (29,231,806) | |||
Net Decrease from Dividends and Distributions to Shareholders |
| (1,084,935) |
|
| (31,143,053) | |||
Capital Share Transactions: | ||||||||
Class A Shares | 6,204,078 | 8,281,097 | ||||||
Class C Shares | 6,739,394 | 3,896,211 | ||||||
Class D Shares | 2,559,300 | 3,703,865 | ||||||
Class I Shares | (27,147,620) | 8,092,888 | ||||||
Class N Shares | (3,623,973) | 85,995,060 | ||||||
Class S Shares | (6,947,871) | 13,494,026 | ||||||
Class T Shares | 21,562,360 | 72,769,233 | ||||||
Net Increase/(Decrease) from Capital Share Transactions |
| (654,332) |
|
| 196,232,380 | |||
Net Increase/(Decrease) in Net Assets |
| 1,673,519 |
|
| 162,538,213 | |||
Net Assets: | ||||||||
Beginning of period | 287,585,288 | 125,047,075 | ||||||
| End of period | $ | 289,258,807 |
| $ | 287,585,288 | ||
Undistributed Net Investment Income/(Loss) | $ | 1,566,648 |
| $ | 966,550 |
(1) Period from December 22, 2014 (inception date) through June 30, 2015 and October 28, 2014 (inception date) through June 30, 2015 for Class D Shares and Class N Shares, respectively. |
See Notes to Financial Statements. | |
Janus Investment Fund | 21 |
INTECH U.S. Managed Volatility Fund (unaudited)
Financial Highlights
Class A Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 | |||||
Net Asset Value, Beginning of Period |
| $9.04 |
|
| $13.16 |
|
| $12.45 |
|
| $10.15 |
|
| $10.03 |
|
| $7.85 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.05(1) | 0.12(1) | 0.12(1) | 0.16 | 0.15 | 0.13 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.02 | 0.38 | 2.78 | 2.33 | 0.11 | 2.16 | |||||||||||||||
Total from Investment Operations |
| 0.07 |
|
| 0.50 |
|
| 2.90 |
|
| 2.49 |
|
| 0.26 |
|
| 2.29 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.03) | (0.14) | (0.11) | (0.19) | (0.14) | (0.11) | |||||||||||||||
Distributions (from capital gains) | | (4.48) | (2.08) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.03) |
|
| (4.62) |
|
| (2.19) |
|
| (0.19) |
|
| (0.14) |
|
| (0.11) |
| |||
Net Asset Value, End of Period | $9.08 | $9.04 | $13.16 | $12.45 | $10.15 | $10.03 | |||||||||||||||
Total Return* |
| 0.77% |
|
| 4.04% |
|
| 24.98% |
|
| 24.86% |
|
| 2.71% |
|
| 29.23% |
| |||
Net Assets, End of Period (in thousands) | $15,136 | $8,845 | $1,424 | $7,348 | $5,494 | $4,980 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $11,865 | $2,962 | $8,530 | $6,373 | $5,099 | $4,598 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.01% | 1.03% | 1.03% | 0.97% | 0.92% | 0.95% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.01% | 1.03% | 1.01% | 0.97% | 0.92% | 0.95% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.08% | 1.17% | 0.91% | 1.37% | 1.54% | 1.38% | |||||||||||||||
Portfolio Turnover Rate | 41% | 107% | 150% | 100% | 100% | 108% | |||||||||||||||
1 |
Class C Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $8.85 |
|
| $13.09 |
|
| $12.43 |
|
| $10.14 |
|
| $9.94 |
|
| $7.81 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.03(1) | 0.04(1) | 0.04(1) | (0.08) | 0.18 | 0.14 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.02 | 0.37 | 2.77 | 2.49 | 0.02 | 2.05 | |||||||||||||||
Total from Investment Operations |
| 0.05 |
|
| 0.41 |
|
| 2.81 |
|
| 2.41 |
|
| 0.20 |
|
| 2.19 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.01) | (0.17) | (0.07) | (0.12) | | (0.06) | |||||||||||||||
Distributions (from capital gains) | | (4.48) | (2.08) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.01) |
|
| (4.65) |
|
| (2.15) |
|
| (0.12) |
|
| |
|
| (0.06) |
| |||
Net Asset Value, End of Period | $8.89 | $8.85 | $13.09 | $12.43 | $10.14 | $9.94 | |||||||||||||||
Total Return* |
| 0.61% |
|
| 3.26% |
|
| 24.20% |
|
| 23.97% |
|
| 2.01% |
|
| 28.03% |
| |||
Net Assets, End of Period (in thousands) | $11,081 | $4,330 | $861 | $380 | $147 | $217 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $5,455 | $1,567 | $643 | $206 | $164 | $432 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.52% | 1.73% | 1.67% | 1.69% | 1.72% | 1.74% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.52% | 1.73% | 1.67% | 1.69% | 1.61% | 1.74% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.69% | 0.41% | 0.31% | 0.57% | 0.81% | 0.58% | |||||||||||||||
Portfolio Turnover Rate | 41% | 107% | 150% | 100% | 100% | 108% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
22 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Financial Highlights
Class D Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $8.93 |
|
| $10.10 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.05 | 0.03 | |||||||
Net realized and unrealized gain/(loss) | 0.03 | 0.16 | |||||||
Total from Investment Operations |
| 0.08 |
|
| 0.19 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.03) | | |||||||
Distributions (from capital gains) | | (1.36) | |||||||
Total Dividends and Distributions |
| (0.03) |
|
| (1.36) |
| |||
Net Asset Value, End of Period | $8.98 | $8.93 | |||||||
Total Return* |
| 0.90% |
|
| 1.50% |
| |||
Net Assets, End of Period (in thousands) | $5,906 | $3,322 | |||||||
Average Net Assets for the Period (in thousands) | $4,505 | $2,101 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.92% | 1.21% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.92% | 1.11% | |||||||
Ratio of Net Investment Income/(Loss) | 1.20% | 0.66% | |||||||
Portfolio Turnover Rate | 41% | 107% | |||||||
Class I Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $9.02 |
|
| $13.25 |
|
| $12.51 |
|
| $10.19 |
|
| $10.07 |
|
| $7.89 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.06(2) | 0.16(2) | 0.17(2) | 0.22 | 0.17 | 0.15 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.03 | 0.38 | 2.80 | 2.32 | 0.12 | 2.16 | |||||||||||||||
Total from Investment Operations |
| 0.09 |
|
| 0.54 |
|
| 2.97 |
|
| 2.54 |
|
| 0.29 |
|
| 2.31 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.04) | (0.29) | (0.15) | (0.22) | (0.17) | (0.13) | |||||||||||||||
Distributions (from capital gains) | | (4.48) | (2.08) | | | | |||||||||||||||
Redemption fees | N/A | N/A | N/A | N/A | (3) | | |||||||||||||||
Total Dividends and Distributions |
| (0.04) |
|
| (4.77) |
|
| (2.23) |
|
| (0.22) |
|
| (0.17) |
|
| (0.13) |
| |||
Net Asset Value, End of Period | $9.07 | $9.02 | $13.25 | $12.51 | $10.19 | $10.07 | |||||||||||||||
Total Return* |
| 0.98% |
|
| 4.35% |
|
| 25.48% |
|
| 25.23% |
|
| 2.96% |
|
| 29.38% |
| |||
Net Assets, End of Period (in thousands) | $75,214 | $101,060 | $104,039 | $77,625 | $93,800 | $93,695 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $83,206 | $61,707 | $86,864 | $93,335 | $89,976 | $84,034 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.71% | 0.71% | 0.66% | 0.67% | 0.67% | 0.68% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.71% | 0.71% | 0.66% | 0.67% | 0.67% | 0.68% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.21% | 1.36% | 1.32% | 1.71% | 1.78% | 1.64% | |||||||||||||||
Portfolio Turnover Rate | 41% | 107% | 150% | 100% | 100% | 108% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from December 22, 2014 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. (3) Redemption fees aggregated less than $0.005 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements. | |
Janus Investment Fund | 23 |
INTECH U.S. Managed Volatility Fund (unaudited)
Financial Highlights
Class N Shares | |||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and the period ended June 30, 2015 | 2015 |
|
| 2015(1) |
| ||||
Net Asset Value, Beginning of Period |
| $8.99 |
|
| $13.03 |
| |||
Income/(Loss) from Investment Operations: | |||||||||
Net investment income/(loss)(2) | 0.06 | 0.11 | |||||||
Net realized and unrealized gain/(loss) | 0.03 | 0.66 | |||||||
Total from Investment Operations |
| 0.09 |
|
| 0.77 |
| |||
Less Dividends and Distributions: | |||||||||
Dividends (from net investment income) | (0.04) | (0.33) | |||||||
Distributions (from capital gains) | | (4.48) | |||||||
Total Dividends and Distributions |
| (0.04) |
|
| (4.81) |
| |||
Net Asset Value, End of Period | $9.04 | $8.99 | |||||||
Total Return* |
| 1.02% |
|
| 6.22% |
| |||
Net Assets, End of Period (in thousands) | $71,607 | $74,862 | |||||||
Average Net Assets for the Period (in thousands) | $73,392 | $53,040 | |||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.68% | 0.72% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.68% | 0.72% | |||||||
Ratio of Net Investment Income/(Loss) | 1.32% | 1.56% | |||||||
Portfolio Turnover Rate | 41% | 107% | |||||||
Class S Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 |
| ||||
Net Asset Value, Beginning of Period |
| $9.01 |
|
| $13.27 |
|
| $12.53 |
|
| $10.15 |
|
| $10.02 |
|
| $7.85 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.04(2) | 0.11(2) | 0.11(2) | 0.90 | 0.13 | 0.15 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.02 | 0.39 | 2.82 | 1.63 | 0.11 | 2.11 | |||||||||||||||
Total from Investment Operations |
| 0.06 |
|
| 0.50 |
|
| 2.93 |
|
| 2.53 |
|
| 0.24 |
|
| 2.26 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.01) | (0.28) | (0.11) | (0.15) | (0.11) | (0.09) | |||||||||||||||
Distributions (from capital gains) | | (4.48) | (2.08) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.01) |
|
| (4.76) |
|
| (2.19) |
|
| (0.15) |
|
| (0.11) |
|
| (0.09) |
| |||
Net Asset Value, End of Period | $9.06 | $9.01 | $13.27 | $12.53 | $10.15 | $10.02 | |||||||||||||||
Total Return* |
| 0.71% |
|
| 3.99% |
|
| 25.01% |
|
| 25.12% |
|
| 2.48% |
|
| 28.81% |
| |||
Net Assets, End of Period (in thousands) | $6,039 | $12,967 | $64 | $64 | $221 | $216 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $12,410 | $2,892 | $63 | $132 | $208 | $254 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 1.15% | 1.20% | 1.23% | 1.16% | 1.15% | 1.17% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 1.10% | 1.18% | 1.08% | 0.97% | 1.09% | 1.17% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 0.79% | 1.20% | 0.88% | 1.41% | 1.36% | 1.16% | |||||||||||||||
Portfolio Turnover Rate | 41% | 107% | 150% | 100% | 100% | 108% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Period from October 28, 2014 (inception date) through June 30, 2015. (2) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
24 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Financial Highlights
Class T Shares | |||||||||||||||||||||
For a share outstanding during the period ended December 31, 2015 (unaudited) and each year ended June 30 | 2015 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
|
| 2012 |
|
| 2011 | |||||
Net Asset Value, Beginning of Period |
| $8.93 |
|
| $13.19 |
|
| $12.48 |
|
| $10.18 |
|
| $10.05 |
|
| $7.87 |
| |||
Income/(Loss) from Investment Operations: | |||||||||||||||||||||
Net investment income/(loss) | 0.05(1) | 0.13(1) | 0.14(1) | 0.19 | 0.13 | 0.15 | |||||||||||||||
Net realized and unrealized gain/(loss) | 0.02 | 0.38 | 2.80 | 2.31 | 0.13 | 2.15 | |||||||||||||||
Total from Investment Operations |
| 0.07 |
|
| 0.51 |
|
| 2.94 |
|
| 2.50 |
|
| 0.26 |
|
| 2.30 |
| |||
Less Dividends and Distributions: | |||||||||||||||||||||
Dividends (from net investment income) | (0.03) | (0.29) | (0.15) | (0.20) | (0.13) | (0.12) | |||||||||||||||
Distributions (from capital gains) | | (4.48) | (2.08) | | | | |||||||||||||||
Total Dividends and Distributions |
| (0.03) |
|
| (4.77) |
|
| (2.23) |
|
| (0.20) |
|
| (0.13) |
|
| (0.12) |
| |||
Net Asset Value, End of Period | $8.97 | $8.93 | $13.19 | $12.48 | $10.18 | $10.05 | |||||||||||||||
Total Return* |
| 0.79% |
|
| 4.19% |
|
| 25.27% |
|
| 24.84% |
|
| 2.73% |
|
| 29.29% |
| |||
Net Assets, End of Period (in thousands) | $104,275 | $82,199 | $18,659 | $479 | $58 | $17 | |||||||||||||||
Average Net Assets for the Period (in thousands) | $93,351 | $31,644 | $9,758 | $205 | $36 | $35 | |||||||||||||||
Ratios to Average Net Assets**: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Ratio of Gross Expenses | 0.94% | 0.95% | 0.90% | 0.91% | 0.89% | 0.95% | |||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) | 0.92% | 0.95% | 0.90% | 0.89% | 0.89% | 0.95% | |||||||||||||||
Ratio of Net Investment Income/(Loss) | 1.13% | 1.27% | 1.09% | 1.28% | 1.54% | 1.39% | |||||||||||||||
Portfolio Turnover Rate | 41% | 107% | 150% | 100% | 100% | 108% | |||||||||||||||
* Total return not annualized for periods of less than one full year. ** Annualized for periods of less than one full year. (1) Per share amounts are calculated based on average shares outstanding during the year or period. |
See Notes to Financial Statements. | |
Janus Investment Fund | 25 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
1. Organization and Significant Accounting Policies
INTECH U.S. Managed Volatility Fund (the Fund) is a series fund. The Fund is part of Janus Investment Fund (the Trust), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company, and therefore has applied the specialized accounting and reporting guidance in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946. The Trust offers forty-five Funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in common stocks. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. Class D Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain direct institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class N Shares are generally available only to financial intermediaries purchasing on behalf of 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and nonqualified deferred compensation plans. Class N Shares are also available to Janus proprietary products.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (Janus Capital) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the Valuation Procedures). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is no current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (OTC) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (NYSE). The Fund will determine the market value of individual securities held by it by using prices provided by one or more approved professional pricing services or, as needed, by obtaining market quotations from independent broker-dealers. Most debt securities are valued in accordance with the evaluated bid price supplied by the pricing service that is
26 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Certain short-term securities maturing within 60 days or less may be evaluated and valued on an amortized cost basis provided that the amortized cost determined approximates market value. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer-specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not opening, or a security trading halt; and (iv) pricing of a nonvalued security and a restricted or nonpublic security. Special valuation considerations may apply with respect to odd-lot fixed-income transactions which, due to their small size, may receive evaluated prices by pricing services which reflect a large block trade and not what actually could be obtained for the odd-lot position. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE.
Valuation Inputs Summary
FASB ASC 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. These inputs are summarized into three broad levels:
Level 1 Unadjusted quoted prices in active markets the Fund has the ability to access for identical assets or liabilities.
Level 2 Observable inputs other than unadjusted quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Assets or liabilities categorized as Level 2 in the hierarchy generally include: debt securities fair valued in accordance with the evaluated bid or ask prices supplied by a pricing service; securities traded on OTC markets and listed securities for which no sales are reported that are fair valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds Trustees; certain short-term debt securities with maturities of 60 days or less that are fair valued at amortized cost; and equity securities of foreign issuers whose fair value is determined by using systematic fair valuation models provided by independent third parties in order to adjust for stale pricing which may occur between the close of certain foreign exchanges and the close of the NYSE. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, swaps, investments in unregistered investment companies, options, and forward contracts.
Level 3 Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Funds own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the fiscal year.
The inputs or methodology used for fair valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2015 to fair value the Funds investments in securities and other financial instruments is included in the Valuation Inputs Summary in the Notes to Schedule of Investments and Other Information.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the period. The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Fund is informed of
Janus Investment Fund | 27 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Indemnifications
In the normal course of business, the Fund may enter into contracts that contain provisions for indemnification of other parties against certain potential liabilities. The Funds maximum exposure under these arrangements is unknown, and would involve future claims that may be made against the Fund that have not yet occurred. Currently, the risk of material loss from such claims is considered remote.
Dividends and Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The Fund may treat a portion of the amount paid to redeem shares as a distribution of investment company taxable income and realized capital gains that are reflected in the net asset value. This practice, commonly referred to as equalization, has no effect on the redeeming shareholder or a Funds total return, but may reduce the amounts that would otherwise be required to be paid as taxable dividends to the remaining shareholders. It is possible that the Internal Revenue Service (IRS) could challenge the Funds equalization methodology or calculations, and any such challenge could result in additional tax, interest, or penalties to be paid by the Fund.
The Fund may make certain investments in real estate investment trusts (REITs) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Funds tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
2. Other Investments and Strategies
Additional Investment Risk
The financial crisis in both the U.S. and global economies over the past several years has resulted, and may continue to result, in a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks, took steps to support the financial markets. The withdrawal of this support, a failure of measures put in place to respond to the crisis, or investor perception that such efforts were not sufficient could each negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries continue to impact many aspects of
28 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. As a result, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Funds ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) provided for widespread regulation of financial institutions, consumer financial products and services, broker-dealers, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expanded federal oversight in the financial sector, including the investment management industry. Many provisions of the Dodd-Frank Act remain pending and will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (EU) have experienced, and may continue to experience, severe economic and financial difficulties. In particular, many EU nations are susceptible to economic risks associated with high levels of debt, notably due to investments in sovereign debt of countries such as Greece, Italy, Spain, Portugal, and Ireland. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts. Many other issuers have faced difficulties obtaining credit or refinancing existing obligations. Financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit. As a result, financial markets in the EU experienced extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world. Greece, Ireland, and Portugal have already received one or more "bailouts" from other Eurozone member states, and it is unclear how much additional funding they will require or if additional Eurozone member states will require bailouts in the future. One or more countries may abandon the euro and/or withdraw from the EU, placing its currency and banking system in jeopardy.
Certain areas of the world have historically been prone to and economically sensitive to environmental events such as, but not limited to, hurricanes, earthquakes, typhoons, flooding, tidal waves, tsunamis, erupting volcanoes, wildfires or droughts, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Funds investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (counterparty risk). Counterparty risk may arise because of the counterpartys financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterpartys inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Funds exposure to counterparty risk with respect to financial assets and liabilities approximates its carrying value. See the "Offsetting Assets and Liabilities" section of this Note for further details.
The Fund may be exposed to counterparty risk through participation in various programs, including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Funds cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capitals analysis of a counterpartys creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Janus Investment Fund | 29 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
Offsetting Assets and Liabilities
The Fund presents gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instruments payables and/or receivables with collateral held and/or posted and create one single net payment. For financial reporting purposes, the Fund does not offset certain derivative financial instruments payables and receivables and related collateral on the Statement of Assets and Liabilities.
The following table presents gross amounts of recognized assets and/or liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable). For corresponding information grouped by type of instrument, see the Fund's Schedule of Investments.
Offsetting of Financial Assets and Derivative Assets | |||||
Counterparty | Gross
Amounts | Offsetting Asset or Liability(a) | Collateral Pledged(b) | Net Amount | |
Deutsche Bank AG | $ 3,984,463 | $ - | $ (3,984,463) | $ - | |
(a) Represents the amount of assets or liabilities that could be offset with the same counterparty under master netting or similar agreements that management elects not to offset on the Statement of Assets and Liabilities. | |||||
(b) Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
Real Estate Investing
To the extent that real estate-related securities may be included in the Funds named benchmark index, INTECHs mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, corporate bonds, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian
30 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. The Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause the Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Fund and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Fund and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Fund may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments. Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as Affiliated securities lending income, net on the Statement of Operations. As of December 31, 2015, securities lending transactions accounted for as secured borrowings with an overnight and continuous contractual maturity are $3,984,463. Gross amounts of recognized liabilities for securities lending (collateral received) as of December 31, 2015 is $4,085,295, resulting in the net amount due to the counterparty of $100,832.
3. Investment Advisory Agreements and Other Transactions with Affiliates
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The Funds contractual investment advisory fee rate (expressed as an annual rate) is 0.50%.
INTECH Investment Management LLC (INTECH) serves as subadviser to the Fund. As subadviser, INTECH provides day-to-day management of the investment operations of the Fund subject to the general oversight of Janus Capital. Janus Capital owns approximately 97% of INTECH.
Janus Capital pays INTECH a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (net of any fee waivers and expense reimbursements).
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund or reimburse expenses in an amount equal to the amount, if any, that the Funds normal operating expenses in any fiscal year, including the investment advisory fee, but excluding the 12b-1 distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), transfer agent fees and expenses payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate of 0.79%. Janus Capital has agreed to continue the waiver until at least November 1, 2016. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as Excess Expense Reimbursement on the Statement of Operations.
Janus Investment Fund | 31 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
Janus Services LLC (Janus Services), a wholly-owned subsidiary of Janus Capital, is the Funds transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund. Janus Services is not compensated for its services related to the shares, except for out-of-pocket costs. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Certain, but not all, intermediaries may charge administrative fees (such as networking and omnibus) to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships. The Funds Trustees have set limits on fees that the Funds may incur with respect to administrative fees paid for omnibus or networked accounts. Such limits are subject to change by the Trustees in the future. These amounts are disclosed as Transfer agent networking and omnibus fees on the Statement of Operations.
The Funds Class D Shares pay an administrative services fee at an annual rate of 0.12% of the average daily net assets of Class D Shares for shareholder services provided by Janus Services. Janus Services provides or arranges for the provision of shareholder services including, but not limited to, recordkeeping, accounting, answering inquiries regarding accounts, transaction processing, transaction confirmations, and the mailing of prospectuses and shareholder reports. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of the Funds Class S Shares and Class T Shares for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Fund. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of the Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares. These amounts are disclosed as Transfer agent administrative fees and expenses on the Statement of Operations.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (NSCC) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to the Funds Class D Shares. In addition to the administrative fees discussed above, Janus Services receives reimbursement for out-of-pocket costs it incurs for serving as transfer agent and providing, or arranging for, servicing to shareholders. These amounts are disclosed as Other transfer agent fees and expenses on the Statement of Operations.
Under a distribution and shareholder servicing plan (the Plan) adopted in accordance with Rule 12b-1 under the 1940 Act, the Fund pays the Trusts distributor, Janus Distributors LLC (Janus Distributors), a wholly-owned subsidiary of Janus Capital, a fee for the sale and distribution and/or shareholder servicing of the Shares at an annual rate of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Under the terms of the Plan, the Trust is authorized to make payments to Janus Distributors for remittance to retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries, as compensation for distribution and/or shareholder services performed by such entities for their customers who are investors in the Fund. These amounts are disclosed as 12b-1 Distribution and shareholder servicing fees on the Statement of Operations. Payments under the Plan are not tied exclusively to actual 12b-1 distribution and shareholder service expenses, and the payments may exceed 12b-1 distribution and shareholder service expenses actually incurred. If any of the Funds actual 12b-1 distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year,
32 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
the Fund will be refunded the difference. Refunds, if any, are included in 12b-1 Distribution fees and shareholder servicing fees in the Statement of Operations.
Janus Capital furnishes certain administration, compliance, and accounting services for the Fund and is reimbursed by the Fund for certain of its costs in providing those services (to the extent Janus Capital seeks reimbursement and such costs are not otherwise waived). The Fund also pays for salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. The Fund pays these costs based on out-of-pocket expenses incurred by Janus Capital, and these costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to the Fund. These amounts are disclosed as Fund administration fees on the Statement of Operations. In addition, employees of Janus Capital and/or its affiliates may serve as officers of the Trust. Some expenses related to compensation payable to the Fund's Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $296,867 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2015. The Fund's portion is reported as part of Other expenses on the Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the Deferred Plan) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is included as of December 31, 2015 on the Statement of Assets and Liabilities in the asset, Non-interested Trustees deferred compensation, and liability, Non-interested Trustees deferred compensation fees. Additionally, the recorded unrealized appreciation/(depreciation) is included in Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees deferred compensation on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2015 are included in Non-interested Trustees fees and expenses on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $151,400 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2015.
Pursuant to the provisions of the 1940 Act and related rules, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the Investing Funds). As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated money market funds or cash management pooled investment vehicles and the Investing Funds. Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered product compliant with Rule 2a-7 under the 1940 Act. There are no restrictions on the Fund's ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. The units of Janus Cash Liquidity Fund LLC are not charged any management fee, sales charge or service fee.
Any purchases and sales, realized gains/losses and recorded dividends from affiliated investments during the period ended December 31, 2015 can be found in a table located in the Notes to Schedule of Investments and Other Information.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2015, Janus Distributors retained upfront sales charges of $5,843.
A contingent deferred sales charge (CDSC) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were
Janus Investment Fund | 33 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 2015.
A CDSC of 1.00% will be deducted with respect to Class C Shares redeemed within 12 months of purchase, unless waived. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class C Shares redeemed. During the period ended December 31, 2015, redeeming shareholders of Class C Shares paid CDSCs of $70.
As of December 31, 2015, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
Class | % of Class Owned |
| % of Fund Owned |
| |
Class A Shares | - | % | - | % | |
Class C Shares | - | - | |||
Class D Shares | 1 | - | * | ||
Class I Shares | - | - | |||
Class N Shares | 95 | 24 | |||
Class S Shares | 1 | - | * | ||
Class T Shares | - | - | |||
* Less than 0.50% |
|
|
|
|
In addition, other shareholders, including other funds, individuals, accounts, as well as the Funds portfolio manager(s) and/or investment personnel, may from time to time own (beneficially or of record) a significant percentage of the Funds Shares and can be considered to control the Fund when that ownership exceeds 25% of the Funds assets (and which may differ from control as determined in accordance with accounting principles generally accepted in the United States of America).
34 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
4. Federal Income Tax
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses, and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2015 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/depreciation on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
Federal Tax Cost | Unrealized | Unrealized | Net Tax Appreciation/
|
$ 268,482,374 | $32,806,277 | $ (8,399,371) | $ 24,406,906 |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2015, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. Under the Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during those years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The following table shows these capital loss carryovers.
Capital Loss Carryover Schedule | |||
For the year ended June 30, 2015 | |||
June 30, 2018 | Accumulated Capital Losses | ||
| $ (65,625,412) | $ (65,625,412) |
Janus Investment Fund | 35 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
5. Capital Share Transactions
Period ended December 31, 2015 | Year ended June 30, 2015(1) | |||||
|
| Shares | Amount |
| Shares | Amount |
Class A Shares: | ||||||
Shares sold | 1,006,319 | $ 9,101,823 | 268,823 | $ 2,677,809 | ||
Shares From the Acquisition (See Note 7) | - | - | 793,602 | 7,407,803 | ||
Reinvested dividends and distributions | 4,109 | 37,020 | 61,449 | 598,579 | ||
Shares repurchased | (322,449) | (2,934,765) | (254,006) | (2,403,094) | ||
Net Increase/(Decrease) | 687,979 | $ 6,204,078 |
| 869,868 | $ 8,281,097 | |
Class C Shares: | ||||||
Shares sold | 804,520 | $ 7,160,177 | 98,334 | $ 983,056 | ||
Shares From the Acquisition (See Note 7) | - | - | 439,433 | 4,019,189 | ||
Reinvested dividends and distributions | 1,156 | 10,194 | 13,351 | 128,430 | ||
Shares repurchased | (48,110) | (430,977) | (127,701) | (1,234,464) | ||
Net Increase/(Decrease) | 757,566 | $ 6,739,394 |
| 423,417 | $ 3,896,211 | |
Class D Shares: | ||||||
Shares sold | 384,988 | $ 3,447,468 | 455,035 | $ 4,549,864 | ||
Reinvested dividends and distributions | 2,165 | 19,267 | 38,795 | 356,138 | ||
Shares repurchased | (101,036) | (907,435) | (121,952) | (1,202,137) | ||
Net Increase/(Decrease) | 286,117 | $ 2,559,300 |
| 371,878 | $ 3,703,865 | |
Class I Shares: | ||||||
Shares sold | 1,859,428 | $ 16,698,894 | 1,204,978 | $ 12,105,389 | ||
Shares From the Acquisition (See Note 7) | - | - | 14,348,474 | 133,590,028 | ||
Reinvested dividends and distributions | 21,185 | 190,664 | 690,138 | 6,941,307 | ||
Shares repurchased | (4,787,357) | (44,037,178) | (12,894,101) | (144,543,836) | ||
Net Increase/(Decrease) | (2,906,744) | $(27,147,620) |
| 3,349,489 | $ 8,092,888 | |
Class N Shares: | ||||||
Shares sold | 140,000 | $ 1,259,584 | 9,747,550 | $109,572,827 | ||
Reinvested dividends and distributions | 36,589 | 327,842 | 1,445,934 | 14,125,268 | ||
Shares repurchased | (576,889) | (5,211,399) | (2,869,864) | (37,703,035) | ||
Net Increase/(Decrease) | (400,300) | $ (3,623,973) |
| 8,323,620 | $ 85,995,060 | |
Class S Shares: | ||||||
Shares sold | 46,002 | $ 416,175 | 1,159,835 | $ 10,924,328 | ||
Shares From the Acquisition (See Note 7) | - | - | 300,433 | 2,793,333 | ||
Reinvested dividends and distributions | 2,113 | 18,977 | 29,723 | 276,382 | ||
Shares repurchased | (821,520) | (7,383,023) | (54,900) | (500,017) | ||
Net Increase/(Decrease) | (773,405) | $ (6,947,871) |
| 1,435,091 | $ 13,494,026 | |
Class T Shares: | ||||||
Shares sold | 4,389,333 | $ 39,237,819 | 1,115,400 | $ 11,946,817 | ||
Shares From the Acquisition (See Note 7) | - | - | 7,369,994 | 67,907,122 | ||
Reinvested dividends and distributions | 38,718 | 344,588 | 819,860 | 7,988,453 | ||
Shares repurchased | (2,012,218) | (18,020,047) | (1,513,427) | (15,073,159) | ||
Net Increase/(Decrease) | 2,415,833 | $ 21,562,360 |
| 7,791,827 | $ 72,769,233 | |
(1) | Period from December 22, 2014 (inception date) through June 30, 2015 and October 28, 2014 (inception date) through June 30, 2015 for Class D Shares and Class N Shares, respectively. |
6. Purchases and Sales of Investment Securities
For the period ended December 31, 2015, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
Purchases of | Proceeds from Sales | Purchases of Long- | Proceeds from Sales |
$116,098,648 | $ 118,611,639 | $ - | $ - |
36 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund (unaudited)
Notes to Financial Statements
7. Fund Acquisition
The Board of Trustees of Janus Investment Fund approved an Agreement and Plan of Reorganization that provided for the merger of INTECH U.S. Managed Volatility Fund II (formerly named INTECH U.S. Growth Fund) with and into INTECH U.S. Managed Volatility Fund (the Merger), effective at the close of business on April 24, 2015. The Merger is designed to streamline the Janus mutual funds platform by consolidating similar funds. The Merger was tax-free for federal income tax purposes; therefore, shareholders should not realize a tax gain or loss upon receipt of shares issued in connection with the Merger. The table below reflects the Merger activity.
Target Funds Shares Outstanding Prior to Merger | Target Funds Net Assets Prior to Merger | Acquiring Funds Shares Issued in Merger | Acquiring Funds Net Assets Prior to Merger | Combined Net Assets after Merger | Target Funds Unrealized Appreciation/(Depreciation) Prior to Merger |
$9,459,900 | $215,750,123 | $23,255,480 | $82,941,918 | $298,692,041 | $28,997,559 |
Assuming the Merger had been completed on July 1, 2014, the pro forma results of operations for the year ended June 30, 2015, are as follows:
Net investment income $6,215,220
Net gain/(loss) on investments $79,207,619
Net increase/(decrease) in net assets resulting from operations $85,422,839
8. Subsequent Event
Management has evaluated whether any events or transactions occurred subsequent to December 31, 2015 and through the date of issuance of the Funds financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds financial statements.
Janus Investment Fund | 37 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds website at janus.com/proxyvoting; and (iii) on the SECs website at http://www.sec.gov. Additionally, information regarding the Funds proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/ proxyvoting and from the SECs website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds Form N-Q: (i) is available on the SECs website at http://www.sec.gov; (ii) may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund and Janus Aspen Series, each of whom serves as an independent Trustee (the Trustees), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a Fund and collectively, the Funds), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 9, 2015, based on the Trustees evaluation of the information provided by Janus Capital, the subadvisers, and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from either January 1 or February 1, 2016 through January 1 or February 1, 2017, respectively, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultants conclusions and opinions that arose during, and were included as part of, the Trustees consideration of the agreements. Management fees, as used herein, reflect actual annual advisory fees and any administration fees (excluding out of pocket costs), net of any waivers.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective, strategies and policies of each Fund, and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capitals role as administrator to the Funds, noting that Janus Capital does not receive a fee
38 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds investment restrictions, providing support services for the Trustees and Trustee committees, and overseeing communications with shareholders and the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds and Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed a number of institutional competitive advantages that should enable it to provide superior investment and service performance over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Funds portfolio manager(s), and also reviewed information comparing each Funds performance with the performance of comparable funds and peer groups identified by Broadridge Financial Solutions, Inc. (Broadridge), an independent data provider, and with the Funds benchmark index. In this regard, the independent fee consultant found that the overall Funds performance has been strong: for the 36 months ended September 30, 2015, approximately 70% of the Funds were in the top two Broadridge quartiles of performance, and for the 12 months ended September 30, 2015, approximately 61% of the Funds were in the top two Broadridge quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
· For Janus Flexible Bond Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Unconstrained Bond Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, the steps Janus Capital had taken or was taking to improve performance, and its limited performance history.
· For Janus High-Yield Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Multi-Sector Income Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Real Return Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Janus Investment Fund | 39 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Short-Term Bond Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Government Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
· For Janus Money Market Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance.
Asset Allocation Funds
· For Janus Global Allocation Fund Conservative, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Allocation Fund Growth, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Global Allocation Fund Moderate, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Alternative Fund
· For Janus Diversified Alternatives Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
Value Funds
· For Perkins International Value Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Perkins Global Value Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Large Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Mid Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
· For Perkins Select Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
40 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Perkins Small Cap Value Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or were taking to improve performance, and that the performance trend was improving.
· For Perkins Value Plus Income Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
Mathematical Funds
· For INTECH Emerging Markets Managed Volatility Fund, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For INTECH Global Income Managed Volatility Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH International Managed Volatility Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital and INTECH had taken or were taking to improve performance.
· For INTECH U.S. Core Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For INTECH U.S. Managed Volatility Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
Growth and Core Funds
· For Janus Balanced Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Contrarian Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Enterprise Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Forty Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Growth and Income Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and in the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Research Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Janus Investment Fund | 41 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
· For Janus Triton Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Twenty Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Venture Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
Global and International Funds
· For Janus Asia Equity Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving.
· For Janus Emerging Markets Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Life Sciences Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Real Estate Fund, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Research Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Select Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Global Technology Fund, the Trustees noted that the Funds performance was in the third Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance and the steps Janus Capital had taken or was taking to improve performance.
· For Janus International Equity Fund, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Overseas Fund, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
42 | DECEMBER 31, 2015 |
INTECH U.S. Managed Volatility Fund
Additional Information (unaudited)
Janus Aspen Series
· For Janus Aspen Balanced Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Enterprise Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Forty Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Allocation Portfolio Moderate, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Research Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 36 months ended May 31, 2015 and the second Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Technology Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the third Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Global Unconstrained Bond Portfolio, the Trustees noted that, due to limited performance for the Fund, performance history was not a material factor.
· For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Funds performance was in the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Janus Portfolio, the Trustees noted that the Funds performance was in the second Broadridge quartile for the 36 months ended May 31, 2015 and the first Broadridge quartile for the 12 months ended May 31, 2015.
· For Janus Aspen Overseas Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance.
· For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Funds performance was in the bottom Broadridge quartile for the 36 months ended May 31, 2015 and the bottom Broadridge quartile for the 12 months ended May 31, 2015. The Trustees noted the reasons for the Funds underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or were taking to improve performance.
In consideration of each Funds performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, including steps taken to improve performance, the Funds performance warranted continuation of the Funds investment advisory and subadvisory agreement(s).
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by Broadridge, an independent data provider. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration, but excluding out-of-pocket costs) fees for many of the Funds, after applicable waivers,